Congrats to $GOOGL and $MSFT longs.
Even if you don’t own these names — this is SUCH A GOOD thing for the broader stock market.
- Inflation is sticky, so we NEEDED Q1 earnings to show that AI is enough of a tailwind to withstand inflation
- One similarity between $MSFT $GOOGL & $META is capex increased across the board, which means the market should normalize that companies will have to increase spend on AI infrastructure and should grow from it later — bullish for $NVDA
- Microsoft/Google’s cloud growth continues to be exceptional, with $MSFT guiding for 30% Azure growth, HUGE for the AI narrative to continue being real
- Google & Microsoft shows that Amazon & Apple probably should also be okay but we’ll see. If inflation does come down in the next 90 days as we get ready for Q2 earnings…maybe a rate cut by end of Q3 and the momentum has a chance to continue.
We really needed these two companies to show up today, and they did. The entire market benefits when they do.
$QQQ continues to be the ETF that out performs just by betting on big tech. The Mag 7 aren’t going anywhere.
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