As must a big BEAT..... for GOOGL. Down by over 4% after hours. The multi-year trend of punishing great earnings continues. Bring on the nit-picking. As I often say......do earnings matter anymore?
PUNISHED....for growing the business. Who is it that......DECREES......this CRAP for the markets? Google Q2 earnings top expectations, cloud revenue grows 82%, but stock falls on capex growth https://finance.yahoo.com/technolog...ut-stock-falls-on-capex-growth-202407124.html ...."But the company also stated that it is raising its capital expenditures for the year to between $195 billion and $205 billion from $180 billion to $190 billion. Analysts had called for $186.4 billion. Alphabet stock fell more than 2% on the news.".....
This is....BALONEY. It is ALL traders, speculators, and AI Trading. I dont think a lot of actual investors are trading after hours. Oh yes.....also the Hedge Funds. SAME ARTICLE AS ABOVE. Google parent Alphabet beat earnings expectations as cloud revenue surged 82%, but investors focused on rising AI spending. https://finance.yahoo.com/technolog...ut-stock-falls-on-capex-growth-202407124.html DUH.....MORONS.....it is the big CAP-EX that is driving these HISTORIC earnings.
A small loss for me today in my stocks.....as my green stocks dwindled to ONE.....NVDA....by the close. We are LIMPING toward the end of another WORTHLESS week. GREAT....news items this week on actual business....great earnings for GOOGL and others......NOTHING of any real concern to actual investors. BUT.....the markets are OVERWHELMED by constant negativity in just about EVERY media story-line there is. UNFORTUNATELY.....this is the new normal. I dont see the media changing for the better. As long term investors that simply hold and wait.......for the long term.......we have NO power to compete with the daily media garbage. If it was not for us long term investors....the markets would be a disaster and a lost cause. We are the anchor that keeps it all from simply blowing away. We are the glue that holds it all together.....so far. The problem will come when....."WE"....no longer have the population numbers on our side to hold back the INSANITY. About the only thing that is allowing "US" to hold the markets to some level of SANITY.....is all the 401K investors that have no choice........ but to invest in Index Funds and ETF's for the long term. THUS....supporting the longer term market.....and providing balance against the.....TRADERS.
Diversification is like communism. Just about everybody thinks it's really smart and a great idea but no one can point to a successful implementation of it. I'm not against diversification in the case of the broad indices. Buying a whole bunch of stock that is not studied (I don't believe it's possible to have a good handle on the workings of 30 companies) is not a path to success. People who are scared and who don't have the temperament for investing should buy an index. They will feel better to be able to look around and think, "At least everyone else is also struggling." despite this having absolutely no relevance on anything.
I tend to agree Tom. I know you know this....but for anyone else....I try to post articles that might be interesting to others and many have long term investing content. That does not mean that I agree with all that they contain or say. The little quotes that I put up in bold....are intended to give a little summary or conclusion of the article....so others can decide if they want to click on the link. I am NOT advocating for ANYTHING......simply by posting an article.
I REFUSE to participate in the markets today....I am going.....ON STRIKE. I am simply going to IGNORE THE WHOLE DAY. GOOGL is just DISGUSTING.....not the company....the market reaction to a bigger than HUGE earnings beat. The stock right now.....down between 6% and 7%. I REFUSE to give any of the IDIOTS in the MEDIA that are driving this CRAP.....any clicks today. LOL.....plus we are going to be out all day.
AMD announced Helios, Mi455X GPU, a partnership with Cerebras, and they mention the existence of the latest version of ROCm. AMD investors shrugged all of this off while Cerebras stock spiked 10% for a few minutes and then returned to a similar but slightly elevated level. The market has responded decisively. They consider this a nothing burger. IMO, the Cerebras deal means something. Cerebras has a 50B market cap. They are not a small player but also not huge. If they could have partnered with a significant company like Anthropic or Palantir, that would have meant something good. The lack of such a company means something slightly bad. CDNA 5 is said to be a wild upgrade over CDNA 4. Either it is not or the entire AI industry is sleeping. I've seen some amazing numbers come out of non-production GPUs so I am inclined to believe the CDNA 5 hyperbole. Time will tell if the current price is an opportunity. The current PE is 175x so there is no way to conclude the market is pessimistic on AMD.
