Bank earnings start today. Before the headlines, here is how I read any earnings report in five lines, bank or not.
1. Revenue vs last year, not vs last quarter. Growth that only shows up quarter on quarter is usually seasonal.
2. Profit vs expectations, and why. A beat because of a one time gain is not the same as a beat because customers paid more.
3. Guidance. What the company says about the next quarter moves the stock more than what it says about the last one.
4. For banks specifically: provisions. The money they set aside for loans going bad is the earliest honest signal about the real economy.
5. The stock's reaction at the close, not in the first five minutes. The first move is algorithms. The close is humans with full information.
Five lines, ten minutes, and you know more than the headline. It works for Reliance and for JPMorgan, and the same logic applies to any crypto project that publishes quarterly numbers.
Do you read the report or only the headline? Be honest.
Education only, not financial advice.
$BTC #Earnings #StockMarket #Investing
1. Revenue vs last year, not vs last quarter. Growth that only shows up quarter on quarter is usually seasonal.
2. Profit vs expectations, and why. A beat because of a one time gain is not the same as a beat because customers paid more.
3. Guidance. What the company says about the next quarter moves the stock more than what it says about the last one.
4. For banks specifically: provisions. The money they set aside for loans going bad is the earliest honest signal about the real economy.
5. The stock's reaction at the close, not in the first five minutes. The first move is algorithms. The close is humans with full information.
Five lines, ten minutes, and you know more than the headline. It works for Reliance and for JPMorgan, and the same logic applies to any crypto project that publishes quarterly numbers.
Do you read the report or only the headline? Be honest.
Education only, not financial advice.
$BTC #Earnings #StockMarket #Investing