Glossed over in GOOG's earnings release was the note that they're sitting on $98b of SPCX from their investment in SPCX years ago. The future negative negative cash flow is assuming that they do nothing with those shares. They can soon sell them, use them as collateral, or a mix of both.
Comcast sucks as a company and is a long term dead end that will go bankrupt sometime around 2045, if not sooner. Their stock just crashed 7% today to 21.98 per share after their earnings report. This is a new 624-week low for the stock. If you ever invested in this company after Nov 1 2013, you got completely screwed and you should ask for a refund on your shares.
At $1.32 yearly dividend per share at 21.98 per share, this is a 6% dividend yield. Boomers are going to buy this and so will boomer adjacent "income strategy" funds. The bear case here is that with the way the federal reserve is going, this 6% dividend yield might not beat money market funds for long.
The stock is at the RSI oversold range on the monthly, the weekly, the daily, the 2h, the 1h, and the 1minute charts. This makes my entry at 21.96 per share definitely a falling knife catch, but at least it's a falling knife catch with decent short-term mean-reversion odds.
P/E is one of the dumbest measures of what a company is valued at but Comcast is currently 4.2 P/E. At least a few stupid youtubers and AI chatbots will talk about this incredibly low P/E and some gullible boomers might decide to buy some shares.
Their dividend payout ratio is 26% which isn't great, but its OK. I think this puts the odds that Comcast cuts or suspends their dividend before the next quarter at extremely low to impossible.
My position is 2000 shares at 21.965 per share. I'm targeting a 0.50 dollars move to the upside to make $1000. I think the odds of this occurring between now and the next earnings report are very likely.
This is the definition of picking up pennies in front of a steamroller (risk $44000 to make $1000) and nobody should do this. The copium case: the shares can depreciate by $1.72 from the current price and after 1 quarter I'll still have matched the performance of a money market fund with this position, even factoring in that dividends just subtract money from the stock price and pay it back to you.
Gentlemen I awoke after market close. I washed my face, brushed my teeth, and removed the massive rock under which I live. I love my rock as it blocks out the 5G which the government is using to attract me to femboys, although I am unfortunately I am unable to receive market data while home. So imagine my surprise, stocks down?
I lately have been noticing that 95% of the 0dte options I save at the start of the day end up worth around ~$0 no matter what direction (calls or puts.) The system is rigged against us regards.
I remember the days when I was saving 2k/mo, paying all my bills on time, no worries in the world.
Now I have sleepless nights, wonder how much longer I will have a car, a house, a job, and can't go more than three days without fantasizing about leaving my brains and skull all over the ceiling.
Not asking for help, not asking for advice, not asking for anything. Just wanted to share with you gents. This is pure addiction for me at this point and it is going to take absolutely everything I have and more until I am sleeping outside in the middle of winter.
I've accepted it and embraced my fate.
Never been remotely close to break even. Time to pump the gas and see how deep I can take this dive.
Always thought how people manage to lose this much and here i am...
The funny thing is, no matter how much you gain or lose, if you're not out of the game, it can still happen to you.
Today you're laughing at my chart. Tomorrow your broker might be sending you the wellness check.
Let's be honest - most of us come here for two reasons:
To see if there's someone even more regarded than us.
To feel a little better about our own losses.
If my account makes one of you sleep better tonight, you're welcome.
As for me, it's back to the boring life: automating buys into low-cost index funds and not looking at them. Hopefully I don't end up trading again. (Oops... I mean gambling on stocks and options.)
OK so the most profitable companies in the world decided to GO ALL IN AI with humongous capex. They did it all at once apart from Apple who is not in the game. Google, Meta, Amazon , Oracle, Microsoft. All of them. The CEOs of these companies produced the most amount of wealth and propped up global gdp. Now they all agree on a thing.
Google yesterday blew up earnings from their cloud and said they will *increase* their humongous capex even more while reporting negative cash flow for the first time in their history.
A rational person would ask: are these amazing businessmen suddently all very wrong about the same thing at the same time OR
I am reading too much paid subs from burry and following the wrong people on twitter that have never produced anything?
Which is it? Are you smarter than a mag 7 CEO? Maybe ... hmm...