Most chips companies are slightly up today but I think the short term volatility and selling pressure still lingers. Let's see how the market reacts after more earnings and Midterms
Chipmakers crashed on Friday, led by Intel's record drop, but a smaller fall lifted Apple past Nvidia as the world's most valuable company before its results tonight. At home, the STI is sliding this ...
$JPMorgan Chase(JPM.US)
Context: The biggest names in banking and retail are starting to fight the tech titans over a new kind of customer: the AI personal agent. JPMorgan Chase, Charles Schwab, Amazon, Neiman Marcus and Kohl's have moved to block personal agents like Meta Muse just as consumers start sending them out to find better savings rates, shop for deals and cancel subscriptions. The era of agentic AI has arrived, but there is uncertainty about what the landscape will look like when virtual storefronts become flooded with AI agents or when a business tries to block them. Reports last week of AI agents going rogue in customer accounts — and prominent politicians including Sen. Mark Warner and Sen. Bernie Sanders calling for bot legislation in response to the headlines — come on the heels of JPMorgan Chase CEO Jamie Dimon saying the bank currently blocks external AI agents from operating on behalf of retail customers, citing security risks.
My Trade: Not much changes. Just monitoring for now
Takeaway: Interesting take on personal AI agents and how commercial institutions are rejecting incorporating them due to security concerns. @Captain's Treasure
Chips' companies are falling steeply as Google, Intel's earnings affected the industry pretty badly. Additionally, Jensen's ties to quote CIA "Chinese intelligence" to help smuggle Nvidia chips to China from Singapore have led to investors spooking out from the possibility of regulation penalties.
Alphabet had its worst day ever, and Amazon and Intel slid after hours. Eli Lilly and Apple bucked the selloff with records. Let's dig in 👇 💬 Big Tech is paying for AI with cash flow. Buying the Alpha...
$Amazon(AMZN.US)
Context: Amazon's third-quarter earnings gave investors two very different reasons to look at the stock: its cloud business is accelerating at a pace not seen in years, while AI spending is draining cash. JPMorgan sees the investment as the start of a much larger opportunity, putting a $365 price target on Amazon—based on 26.5 times its estimate of Amazon’s 2028 earnings. Amazon Web Services revenue rose 39.3% year over year to $46 billion in the third quarter, its fastest growth in nearly five years. That lifted AWS to a $184 billion annualized revenue run rate, while operating income climbed 55% to $17.8 billion. CEO Andy Jassy expects AWS to grow more than 40% in both 2027 and 2028, eventually generating $1 trillion in annual revenue within five to 10 years. Its backlog — contracted work not yet recognized as revenue — reached $578 billion, up 189% year over year, giving Amazon visibility into future demand. Amazon spent $77.3 billion on capital investments in the third quarter and reiterated that 2026 capital expenditure will reach about $220 billion. Jassy said the company expects to spend "meaningfully more" in 2027 as it builds the data centers and servers needed to meet demand.
My Trade: Wanted to add a bit at lower price but surprisingly Amazon I'd holding up quite well in today's trading session. Will continue to monitor.
Takeaway: JPMorgan argues that the spending is justified because AWS demand is strong, capacity remains tight, and infrastructure investments can generate returns over several years. Amazon also says servers and networking equipment can pay back in less than three years, while data centers have much longer useful lives. @Captain's Treasure
2 of the Mag 7 companies reported earnings, and the response to both is pretty drastic. Alphabet disappointed with lower Search Ad revenue despite promising continued Google Cloud growth. On the other hand, Microsoft Azure also continues to be the main catalyst for them, but the positive reaction also came from lower Capex
Alphabet's cloud revenue doubled, yet its free cash flow turned negative and the stock slid after hours, while Microsoft rose on faster Azure growth. The Fed held, with two votes for a hike. Let's dig...
$Microsoft(MSFT.US)
Context: Microsoft CEO Satya Nadella said the company thinks of its AI product Copilot "as the new OS for work" and that its "business model is expanding from per-seat subscriptions to include consumption." Nadella said that with Agent 365, the company provides a platform for AI observability, which helps customers to manage and optimize the performance and cost of their agents. He added that “over 50 million agents are now in the registry,” up more than 30% from the previous quarter.
Meanwhile, Alphabet CEO Sundar Pichaisaid on the company’s third-quarter earnings call that Google focused first on enterprise agents “because the bar for security, safety and governance is extremely high." As a next step, he said, the company is bringing the features to Search and "to our billion users on the Gemini app.” He added that “Agents will operate as a unifying layer across our products,” including Chrome, Android and Workspace. The Google parent reported third-quarter revenue of about $127.58 billion, missing analyst estimates of $128.20 billion, according to Benzinga Pro. Shares of the company tumbled about 9.75% to $290.52 after hours on Wednesday. Microsoft reported first-quarter revenue of $92.28 billion, up 19% year-over-year, which beat analysts’ estimate of $90.66 billion, according to data from Benzinga Pro. Revenue from the Agents and Infra segment surged 25% year-over-year to $76.8 billion
My Trade:
Takeaway: Alphabet said Gemini models now process nearly 32 billion API tokens per minute, and the Gemini app now has over one billion users, making it the fastest-growing product in the company’s history. Yet the stock is tanking heavily in contrast to Microsoft, who demonstrated that while long term costs could yield better future returns, investors still prefer a stronger balance sheet. @Captain's Treasure
Big night ahead of FOMC and 2 of the Mag 7 reporting earnings after the bell. I personally feel that the FED's tone and attitude might dictate the direction of the market more than the earnings, but I might be wrong. Let's see
SK Hynix says its memory chips are sold out until 2029, and every stock in the chip index rose for a second day. Tonight Microsoft and Alphabet report, just before the Fed. Let's dig in 👇💬 SK Hynix is...
