koolgal

Amazon's Q3 2026 Reckoning

🌟🌟🌟The stock market does not trade on pure data. It trades on human emotion, fear and ultimate conviction. Look no further than $Amazon(AMZN.US)following its Q3 2026 earnings report.

Amazon did something unprecedented. It achieved its highest operating margin in history at 13.9%, generating USD 28.1 billion in operating income. Yet Wall Street threw a temper tantrum, punishing the stock with a sharp 6% to 7% post earnings plunge.

What happened?

The market's reaction boils down to a huge tug of war between growth and AI cash burn.

Amazon Web Services (AWS) is accelerating at a fast pace, exploding 39.3% YoY to USD 46 billion quarterly revenue. To power this AI beast, Amazon's Capex is locked in at USD 220 billion for 2026. This caused its 12 month free cash flow to crater to a negative USD 42.4 billion.

My Take

If you look past the immediate cash burn, Amazon is executing an excellent long term strategy. AWS and digital advertising are increasingly making up a larger part of Amazon's overall revenue mix.

Even after the drop Wall Street analysts like Morgan Stanley & Bank of America have maintained a Buy rating with price targets of USD 315 to USD 335.

Amazon is not a stock for the faint of heart or those seeking quick gains.

As Benjamin Graham famously said:

"In the short run, the market is a voting machine but in the long run, it is a weighing machine".

@Captain Leo

What Caused Alphabet's USD 8.7 billion Accounting Paper Loss On Equity Investments?

🌟🌟🌟USD 8.7 billion accounting paper loss on equity investments seems massive. But on closer look, this is due to the standard GAAP accounting rules that mandate $Alphabet(GOOGL.US)must report all unrealised paper gains or losses on its income statement every quarter.

Alphabet is the single largest institutional shareholder of $SpaceX(SPCX.US)with 551.2 million shares, outside of Elon Musk himself. Long before Elon Musk became famous, Alphabet partnered with Fidelity to inject USD 1 billion into SpaceX. Alphabet alone provided an estimated USD 900 million.

When SpaceX shares slipped from their June high of USD 170.86 down toward the USD 143 range by the end of September, it triggered an astronomical USD 8.7 billion non cash paper loss for Alphabet.

The reality is Alphabet's underlying core operating income actually rose 30%. The business did not suffer. Its net bottom line was simply bruised by the volatile swings of Elon Musk's rocket ship.

In June 2026, Google signed a multi year agreement to pay SpaceX USD 920 million per month to access large scale AI computing facility and Nvidia GPUs from SpaceX's Colossus data center infrastructure.

Google and SpaceX are continuing to co-operate in space based machine learning & orbital data center concepts. This includes Google's Project Suncatcher initiative to test TPU machine learning infrastructure and laser link constellations in space.

By maintaining this huge anchor position in SpaceX , Alphabet has essentially hedged the future of global communications not only on Earth, but in Space too.

Exciting times are ahead for both Alphabet and SpaceX.

Dear Fellow Investors, Do you agree that the recent selloff of Alphabet is a great opportunity to buy the company? The current P/E ratio is only 14.7x.

@Captain Leo

Is Alphabet In Hot Soup?

🌟🌟🌟Watching $Alphabet(GOOGL.US)$Alphabet - C(GOOG.US)stock chart wasn't just painful, it was brutal. In its worst single day crash in its 22 year history as a public company, Alphabet's shares plummeted by a staggering 12.6% down to USD 283.82. In a matter of hours, a mind numbing USD 480 billion to USD 500 billion in market value evaporated into thin air. It is the 2nd largest single day market cap destruction in the history of Wall Street.

Is Alphabet Really In Hot Soup?

Wall Street looked at Alphabet's Q3 scorecard and threw a historic tantrum but a closer look reveals to me that while the company is under immense short term pressure, it is far from broken.

The Cash Burn Shock:

Alphabet pushed its capital expenditure to a huge USD 51.4 billion for the quarter. It reported a negative free cash flow of USD 9.1 billion, marking its first negative cash flow loop in 22 years. This is because it is building data centres at a breakneck pace.

