You better watch out
You better not cry
You better not pout
Im telling you why
Santa Claus is coming to town
Hes making a list,
Checking it twice,
Gonna find out whos naughty or nice.
Santa Claus is coming to town
He sees you when youre sleeping
He knows when youre awake
He knows if youve been bad or good
So be good for goodness sake
A lot of that "could" be interpreted like it was meant to be, as a song to convince children to behave so they get they're presents.
But "You better watch out", I have a hard time understanding as anything other than a threat, lol.