To The Moon

🌟🌟🌟This week, the direction of the stock market will be decided by the corporate report cards of the 4 most powerful companies on earth: Microsoft, Meta, Amazon and Apple.

Together these Big 4 titans are the backbone of the stock market.  Over the past year, their massive growth has carried portfolios to historic highs, largely because everyone is excited about Artificial Intelligence or AI.  But the market is no longer buying into this generic hype.

This week investors want to see hard proof that these companies are actually making massive profits from their tech investment.

Here is a simple stress free breakdown of what to watch out for from each tech giant.

The Big 4 Report Cards: What To Look For

1. $Microsoft(MSFT)$  on Tuesday 

The Big Question: Microsoft has spent billions of dollars building massive data centres and partnering with Open AI.  Investors want to know: Is this huge spending actually bringing in cash?

What to Watch: Look at the growth of Azure, Microsoft's cloud business.  If Azure's growth slows down, panicky investors may sell, fearing the AI boom is fading.  If Azure's numbers smash expectations, it will trigger a massive rally across the whole tech sector.

2. $Meta Platforms, Inc.(META)$  on Wednesday

The Big Question: Mark Zuckerberg has been aggressively buying up every advanced AI chip he can find.  Investors have been patient because Meta's Facebook and Instagram advertising businesses are making tons of money but the patience has limits.

What to Watch: Watch Meta's spending guidance or Capex.  If Meta announces it plans to spend even more money on AI without proving that its ad business is growing alongside it, the stock could take a sharp hit.

3. $Amazon.com(AMZN)$  on Thursday 

The Big Question : Amazon is a double edged sword.  It tracks how regular every day consumers are spending money online and how big businesses are using its cloud network, Amazon Web Services or AWS.

What to Watch: Look closely at AWS cloud profit margins.  With global economic shifts happening , Amazon needs to prove that big corporate clients are still spending heavily to migrate their businesses into AWS.

4.  $Apple(AAPL)$  on Thursday 

The Big Question: While other giants build background servers and business software, Apple owns the most valuable real estate on earth: the smartphones in the pockets of billions of people.

What to Watch: Look at iPhone sales figures.  Investors want to see if the newly released Apple Intelligence software features are successfully forcing people to upgrade to newer more expensive iPhones.  If sales look weak due to inflation, the stock will likely drop.

The Safe Haven for New Investors: DCA into $SPDR Portfolio S&P 500 ETF(SPYM)$  

If trying to pick winners out of the Big 4 feels too risky, the smartest move for a new investor is to Dollar Cost Average or DCA into SPYM.

Instead of guessing which tech stock will boom or bust, a DCA strategy through Tiger Brokers Auto Invest feature, means you automatically invest a fixed amount of money into SPYM on a set schedule.  It could be every week or month.

Why It Works: SPYM tracks the S&P500 index, representing the best 500 US companies in just 1 easy trade.  It weeds out the hyper risky speculative gambles and holds rock solid companies.  These include stocks in the consumer Staples sector, utilities and financial fortresses.

When the Big 4 earnings trigger massive scary price swings in the tech sector, SPYM acts like a shock absorber, protecting your hard-earned savings from deep market crashes while ensuring you build long term wealth steadily.

Ultra Low Expense Ratio: As a new investor it is wise to avoid high fees that eat away at your returns over time.  SPYM has a low expense ratio of just 0.02%.

Dividend Yield: While you wait for SPYM to grow in capital, the fund pays you a dividend yield of 1.05% every 3 months.

Concluding Thoughts 

When all 4 of Big Tech report their earnings in a single week, the stock market may experience some wild price swings.  The smart thing to do is not to try to guess the numbers or trade the daily chaos.

Instead look at this volatility as a giant stock market clearance sale. While day traders may panic over tech headlines, the smart move is to let the dust settle and stick to a disciplined execution plan.

Keep your steady core capital flowing into your safe, low cost anchor like SPYM and use any sharp market pullbacks to slowly accumulate satellite growth plays like $Roundhill Memory ETF(DRAM)$ .

Ultimately volatile weeks like this are not something to fear.  They are exactly where sustainable wealth is born.  Trust the process, ignore the crowd and keep compounding.

As Warren Buffett famously likes to say :

"Look at market fluctuations as your friend rather than your enemy.  Profit from folly rather than participate in it".  "The stock market is designed to transfer money from the Active to the Patient".

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