00:00 Brian
look, I could write 15 stories right now by the end of today on everything I would need to know from an investor standpoint on Alphabet. It just is. There’s so many so much intrigue uh on this Alphabet report later in the week in large part because this is one of the lone Mag 7 names that have outperformed the broader market this year. I mean, I look back at those Netflix results, uh Anise, I think that signals a big quarter out of YouTube. Concern how much Google or Alphabet is spending on capex and if that’s priced in the stock. but at the end of the day, Alphabet has to nail this earnings report.
00:27 Anise
100%. and I think that Alphabet will be viewed on several fronts and you mentioned some of them, that capex spending and what this will mean for the AI trade and how Alphabet is doing it itself with its AI models. You had Alphabet uh the shares that were down one day last week after Bloomberg had reported that they were delayed uh with their flagship model with the uh Gemini Pro 3.5. So, uh that certainly hit the stock.
00:54 Anise
Also, you investors are going to be paying attention to also advertising as well because we know that these AI companies have been advertising so uh so does this lead into the advertising arm for Alphabet as well? YouTube. I mean, there are so many fronts that investors are going to be paying attention uh to this report and what it means for the overall AI trade.
01:17 Brian
Keith, let’s uh let’s say Alphabet comes out here and sets the tone and they raise their CAPEX spending again this year uh as a lot of these companies did just three months ago. How do you think the market digests that?
01:31 Keith
Well, at least, I think today a little bit better position to handle that because you’ve reset in in prices quite a bit and going back to the question you asked Jared, semiconductors, we have less than 10% of stocks above their 50-day moving average. So, I think they are poised for a bounce. I I you know, I our feeling and our tech analyst thinks that the compute will continue to rise. So, I I think it’s probably too early to really expect them to pull back on cap X. I think that trend likely continues higher at least into next year.
01:53 Brian
Keith, are you surprised that we have not seen the similar market move we saw when Deepsea came out with its model early last year as we are we have seen with this moonshot and and this Kimi K3 model?
02:07 Keith
I think part of it, that news came out last week and a lot of these stocks have already been corrected. Mentioned, you know, Micron down 30%, semiconductors down 20%. The overall technology index was down double digits. So, I think that’s part of it. And I also think Brian, when that Deepseek news came out, there was a lot of folks that um, you know, sold on that and that was ultimately the wrong decision. So I think, you know, the second time it happens, I think investors are taking it more measured. Almost like after you go through like right now the oil shock that we had, we’ve had more geopolitical news over the weekend and the market is at so at this point not having that same reaction because we’ve gone through it already as well. And the last point is the earning trends for tech continue to move up, so I think that’s a a key foundation for the support.
