[Music] Hello and welcome to Market Domination. I'm Josh Lipton live from our New York headquarters. There's just an hour to go until the closing bell here and stocks mix.Let's take a look at the popular averages. The Dow is up about 670 points. The S&P 500, your broad gauge is up about 2/10 of a percent. Your tech heavy NASDAQ is down about 3/10en of a percent.We do have buyers stepping in. One big story for the markets today, you'd have to say Oracle, which is just getting whacked in today's trade. Look a ...

Core Viewpoint - The market is currently exhibiting a lack of confidence in the growth potential of certain companies, particularly in the AI and cloud sectors, despite strong demand for compute resources [2][3][9]. Group 1: Market Sentiment and Demand - There is a perception of a timing mismatch in the market, leading to an over-penalization of certain companies despite their growth [1]. - The demand for compute resources is described as insatiable, not only for specific companies but also for other hyperscalers [2]. - Companies like Microsoft have reported higher demand for their cloud services than they could supply, indicating a robust market demand [3]. Group 2: Financial Health and Debt Management - The company expects to maintain investment-grade credit and does not anticipate needing to exceed $100 billion in debt [3]. - The current debt level stands at $106 billion, with negative free cash flows reported at $10 billion [4]. - There are flexible options available for managing debt, including leasing and equity issuance, which the company is considering [6]. Group 3: Stock Performance and Valuation - A significant reduction in the price target for the stock from $400 to $275 reflects market conditions rather than a change in the company's fundamentals [8]. - For the stock to regain higher valuations, there needs to be clear evidence of outperformance in cloud revenue [9]. - The company is positioned as the fastest-growing and cheapest megacap software company, which could lead to a recovery in stock prices as market confidence returns [9]. Group 4: Industry Trends and Future Outlook - The industry is experiencing a renaissance in software development driven by increased compute availability, particularly in AI [12]. - Traditional knowledge workers are still awaiting significant productivity improvements, indicating a varied experience across different roles [13]. - The company has made a swift pivot to the AI compute cycle, which is expected to benefit its existing customer base and align with broader industry trends [16].

Core Viewpoint - Broadcom projected first-quarter revenue above Wall Street estimates but indicated that margins would decline due to a higher mix of AI revenue, leading to a 5% drop in shares during extended trading [1]. Group 1: Financial Projections - Broadcom anticipates first-quarter revenue of approximately $19.1 billion, exceeding analysts' average estimate of $18.27 billion [7]. - The company reported fourth-quarter revenue of $18.02 billion, surpassing estimates of $17.49 billion [7]. - AI semiconductor revenue is expected to double to $8.2 billion in the fiscal first quarter [7]. Group 2: Margin Concerns - The consolidated gross margin is expected to decline by approximately 100 basis points sequentially, primarily due to a higher mix of AI revenue [3]. - Profit margins may be affected throughout the year by the revenue mix of infrastructure, software, and semiconductors [3]. - The backlog of $73 billion is concentrated among only five customers, with system sales expected to carry lower gross margins [4]. Group 3: Industry Context - U.S. cloud providers are projected to spend over $400 billion on AI this year to enhance data centers for services like ChatGPT and Copilot [6]. - Concerns about an AI bubble are rising due to increasing spending, limited evidence of productivity gains, and high valuations [6]. - Broadcom's AI chip business is seen as a key alternative to Nvidia's graphics processing units, with partnerships with major cloud providers like Google and Meta Platforms [5].

Core Insights - Bill Gates warns that not all AI stocks will succeed, indicating a hyper-competitive environment where many companies may not maintain their high valuations [1][8] - The AI boom has significantly driven stock market rallies, but recent months have seen a slowdown due to concerns over high valuations and potential overspending by tech giants [2][8] Investment Landscape - Major tech companies, referred to as hyperscalers, are projected to invest $400 billion in AI infrastructure this year and over $500 billion next year [1] - Companies like Palantir have extremely high price-to-earnings (P/E) ratios, with Palantir exceeding 400, while chip designers Broadcom and AMD have P/E ratios above 100 [3] - OpenAI, valued at $500 billion, is an example of a startup with high valuations despite not being profitable, expected to remain unprofitable until the end of the decade [4] Market Dynamics - The demand for AI has positively impacted the sales and profits of major cloud computing businesses, with Alphabet, Microsoft, and Amazon maintaining P/E ratios around 30 [5] - Nvidia's strong demand for chips has elevated its market capitalization to $4.5 trillion, with shares trading at a P/E ratio of 45 [5] - Despite valuation concerns, investors have historically bought the dip in tech stocks, leading to a recovery in the Nasdaq Composite, which is close to its record high [7] Future Outlook - Gates expresses confidence in AI's transformative potential across various sectors, including health, education, and agriculture, despite the current valuation concerns [7]

Shares of Oracle plunged 14% Thursday morning and sent a shiver through the entire AI trade as investors questioned the sustainability of Big Tech's spending. ...

Core Viewpoint - Micron's stock has doubled in the past three months, raising questions about its sudden popularity despite concerns regarding the AI bubble [1] Company Performance - Micron's stock performance indicates a significant increase, with a doubling in value over a three-month period [1] Market Context - The rise in Micron's stock comes amid growing concerns about the sustainability of the AI sector, suggesting a potential disconnect between stock performance and underlying market fundamentals [1]

The quick sentiment reversal in US stocks on Oracle's earnings underscores how stubbornly the fears of an AI bubble are weighing on investor minds https://t.co/uk1tbFkwTv ...

Core Insights - The cryptocurrency market is experiencing a significant downturn, with Bitcoin dropping 25% since early October and Ethereum down nearly one-third, leading to a total market capitalization loss of over $1 trillion [2][3]. Market Conditions - The current state of the cryptocurrency market is classified as a bear market, with concerns that it may evolve into a "crypto winter," characterized by prolonged price declines and a loss of confidence in the asset class [3][4]. - The downturn was catalyzed by a "flash crash" on October 10, triggered by President Trump's tariff threats, which led to a rapid sell-off of risky assets, including cryptocurrencies [5][6]. Trading Dynamics - The highly-leveraged positions of crypto traders have exacerbated the market's volatility, resulting in over 1.6 million liquidations and a record $19 billion in liquidated positions on the day of the crash [6]. - Following the liquidations, orderbooks have thinned, negatively impacting market makers and contributing to the ongoing struggle for market momentum [7]. Investor Sentiment - The crash coincided with diminishing hype around stablecoin legislation and rising uncertainties regarding tariffs, interest rates, and potential AI market bubbles, making cryptocurrencies less attractive to investors during stock market volatility [8].

Markets are widely expecting a third quarter point cut in the last Fed meeting of the year. The definitive odds are at 91% today, but our next guest says the market has it wrong and easing is a mistake because inflation is well above target. Joining us now is Jason Ferman, former chair of the Council of Economic Adviserss under President Obama, now with Harvard's Kennedy School.Jason, it's great to have you here. I did ask our previous more dovish guest, I don't know if you caught that, um why he thinks tha ...

Market Catalysts host Julie Hyman takes on the day's biggest market stories on December 10, 2025. Athene USA co-president and Athene Holding COO, Michael Downing, speaks with Yahoo Finance executive editor Brian Sozzi about how investors can close the savings gap while continuing to save for retirement. Athene USA is a subsidiary of Yahoo Finance's parent company, Apollo Global Management. Humilis Investment Strategies CEO and Chief Investment Officer Brian Belski also comes on to talk about why he finds al ...