Andrii Yalanskyi/iStock via Getty Images Listen below or on the go on Apple Podcasts and Spotify Large cap tech earnings (0:25) Health insurance stocks drop (6:55) Good news in travel and leisure (8:30) More big earnings next week (10:00) Interesting new Fed Chair (12:20) Cloudy macro data (15:30) Transcript Rena Sherbill: Brian Stewart, Seeking Alpha's stalwart Director of News. The last episode of January. It's a doozy, we got a lot to talk about. Welcome back to the show. Talk to us. Earnings, new ...

Group 1 - The Conservative Income Portfolio focuses on value stocks with high margins of safety and uses well-priced options to reduce volatility [1] - The Enhanced Equity Income Solutions Portfolio aims to generate yields of 7-9% while minimizing volatility [1] - Microsoft Corporation (MSFT) is highlighted as a key stock attracting value investors in the current bull market, indicating its strong performance [2] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience, focusing on options income and capital preservation [2] - The Conservative Income Portfolio includes two income-generating portfolios and a bond ladder, emphasizing lower volatility and high income potential [2]

Earnings Overview - The Q4 2025 earnings season shows solid earnings and sales growth for the S&P 500, but the percentage of companies beating expectations is lower compared to previous periods [1] - Post-earnings reactions have varied, with Meta Platforms (META) experiencing a share price increase while Microsoft (MSFT) faced significant declines [2] Microsoft (MSFT) Performance - Microsoft reported a double-beat with adjusted EPS of $4.14, a 24% year-over-year increase, and sales of $81.3 billion, up 17% from the previous year [3] - Despite impressive headline growth, investor concerns arose due to high capital expenditures of $37.5 billion, primarily for cloud and AI investments, and a slowdown in Azure growth [4][6] - Azure's revenue growth decelerated to 31% year-over-year, down from previous growth rates of 35% and 39% [8] Meta Platforms (META) Performance - Meta also achieved a double-beat with adjusted EPS of $8.88, an 11% year-over-year increase, and a 24% rise in sales [9] - The company saw a 7% year-over-year increase in average Family Daily Active People, reaching approximately 3.6 billion, and ad impressions grew by 18% [10] - Meta's full-year 2026 expense guidance is between $162 billion and $169 billion, with significant allocations for infrastructure and talent compensation [12] Comparative Analysis - The contrasting post-earnings reactions highlight the market's differing perceptions of capital expenditures and growth rates between META and MSFT [13]

Earnings reality, software doubt, crypto stressMETA and MSFT Earnings Reset ExpectationsMeta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) earnings forced a reset in how the market is thinking about AI-led growth. Meta's results reinforced operating leverage and disciplined monetization, while Microsoft's print highlighted how elevated expectations leave little room for execution noise. The reaction was less about whether AI is working and more about how much is already priced in.The broader message is valuatio ...

分组1 - Starbucks is focusing on operational excellence and customer service through its Green Apron service program, which aims to enhance the customer experience and improve transaction growth [2][34][37] - The company reported positive same-store sales in the US and strong growth in China, indicating a successful turnaround strategy [33][34] - Starbucks plans to introduce new drinks, food items, and an upgraded rewards program, along with remodeling stores to enhance customer experience [34][41][46] 分组2 - In the tech sector, companies that fail to deliver on AI promises during earnings reports, such as Microsoft and ServiceNow, are facing significant market penalties, with Microsoft losing $357 billion in market cap [5][6] - Conversely, companies like Apple that demonstrate strong performance and potential in AI, particularly with a $16 billion year-over-year increase in iPhone sales, are being rewarded by the market [7][10] - The S&P 500 software and services index has reached a nine-month low, highlighting a bifurcation in tech stocks where only those with strong AI strategies are thriving [6][22] 分组3 - The recent appointment of Kevin Walsh as the next Fed chairman could influence market dynamics, particularly regarding interest rates and asset allocation strategies [3][31] - The market is currently experiencing volatility in precious metals, with gold prices dropping significantly, indicating potential shifts in investor sentiment [24][25][28] - Analysts are observing a super cycle in memory stocks, driven by demand for AI-related technologies, which could present investment opportunities [18][19]

