Twitter’s Trump fight, earnings optimism, Renault’s way out of darkness

Twitter’s Trump fight, earnings optimism, Renault’s way out of darkness

Equities 4 minutes to read
Peter Garnry

Chief Investment Strategist

Summary:  Trump's executive order targeting Twitter is mostly political theater according to experts so investors should stay calm; the real risk is related to Q2 earnings. Talking about earnings the current consensus estimates are suggesting that the S&P 500 earnings will be back to new all-time highs by Q1 2021 which we find almost ridiculously optimistic. Finally we focus on Renault as the European carmaker is announcing today that it's laying off 14,600 employees to preserve profitability.


Twitter’s fight with Trump over fact-checking labels has got a lot of attention with Trump’s executive order yesterday calling for new relation under section 230 of the Communications Decency Act potentially revoking social media companies of their liability shield for third party content if they are censoring political content. Twitter’s shares are down 7% over the past two trading sessions and definitely be in focus again today. Legal experts are already calling a political theater as his move will have no legal impact. Another irony of removing the liability shield is that it would force social media platforms to be even more aggressive on removing third party content that could cause liabilities and thus potentially limit free speech even more. In the end this is all noise for shareholders at Twitter and Facebook. The real important events are the impact on online advertising spending in Q2.

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