CNBC Televisionยท2025-08-01 00:16Market Overview & Valuation Concerns - The market experienced a downturn, with the Dow sliding 330 points, S&P declining 037%, and Nasdaq edging down 003%, attributed to concerns over inflated valuations exemplified by Figma's IPO [3] - The speaker emphasizes that valuation matters, and euphoria in the market is detrimental to business [3][4] - The speaker introduces "Fig Newtons law," suggesting that what goes up (in terms of valuation) must come down, cautioning against a new phase of the bull market driven by ludicrous valuations [15][16] Company Performance (Microsoft & Meta) - Microsoft and Meta exceeded earnings estimates significantly, driven by investments in artificial intelligence [5][6] - Microsoft's stock trades at approximately 35 times earnings, while Meta trades at less than 29 times earnings [6][7] - Microsoft gained nearly 4%, and Meta jumped more than 11% following their earnings reports [7] - The speaker believes Microsoft and Meta are undervalued compared to the S&P 500, which sells at 24 times earnings [8] Figma IPO & Valuation - Figma's IPO priced at $33, opened at $85, and closed at $115 and change, highlighting concerns about excessive valuation [2] - Figma's valuation is considered wildly inflated because it doesn't make that much money, making a price-to-earnings multiple irrelevant [13][14] - Figma's valuation is judged on a price-to-sales basis, reaching 67 times sales assuming 40% growth, compared to Meta at ten times sales and Microsoft at 12 times sales [14] Amazon & Apple Performance - Amazon reported a good quarter with healthy top and bottom lines, with better-than-expected sales across divisions, but gave mixed guidance [18][19] - Apple's sales and earnings came in substantially better, driven by strong iPhone sales, with 10% revenue growth [20]