The night Big Tech lost the markets’ unlimited line of credit The psychological trigger for this turning point began to take shape last night with the release of Amazon and Intel’s quarterly results, adding to the earlier impact of Alphabet and the defining case of Microsoft. Let’s examine the latter closely, as it perfectly encapsulates the schizophrenia currently dominating investor sentiment on Wall Street. Microsoft reported objectively impressive operating figures: its key cloud division, Azure, recorded year-over-year growth of 48%, comfortably beating even the consensus’s most optimistic forecasts, while operating cash generation remained at enviable levels.
However, during the conference call with analysts, management dropped a bombshell, announcing that despite such ample internal liquidity, the company plans to turn to international debt markets to raise another $25 billion in external financing, primarily to accelerate the construction of data centers. The market’s response was swift and merciless: the stock went from being rewarded with notable gains in overnight trading to suffering a severe sell-off. The message from major capital allocators is crystal clear: the market is no longer willing to finance unlimited CapEx expansion through leverage when the tangible monetary returns from generative AI are still projected to lie far off on an uncertain horizon. $MSFTB $AMZNB $GOOGLB
Wall Street analysts are advising their clients to buy the dip after the Binance exchange hack, and Bitwise chief investment officer Matt Hougan expects BTC's price to recover soon. $ADA $BTC $ETH
🚨 BIG MOVE BY THE U.S. TREASURY 🇺🇸 The U.S. Treasury is set to buy back up to 6,000 MILLION DOLLARS in government debt, the same amount as last week, because no country bought it 🤣🤣🤣 what a joke 🤣🤣 $BTC