MRKT Matrix Meta & Microsoft Drag NASDAQ Lower
Oct 30, 2025
Big Tech faces turbulence as Meta and Microsoft see significant stock declines despite mixed earnings. Meta plans a massive $25 billion bond sale to fund AI investments, raising concerns about soaring costs. Meanwhile, Alphabet shines with record revenue and increased AI spending. Additionally, Chipotle struggles with a sales slowdown and Oracle faces rising debt risks amid its AI push. The podcast also touches on fiscal warnings from Goldman and the limited relief from U.S.-China tariff discussions.
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Market Rotation After Tech Earnings
- Big Tech earnings and a Trump-Xi meeting drove a rotation from tech into banks and healthcare today.
- Nasdaq underperformed as investors weighed spending plans and trade headlines against macro uncertainty.
Meta's Strong Revenue Masked Cost Concerns
- Meta posted 26% revenue growth but plunged after investors focused on heavy AI spending and a large tax charge.
- The $25 billion bond sale and a raised 2025 CapEx forecast signaled aggressive infrastructure investment that spooked markets.
Alphabet Benefits From AI-Driven Cloud Demand
- Alphabet beat expectations and signaled a large AI infrastructure spend, lifting its stock amid record revenue above $100 billion.
- Google Cloud strength and an expanded capex outlook convinced analysts that AI is an opportunity, not just a cost center.