Why Capital One Dropped

Turn-around Essay

Capital One is a financial banking company that recently disappointed investors. Their quarter 1 report stated how their marketing expenses were much higher than normal levels along with no plans on changing their spending amounts. This led me to believe that they will be having the same problem this quarter, especially considering how much inflation has caused prices to go even higher. As I had guessed, their marketing expense ended up increasing another 9% which in return also caused them to miss their revenue and EPS. I had also seen Ally struggling with providing reasonable results even though there weren’t any big problems preventing them from doing so which was also under their control. Once I saw Capital One also has to deal with their high marketing costs, I instantly thought of how hard it will be for them to beat the estimates which they didn’t.