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Marking this as industry discussion but really this is a market discussion.
We've seen now that with the Chipotle and Walmart earnings call, general public reaction has been extremely negative. Both calls had the companies openly acknowledging that growth means targeting the over consumers earning over 100k (for Chipotle that was individual salary, for Walmart it was household income).
Obviously this is information they need to provide to investors. But this information is public and it is being spread online outside of investor communities to consumers who already feel the pressures of this economy at their throats. They feel unsupported and even abandoned by companies that they once supported.
I don't think this negative public sentiment is going to be changing corporate policy. I think it is more likely that they will find a different way to present this information. If they cannot speak openly to investors on earnings calls, when do we expect to see more companies move into private equity markets?
I think we're going to see a big shift away from public trading now that there are almost no barriers for entry into investing in stocks. This market is very different and much more accessible to retail investors, who frankly are not the target audience of large companies anyway. Eventually they will determine that retail investment money is not worth the negative publicity of having their corporate strategies posted all over the internet.
Interested to hear the thoughts of others here.
If each earnings call leads to a negative viral moment and a ton of bad publicity, what will companies do to prevent this in the future.