The Profit Drag:

Net profit fell 25% YoY to USD 26.2 billion, resulting in an EPS of USD 2.12 that missed the USD 3.02 consensus by a mile.

Why I am Still Holding Alphabet:

1. The Google Cloud & TPU Monopoly Engine

While Search decelerated, Google Cloud revenue skyrocketed by an unbelievable 103% to USD 30.7 billion. Its operating income tripled to USD 11.1 billion. Google is building its own TPUs. Even OpenAI is reportedly planning to buy Google's TPUs to run its own models.

2. Google's Deep Value of Other Bets

Waymo:

Waymo is expanding aggressively & now operates in 15 major US cities. It is planning to expand to Tokyo, Munich & even Singapore.

SpaceX:

Alphabet owns 5% of $SpaceX(SPCX.US)since 2015. It is the single largest institutional investor apart from Elon Musk. By doing so, it has hedged the future of global communications.

As Charlie Munger famously said:

The Big Money is not in the buying and selling but in the Waiting.

Alphabet: My Long Term Hold

Holding a stock for years isn't just about watching numbers change on a screen. I invested in $Alphabet(GOOGL.US)because I believed in its core mission to organise the world's information. Through the evolution of Search, the explosion of YouTube, and the scaling of Google Cloud, it has been an incredible journey of technological innovation and wealth creation.

But right now, watching Alphabet feels different. The emotional stakes feel higher than before.

We are living through a huge paradigm shift. Generative AI is completely rewriting the rules of how the world accesses information, challenging the very search engine that built this empire. At the same time, intensifying anti trust scrutiny threatens to reshape Alphabet's corporate footprint. For a long term shareholder, it is a true test of patience, nerve and core conviction.

Yet my interest isn't driven by fear. It is driven by anticipation. Alphabet is an AI titan with unparalleled infrastructure, proprietary chips, and world class engineering talent. Alphabet isn't just participating in the future. It has built the foundation for it.

True long term investing isn't about celebrating the smooth quiet quarters. It is about having the grit to watch Alphabet adapt, evolve and defend its crown under the global spotlight.

I am watching the next era of tech being forged in real time and I remain deeply committed to the journey.

Dear Fellow Investors, If you are an Alphabet investor, how are you navigating this transition? Are you viewing this AI and regulatory hurdle as a temporary roadblock or changing your core thesis on the stock?

The Cloud Wars: My

Take: Alphabet Has The Greatest Upside

🌟🌟🌟$Alphabet(GOOGL.US)is like a heavily discounted rocket ship waiting on the launchpad. Why? Following last quarter's massive 82% revenue surge on Google Cloud, the broader Wall Street consensus is tracking a huge 91% to 92.3% year over year revenue jump, aiming for USD 28.9 billion to USD 29.16 billion for Google Cloud.

This staggering acceleration is driven by frantic enterprise demand for custom AI clusters and Google's proprietary Tensor Processing Units (TPUs) being deployed directly into customer data centres.

My Top Pick is $Alphabet(GOOGL.US)because it has the perfect combination of a depressed stock price as it is down 6.47% in the past month. Alphabet also has the lowest P/E ratio among its competitors $Microsoft(MSFT.US)and $Amazon(AMZN.US)at 16.11.

When a stock like Alphabet is discounted and its cloud business is growing the fastest, its share price has the highest potential to jump.

If Alphabet can prove that its USD200 billion plus Capex is directly generating hyperscale Cloud revenue, it has the lowest hurdle to clear to trigger a huge relief squeeze.

It's Alphabet to the moon 🚀🚀🚀🌛🌛🌛💰💰💰

The ANT Hill is Built: Anthropic Targets a USD 2 Trillion Nasdaq Debut

🌟🌟🌟Anthropic has just dropped its highly anticipated public S-1 Filing. The financial crusade to capture the tech world's crown is officially underway.

