The Rundown Meta Shares Drop on Aggressive AI spending, Chipotle's Stock Plummets on Weak Demand
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Oct 30, 2025 In today's discussion, the hosts dive into the stock market's fluctuations following the Fed's recent interest rate cut. They highlight Google's impressive $102 billion quarter and its hefty investment in AI infrastructure. Microsoft's solid revenue is balanced by growing concerns about rising AI expenditures. Meta faces scrutiny over its announced $70 billion AI spending plan amid Reality Labs losses. Meanwhile, Chipotle struggles with falling traffic, prompting a bleak sales outlook.
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Fed Pushes Back On December Cut
- Jerome Powell cooled expectations for a December rate cut despite the Fed trimming rates by 25 bps.
- Markets swung quickly but still price a ~70% chance of a December cut as of this morning.
Google Profits Fuel Large AI CapEx
- Google reported a record $102B quarter driven by Cloud and AI adoption.
- Cloud CapEx will surge to ~$92B in 2025 as Google builds AI data centers and trains models.
AI Spending Clouds Microsoft Rally
- Microsoft beat revenue expectations but markets focused on rising AI-related spending.
- Q3 CapEx hit a record $34.9B and management expects it to climb through next year.