Record Highs in Credit Scores, Zoom Room Downloads,US Oil Production
Here's the data...
Today's Data
Credit scores
Zoom Room App Downloads
US Oil Production
Overall
More earnings have come in and we have been very busy. The bulk of earnings season is behind us with over 80% of companies done reporting. We can say that earnings overall have been healthy in aggregate. The current 3-month earnings beat rate is 70%, vs the historical avg of 59%. In terms of sales data, 61% are beating vs 56% average.
Credit Scores Hit Record Highs: Something You Probably Haven't Heard Yet...
The common narrative is that we are facing a significant debt problem, a sentiment that echoes frequently in the financial world. However, a closer examination of the data reveals a more nuanced reality. Although debt levels are indeed rising, they are accompanied by a corresponding increase in net worth. We spoke about this in prior data newsletters. Debt is up about 1x over the last 10 years, while net worth is up nearly 2x. This growth in net worth is improving debt-to-equity ratios, suggesting a healthier financial landscape than is often portrayed. Additionally, wages are not only rising but are doing so in real terms, providing a tangible boost to actual income levels. Further reinforcing this more positive outlook (contrarian), a recent report from FICO highlights that credit scores for U.S. consumers have reached an all-time high. This stands in stark contrast to the negative headlines that frequently dominate investor discussions. We focus on the data, not the noise.
Zoom Rooms App Downloads Hit Record Highs
The debate between returning to the office and embracing hybrid work models continues, but recent data we've tracked indicates a notable trend in favor of Zoom, particularly within office settings. The surge in downloads of the Zoom Room app, which is designed for in-person conference room interactions, has gone parabolic. Full disclosure we are investors, so this is good news. This trend is particularly encouraging for the company, especially considering the steady growth they've been experiencing in their Zoom Phone and their Contact Center products. Although Zoom has not yet reported on this, it's certainly an area we plan to ask about during our next interaction with their team.
Oil Production in the US Hits Record Highs.
Another all-time high is coming from oil production in the US. While many have criticized the current administration (agnostic here) on restricting the output of oil, it seems that underneath the surface (pun intended) oil production has rapidly increased. This is important as it continues to push the US into a position of strength in terms of energy independence. Keep in mind the US produces more sweet crude and refineries in the US are set up more for heavy crude, which means that while we have hit record highs, our consumption of it may be static and lead to more exports of it.
Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.
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Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.