$ServiceNow(NOW.US)
Context: ServiceNow will release its third-quarter earnings report after the closing bell today. Analysts expect the company to report quarterly earnings of $1.02 per share, up from 96 cents per share in the year-ago period. The consensus estimate for NOW’s quarterly revenue is $4.09 billion. It reported $3.41 billion last year. On July 22, ServiceNow reported better-than-expected second-quarter financial results.
My Trade: I'm being patient right now. There is definitely potential to rise further but the odds of it trading sideways is larger.
Takeaway: Analysts expect Servicenow to beat earnings and most are still recommending a Buy or hold with price targets higher than current trading price. @Captain's Treasure
My pick is Amazon.
With Amazon owning a sizable amount of Anthropic and the recent hype surrounding the latter, it could very well be a positive catalyst for the former. Moreover, AWS growth is expected to continue with even better margins. If the Capex can come in within expectations, I don't see why the stocks can't rise.
Microsoft and Alphabet report Wednesday after the US close, Amazon on Thursday. Between them they are about 15% of the entire S&P 500. Pick the one with the highest net gain this week, back it up, and the 3 best takes win 2 SGD each.
$Alphabet(GOOGL.US)
Context: Alphabet will release earnings for its third quarter after the closing bell on Wednesday, Oct. 28. Analysts expect the company to report quarterly earnings of $3.00 per share, compared to $2.87 per share in the year-ago period. The consensus estimate for GOOGL’s quarterly revenue is $127.83 billion. It reported $102.35 billion last year.
My Trade: Google's share price has been relatively weak in the past few weeks, and a break below $300 could very well be possible. If that happens, I might buy some.
Takeaway: Alphabet CEO Sundar Pichai recently said artificial intelligence is still far from independently building more powerful versions of itself, even as Google increasingly relies on AI to develop its next models. @Captain's Treasure
$Microsoft(MSFT.US)
Context: Scotiabank raised Microsoft's price target to $625.00 while maintaining a sector outperform rating amid widespread positive analyst sentiment.
Microsoft last released its earnings results on Wednesday, July 29th. The software giant reported $4.74 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.24 by $0.50. Microsoft had a return on equity of 31.98% and a net margin of 40.31%. The company had revenue of $90.01 billion during the quarter, compared to analyst estimates of $87.62 billion. During the same quarter in the prior year, the company earned $3.65 earnings per share. The company's revenue for the quarter was up 17.7% on a year-over-year basis. On average, equities analysts forecast that Microsoft will post 19.66 EPS for the current fiscal year.
My Trade: I am certainly holding Microsoft at current price, but not interested in adding as I feel the price is slightly on the high side.
Takeaway: Investors and corporate insiders actively adjust their holdings, while analysts continue to monitor AI infrastructure spending and valuation risks. @Captain's Treasure
I'm looking forward to earnings from both Alphabet and Microsoft, but at the same time also a bit tentative on the FOMC minutes. A rate hike in December is certainly on the cards, but more importantly how serious is the inflation impacting the decision of FED is something worth to take note from Warsh's tone of speech this Wednesday
Micron bounced Friday as Jensen Huang played down fears of a memory glut, with the Fed and Big Tech earnings ahead. At home, REITs held their gains. Let's dig in 👇💬 Memory makers report this week. Is ...
S&P had one of its bigger one day drops yesterday in nearly 3 months as the broad selling continues. Chips sector was hit amongst the hardest, while consumers and other defensive stock gained a little. Back at home tdy, Reits gained quite a bit while banks held around the same.
Western Digital grew revenue 55% and raised its dividend, then fell 6%. Lam Research beat and fell twice as hard. At home, banks slip while REITs bounce. Let's dig in 👇💬 Chip stocks are selling off on...
We are approaching the end of October, where it's usually the weaker/weakest month of the year. Will November be any better? Honestly I have my doubts. FED is more than likely to definitely increase interest rate 1 more time by end of the year, and this could dampen share prices even more.
Tesla and Meta reported the same night and made opposite calls on AI spending. One cut its budget, the other raised it. At home, banks are easing back after Wednesday's gains. Let's dig in 👇💬 Tesla cu...
$Nebius(NBIS.US)
Context: Share price of Nebius is falling, giving back some recent gains. Investors grew more cautious about AI infrastructure spending as oil prices rose and tech stocks fell. Brent crude rose above $112 per barrel amid renewed Middle East tensions. Higher oil prices fuel inflation fears and could keep interest rates high. This could raise borrowing costs for AI infrastructure firms that need billions to build data centers. Weak reactions to tech earnings also added to market pressure. Higher borrowing costs could make data center projects more expensive for CoreWeave, Nebius, and IREN. If the cost of expansion rises faster than revenue, their profits could come under pressure.
My Trade: Nothing changes. The potential for growth remains, but the funding risk is also there. Risk to reward ratio might be off at current prices, so I'm waiting for lower prices before considering adding.
Takeaway: Nebius face funding risks, implied from the Coreweave situation from last week. Nebius also needs capital to expand its data center capacity and meet demand for AI computing. Investors will watch whether revenue growth can support the cost of this expansion. @Captain's Treasure
A renewed positive outlook on the global AI trade triggered by the strong earnings forecast and indications of robust AI demand from majors like SpaceX and Super Micro Computers bolstered sentiments in tech sector, lifting cryptocurrency markets alongside. However, I don't think this rise is stable and volatility remains
SpaceX made money for the first time, and immediately put a Tesla merger on the table. At home, the STI is up and the banks are leading. Let's dig in 👇💬 Would a SpaceX-Tesla merger be a good deal for ...
