Can We Talk About AI Capex? Ryan Is Buying Google Stock; Philip Morris Hits New Highs (GOOG, PM)

Feb 16, 2025

Delve into the world of AI capital expenditures and the strategic moves by tech giants. Discover the insights on Google's impressive cloud growth and the recent stock purchase by Match Group's CEO. Hear about Philip Morris' strong earnings and its promising future in the smoke-free sector. Explore Crocs' transformation into a small-cap giant and Netflix's intriguing venture into podcasting. The conversation also touches on the challenges facing brands like Meta and the volatility in semiconductor profits.

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INSIGHT

AI CapEx Explosion

Hyperscalers' CapEx is exploding, exceeding analyst expectations and signaling a massive bet on AI.
This aggressive spending mirrors past tech bubbles, raising concerns about overbuilding and uncertain returns.

ANECDOTE

Match Group CEO Stock Purchase

Match Group's new CEO, Spencer Raskoff, bought $2 million of company stock and tweeted about it.
Ryan and Brett discuss whether this signals confidence or an attempt to pump the stock price.

INSIGHT

Philip Morris: Smoke-Free Success

Philip Morris's smoke-free business is thriving, approaching $15B in revenue with double-digit growth.
Their cigarette volumes remain stable, unlike US competitors, and they are poised for margin expansion.

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The Investing Power Hour is live-streamed every Wednesday on the Chit Chat Stocks Podcast YouTube channel at 1:30 PM EST. This week we discussed:

(04:37) Capital Expenditures and AI Investments

(24:16) Match Group's New CEO and Stock Purchase

(27:29) Philip Morris Earnings and Future Outlook

(35:37) Meta's Performance and Alphabet's Misunderstanding

(39:40) Google's Cloud Growth and Investment Thesis

(44:11) Marketing Strategies and Brand Perception

(48:15) Bubble Watch: SoftBank's Ambitious AI Project

(52:43) Spotlight on Crocs: A Future Small Cap?

(59:53) Netflix's Entry into Podcasting and Content Strategy

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