US companies were doing well in the first quarter of 2022. So far, 60 companies listed in S&P 500 have reported their earnings, 80% of them exceeded profit expectations. Typically, an average of 66% was beating the expectations. 80% means, really a lot. Companies like P&G, and IBM have all gained their value after the report.
P&G was up 2.7% and IBM was up 7.2%.
However, as you may have noticed, those high tech well-positioned IT platform companies were all big losers.
Netflix was losing 37% of its value today. Walt Disney was losing 5.6%, Warner Bros Discovery was losing 6.1%. Amazon was losing 2.6%. Meta Platforms were losing 7.8%.
What’s going on with those high valued well-going companies?
Heavy competition might be the biggest reason for the loss and another reason might be the global recessions.
Poor people or rich people pay the same subscriptions fee on those streaming platforms. Mr. Tim Cook is not paying over $100 per month for the Netflix account because he’s the CEO of Apple.
A minimum wage restaurant server is paid the same fee as Mr. Cook if he even has a…
