|why the capitalist economy will collapse.
||[Jul. 17th, 2002|04:23 pm]
3 big tech companies announced their quarterly earnings last night.|
Apple met analysts' expectations. Their stock price dropped 12.5%.
Intel, which has a PE ratio and a price/book value ratio twice that of Apple's, missed expecations, and announced massive layoffs. They also lied to investors and said they expect to be profitable in the future. Their stock went up 5.88%.
Motorola annouced that it lost over 2 billion dollars. They didn't announce any new layoffs, as they just has massive layoffs earlier this month. They also claimed they expect to be profitable in the next quarter. Their P/E ratio is nonexistant, as they have no earnings. Their stock went up 4.27%.
The lesson is that even after Enron and WorldCom, people will continue to reward the companies that do poorly but pretend everything is ok, and punish the ones that run their business well. God bless America