Hey Guys,
So the Earnings out of Home Depot and Walmart point to a very bearish next two years.
Home Depot missed Wall Street’s revenue expectations for the first time since November 2019. WMT 0.00%↑ HD 0.00%↑
Walmart’s CFO said shoppers are still buying fewer discretionary items, as grocery prices remain elevated and their future guidance even for 2024 is looking very weak.
As an investor, this means for me it’s time to sell certain things after the New Year’s mini bull-market. While my pandemic portfolio definately has its red shoots, some of my notable wins include BTAI 0.00%↑ and Chinese stocks.
BioXcel Therapeutics Inc is a company I’ve been talking about before drug design by A.I. was cool, and years before Generative A.I. came to hype the stock market. I remember when it was a penny stock, now it’s in the mid $30 range.
Home Depot and Walmart Earnings though scares me:
“The consumer is still very pressured,” he said. “And if you look at economic indicators, balance sheets are running thinner and savings rates are declining relative to previous periods. And so that’s why we take a pretty cautious outlook on the rest of the year.”
Whatever you think about 2023, the consumer slowdown is real and it could even impact 2024 Earnings. The retail giants shared cautious full-year guidance that disappointed some investors. CNBC notes that Mall players, such as Macy’s and Nordstrom, may be in an even tougher spot.
All of this makes the mini bull market we have seen in 2023 that much stranger.
Coinbase posts $557 Million Loss
The crypto winter is still here, even with Bitcoin’s price going up a touch. As the NASDAQ falls this week, so will Bitcoin I’m betting you.
I’m not bullish on the prospects of Coinbase in 2023 either:
Coinbase is literally losing monthly active users. Coinbase's user base continues to shrink. The company said it had 8.3 million monthly transacting users (MTUs) during the fourth quarter, down from 8.5 million the prior period. Analysts were expecting 8.22 million, according to StreetAccount.
Transaction revenue fell 12% to $322 million from the previous quarter, which was below the $327 million consensus among analysts polled by StreetAccount. COIN 0.00%↑
So we have an advertising, cloud and retail slowdown amid a supply-demand labor market that is totally messed up with a war that is likely going to escalate with not such a soft landing all around. The market in March, 2023 is in for a rude awakening I predict. That’s why I’m considering selling some of my positions.
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