The early-morning Fed meeting was as expected: no rate hike and no rate cut. But the market still fell. Why?
The main reasons were that Warch’s comments were hawkish, Google’s earnings fell short of expectations, and oil prices have remained stubbornly high. What’s interesting is that Trump keeps oil prices from falling to line his own pockets.
At 4 a.m.
$GOOGL
The market fell sharply after Google’s earnings were announced.
Google’s revenue and earnings per share both fell short of expectations. The cash flow pressure from AI has investors worried. However, Google Cloud revenue was about $30.7 billion, up 103% year over year, which was quite strong. The market is now looking not at who invests the most, but at who can turn those investments into revenue, profit, and cash flow first. After the earnings were announced, GOOG fell nearly 10%.
GOOG’s biggest challenge is quickly turning its previous AI investments into profits to ease cash flow pressures. If it can solve this, it will still be a good stock. This drop has also given investors a chance to buy at lower prices, with the stock nearing this year’s March low.
$285–$258 are both very good buying opportunities.
The main reasons were that Warch’s comments were hawkish, Google’s earnings fell short of expectations, and oil prices have remained stubbornly high. What’s interesting is that Trump keeps oil prices from falling to line his own pockets.
At 4 a.m.
$GOOGL
The market fell sharply after Google’s earnings were announced.
Google’s revenue and earnings per share both fell short of expectations. The cash flow pressure from AI has investors worried. However, Google Cloud revenue was about $30.7 billion, up 103% year over year, which was quite strong. The market is now looking not at who invests the most, but at who can turn those investments into revenue, profit, and cash flow first. After the earnings were announced, GOOG fell nearly 10%.
GOOG’s biggest challenge is quickly turning its previous AI investments into profits to ease cash flow pressures. If it can solve this, it will still be a good stock. This drop has also given investors a chance to buy at lower prices, with the stock nearing this year’s March low.
$285–$258 are both very good buying opportunities.
