Halftime Report Tech Earnings Drive the Rally 7/31/25
Jul 31, 2025
Josh Brown, CEO of Ritholtz Wealth Management, offers expert insights on market trends, while Bill Baruch, President of Blue Line Futures, navigates commodities and futures. Malcolm Etheridge shares specific stock evaluations and investment trends, and Jenny Harrington highlights portfolio management strategies. They discuss the record tech earnings driving market highs, contrast the success of companies like Meta and Microsoft against traditional industries, and analyze the implications of Apple’s earnings as well as the excitement surrounding Figma's IPO.
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AI Drives Tech-Led Market Rally
- Tech earnings, especially in AI, are the sole growth driver in a sluggish economy with 1.5% GDP growth.
- Microsoft’s cloud and AI usage growth illustrate extraordinary demand while other sectors lag behind.
Microsoft's Massive AI CapEx Boost
- Microsoft’s increasing CapEx investment to $120 billion annually shows confidence in AI's future.
- The market rewards continued record-breaking earnings and spending focused on cloud and AI capabilities.
Meta’s Spending Raises Valuation Questions
- Meta’s growing CapEx raises concerns about valuation and free cash flow yield declining.
- Despite strong earnings growth, Meta is becoming expensive relative to its earnings potential.