A bit more on the AMD release. I suspect AMD is now generally in the AI performance lead. Companies won't be dropping their nVidia NXL72 cabinets at Goodwill, any time soon. nVidia will still lead in training, with their latency advantage. The AMD announcement stressed how great their low latency performance is. That's how you know they lag in that area. In every other area, they should be equal or better than nVidia. Time will tell. I expected AMD to announce a partnership with Meta. Perhaps Meta won't pick a favorite as it would anger nVidia. Meta has a lot of everyone's hardware. Meta is doing a ton with AI and not just adding chat bots to pictures of people's lunch and cat videos. There are a ton of online videos which compare nVidia's latest beta CUDA suite to a 2024 release of ROCm. When you have to misdirect the truth that extremely and ridiculously, it's not a good sign for nVidia fanbois. Those lies show real and clear franchise value with nVidia, though. IT people are among the most stubborn when it comes to admitting they don't have the best product. Today's announcement was a non-event, technically. Everyone who cares to know about CDNA 5, knows. The announcement is not connected with a flood of product, although I expect a small trickle of product soon. Product will probably be limited for quite some time, as AMD is struggling with similar supply chain issues as nVidia. One of the problems with PE 175x is that it stops being about franchise value, technical merit, and even hype doesn't seem to have a significant impact. It turns into a religion of mass hysteria that I have no ability to predict. I don't own AMD but I like the company. [Edit: In terms of value, AMD will need to 10x their income to get back to general market levels of value, at current stock price. I don't believe that can or will happen in the relevant future but I make no claim to be able to predict the whims of the mindless herd so I don't predict the stock price will fall.]
LOL.....as I sit here this morning....yes, GOOD MORNING......I am hearing a TV business show person expressing shock that a company that just put up a nice earnings beat is down by over 5%. He was talking about American Express. I have no view of the company or stock since I dont follow it. It is the latest example of a company where the short term market.....whatever that is these days.....is IGNORING the BIG PICTURE and focusing on the micro-nit-picking....of earnings.....the TINY PICTURE. This has become the NORM over the past 2-5 years with earnings and other fundamental data. This has ESCALATED to the INSANITY level. I say......LETS LOOK AT THIS AS A POSITIVE......for real LONG TERM investors. We are currently in a time of very unusual market behavior that is creating a HUGE OPPORTUNITY for long term investors. GREAT stocks are on sale. Consider the TECH wipe out that we are currently living through. The greatest, most DOMINANT companies in the world are on sale.....a HUGE sale. These companies are in the early stages of creating the INFRASTRUCTURE of the AI economy and the AI revolution. The management of these companies recognizes what is going on........and are responding by doing massive capital spending to secure and create the future. This is EXACTLY what these companies should be doing. For example.....after the wipe out yesterday.....GOOGL.....was at basically ZERO gain for 2026. Imagine that....ZERO GAIN in the stock for the entire first half of 2026. Look back at their last four earnings reports and tell me this is justified. As a long term investor.....I have to BELIEVE. BELIEVE in the markets and the greatest businesses in the world. I will express that belief by staying fully invested and riding out this short time period of INSANITY in the markets. What we are seeing short term.... is basically a NEW form of correction. A very STRANGE type of correction....where companies that are ICONIC...see their stock go into correction or even a bear market in just a few days of crazy, extreme, market action. SO I SAY.......I have to believe as a market participant for the long term that what we are seeing today is an ABERRATION. In a few years it will be forgotten and will simply be a little dot in the long term chart of the big averages. In my mind that means that the current environment is a HUGE BUYING OPPORTUNITY. YES....it will continue to be a PAINFUL buying opportunity. It might even last for years. BUT.....it is still an opportunity. I have no money to invest right now....but if I did I would be putting that money into this market. I would be putting it into the MOST ICONIC, most DOMINANT, most SUCCESSFUL, American companies that represent the infrastructure of the AI world. Of course I would balance that investment with a holding of broad indexes as is my usual strategy. AND....of course....it will be a question of TIME. TIME....to allow the current INSANITY to be smoothed out and simply become the distant past. Over the next years....I WILL continue to pile any free money that I have into the markets and into the GREATEST companies I can identify. In other words....... NO GUTS NO GLORY.
