Friday, July 27, 2018

Four Largest California Techs (Alphabet, Facebook, Visa and Intel) All Had Substantial US GAAP Pretax Income (PTI) Growth Deceleration in the June 2018 Quarter Where Their Total PTI Was $18.424 Bil, Up 13% Over Their June 2017 Quarter Total PTI of $16.351 Bil ........................................................................................

In Comparison, These Four Largest California Techs (Alphabet, Facebook, Visa and Intel) Reported Total PTI of $24.381 Bil in Their March 2018 Quarter, Up 46% From Their March 2017 Quarter Total PTI of $16.744 Bil

........................................................................................

In Similar Fashion, These Four Largest California Techs (Alphabet, Facebook, Visa and Intel) Reported Total After-Tax Net Income (ATNI) in Their June 2018 Quarter Which Increased By 27%, Whereas Their Total ATNI in Their March 2018 Quarter Increased By 80%, Both From Their 2017 Quarters

........................................................................................

Anyway You Look At It, This is California Largest Tech Co Massive US GAAP Earnings Growth Deceleration At Least Somewhat Similar To What Happened to California Techs in 2000, Where Many Tech Pundits Running Intrinsic Value Models Incorrectly Assumed That the Very High Revenue and US GAAP Earnings Percentage Growth Numbers Would Continue For a Very Long Time.

........................................................................................

After Reviewing So Many Oil & Gas Company June 2018 Quarter Earnings Which Nearly All Show Off-the-Charts Earnings Growth, It Is Pretty Clear That The Trump Administration Has Been Extremely Successful in Its Key Economic Goal of Transferring a Substantial Amount of Wealth From California and From Many Other US States to Texas Oil & Gas Companies and Their Economic Beneficiaries.  That is Really Not Much of a Legacy In Which To Be Proud.

........................................................................................

On the Other Hand, the Two Largest Washington State Techs (Microsoft and Amazon) Both Had Substantial US GAAP Pretax Income (PTI) Growth Acceleration in the June 2018 Quarter Where Their Total PTI Was $13.288 Bil, Up 54% Over Their June 2017 Quarter Total PTI of $8.622 Bil, as Compared to Their Total PTI in the March 2018 Quarter Which Increased By a Much Lower 31% Over That in Their March 2017 Quarter    ........................................................................................

From a review of SEC filings, the below chart shows the US GAAP Pretax Income (Loss) From Continuing Operations and the US GAAP After-Tax Net Income (Loss) From Continuing Operations for the June 2018, the June 2017, the March 2018 and the March 2017 Quarters for the 6 Largest US Technology Cos With June Quarter Ends and which have reported their June 2018 Quarter Earnings By July 26, 2018.  All 6 had Stock Market Caps of more than $200 Bil in April 2018.  Apple is not included below since it hasn't yet reported its June 2018 quarterly earnings.

US US US US US US US US

GAAP GAAP GAAP GAAP GAAP GAAP GAAP GAAP
Lasrgest US Technology Cos Pretax Pretax Net Net Pretax Pretax Net Net
Other Than Apple Which Income Income % Income Income % Income Income % Income Income %
Hasn't Reported June 2018 (Loss) (Loss) Change (Loss) (Loss) Change (Loss) (Loss) Change (Loss) (Loss) Change
Quarter Earnings Yet June Qtr June Qtr Better June Qtr June Qtr Better March Qtr March Qtr Better March Qtr March Qtr Better
Market Caps Above $200 Bil 2018 2017 (Worse) 2018 2017 (Worse) 2018 2017 (Worse) 2018 2017 (Worse)
mils $ mils $ mils $ mils $ mils $ mils $ mils $ mils $
California Largest Tech Cos
Facebook       5,868       4,488 31%       5,106       3,894 31%       5,610       3,408 65%       4,988       3,064 63%
Intel       5,529       4,572 21%       5,006       2,808 78%       5,011       3,815 31%       4,454       2,964 50%
Alphabet       4,215       4,377 -4%       3,195       3,524 -9%     10,543       6,819 55%       9,401       5,426 73%
Visa       2,812       2,914 -4%       2,329       2,059 13%       3,217       2,702 19%       2,605          430 506%
Total 4 California Cos     18,424     16,351 13%     15,636     12,285 27%     24,381     16,744 46%     21,448     11,884 80%
Washington Largest Tech Cos
Microsoft     10,680       7,958 34%       8,873       8,069 10%       8,641       7,094 22%       7,424       5,486 35%
Amazon.com       2,608          664 293%       2,534          197 1186%       1,916          953 101%       1,629          724 125%
Total 2 Washington State Cos     13,288       8,622 54%     11,407       8,266 38%     10,557       8,047 31%       9,053       6,210 46%
Total 6 Largest US Tech Cos     31,712     24,973 27%     27,043     20,551 32%     34,938     24,791 41%     30,501     18,094 69%