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 Netflix account. The vast number of the customers of those huge platform businesses are normal individual people around the world.
Netflix and Walt Disney are losing their normal individual customers because they don’t earn enough money to pay the monthly fee. The fundamentals of those streaming platforms are changing their shapes rapidly because of the possible global economic recessions. People around the world don’t even have enough money for their Netflix accounts anymore. Not agree with this doomed story?
The current Greece government is one the most right-winged guys in the EU but they’re rising minimum wages again this year. It’s their 2nd time in 2022 to raise the minimum wages.
As you may know, those right-winged people hate those terms like minimum wages or social welfare but they are doing that otherwise Greece can’t maintain its system anymore.