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(Marketwatch)   Costco stock down because they paid their employees more. THOSE BASTARDS   (marketwatch.com) divider line
    More: Followup, Generally Accepted Accounting Principles, Costco Wholesale Corp. stock, Revenue, quarterly earnings, Costco, Stock, Income, share  
•       •       •

358 clicks; posted to Business » on 05 Mar 2021 at 8:30 AM (5 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



32 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2021-03-05 8:58:20 AM  
I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.
 
2021-03-05 8:59:00 AM  
Wow, it's like 18.5% off it's peak in November.  For what?  Because people might stop buying staples and pouring back into services?  This is a good company that invests in its employees to provide customer service that is a cut above its competitors.  I would have no problem holding this company for the next decade.
 
2021-03-05 9:02:06 AM  

cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.


It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?
 
2021-03-05 9:03:51 AM  
Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.
 
2021-03-05 9:07:59 AM  

Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.


A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.
 
2021-03-05 9:10:09 AM  
I just cashed my Costco Rewards certificate yesterday, so I'm getting a kick out of this.
 
2021-03-05 9:21:55 AM  
Oh god, this means they're going to lean into that Gold Membership upgrade even harder.
 
2021-03-05 9:24:17 AM  

Rapmaster2000: cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.

It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?


If Costco gives decent wages, others might start to have expectations.  From there, you may start to see a common perception that a company that requires gov't subsidy to ensure their workers receive adequate food, clothing, shelter at the same time is an exploitive one that ultimately costs everybody but the business, thus should be valued less.
 
2021-03-05 9:24:28 AM  
Rapmaster2000:It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?

It means people were expecting them to beat expectations and the market price was higher than it should have been. It sounds circular, but it's not. Analysts' published expectations are not the same as investor expectations. The market price will always adjust to the current reality.
 
2021-03-05 9:29:08 AM  

zjoik: If Costco gives decent wages, others might start to have expectations.  From there, you may start to see a common perception that a company that requires gov't subsidy to ensure their workers receive adequate food, clothing, shelter at the same time is an exploitive one that ultimately costs everybody but the business, thus should be valued less.


Counterpoint: low wages mean more value for shareholders and more money for executives.

/*invisible hand jerking off motion*
 
2021-03-05 9:31:59 AM  

dukeblue219: Rapmaster2000:It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?

It means people were expecting them to beat expectations and the market price was higher than it should have been. It sounds circular, but it's not. Analysts' published expectations are not the same as investor expectations. The market price will always adjust to the current reality.


Is that because some firms regularly beat analyst expectations indicating that the legitimate (investor) expectations should be higher than the analyst expectations?  I do wonder what the hell analysts are doing if certain companies routinely outperform the analyst expectations, or if the firms are just sandbagging their guidance.
 
2021-03-05 9:54:47 AM  

cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.


The stock market in its current for is inherently bad for society.
 
2021-03-05 10:35:10 AM  

SirMadness: Oh god, this means they're going to lean into that Gold Membership upgrade even harder.


Executive*

/Although now we are pushing people to sign up for auto-renewal this weekend and giving away a free worthless water bottle or coffee mug. Almost nobody is interested.

/Cashier here making $28+ an hour
 
2021-03-05 11:13:31 AM  
Buy the dip. Great company.
 
2021-03-05 11:17:18 AM  

Rapmaster2000: firms are just sandbagging their guidance


This happens quite a bit I think. It speaks to the quality of the management, IMO. Like, I like Beyond Meat (currently out of my position because F that valuation), but they consistently miss and then throw investors some red meat (heh). "Hey we just made a deal with McDonald's! And did you hear we're making snacks with Pepsi?!"

Costco doesn't need the bluster
 
2021-03-05 11:19:14 AM  
The stock market is focused on never ending growth in profits.

It's a continual bubble that just resets every decade or so.
 
2021-03-05 12:45:49 PM  
Clearly we need more slave labor to keep earnings up.
 
2021-03-05 12:55:38 PM  

Rapmaster2000: dukeblue219: Rapmaster2000:It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?

It means people were expecting them to beat expectations and the market price was higher than it should have been. It sounds circular, but it's not. Analysts' published expectations are not the same as investor expectations. The market price will always adjust to the current reality.

Is that because some firms regularly beat analyst expectations indicating that the legitimate (investor) expectations should be higher than the analyst expectations?  I do wonder what the hell analysts are doing if certain companies routinely outperform the analyst expectations, or if the firms are just sandbagging their guidance.


Once in a while, it means the company is cooking the books.
 
2021-03-05 12:57:20 PM  
Activist investor to complain about shareholders getting the shaft while the stakeholders are taken care of in 3.. 2.. 1..
 
2021-03-05 1:31:11 PM  

Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.


Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock
 
2021-03-05 2:04:37 PM  

bhcompy: Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.

Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock


Yeah, who buys stocks to partake in the ongoing profits a company makes?

You can't get rich quick if you do that.
 
2021-03-05 2:07:28 PM  

Bonzo_1116: bhcompy: Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.

Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock

Yeah, who buys stocks to partake in the ongoing profits a company makes?

You can't get rich quick if you do that.


There is this prevailing belief that even if you are profitable consistantly even though recession that you need to 1) have numerical profit increases every year & 2) your % profit margin must also increase every year.

Fail either of those and your business is a failure.
 
2021-03-05 2:42:16 PM  
I just bought an awesome set of kitchen knives from COSTCO so now when I say "I will CUT you" I'm not just blowing hot air out of my free-sample hole.
 
2021-03-05 3:10:25 PM  

Rapmaster2000: Wow, it's like 18.5% off it's peak in November.  For what?  Because people might stop buying staples and pouring back into services?  This is a good company that invests in its employees to provide customer service that is a cut above its competitors.  I would have no problem holding this company for the next decade.


But the less they pay their labor the more free goodies capital gains they can give to their lazy sit at home stock owners.

Wheres your heart, man??
 
2021-03-05 3:11:42 PM  

Rapmaster2000: cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.

It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?


More free money like all company stock owners.

The Labor that puts profits into company stock can fuk off.
 
2021-03-05 3:12:55 PM  

Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.


The stock owners prefer to live off the Labor of others.

Its more fun that way!!
 
2021-03-05 3:15:07 PM  

zjoik: Rapmaster2000: cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.

It really baffles me when they outperform earnings per share and they post revised higher forward guidance and the stock still drops.  Those are two great things to happen.  What else are day traders looking for?

If Costco gives decent wages, others might start to have expectations.  From there, you may start to see a common perception that a company that requires gov't subsidy to ensure their workers receive adequate food, clothing, shelter at the same time is an exploitive one that ultimately costs everybody but the business, thus should be valued less.


Well crony capitalist murcans do secretly love socialism.

Socialize the costs/liabilities
Privatize the profits
 
2021-03-05 3:16:55 PM  

Angry Drunk Bureaucrat: zjoik: If Costco gives decent wages, others might start to have expectations.  From there, you may start to see a common perception that a company that requires gov't subsidy to ensure their workers receive adequate food, clothing, shelter at the same time is an exploitive one that ultimately costs everybody but the business, thus should be valued less.

Counterpoint: low wages mean more value for shareholders and more money for executives.

/*invisible hand jerking off motion*


Labor puts value into company stocks.

The stock owners love living off someone elses Labor
 
2021-03-05 3:18:11 PM  

Explodo: cSquids: I know the stock market is all about expectations, magic and BS, but I always find it a little funny when a company earns a lot more money than they did last year has their stock drop because someone's crystal ball was miscalibrated and they thought they should earn even more excessive amounts than they did.

The stock market in its current for is inherently bad for society.


Its nothing but a machine for living off other peoples Labor.
 
2021-03-05 3:21:48 PM  

bhcompy: Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.

Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock


Free money for sit at home stock owners is more fun than same stock owners having to go out and work for a living.
 
2021-03-05 3:22:39 PM  

DORMAMU: Bonzo_1116: bhcompy: Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.

Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock

Yeah, who buys stocks to partake in the ongoing profits a company makes?

You can't get rich quick if you do that.

There is this prevailing belief that even if you are profitable consistantly even though recession that you need to 1) have numerical profit increases every year & 2) your % profit margin must also increase every year.

Fail either of those and your business is a failure.


In Murca
 
2021-03-05 6:30:43 PM  

Bonzo_1116: bhcompy: Rapmaster2000: Irving Maimway: Go back through Costco's history, every time they've done something beneficial to labor, the stock goes down, and there are investor calls to replace the CEO. It's a case study in how the stock market doesn't reflect the economy and how the investor class is just gambling, expecting the rest of the country to clean up their mess.

A lot of activist investors are just trying to extract as much value as they can in the next 6 months and they don't actually care about how well the business functions or how well it will continue as a going concern.  They're not patient.

Fortunately, the board wants to company to be around for the next 50 years and they're planning for that instead.  Where it gets risky is when it's time for a new CEO. I expect them to draw from within their own ranks because the corporate culture clearly works.

Which is stupid because Costco is a dividend stock.  You extract value from dividend bearing stocks by investing long term.  The expectation is not to have volatile stock

Yeah, who buys stocks to partake in the ongoing profits a company makes?

You can't get rich quick if you do that.


*raises hand*
If I was ever asked to vote on whether to give workers at companies I own stock in a raise. I would vote yes.
 
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