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📈 Google's $11B Flex
Reddit shares soar, Truth Social worth more than X, AMD slips, Caterpillar demand slows, Google's AI powered surge
Evelio Silvera
October 30, 2024
In partnership with
Good morning.
⚡ The Fast Five → Reddit shares soar, Truth Social worth more than X, AMD slips, Caterpillar demand slows, Google's AI powered surge
And now…
⏱️ Your 5-minute briefing for Wednesday, October 30, 2024:
MARKET BRIEF
Before the Open
As of market close 10/29/2024.
Pre-Market
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Fear & Greed
*DOWN 2 pts
Trends
Markets in Review:
Nasdaq hit a fresh record at 18,712.8 (+0.8%), while the S&P 500 edged up 0.2%. Dow lagged, falling 0.4%.
The big picture:
Tech's resilience shines through as market dynamics shift toward innovation leaders. While traditional sectors stumbled, tech and communication services stocks powered higher, suggesting a potential changing of the guard in market leadership.
Semiconductor ecosystem play Cadence Design Systems ($CDNS) surged 13% on robust earnings, highlighting the AI-driven demand reshaping tech valuations. Meanwhile, legacy automaker Ford ($F) dropped 8.4% on labor woes and tempered guidance, illustrating the growing pains of traditional industries.
Go deeper:
Consumer confidence surged the most since March 2021, even as inflation expectations ticked up — suggesting millennials' spending power remains resilient despite macro headwinds
Housing market shows surprising strength: New record prices in August, despite higher rates, pointing to persistent demand from younger buyers entering the market
Job market rebalancing: Openings declined but remain above pre-pandemic levels, potentially easing Fed concerns while maintaining worker leverage
What they're saying:
"Consumer confidence is finding its footing, but we're seeing a clear divergence between old and new economy stocks," says Dana Peterson, Conference Board Chief Economist.
WHAT WE’RE WATCHING
Events
Today: Bureau of Economic Analysis - Estimated GDP, 8:30AM
Why You Should Care: It's the broadest measure of economic activity and the primary gauge of the economy's health.
Earnings Reports
Today: Microsoft, Meta, Eli Lilly, AbbVie, Caterpillar, Amgen, Starbucks
Tomorrow: Apple, Amazon, Mastercard, Merck, Shell, Uber, Comcast
MARKET BRIEF
Leading News
Google's Cloud Empire Strikes Back
Why it matters: Big Tech's cloud computing battle just got spicier as Google's AI investments are finally paying off, showing savvy investors where the next wave of tech profits might come from.
The big picture: Google parent Alphabet just dropped a Q3 earnings bomb that sent shares soaring 6% after hours. The real star? Its cloud division, which rocketed up 35% year-over-year to $11.35 billion, powered by enterprise AI offerings.
Think of it as Google's "money printer goes brrr" moment – but with actual substance backing it up. The company's core search business isn't just surviving, it's thriving at $49.4 billion (+12.3% YoY).
Go deeper:
AI Monetization 2.0: Google's "full stack" AI approach is creating a virtuous cycle across its product suite, from cloud services to YouTube recommendations
Hidden Gem Alert: Google Lens now processes 20 billion visual searches monthly, potentially unlocking new e-commerce revenue streams
Efficiency Play: New CFO is wielding AI like a cost-cutting samurai, streamlining operations while investing in growth
What they're saying: "I plan to build on these efforts but also evaluate where we might need to pivot to free up capital for more attractive opportunities," says CFO Anat Ashkenazi, signaling more strategic moves ahead.
The bottom line: Google has been quietly building an AI-powered money machine. For investors, this could be your chance to ride the next major tech wave – just remember to dollar-cost average and keep your position sizing responsible.
Headlines
AMD shares fall as forecast fails to impress despite strong AI growth (link)
Caterpillar posts lower adjusted quarterly profit as equipment demand slows (link)
Truth Social parent company Trump Media now worth more than Elon Musk’s X (link)
Reddit shares soar 22% on earnings beat (link)
Lucid announces pricing of upcoming Gravity SUV (link)
Stellantis to recall over 33,000 Ram trucks (link)
Court approves Tupperware's sale to lenders (link)
CRYPTO
Fear & Greed
*UP 5 pts
Headlines
DAILY SHARE
On the Socials
*Hat-tip to HighYieldHarry
Gold is Reaching All-Time Highs — Are You Capitalizing on this Trend?
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Already up over 50% in the last month, ESGold Corp is a public company gaining momentum.
Disclaimer: This ad is paid for and disseminated on behalf of ESGold Corp (it is sponsored content). We do not own any securities of ESGold Corp. This ad contains forward-looking statements, which are not historical facts. These statements are based on the current beliefs and expectations of ESGold Corp’s management and involve known and unknown risks, uncertainties, and other factors that could cause actual results or events to differ materially from those expressed or implied by such forward-looking statements. Words such as “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “potential,” and similar expressions often identify forward-looking statements. This is not financial advice, please do your own DD. See SEDAR+ for more information.