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橙子Joyce
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🚨 Adding insult to injury! Tech giants topple from their thrones! On Friday, U.S. Eastern Time, Intel plunged 29% and Amazon sank 7%; on Thursday, Google lost nearly $500 billion in market value in a single day. Cracks in the AI trade are widening across the board.
📌 I. A string of earnings shocks from tech giants, with capital spending becoming a heavy burden
Google (GOOGL): Search advertising growth slowed (as AI search modes take a toll), and the company signaled that capital spending will increase “significantly” in 2027. Shares plunged 13% on Thursday, wiping out about $489 billion in market value in a single day!
Amazon (AMZN): Quarterly free cash flow plunged to -$33.5 billion (far below expectations), while capital spending surged to $77.3 billion. Shares sank 7% on Friday.
Intel (INTC): Q4 revenue guidance came in far below expectations, and the company warned it would be unable to achieve positive cash flow this year. PC demand is being curbed by rising memory-chip prices. Shares closed down 29% on Friday, their biggest one-day drop since 1982.
Microsoft (MSFT): Although Azure grew 48%, commercial orders fell 12%, prompting the company to urgently launch a $25 billion bond offering to raise funds.
Meta & Anthropic: Meta announced capital spending of as much as $59 billion and launched a large-scale fundraising effort; Anthropic's computing bill is as high as about $800 billion. The four tech giants' capital spending is set to approach $750 billion this year, and the market is no longer willing to accept AI investments that seem like a bottomless pit.
📉 II. Risk aversion spreads: Crypto markets and high-risk assets come under pressure
The sell-off spread across the board: all of the Magnificent Seven closed lower, memory-chip stocks and emerging cloud providers (Neocloud) were hammered, and Reddit plunged 26%.
Crypto's correlated pullback: Weighed down by declines in tech stocks and risk appetite, Bitcoin (BTC) fell more than 5%.
Institutions accelerate their exit: Goldman Sachs data shows hedge funds dumped tech stocks at the fastest pace in any two-week period in more than a decade, while net leverage in U.S. stocks fell to a five-year low.
🌍 III. Macroeconomic and geopolitical headwinds intensify
1. Repricing the cost of capital: Goldman Sachs warned that Fed policy and rising capital costs are once again constraining corporate investment, bringing the era of unchecked expansion to an end.
2. Geopolitical and oil-price risks: Markets are concerned that tensions in the Middle East will escalate. Brent crude settled at $117.64/barrel, near its year-to-date high; surging oil prices are heightening concerns about economic stagflation.
We can still expect sharp market swings next week. We will buy the following high-quality company stocks on dips.
$NVDA.US
$SPCX.US
$AMZN.US
📌 I. A string of earnings shocks from tech giants, with capital spending becoming a heavy burden
Google (GOOGL): Search advertising growth slowed (as AI search modes take a toll), and the company signaled that capital spending will increase “significantly” in 2027. Shares plunged 13% on Thursday, wiping out about $489 billion in market value in a single day!
Amazon (AMZN): Quarterly free cash flow plunged to -$33.5 billion (far below expectations), while capital spending surged to $77.3 billion. Shares sank 7% on Friday.
Intel (INTC): Q4 revenue guidance came in far below expectations, and the company warned it would be unable to achieve positive cash flow this year. PC demand is being curbed by rising memory-chip prices. Shares closed down 29% on Friday, their biggest one-day drop since 1982.
Microsoft (MSFT): Although Azure grew 48%, commercial orders fell 12%, prompting the company to urgently launch a $25 billion bond offering to raise funds.
Meta & Anthropic: Meta announced capital spending of as much as $59 billion and launched a large-scale fundraising effort; Anthropic's computing bill is as high as about $800 billion. The four tech giants' capital spending is set to approach $750 billion this year, and the market is no longer willing to accept AI investments that seem like a bottomless pit.
📉 II. Risk aversion spreads: Crypto markets and high-risk assets come under pressure
The sell-off spread across the board: all of the Magnificent Seven closed lower, memory-chip stocks and emerging cloud providers (Neocloud) were hammered, and Reddit plunged 26%.
Crypto's correlated pullback: Weighed down by declines in tech stocks and risk appetite, Bitcoin (BTC) fell more than 5%.
Institutions accelerate their exit: Goldman Sachs data shows hedge funds dumped tech stocks at the fastest pace in any two-week period in more than a decade, while net leverage in U.S. stocks fell to a five-year low.
🌍 III. Macroeconomic and geopolitical headwinds intensify
1. Repricing the cost of capital: Goldman Sachs warned that Fed policy and rising capital costs are once again constraining corporate investment, bringing the era of unchecked expansion to an end.
2. Geopolitical and oil-price risks: Markets are concerned that tensions in the Middle East will escalate. Brent crude settled at $117.64/barrel, near its year-to-date high; surging oil prices are heightening concerns about economic stagflation.
We can still expect sharp market swings next week. We will buy the following high-quality company stocks on dips.
$NVDA.US
$SPCX.US
$AMZN.US
