00:00 Julie
And I think that’s why we have seen some of the chip makers rally this week. I think investors are starting to position now for the earnings to come in really strong for these chip makers and tech tech names which have suffered in the summer because of the war escalation and what not. So I think I think it’s going to be really strong. And given historical data, I think earnings season might even come in close to 30%, just how it typically fairs. It’s crazy you think about.
00:36 Speaker B
Yeah, because they they do tend to beat by by that margin.
00:39 Julie
The cloud computing business for Alphabet, that’s what I’m really going to be keeping an eye on because it’ll be the strongest signal for AI demand continuing. I mean, Alphabet, like you said, like Kimi K3 came out and everybody’s saying, oh, this is much better than the amount of money we’ve already put in towards other models. So, it just turns the game a little bit and I think Alphabet needs to come through on that.
01:05 Speaker C
I think Julie touched on it. You talked about the the bifurcation. Yeah. Apple and Google, why are they sort of outperforming here is because they’re not totally dependent upon the AI sort of build out on the AI uh product situation.
01:21 Speaker C
YouTube, even search. I mean, Google Cloud, not just yeah, Google Cloud, these are just like as the acquired podcast like like durable, they’re durable businesses, right? They really are. And I think that’s what’s sort of insulating them maybe from like, oh, Gemini 3.5, sorry, it’s taking a bit longer than expected. Uh oh yeah, sorry, the the the we might maybe we will adjust our AI spending here or or um, you know, our cap at CapX. So I think that’s what’s helping companies like Google and we’re going to watch that.
01:46 Speaker B
Yes, huge underlying businesses.
01:52 Julie
Yeah, outside of AI, they still have a viable business model which has survived the test of time. So I think AI is just one component, not the whole game. And I think the declines that we saw in memory stocks in the past two months, I think if they made you nervous, the magnificent seven is where you would go to hide. So we have seen them.
02:08 Speaker B
Right. It seems like there was a little bit of rotation there. Yeah.
