In recent years, there has been a tectonic shift as Wall Street brokers leave their big firms to set up shop on their own. Generally speaking, such a move is bad news for the biggest clients as they are able to participate in hot IPOs and other transactions, and they… Read More

Whenever a company decides to leave the stock market and go private, you hear an oft-heard lament: “Wall Street just wants us to deliver the goods this quarter, and they could care less about the future.” Thankfully, Amazon.com’s (Nasdaq: AMZN) Jeff Bezos has never worried too much about that, and has a history of sacrificing short-term results for long-term growth. That has led to some grumbling and share price volatility at times, but you have to admire his company’s long-term track record. Sales, which some had thought might plateau when they reached $10 billion in 2006, are likely to exceed… Read More

Whenever a company decides to leave the stock market and go private, you hear an oft-heard lament: “Wall Street just wants us to deliver the goods this quarter, and they could care less about the future.” Thankfully, Amazon.com’s (Nasdaq: AMZN) Jeff Bezos has never worried too much about that, and has a history of sacrificing short-term results for long-term growth. That has led to some grumbling and share price volatility at times, but you have to admire his company’s long-term track record. Sales, which some had thought might plateau when they reached $10 billion in 2006, are likely to exceed $30 billion this year. Yet to get to $40 billion or even $50 billion in sales, Amazon needs to keep spending now to build new avenues to growth. But in the myopic world of Wall Street, rising expenses are a sin. Shares of Amazon.com are off more than -10% Friday morning after the company delivered an unexpectedly high rate of spending when quarterly results were released Thursday night. Pro forma operating income of $406 million badly trailed the $442 million consensus forecast. Concerns… Read More

I have a chart that I want to show you. It’s nothing complex or hard to understand. In fact, I take pride in how simple it is to read. You’ll be surprised that the information shown in this chart is the result of just six months of… Read More

Success brings its own pitfalls. The better a company does, the more investors love it. And they keep on showing their love by pushing up shares until the price-to-earnings ratio (P/E) moves into nosebleed territory. One… Read More

The United States and China have been locked in a dysfunctional relationship for far too long. We here in the states have been consuming Chinese imports at an ever-rising rate. And China has helped fuel our addiction by keeping its goods very cheap. It’s managed this by pouring much of… Read More

Anytime Goldman Sachs (NYSE: GS) is involved in something, investors take notice. Goldman has received plenty of bad press lately, but the fact remains that they are Wall Street’s most powerful name. They are among the largest global investment bank in… Read More

In recent weeks and months, we’ve seen a range of companies report solid quarterly results, yet their shares have steadily fallen in sympathy with the broader market. More than a few company executives have grumbled on conference calls that their company’s shares don’t get… Read More

Capitulation. That’s an often-used word on Wall Street to describe when investors completely give up and throw in the towel. It’s not always a bad thing: Some investors love to find situations where a stock has been so crushed that shares are… Read More

Shares of copper and gold miner Freeport McMoran (NYSE: FCX) are trading off of their early highs, but still up a respectable +4%, thanks to surprisingly strong second-quarter profits. Quarterly results for this mining giant are based on two simple… Read More

Get ready for the China collapse. Virtually every major media outlet has weighed in with dire reports that the Chinese economic miracle is about to come to an abrupt end. These Chicken Littles note that any strong asset class that looks like a bubble must come crashing down. In the… Read More