EBITDA is not net profit: an evening guide to earnings, Wall Street and crypto

1. Company results: the label is part of the number

EBITDA measures earnings before interest, tax, depreciation and amortization; the adjusted version also treats selected items according to the issuer's methodology. It is neither net profit nor cash flow. Comparing companies requires reading definitions and reconciliations, not just matching headline numbers.

Our educational context: better results can change expectations about a company's ability to service debt and fund operations. The price response also depends on prior expectations, valuation and the outlook. A positive result does not automatically mean the stock will rise.

Guidance is not an achieved result. Management's statements about future periods remain conditional; this article does not turn them into a certain outcome or a trade recommendation.

2. Wall Street: an index rebound does not describe every stock

AP's snapshot at 12:35 ET, or 18:35 CEST, put the Nasdaq Composite up 1.4% from Friday's close while most US stocks outside AI and technology were falling. This was an ongoing-session snapshot, not a close or a live quote at 20:00.

A mechanism, not a forecast: a capitalization-weighted index can rise on large-company gains even when market breadth is weak. Before saying the entire market is recovering, check the index's composition and how many stocks are rising.

Meta's official calendar schedules results for 21 October after the close and a call at 16:30 ET, or 22:30 CEST. This is a future event announced on 12 October, not today's earnings report. A possible channel is a change in expectations for future revenue, costs and investment spending.

3. Crypto: a new announcement is not a new trade

Bitmine stated on 19 October that it held 6,041,481 ETH as of 18 October at 15:00 ET, or 21:00 CEST. This is an issuer statement in a document hosted by the SEC, not regulator verification of the holdings. The release does not state an exact publication time here.

Holdings are not the number of tokens bought today. They also do not prove that the company caused ETH's current price move. Our context: token prices, debt, financing costs and potential changes in share count can affect the assessment of a crypto-holding company.

The token market and the company's stock session have different hours. Crypto also operates outside regular Wall Street hours. Sunday's token valuation in the document is not presented as a fresh Monday price.

A learning exercise with Max: three columns, not one prediction

Write the fact, possible mechanism and alternative scenario separately. Label every number with its unit and period: millions of dollars for a quarter, a percentage from the previous close or tokens held at a stated time. This avoids comparing incompatible data.

In Prodigy, learn by playing with virtual money and simulated trades. This is general education, with no buy or sell recommendations, promises of profit or real financial prizes.

Watch with Max

Video in English. Illustrations are not live market charts.