Tuesday, April 19, 2011

Earnings are Terrible for Techs

If you've seen our favorite TV show, and if you can decifer the fog as we can, you can see revenues "appear" to be "OK" while earnings "kind-of" appear to be "OK" but just barely.

A Silicon Valley professional would point out that these firms keep a little stash of "revenue" in case they need it. But once you have to go to the "stash" then your earnings are kind of lousy.

But you just make up by saying the outlook is "OK."

Then maybe your stock stays up for a short time while you wait for someone else to say the sky is falling, and then you decide to say that it's in fact falling now that you look again!