- Chipotle's tumble;
- IBM's and eBay's quarterly results; and
- why Coca-Cola's earnings report was so sweet.
Don't Dwell on the Disappointments Posted at 3:08 p.m. EDT on Friday, July 20 You can't have Intuitive Surgical (ISRG) cite European woes and Chipotle Mexican Grill (CMG - Get Report) cite economic weakness -- two companies thought to be resistant to the economic headwinds -- and not expect the market to get crushed. Then you add in Spain's bond market going kerflooey and the euro's cratering, and expect that Google (GOOG) and General Electric (GE) can make up for the incriminating evidence. > > Bull or Bear? Vote in Our Poll What's amazing is that all of this is happening at once. You can't have two growth stock darlings give up the ghost and think that any growth stock can hold up. They are a cohort, and suddenly you are paying 33 times 2013 earnings for 8% same-store sales growth. And you can't worry that Europe's cutting back on health care without worrying about Whole Foods (WFM) or Starbucks (SBUX) or even Darden (DRI) or McDonald's (MCD). Chipotle's performance is particularly difficult to fathom because its hallmark had been its countercyclical nature. People will pay up for healthier eating. That had been the prevalent view. Until today. Maybe Panera Bread (PNRA) can change things when it reports next week. But this is a tough moment for Chipotle. If Panera doesn't have a slowdown like Chipotle's, people are going to start believing that something has gone wrong at CMG. As if the decline today doesn't already indicate that. It is tempting to believe that CMG might be underpromising and overdelivering (UPOD). The problem with extrapolating UPOD, though, is that the CMG guys indicated that this new quarter already is tracking similarly. At times like this, I like to regroup and lick wounds as I have obviously been a CMG supporter since the stock was trading around $50. I thought the decline in gasoline would cut in its favor, even as the raw costs of beef are going to go higher courtesy of the drought.