Jon Quast

If you're Amazon, I get this space business, a reliable income stream from space as I continue to push forward with my own aspirations.

I think that that's the valuable thing here for Amazon.

Well, the earnings were not fantastic, but definitely the guidance is a big part of what's going on with RH and investors' adverse reaction to the report.

Basically here, if you look ahead to the first quarter, it just reported fourth quarter results, but if you look ahead to the first quarter, it's looking at a sales decline.

This is after already a couple of years of just mediocre, lackluster results.

But then, guidance for the year is modestly positive.

If you take that in combination, what management is saying is, hey, our business trends are actually about to get worse, but don't worry, they'll be better before the end of the year.

And I think, just as an outsider perspective, I think the management has cried wolf one too many times here in recent years.

What I mean by that is, it seems like that is routinely now the guidance.

Things are about to be bad, but don't worry, it'll pick up in a couple of quarters, and investors just aren't buying it right now.

Everything that drives RH's business

housing prices, interest rates, even the stock market, all of these things are trending in the wrong direction.

That's the point here.

It's doing okay under the circumstances, but it's not great being under the circumstances, and investors don't know when the circumstances will get better.

I don't think that it was buying what management was selling, and that's why the stock is down after the report.

Yeah.

Maybe I'm being a little bit too harsh here, but I'd put it closer to 50-50.

But I agree with everything that Matt just said.

It is true, the housing market is a huge reason that RH's business isn't booming like investors hoped.

There's only so much that the company can do in that environment.