Were we supposed to be worried about earnings season? Sure, it hasn't been a banner quarter for many companies, but have you seen the strength in the consumer-facing darlings that have stepped up to the plate over the past week?
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Apple
(NASDAQ:AAPL) blew past Wall Street expectations. -
eBay
(NASDAQ:EBAY) blew past Wall Street expectations. -
Chipotle Mexican Grill
(NYSE:CMG) blew past Wall Street expectations.
If this is a recession, imagine what the recovery will be like!
Well, let's be fair here. These companies are beating expectations that were already hosed down in recent months. In eBay's case, earnings actually clocked in below last year's profitability.
However, this is a refreshing sign for investors. Even with pessimism moving in like a thick fog, there are lighthouses out there. If this is as bad as earnings seasons will get during this cyclical trough, it wasn't bad at all for its consumer-based leaders.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
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Yahoo!
(NASDAQ:YHOO) is another company that clocked in ahead of analyst targets, but the online portal isn't playing it safe. It announced that it would be laying off another 5% of its workforce in the coming weeks. -
Sun Microsystems
(NASDAQ:JAVA) didn't have to stay single for long. Just days after IBM(NYSE:IBM) ended negotiations with the tech giant, enterprise software champ Oracle(NASDAQ:ORCL) stepped up with a $7.4 billion exit strategy. It's a win-win as Sun gets to save face with its shareholders, while Oracle's Larry Ellison gets something new to eat. Man, is there anything that Oracle won't buy?
Until next week, I remain,
Rick Munarriz
