00:00 Speaker A
What report do you think is critical that needs to appear here and be the tone of all the reports in these titles.
00:07 Speaker B
Oh, I mean, I think everyone. Um, look, throwing around CAPEX spending, um, Apple for not being an AI player, but the stock was going up because of demand for the iPhone. So, this is also important. Uh, I think if I had to, should I really say which one, maybe meta and Microsoft.
00:46 Speaker A
Yes, Microsoft, probably a good quarter of them. Ally, a little worried about Amazon, especially when it comes to AWS. Of course, you’ve had an outage, maybe you didn’t help with this Amazon growth rate or the comments they might share about AWS growth.
01:08 Speaker C
Yes, and I’m sure they’ll get enough questions about that failure when they call, what caused the failure? Is this a systemic concern or a one-off? And this situation also just reminded me of how fragile our overall economy is when it comes to how much we rely on the Internet, how much we rely on these cloud providers. That’s why it’s the most important stock in the S&P 500 because we’re so tied to its performance
01:41 Speaker C
and to maintain this growth rate, especially in various cloud enterprises. So, I agree that all of these earnings reports serve their specific purpose and, taken as a whole, can give us a better understanding of the demand picture, the supply picture, and of course, it all prepares us for the Nvidia little one that we get in a few weeks. And I think the market is so tied to Nvidia and the comments that Jensen makes and how the stock ultimately performs.
02:12 Speaker C
Expectations are very high for all of these names, including Nvidia. So it’s just a question mark as to whether these companies can overcome that very high bar.
02:22 Speaker A
In Chad, of course, no stock goes up every day, forever. It just doesn’t work in investing. But looking at Mag 7, is this stock nearly indestructible at this point?
02:37 Speaker D
Oh, if I were, I’d be careful about saying that. I mean, you know, it’s a concentrated market right now, within the S&P 500, and the leadership is going to change. If all these capital expenditures show no return on investment and I just add up to about a trillion dollars. Then you will find that business investment will slow down when it comes to data centers and computing.
03:15 Speaker D
Oh, it will change many times and speed it up. This happened in 2000. Cisco, and all you needed was an earnings growth rate, a delta that caused the market to start falling and normalize more. And it can happen in 12 months, in 24 months, but it will definitely happen.
03:42 Speaker A
I’m going to assume that Chad, you’re not, you’re not a fan of Tesla stock. Maybe I’m wrong, but I’m just pushing it aside. Which of these six names do you really like?
03:52 Speaker D
So, you know, for full disclosure, Washington Crossing Advisors is owned by Microsoft and we’ve owned it for years. I think it’s a more diverse way of playing AI, hyperscaling and computing. They have an embedded customer base and are really hitting on all cylinders. So if I had to choose, I would choose that one.
04:23 Speaker A
And a final word for you, obviously we’re not stock picking here. You all fund UH from our team, but do you have a favorite mag 7 name? What company do you like?
04:31 Speaker B
Oh, I like, I think I want to see what Apple actually has to say because I feel like we’ve talked so much about the AI game and whether Apple can continue the trajectory that they’ve had recently with their stock, not AI, the major player in AI. So, as an exclusivity, I like it.
05:00 Speaker A
And I don’t want artificial intelligence from Apple. I’m still trying to figure out what they put in my new iPhone 17 Pro Max. I can barely use the damn thing. I mean I have to go back to school to figure out how to use it. This is absolutely ridiculous. No way I Apple, I don’t want that.