This coverage of Sotheby's earnings is available to AMMpro subscribers. Subscribers get the first month free on monthly subscriptions. Feel free to cancel at any time before the month is up. Sign up for AMMpro here.
Sotheby's earnings came out first thing last week. The earnings call and presentation was masterfully done. Although the firm reported the lowest earnings in five years, the stock leapt 20% over the course of the week following the announcement.
That's an extraordinary performance for any stock but especially for a company that's value has been channel bound for many years now. On Friday, Sotheby's stock price briefly hit a 52-week high just under $50 per share before falling back slightly.
Since the beginning of the current art market boom in 2004, BID has never sustained $50 as a price. So the most important question surrounding these earnings is whether the stock price is sustainable and what happens to Sotheby's shares when the stock is concentrated among institutional, activist and strategic owners.
The first thing to acknowledge is that CEO Tad Smith deserves a great deal of the credit for soaring stock price.
Sign up to Art Market Monitor Premium today
You need a membership to AMMpro to view this article and other exclusive content daily.
You can register today for $90 per month—with your first month free!—or for $756 per year (no free trial period.)
If you already have an account, sign in here: