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- 💦 Promise you're not gonna be mad
Hey there weekday warriors,
Amazon is doing its best to make Jensen Huang a trillionaire.
Enjoy the next 4 minutes and 33 seconds of blue-chip news and commentary.
Keep on snapping necks and cashing checks,
+ US stocks “slid on Thursday as Wall Street digested discouraging quarterly reports from megacap technology names and awaited further results.” (CNBC)
+ The 10-year Treasury yield “yields were little changed as traders parsed the latest economic data in the runup to Friday’s all-important jobs report.” (CNBC)
+ Oil “extended gains after settlement on Thursday, rising by more than $2 per barrel on a report that Iran is preparing to attack Israel from Iraqi territory in the coming days.” (Reuters)
+ Bitcoin hit resistance before it could set a new all-time high.
+ The three most talked about stocks on WallStreetBets in the past 24 hours were: 1) Intel -3.5% // +6.9% (nice) after hours 2) Visa -0.1% 3) Nvidia -4.7%
The market moves you need to know about…
– Microsoft just had its worst day since 2022 after sharing disappointing guidance on Thursday. Shares tumbled 6.0%.
+ Do you hear that? If you listen closely, you can hear the docuseries about Intel’s comeback story being sold to Netflix. Not only did the chipmaker report a top and bottom line beat yesterday, but it hiked its guidance. Shares popped 6.9%.
You gotta spend money to make money
Source: Giphy
"Promise you're not gonna be mad..." - Andy Jassy starting off Amazon's earnings call
Amazon (-3.3% // +6.0% after hours) knows that you gotta spend money to make money. Which is probably why its capex spending jumped 81% year over year last quarter.
Why the spending spree?
Well, Nvidia GPUs aren't cheap, you guys. Andy Jassy and Co. attributed most of the bump in expenses to breakneck AI growth and all the associated costs.
AJ reminded investors that artificial intelligence is "maybe a once-in-a-lifetime type of opportunity." Which I'm pretty sure is exactly what Zuck said about the metaverse.
AMZN expects capex to top $75B this year and believes that number will be even higher in 2025. Spoiler: the price of Amazon Prime is about to increase, you guys.
But it's hard for investors to be too upset with Amazon
The Kindle maker beat easily on the top and bottom lines in the most recent quarter.
And even though its AWS biz missed expectations ever so slightly, sales in the cloud grew 19%. Those sorts of numbies make it easy to justify mainlining 10s of billions of AI spend directly into Andy Jassy's favorite line of business (although he'd never tell the others).
+ Hey Siri, how do I commit tax fraud?
You hate to see it. A stalwart of American innovation (and creative accounting) was forced to back up the Brinks for the EU. Apple’s (-1.8% // -1.8% after hours) otherwise impressive quarter was marred by a $10B charge related to some back taxes owed across the pond. The hit took a bite out of the company’s net income, because, you know, GAAP.
But the maker of the Polishing Cloth beat the Street’s estimates on sales and earnings. And it pinky promised it’s seeing healthy early demand for the iPhone 16 and interest in the Apple Intelligence suite of products.
+ Just in case you didn’t think Sam Altman was one sick puppy, he really went and launched a search engine 5 days before a Presidential election. What could possibly go wrong?
We all kinda knew ChatGPT Search was coming. Mostly because a prototype called SearchGPT dropped in July. But the timing is, well, curious given the likely demand for correct information over the next week or so.
And probably the only people more butt hurt than Perplexity’s board and management are the investors who just ponied up billions of dollars to make AI search a thing.
+ After 6 months of getting its “CEO by committee” on, Peloton (+27.8%) announced it found its guy: Ford exec Peter Stern. If it seems strange that a stationary bike/connected fitness company would bring on a car salesman, that’s because it is.
But I guess he couldn’t be any worse than Barry McCarthy, who barely made it two years. Investors agreed. Shares soared.
At Ford, Stern most recently headed up Integrated Services, which includes the carmaker’s subscription services. And honestly, if he can convince people to buy whatever the hell BlueCruise and Pro Intelligence are, maybe he is the man for the job…
+ Inflation reminded everyone it’s still got a little bit of fight left in it. The core personal consumption expenditures price index came in slightly higher than expected yesterday. Luckily, the Fed takes into account the economy’s entire body of work when making interest rate decisions. So, in all likelihood, we’ll still get the expected 25 basis point rate cut when the Central Bank meets next week.
+ Forget the White Picket Fence: Is this living situation the New American Dream? Everyone knows an entire cul-de-sac with all your buddies and their families is the American dream.
🔥 Amazon workers ‘appalled’ by top exec’s explanation for 5-day return to office policy. Andy Jassy be like “seems like a you problem…”
FYI, TWC might be compensated if you click on the links above. So, what are you waiting for? Start clicking.
⏪ Yesterday, Uber, Mastercard, Roblox, Merck, Shell, Altria, Peloton, ABInbev, Cigna, and Nikola reported before the bell. Apple, Amazon, and Intel dropped earnings after hours.
⏩ Today we’re keeping an eye on…
+ ExxonMobil, Chevron, FuboTV, and MSG Sports report this morning
+ The October jobs report drops
Yesterday, I asked, “What's the best Halloween candy in the game?”
Reese's won in a landslide. Snickers was second and Twix rounded out the top three. Lots of write-ins... obviously.
Here’s what some of you guys had to say (and my thoughts in italics)…
“take 5. low key elite”
"Kit Kat"
“Kit Kat. Starburst? I didn't know 7 year olds read TWC?” HUGE with the elementary school investment club crowd.
"No kit kat on your list. Off to the gulag!” In my defense, Beehiiv only gives me 10 answer slots.
“Reese's Pieces”
“100grand”
And here’s today’s question…
You get $13M in cash right now, but you have to step foot on the moon in the next 10 years. If you don't, you're sent to prison for the rest of your life. Do you think you could do it? |
Oh, and one more thing…
What did you think about today's newsletter? |
Does this look like the face of a guy you should take financial advice from?
No, it’s the face of an individual who is financially irresponsible/dumb enough to be talked into spending money on a family photo shoot that he could have just done with his iPhone. So, act accordingly...
This is not financial advice. Nothing in this newsletter is an investment recommendation. All content is created for entertainment, educational, or informational purposes only. Do your own research, or do yourself a favor and hire a professional.