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Microsoft´s marvelous multiple expansion - Source: Bilello 

Source: Bilello 

Companies with strong balance sheets have outperformed companies with weak balance sheet year-to-date, as companies with weak balance sheet typically invest less (source: Goldman Sachs) 

Since the trading on Big Hit Entertainment (352820.KS) began, the stock nearly doubled — from the IPO price of Won135,000 ($115) to Won270,000 ($236). From there they rose another 30% as the retail investors who had missed out on the lottery drove a trading frenzy. But by 9.15am, a downward march had begun. Big Hit shares are currently trading at about Won156,000. Big Hit’s up-down IPO aside, K-pop is a growing economic force. The combination of catchy tunes, synchronised dance routines, perfect skin and considerable social media savvy has brought in big money. The pandemic has also thrown up new opportunities. More than 7m fans tuned in to two online concerts held by the band this year after world tours were cancelled. However, even before a single Big Hit share changed hands, its IPO price already represented a valuation of nearly 60 times forward earnings. So maybe the sharp decline can be somewhat justified by a necessary valuation adjustment? - source: Source: FT 

"The results so far this U.S earnings season have been stronger than ever. Through last Friday, 85% of the 271 companies that had reported Q3 results beat consensus bottom-line expectations. That's more than 25 percentage points above the average beat rate of ~60% seen over the last twenty years. The top-line beat rate for revenues has been almost as strong at 78%, while the percentage of companies raising guidance (17%) is higher than we've ever seen. Share-price reactions to earnings haven't been as strong as beat rates, but the numbers are still positive. So far this season, the average stock that has reported has gained 0.55% on its earnings reaction day (the first full day of trading after the earnings release). To get to that +0.55% full-day gain, the average stock has actually opened higher by 0.97% and then sold off by 0.44% from the open to the close of trading. So while we're seeing stocks gain in reaction to earnings, underneath the surface we've seen a stronger initial reaction to the news and then some intraday selling. Of the 271 stocks that have reported, 13 have gained more than 10% on their earnings reaction days. These 13 stocks are listed below. As a final note, when it comes to forward guidance, we're seeing the same extraordinary trend when it comes to what companies are saying about their future prospects". - source: Bespoke