To The Moon

When a major technology stock falls sharply in a single trading session, the natural reaction for some investors is to look for a buying opportunity. Intel is a good example of why that approach can be dangerous. Following its latest earnings report, Intel experienced one of its worst daily share-price declines in decades. Despite reporting its quarterly results, the company’s forward guidance disappointed investors, raising concerns about how quickly its turnaround can translate into sustainable financial performance. What makes this situation interesting is that some analysts believe investors should stay away, even after such a significant decline. As investment consultant Dan Kemp put it: “A cheaper stock does not necessarily offer better value.” I think this is an important point wort

Apple’s latest AI move in China is worth watching, not just because of what it means for iPhone users, but because it highlights how the global AI competition is developing. Apple has announced that the first batch of Apple Intelligence features will begin testing in China on November 4 alongside its iOS developer beta, with a broader rollout expected through the iOS 27.3 update in December. The interesting part is Apple’s choice of AI partner. Rather than relying entirely on its own models, Apple has partnered with Alibaba and will integrate its Qwen large language model to support Apple Intelligence features in mainland China. This is an important development for both companies. 1. Why Apple Needs a Local AI Partner Apple has a strong global ecosystem, but bringing AI features to mainlan

What a difference a few days can make in the stock market. Earlier in the week, SpaceX delivered a stronger-than-expected third-quarter earnings report, helping restore confidence in the AI investment story. Yet by Friday, technology stocks were under significant pressure, and SpaceX itself had fallen below its $135 IPO price. The contrast is worth examining. The market is not necessarily losing faith in artificial intelligence. Instead, investors appear to be raising their expectations about how quickly massive AI investments should translate into financial returns. SpaceX: The Earnings Benchmark SpaceX delivered a particularly strong set of third-quarter results on October 20. The company reported: • Revenue of $14.58 billion, up approximately 161% year over year. • Net income of approxi

For much of the past few years, the Magnificent 7 have dominated the US stock market. Their leadership has been supported by strong earnings growth, enormous cash reserves, global market positions and, more recently, the rapid expansion of artificial intelligence. However, the latest third-quarter earnings estimates are raising an interesting question: Is the earnings advantage of these seven technology giants beginning to narrow? According to FactSet earnings analyst John Butters, the blended EPS growth rate for the Magnificent 7 has fallen to 22.6%, compared with 33.6% a month earlier. More surprisingly, the other 493 companies in the S&P 500 are now expected to deliver 32.6% earnings growth. In other words, the broader market is currently expected to grow earnings faster than the co

Semiconductor stocks have not responded to Big Tech earnings in the way investors might have expected. Despite continued investment in AI infrastructure, chip stocks remain under pressure, with the iShares Semiconductor ETF still more than 20% below its record high. The latest earnings have highlighted an important distinction: strong AI spending does not automatically mean every semiconductor company will benefit equally. Microsoft and Alphabet have both demonstrated significant demand for cloud and AI services, but their results also raise questions about the scale of investment required and how quickly that spending can generate returns. For chipmakers, the market needs more than announcements of larger AI budgets. It wants evidence that those budgets are becoming orders, shipments and

Alphabet’s latest sell-off has created an interesting technical situation. After a disappointing earnings report sent shares sharply lower, the stock has triggered a bearish signal known as a death cross. For traders, this is a warning sign. For longer-term investors, however, the question is whether the signal is arriving too late to be useful. Alphabet has already experienced a significant decline, with investors reassessing its AI strategy, advertising growth and the enormous cost of expanding its data-centre infrastructure. The latest technical signal adds another reason for caution, but it does not necessarily mean another major decline is inevitable. 1. What exactly is a death cross? A death cross occurs when a stock’s 50-day moving average falls below its 200-day moving average. The

Friday’s market could be particularly interesting as investors digest a difficult week for major technology stocks. The latest earnings reports have exposed an important divide: AI-related revenue continues to grow, but the cost of building the infrastructure is putting pressure on cash flow and investor confidence. Alphabet’s sharp decline, Intel’s disappointing outlook and concerns about Amazon’s free cash flow have created a more selective environment. Investors may still believe in the long-term AI opportunity, but they are becoming less willing to reward spending without clear evidence of financial returns. Here are six stocks and themes I would keep on the watchlist today. 1. Alphabet (GOOGL) – Can the sell-off create an opportunity? Alphabet plunged 12.64% after its latest results d

Alphabet’s latest earnings report presents one of the biggest contradictions in the current AI investment cycle. Google Cloud revenue more than doubled, operating income increased substantially, and demand for AI infrastructure appears exceptionally strong. Yet investors sent the stock down 12.64% on Thursday. Why did such impressive cloud growth trigger such a negative market reaction? The answer lies in the difference between growing a business and generating cash from that growth. Alphabet is investing enormous amounts of money to strengthen its position in AI. It is building data centres, purchasing advanced chips, expanding computing capacity and developing AI products. These investments may create significant long-term opportunities, but the financial cost is becoming increasingly di

Intel’s latest results have created an uncomfortable contrast for the technology sector. While demand for AI infrastructure continues to expand, the traditional PC business is showing signs of weakness. Its disappointing fourth-quarter outlook has also raised questions about whether the expected PC recovery is arriving more slowly than investors anticipated. Intel shares fell 3.62% during Thursday’s session before plunging 23% after hours. The reaction was not simply about one quarterly earnings miss. Investors were responding to weaker forward guidance and concerns that the company’s operating challenges could continue into the next quarter. Intel reported Q3 revenue of $16.5 billion, below expectations, while adjusted earnings per share of $0.41 slightly exceeded forecasts. However, its

For the past two years, the AI investment story has largely been about growth. Technology companies have been racing to build data centres, secure advanced chips, expand cloud capacity and develop increasingly powerful AI models. Every major spending announcement has reinforced the belief that AI could become one of the biggest sources of future corporate earnings. But the market is beginning to look beyond the size of these investments. As earnings reports reveal higher capital expenditure and pressure on free cash flow, investors are facing a more important question: Can the companies spending billions on AI eventually generate enough additional cash to justify the cost? This is where the distinction between revenue growth, accounting profit and free cash flow becomes particularly import