We are talking about an AI juggernaut that grew its first half revenue to an eye watering USD 16.3 billion. The catch? Anthropic managed to post a USD 80.7 billion net loss in that exact same 6 months.

Anthropic is officially heading to the Nasdaq Exchange under the ticket ANT in mid to late November, reportedly aiming for an astronomical USD 2 Trillion valuation. The co founders are also keeping 50.1% of the voting power via a super single voting share. So if you buy in, you are basically just along for the ride.

As a retail investor, I have decided to wait until Anthropic is included in the Nasdaq 100 index. I prefer to buy $Invesco Nasdaq 100 ETF(QQQM.US). This is because ANT stock will be included in the index fund just 15 data after it launches due to Nasdaq's fast entry rule.

In a market driven by FOMO, Anthropic isn't selling a balance sheet. It is selling a monopoly over tomorrow's intelligence.

Dear Fellow Investors: Do you prefer to go for Anthropic's IPO or just wait until it is included in the Nadsq100 index?

Will the Federal Reserve Raise Interest Rate This Week?

🌟🌟🌟 All eyes will be on Fed Chair Kevin Warsh on Thursday October 29. He has made it clear the inflation is a stubborn beast. This means there maybe a rate hike before the end of December.

According to Wall Street analysts and Reuters, the Federal Reserve is expected to skip raising interest rates at this meeting but the market is pricing a 88% probability of a year end rate hike.

The market finished in the red last week due to a double whammy of a severe tech selloff and a sharp spike in global oil prices.

Nonetheless I will continue to dollar cost average $State Street Portfolio S&P 500 ETF - SPDR(SPYM.US)because market volatility is exactly when dollar cost averaging or DCA does its best work.

By buying SPYM, I have instant access to the best 500 US companies that track the S&P500. The expense ratio is the lowest at 0.02%. I am betting on the long term resilience of the entire US economy, not just a single sector.

Investing can be so simple with a great index ETF like SPYM.

🌟🌟🌟A Big Thank You @optionspuppyfor sharing your investing journey. I like your user name Options Puppy as it is personifies a friendly and really approachable person.

What is your advice to those who are new to Options trading on how to start. It can be a rather daunting task.

Does it take long to learn options trading?

What are the risks to look out for?

I totally agree with you that Patience especially when it comes to investing is a key ingredient to be successful.

May you continue to shine your light and share your wisdom with the Longbridge community.

The Great Rotation From Tech to Value Stocks Has Begun With Procter & Gamble Leading the Charge

$Procter & Gamble(PG.US)smashed its Q1 FY 2027 earnings this week, proving to be a phenomenal safe haven value winner.

P&G, the consumer staples titan reported its results on Thursday October 22 2026. Facing intense inflation headwinds, P&G flexed its legendary pricing power, pushing its stock up 5.6% to USD 165.59 in a single session, climbing right back up toward its 52 week highs.

I like P&G because it is a Dividend King, having increased its annual dividend payout for a record 68 consecutive years. That is an amazing record.

Sheng Siong - A Safe Harbour During Volatile Times

🌟🌟🌟$Sheng Siong(OV8.SG)is the epitome of defensive investing on the SGX because it has a recession proof model. Regardless of inflation or economic cooling , consumer demand for household groceries, fresh produce and pantry staples remains constant.

Sheng Siong benefits from a consumer trend known as "trading down" where middle class shoppers migrate from premium supermarkets like Cold Storage to budget friendly chains to save money.

Sheng Siong holds a massive gross profit margin of 31.8% during the first half of 2026. This is due to improvements in their internal product sales mix.

I like Sheng Siong as it has a strong solid balance sheet with zero debt and a massive net cash position of over SGD 400 million. This provides a defensive shield especially during high interest rates environments.

Best of all Sheng Siong rewards its shareholders with a dividend yield of 2.66%. Slow and steady wins the race.

Dear Fellow Investors, would you consider Sheng Siong in your portfolio?