Just today : Dell posts profit gain of 15.5% ⢠Hewlett-Packard reports 6% profit gain ⢠Gap posts profit, unveils buyback ⢠Marvell Tech quarterly profit triples ⢠Aeropostale reports jump in quarterly profit
Another company warned that we can only double our sales and profit for next quarter.Not more. Shame on them.
Some people had jobs who were not qualified and no they are laid off. They are still looking for the same positions. That will not happen. Like a 19 old girl with a high school degree was senior marketing manager or .... Do you know anyone with a solid nusring degree? If you know 10000 of them, I have jobs for them. If you are not qualifed and had fancy jobs because of whatever, you have to rethink about the positions that you are applying otherwise you will be out of job no matter what.
Most of those gains are from cutting costs, and those "blowout" numbers are measured against laughably low comps. Cutting costs = cutting jobs You can only cut so far.
Profits might be up but most S&P 500 stocks still have very high P/Es so there is little upside. The market is fully priced.
I also believe S&P P/E is very low compared to what they were in the last 10 years. Most of tech stocks have P/E of less than 20.
I cannot prove that I am right or you are wrong. Companies are not welfare and charity organizations. You cannot expect them to hire more than they need or hire 10% of unemployed that 5% of them have no talent. You should buy the stock if a company lays off people and its revenue goes up. Remember, not only their profit is up their sales is also up too. Check out ADI, they had history record sales. Tell me how you can increase sales by laying off people?