Summary
Highlights
The video opens with a discussion of a massive week for earnings and economic data, highlighting the Fed's decisions and the resulting market uncertainty. The speaker touches upon the latest CPI report, noting that September's CPI came in at 3% (better than the 3.1% expected), but month-over-month inflation is steadily rising. The Fed's decision to cut interest rates and end quantitative tightening is also discussed, along with the implications of rising inflation and a weakening labor force.
The video covers the one-year trade agreement truce between the US and China, framed as an extension of discussions rather than a definitive deal. This truce involved China lowering export controls on rare earth minerals and the US reducing tariffs to 10% from 20%, which is seen as positive for the global economy.
The analysis of mega-cap companies begins with Meta. Despite a double beat on EPS ($7.25 vs $6.69 estimated) and revenue ($51.2 billion vs $49.4 billion expected), Meta's stock tumbled due to increased spending guidance. Key financial highlights include 26% year-over-year revenue growth and a 74% climb in Reality Labs revenue, but investors were wary of the raised total expenses for the year.
Next, Alphabet's Q3 earnings are reviewed. The company reported a strong double beat with revenues of $102.3 billion (first ever over $100 billion) and EPS of $3.10. Google Cloud saw significant growth, with revenue up 34% to $15.2 billion and operating income up 85%. Google Search and other advertising revenues also increased by 15%.
Amazon's Q3 earnings showed a strong double beat, alleviating concerns about AWS. EPS came in at $1.95 (vs $1.57 expected) and revenues at $180.17 billion (vs $177.8 billion expected). AWS growth was a major focus, rising 20.2% annually, exceeding analyst expectations of 18%.
Microsoft's Q1 2026 earnings saw a slight dip in shares despite beating on both top and bottom lines. EPS was $3.72 and revenues reached $77.7 billion. Revenue climbed 18%, cloud revenues were up 26% to $49.1 billion, and operating income increased by 24%. Azure and other cloud services grew by 40%.
Apple's Q4 2025 earnings reported a slight double beat, with EPS at $1.85 and revenues at $102.47 billion. Revenues grew 8% year-over-year, marking a September quarter record, and services revenue rose 15% to an all-time record of $28.8 billion. The speaker notes that Apple's single-digit growth and higher valuation make Microsoft a more attractive investment.
The video concludes by reiterating the mixed economic signals: CPI increasing, but not yet a red flag, and a weakening labor force. The speaker questions whether the historical trend of weak September/October and strong November will hold, emphasizing the importance of 'time in the market over trying to time the market.' He also promotes an upcoming group coaching program for stock analysis and options trading.