Squawk on the Street SOTS 10AM: Broadcom buckles, money in the banks, and a potential turnaround for a downward dog 12/12/25
11 snips
Dec 12, 2025 
Adam Parker, Founder of Trivariate Research, dives into equity market outlooks, emphasizing sector rotation and achievable earnings estimates. Anastasia Amoroso, Managing Director and Chief Investment Strategist, highlights a resurgence in private markets and the impact of AI on productivity with minimal layoffs so far. Meanwhile, Brandon Gomez, a CNBC cannabis reporter, discusses the potential federal reclassification of cannabis, revealing how changes might open new avenues for investment in the industry.
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Estimate Achievability Beats Valuation
- Adam Parker argues valuation alone fails for stock-picking; focus on earnings estimate achievability instead.
- Buy companies where estimates are too low and sell where they are too high to capture outperformance.
Fed Balance Sheet Drives Market Moves
- Parker says Fed front-end accommodation is less reliable and balance sheet expansion matters more to equities.
- He links week-over-week Fed balance sheet changes to S&P moves as a significant market driver.
Broadcom Growth Outweighs Margin Noise
- Vijay Rakesh highlights Broadcom's AI revenue is accelerating despite a margin mix headwind from lower-margin orders.
- He recommends using the pullback to buy given growth prospects and large hyperscaler exposure.