00:00 Speaker A
What report do you think is really critical that has to come out here and be the tone setter out of all these names reporting.
00:07 Speaker B
Oh, well I I mean, I think all of them. Um, look, meta on CAPEX spending, um, Apple on the the fact that it hasn’t been the sort of AI player, but it has been, uh that stock has been accelerating because of the demand on iPhones. So, um, that is important as well. Uh I I think if you had to if I had to really say which one, maybe meta and also Microsoft as well.
00:46 Speaker A
Yeah, Microsoft, uh, likely a good quarter out of them. Uh Ally, a little bit concerned about Amazon, uh especially as it pertains to AWS. Of course, you had the outage, may not have helped that growth rate uh for Amazon or or the commentary they may share on the earnings call regarding AWS growth.
01:08 Speaker C
Yeah, and I’m sure they’re going to be getting a decent amount of questions on the call about that outage, what led to the outage? Is there any systemic concern there or is this a one-off event? And that uh situation also just reminded me of how fragile our overall economy is when it comes to uh how much we rely on the internet, how much we rely on these cloud service providers. And that’s why these are the most important stocks in the S&P 500 because we are so tethered to them operating efficiently
01:41 Speaker C
and and sustaining this growth momentum, especially within their various cloud businesses. So, I agree with the that all of these earnings reports serve their specific purpose and taken in totality, it can give us a better sense of the demand picture, the supply picture, and of course, it all sets us up for the juggernaut of Nvidia that we’ll be receiving in a few weeks. And I think the market is just so tethered to Nvidia and the commentary that Jensen brings and how the stock ultimately performs.
02:12 Speaker C
There’s very high expectations across the board for all of these names, Nvidia included. So it’s just a question mark of whether or not these companies can surpass that very high bar.
02:22 Speaker A
Chad, of course, no stock goes up every single day um forever. It just doesn’t work like that way in investing. But when you look at the Mag 7, are these stocks at this point pretty much indestructible?
02:37 Speaker D
Uh that I would be that would be I would be careful to say that. I mean, you know, it’s a concentrated market right now uh within the S&P 500 and there will be a reversal of leadership. If uh all of this capital spend does not show a return on investment and it’s with about a trillion dollars that I just add up. Uh then you’re going to see a deceleration of business investment when it comes to data centers and compute.
03:15 Speaker D
Uh and that will then reverse a lot of the multiples and a lot of the momentum. This happened during the year uh in in 2000 with Cisco and all you needed was a rate of change on revenue growth, the delta that then started the market to go down and become more normalized. Uh and that could happen 12 months from now, 24 months from now, but certainly it will happen.
03:42 Speaker A
I’m going to assume Chad, you’re not, you’re not a fan of Tesla’s stock here. Maybe I’m wrong, but I’m just going to push that aside. The mag six, out of these six names, which do you really like going into your end?
03:52 Speaker D
So, you know, for full disclosure, Washington Crossing Advisors owns Microsoft and we’ve owned it for quite a number of years. Um that one I believe is the more diversified way of playing uh artificial intelligence, uh hyperscaling and compute. They do have the embedded client base and they really are hitting on all cylinders. So if there was one to choose, I would choose that one.
04:23 Speaker A
And as last word to you, obviously we’re not picking stocks here. You all finance uh from our team, but do you have a favorite mag 7 name? Which which company you like?
04:31 Speaker B
Uh, I like well, I think that I I want to see what Apple says actually because I feel like we’ve talked so much about the AI play and like can Apple continue in the trajectory that it has recently with its stock, uh without being that AI that major AI player. So just as an outlier, that’s the one that I like.
05:00 Speaker A
And, I don’t want AI from Apple. I’m still trying to figure out this all the stuff they packed on to my new iPhone 17 Pro Max. I barely know how to use the damn thing. I mean have to go back to school to figure out how to use it. It’s absolutely ridiculous. No way I Apple, I don’t want it.
Microsoft
#Wall #Street #listening