THE STOCK FELL 8.0%. THAT’S OCTOBER. If you only watched the headlines this month, October looked like a mess. The chips dropped 24.0%. Netflix, Tesla, Meta and Lam all beat earnings and got sold. And this week $GOOGL posted the best cloud number of the group, up 103.0%, and the stock fell about 8.0% anyway. Here’s the real story. The market stopped paying for AI growth and started pricing what it costs. Microsoft spent less than feared and got bought. Alphabet’s spending blew out and got sold, even with the stronger growth. Good news now comes with a bill. The money didn’t leave the market, breadth is still healthy, and the leaders are still leading. They just got narrower. I broke down the whole month and the names still clearing the new bar in the newsletter. Not investment advice 🐝
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3 Comments
Rudolf de Leeuw@rudolfdeleeuw · 3d
The split between Microsoft and Alphabet is a useful one. Investors seem to be rewarding capex discipline over raw growth, so I wonder whether cloud margins will matter more than the headline growth rate next quarter.
Terry Crapper
@glamorousglue · 4d
I guess both these tech Giants are not to be judged quarter by quarter.. goog has me tearing into my morning oatmeal, though T. Trades… However, I think time will heal my investment wounds. Thanks for this!! Keep up the Sage Advise, Tati. 🙏
Misa @misay · 1d
Hey what apps are you using to hold buy these? That’s all I’m missing now
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