Transcript:
Tom Vaughan:
Hello, everybody, welcome to Thursday, the S&P 500 was down 2.4%. Today really was kicked off by the earnings report last night from meta platforms, which is formerly known as Facebook, they gave some pretty poor guidance going forward as to what they saw. They’ve been hit pretty heavily by the Apple, new privacy policies and what have you, because it can’t track you around on the internet as much, which affects their ad revenue. They lost $10 billion on their meta Metaverse project as far as that goes and said that they probably lose even more before they can really make, you know, headway into that to make a big investment. They’re trying to kind of pivot the company to a certain degree. And so I think one of the things that’s really important to understand about this is that no one stock comes down. It’s a big stock, and it’s a big story. And a lot of the other stocks come down today also. And so, you know, what’s the relationship there? And there really isn’t a great one, in my opinion, you know, what I look for is economic issues. When I look at what happened with meta, I don’t see an economic issue per se, the things that they’re dealing with weren’t because the economy’s doing poorly, just it was very company specific. So, you know, again, the statistics are pretty, pretty interesting, average downturn without a recession is 15%.
Average downturn with a recession is 36%. So you really want to focus on that economic impact. And so far, the earnings reports have been awesome, so far across the board, with a few exceptions, including this one. And this is a big one. But again, it’s not caused by an economic issue. So I think things are going to be okay here, probably create some buying opportunities, we are getting the jobs report tomorrow, that’s supposed to be not as good as expected, probably an impact from Omicron. As far as that goes, there has been some impact from that. So, you know, might be some rockiness in the market. But I still think things are in play here. To kind of create this recovery. We had four great up days in a row having a few that don’t do as well for a while, okay, as part of the process. Sometimes, again, you need a little bit more downturn to get some, you know, buying to come in and start to start to reverse it and go back up again. Generally doesn’t go up in a straight line. So not a bad day all together. Really. I know it seems like it but I think this will blow over pretty quickly. I look forward to seeing you if you want to come see my show on YouTube talk money with Tom 1215 to one first part of that shell cover a summary of what I saw for the market for the week. Look forward to seeing you then. Thank you very much.