Why The Market’s Not Reacting To The Biggest Earnings

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**Joseph Carlson** (0:59)
Welcome back, everyone. Today on The Joseph Carlson Show, ASML crushes their earnings. This wasn't a typical beat and raise. This was blowout earnings, numbers that were some of the best numbers, the best earnings report that I've ever seen. It was far above analyst expectations, and they're making multi-year plans, raising guidance, increasing volume. This was incredible. The stock is flat and we're going to discuss it. The banks are doing great and we have other companies that are up to bat. Tomorrow we have Netflix. This one feels a little dicey. Don't you feel a little nervous going into Netflix's earnings report? A little bit of trepidation if you're an investor in this company. After all, Netflix stock has been known to fly up or down 10-20% in a single day. We've seen it happen multiple times. I'll give you some final thoughts going into this one. Then we have my portfolio. My portfolio is up to an all-time high today. We're finally back in the green year. To date, we've had strong momentum over the past month, and we'll be looking at my portfolio, seeing which of these stocks are trading in which direction over the past 30 days. Plus, we have some news to get to. For example, Warren Buffett was the one that said he bought Google at Berkshire. It wasn't management. And then in today's episode, we have a two-for-one fail of the week. The first fail of the week is that Kalshi is trying to get it approved to bet on planes being delayed. This is one of the worst ideas that I've ever heard. It should be completely illegal. The government shouldn't entertain this for a second. And then the second fail of the week, which is completely different, is that New York City is excitedly banning data center development. We'll be looking at why these are both horrible ideas in the fail of the week. So we have a ton to get to in this episode, and if you haven't already, check out qualtrum.com. See why 13,000 other people are actively using this. It has charts and graphs, as well as an entire exclusive video library. There's so much additional content here, so many long format shows, we have Ask Me Any Things, we have deep dives in the companies, long format portfolio updates and much more. All of this is available risk free with a free trial at qualtrum.com. Now, we start things off by looking at ASML's earnings report. This is a company that I followed for some time. I have it in the portfolio. It's grown into a rather large position. $126,000 total position, $93,000 in gains. So this one's a big one. I've recently done some trims of ASML that I'll touch on a little bit later. But to go into this, I first want to start off by looking at the reaction. When you look at ASML today, it looks like just another day. In fact, it's extremely mundane. There's nothing going on with the stock. It is up half a percent. So at first glance, it seems misleading. Like nothing just happened. But in reality, ASML just released one of the best earnings reports that I've ever seen. They crushed on revenue. They crushed on earnings per share, and they didn't just beat and raise guidance. They raised guidance substantially on a multi-year basis. The CEO says, quote, Our second quarter total net sales were 9.3 billion, and gross margins came in at 54 percent, both above guidance driven primarily by higher than expected install-based management sales. ASML has the advantage of having almost every machine that they've ever sold throughout the last 20 years still being used today. So everything that they sell, it's always being used, but it always needs management. That is the install-based management that he's referring to.