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This week's company earnings is going the other way then I expected. When I saw SCHW's stock price go up, I was really surprised because JPM and Citi didn't really move much last friday. I was kind of dumbfounded until I eventually nodded my head and said to myself, 'yes, this is because Schwab was sold off in a such fearful sentiment, which was irrational, and now when they post a good earnings/sales, it just makes sense to go up to its intrinsic value - it was underappreciated for so long!'. And I was kinda sore, because I bought SCHW about a month ago, but decided that it was a risky bet and moved the money to buy Nextera Energy instead. Now I am remorseful with my decision.
Then today, Tesla's earning came out - it was a good beat, both sales and EPS! yet their operating margin went down, and that made the stock price go down by a small bit. (4%)
I don't know what to say about this, because I have no idea how Tesla will do, and even less confidence in how the sentiment is already priced in the stock. In the long term I do think Tesla might be the 'Apple' in the automotive market, but when everyone thinks about the best case, how can the stock do well? People did not think good of Apple when Steve Jobs died. So did I, I thought Apple products were becoming overly expensive and consumers would deny buying them - but they proved me wrong, real wrong.
Now next week we have the rest of Big Techs earnings date, and this might have a huge impact on the general market. But I think selling now might be a bad decision, so I am deciding to hold onto my portfolio for now. I can't wait how my thought will turn 180 degrees by the end of this month.
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