Core Insights - Concerns about returns in the AI sector are resurfacing, with Big Tech earnings indicating that companies must show results quickly after significant investments in AI or face market penalties [1] Group 1: Meta Platforms - Meta Platforms (META) experienced a stock increase of 10.4% on January 29, 2026, with a revenue growth of 24% in the December quarter, driven by AI-enhanced online advertising [2] - The company provided a first-quarter revenue forecast of $53.5 billion to $56.5 billion, surpassing analyst expectations of $51.41 billion [3] - Meta's capital expenditures related to AI are projected to be between $115 billion and $135 billion for 2026, exceeding analyst expectations of $110.7 billion and nearly doubling the 2025 figure of $72.2 billion [4] Group 2: Microsoft - Microsoft (MSFT) saw a stock decline of about 10% on January 29, 2026, despite reporting better-than-expected earnings and sales, as investors were concerned about slowing momentum and rising risks [6] - Azure cloud revenue grew by 39% in the fiscal second quarter, slightly above forecasts, but below the 40% growth seen in the previous quarter [6] - A significant concern for Microsoft is that OpenAI accounts for 45% of its remaining performance obligations, raising fears about future revenue stability [8] Group 3: Tesla - Tesla's stock fell by 3.2% on January 29, 2026, despite beating quarterly profit and revenue expectations, as investors reacted to the scale of future spending [9] - The company announced plans to more than double its capital expenditures to over $20 billion, focusing on AI, humanoid robots, and fully autonomous vehicles [9] Group 4: Competitive Landscape - The AI race is intensifying, with OpenAI issuing an internal "code red" following strong early reviews of Google's Gemini 3, while Anthropic's Claude Code has reached an annualized revenue run rate exceeding $1 billion [12] - AI ETFs such as AIQ, BOTZ, and ARKQ are considered long-term investment opportunities despite short-term volatility [11] Group 5: ETFs Performance - ETFs heavily invested in Meta, like Fidelity MSCI Communication Services Index ETF (FCOM) and Vanguard Communication Services ETF (VOX), gained approximately 2.8% each [13] - Conversely, ETFs focused on Microsoft, such as Roundhill MSFT WeeklyPay ETF (MSFW) and iShares U.S. Technology ETF (IYW), experienced declines of 12.2% and 1.4%, respectively [13]

Core Viewpoint - Microsoft (MSFT) experienced a significant drop of approximately 10% in its stock price following the announcement of its second-quarter earnings, despite exceeding expectations in earnings per share and revenue. The decline was attributed to slowing growth in Azure, a 66% increase in capital expenditures to $37.5 billion, and 45% of its $625 billion backlog being related to OpenAI [1][2]. Group 1 - Microsoft reported second-quarter earnings per share and revenue that surpassed expectations [1][2] - The stock price fell about 10% due to concerns over Azure's growth slowdown [1][2] - Capital expenditures surged by 66% to $37.5 billion [1][2] - 45% of the $625 billion commercial backlog is associated with OpenAI [1][2]

To say that tech giant Microsoft (NASDAQ: MSFT) has seen better days would be an understatement. Roughly an hour after trading began on Jan. 29, its stock price plummeted 12%. It's one of the worst single-day drops in company history. Whether this is a warning sign or a one-off event remains to be seen, but it's clear that expectations are resetting. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See ...

Key Takeaways MSFT shares fell 10% after Q2 results, as elevated capex spooked investors.Microsoft delivered double-digit EPS and revenue growth, led by 39% growth in Azure.ETFs like IYW offer exposure to Microsoft's cloud and software growth while spreading stock-specific risk. Shares of cloud giant Microsoft (MSFT) slumped 10% at the bourses yesterday, despite the company comfortably surpassing analysts’ expectations for second-quarter fiscal 2026 earnings and revenues. The decline was most likely trigger ...

Microsoft (NASDAQ: MSFT) has been in the driver's seat of the AI boom ever since it started with the launch of ChatGPT. The tech giant wisely began partnering with OpenAI when the company was in its infancy, investing $1 billion in the start-up in 2019, and plowing another $10 billion into the company in 2023 shortly after the launch of ChatGPT. After OpenAI restructured, Microsoft now owns a 27% stake in the start-up, valued at $135 billion. Where to invest $1,000 right now? Our analyst team just reveale ...