I like this little article. Valuations Are High – Should You Sell https://www.carsongroup.com/insights/blog/valuations-are-high-should-i-sell/ ....."Valuations are high, so what do you do? You remain invested, but maybe take a second look at what you are invested in. We are always doing that in portfolios – balancing momentum, growth, valuations, and expectations of economic or policy impact across the positions we are invested in. Each has different time frames and considerations. The old saying always rings true – time in the market beats timing the market every time – just ask Warren.".....
The USUAL short term market today......fear based in general....and simply a playground for traders, gamblers, and speculators. Driven by the Hedge Funds....operating in concert..... and the big trading houses doing their normal AI Program Trading. Legal market manipulation short term.......long term......COMPLETELY IRRELEVANT....to any long term investor. Nasdaq slides, heads for a losing week, as semiconductor stocks struggle https://www.cnbc.com/2026/07/23/stock-market-today-live-updates.html
I am looking forward to the SPCX test flight tonight. Those big rocket tests a e amazing to watch. We are seeing the future of SPACE FLIGHT being created right in front of our faces. I dont care if the rocket blows up or fails......and...neither does ELON. There is a reason these are called.....TEST FLIGHTS. EVERY test is a step forward.
YES IT IS. Boom in tech wealth is fueling record prices for dinosaur bones, art and watches, auction houses say https://www.cnbc.com/2026/07/24/wealth-auctions-art-watches.html ....."While the dollar totals are being driven largely by a select group of hyper-priced works at the very top of the market, the strength is across the board, in almost all price points and almost every category. Fine art, classic cars, watches, handbags, diamonds, whiskey and even dinosaur bones are all seeing new records."......
I am HAPPY to participate in the trend above. In fact I believe that my NET WORTH is now near an all time high. I am seeing the benefit of having my money spread through four categories.......that..... ALL COMBINED.....represent my entire financial portfolio....ALL....acting in concert. ALL supporting the WHOLE. ALL together providing diversification and "some" protection from TEMPORARY INSANITY......emphasis on....."TEMPORARY". Those categories are: REAL PROPERTY....my free and clear home. ART, COLLECTABLES, ANTIQUES and HARD ASSETS (gold, silver, etc, etc) STOCK INVESTMENTS CASH or INCOME ITEMS.....Social Security, and Income Annuities.
The above is "MY" financial PLAN. EVERYONE will have a different plan for success...based on their particular situation. BUT.....I STILL say in spite of everything that is happening around us......THERE ARE NO LIMITS to success.
LOL.....as you can see from the above.....I have now EVOLVED beyond the short term actions of the markets, the media, and the politicians. I am now safe and secure locked into my little....... MENTAL ZEN GARDEN. I am FLOATING above and beyond it all.
The markets have now made a nice move to the positive. The DOW and the SP500 are green. The NASDAQ is SLIGHTLY red which represents a big COME-BACK from earlier in the day. Om.....Om....Om....Om. AI tells me: ......."Om" (or Aum) is a sacred sound and foundational mantra in Hinduism and other Indian religions. It represents the sound of the universe and the ultimate reality. You can explore guided meditations and learn more about its meaning on Wikipedia."
