This earnings season, I think the market has sent a very clear signal: Beating alone is no longer enough. The performance of bank stocks is very typical. Goldman Sachs, JPMorgan Chase, and Bank of America performed stronger after their financial reports, but Citigroup and Wells Fargo were relatively under pressure. The problem may not necessarily lie in the difference in financial report numbers, as many companies have actually exceeded market expectations. What the market really cares about is how your profits are earned and whether this growth can be sustained. For example, Goldman Sachs, JPMorgan Chase, and Bank of America have seen a rebound in investment banking business, an increase in trading revenue, and a resurgence of capital market activity in the market. This growth is relatively easier to gain market recognition, as it corresponds to the recovery of corporate financing, mergers and acquisitions, IPOs, and customer transaction demand. But Citigroup and Wells Fargo, even if some data beats, the market will still continue to ask: Will the cost continue to increase? Can net interest income still be maintained? Has the cost of deposits continued to rise? Has the bad debt risk of credit cards and consumer loans worsened? 5. Is the future guidance strong enough? So now when looking at bank financial reports, we can no longer just look at whether EPS and revenue have a beat. The importance of investment banking business, transaction income, net interest income, loan loss provisions, credit card default rate, and deposit costs is increasing. Bank financial reports are actually one of the most direct windows for observing the US economy. If the credit card default rate and loan loss provisions do not significantly deteriorate, and investment banking and corporate financing businesses continue to recover, it indicates that the US consumer and corporate sectors have not yet entered a true credit contraction. This will also continue to strengthen market expectations for a soft landing in the US economy. And this morning's financial report from GOOG also illustrates the same issue. Previously, the market had been concerned about one thing: GOOG keeps increasing its AI investment and upgrading CapEx, but when will this money be converted into revenue and profit? But after this financial report, the market's concerns about CapEx have at least temporarily disappeared. Because the market has seen the growth of Google Cloud and AI businesses, it has begun to believe that the large-scale investment in the early stages has not been in vain, but is gradually translating into real business returns. This is also the most important change in AI trading at present. The market is no longer simply selling when CapEx rises, but is starting to judge: Has the income growth accelerated synchronously after the increase in investment? Has the cloud business received more orders? Have AI products truly begun to be commercialized? Can profits and cash flows be realized in the future? As long as the growth rate is fast enough, the market can accept higher CapEx. But if investment continues to increase and revenue and profits cannot keep up, CapEx is worried that it may come back at any time. So whether it's banks or GOOG, this round of financial reports is telling the market: Beat is just the first step, the quality of profits, future guidance, and capital returns are what truly determine the stock price. ———————————— There will be welfare activities during the 10 day financial reporting season, trading designated US stock assets and sharing a prize pool worth 40000U! New users who register for transactions will receive a direct reward of 10U Use Maitong to buy US stocks on the chain and USDT to buy US stocks https://(msx.com)/? code=h5cc95 @MSX_CN