I will not trim or sell $NET going into earnings despite the obvious rich valuation. Why?

Two main reasons:

My cost basis in $NET is $75,52 and the stock's current price is $192,37.

I am standing now at a +160% gain so I could perfectly trim or sell and book a nice gain.

Let's go with the first reason why I won't do this: taxes.

If I were to sell now I would make $116,85 per share but there is a catch of course because this is the gross amount.

There is a 20% capital gains tax in Spain so I would actually make $93,48 per share, net of taxes.

This would be the equivalent of selling for $169 in a country without cap gains tax. I would basically book the same net gain in both scenarios.

$169 is a discount of almost 14% from current prices which means that any earnings drop of less than 14% would make me worse off.

Can the shares drop more than 14% after earnings? Of course! Can I predict what they will do? Nope.

Combine this with the fact that I probably wouldn't buy those shares again after this +14% drop. I always find it hard to jump in and out over short periods of time.

There is no doubt that $NET is richly valued but if your investment horizon is long enough then you might be better off holding it. The market tends to undervalue the durability of growth.

Jumping in and out of positions is not my game and I have made many mistakes before just to see the stock run, dip and run again without re-entering the position.