Before English, After Math
Tim Knight | Apr 30, 2021 12:15AM ET
Well, Amazon (NASDAQ:AMZN) blew the doors off everyone Thursday afternoon, just like Apple (NASDAQ:AAPL) did on Wednesday afternoon (although I’d like to point out that 50% of the pop has already vanished).
Sparkly, doe-eyed imp that I am, I’d also like to point out that AAPL actually wound up lower in price Thursday, after having doubled their profits and shocking everyone with their amazing results. In other words, all the good news is way more than priced in, and when the glorious day comes that bad news comes back into fashion, these stocks are going to be destroyed to the collective tune of trillions of dollars.
Another household name that reported after Thursday’s close was Twitter (NYSE:TWTR), which plunged. Just now, I went off to find out TWTR’s P/E ratio so I could make some snarky remark, but since the company makes absolutely no profit at all, I am denied the privilege.
Get The News You Want
As earnings season dies down, it’s going to be replaced by politics. And by politics I am not talking about the kind of stuff that poisoned this place a year ago (and, through heroic efforts on the part of many, including The Director, has died down and created a very civil atmosphere). I am instead referring to the legislative battles with respect to tax hikes and new government spending programs (AKA free money, to the tune of trillions).
It’s actually kind of cute that the most ambitious tax hike is $1.5 trillion—if he gets everything he wants—over a DECADE—and assuming the economy keeps going great—whereas the immediate, here-and-now spending is measured in the multiples of trillions.
It’s all pretty much pointless, but it’ll be a mildly interesting show to watch the grandstanding and chest-beating. One thing is for sure, though, and I can guarantee you this—the Internal Revenue Service is going to get vastly, vastly more powerful and brutal, and their uptrend is going to be intact for decades to come. They’ve been starved to death, and with the government beast tens of trillions of dollars in debt, and absolutely desperate for fresh revenue streams, you can bet that the federal government’s underutilized money funnel is going to get every resource imaginable to suck the blood out of one and all.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.