We can find fault so easily, and when we do, we change our minds as if what was good a few minutes ago meant nothing a few minutes later, snd vice versa.
The first, Workday, truly did deliver a very strong number with great growth and a lot of very big wins for its software as a service to human capital and financial verticals, wins like Amazon (AMZN) and Walmart (WMT) . These are the two most coveted accounts you can name, given their size and mass.
Every metric that Workday showed to me was superb and while I could grouse that it isn't giving specific billings data going forward, it was a very strong quarter, which is why the stock traded up when it was announced.
But when we didn't get the guidance we wanted, the stock got hammered and fell 10% almost in a straight line and all of those other goodies meant nothing.
Valeant? Here's a stock that jumped a full buck when the headlines game out that showed it reported a quarter that was $0.08 better than expected.
I couldn't believe it traded up on that, because literally every other line was weaker: revenues, earnings before interest taxes and depreciation, virtually anything involving sales of its biggest drugs or its troubled balance sheet.
Sellers flocked in when the other numbers were read and the stock fell 13%.
Then last night Salesforce reported its best quarter ever, a true barn burner with a monster amount of cash on the balance sheet and superb operating cash flow. However, it chose to give guidance that was a shade lighter for the next quarter, so a stock that jumped three points quickly gave those three points up and more and ended down in after-hours trading.
Now, Workday and Salesforce had seen their stocks go up a great deal after the rotation out of high-growth stocks ended and money flowed back into the group. There had been no such buoying of the stock of Valeant.
Still, though, I think that what I am thinking about here is that perhaps we should have a little more of a judicious and, yes, judicial stand, here, one where we say "the preponderance of the evidence here is fantastic, so let's stop with the willy-nilly punishment."
We seem to be willing to punish stocks equally -- Salesforce, Workday and Valeant -- even when only one of those stocks is guilty as charged.
Just something to think about.