Home Depot disappointed investors with its earnings last week.
Sales were relatively flat, missing Wall Street estimates and the company also forecasted a drop in profits for 2023.
The company cited a few reasons for this miss, including lumber costs, wage increases, and the economy.
Shares of Home Depot fell 7% after the call and ended that day with one of the biggest declines out of all of the S&P 500 stocks.
Scott, what are your thoughts here?
Scott believes that Home Depot's poor performance is good news for the world as it means that luck is almost perfectly symmetrical, meaning that if you have great luck around investment, that means you're due for bad luck and you should pull in your horns when you have bad luck. He also likes that frontline workers are getting a raise, and believes that this is overdue.
This week on Prof G Markets, Scott breaks down why Home Depot’s disappointing earnings are indicative of healthy market trends. He also takes a look at promising earnings from Stellantis, the second largest EV seller in Europe behind Volkswagen and ahead of Tesla. Finally, Scott explains why companies and resources are nationalized, and discusses what it means that Mexico is nationalizing lithium.