RiskReversal Pod Alphabet & Amazon Earnings Preview with Gene Munster
Feb 4, 2025
In this conversation, Gene Munster, Managing Partner at Deepwater Asset Management, shares his expert insights into the tech sector. They explore the effects of new tariffs on major companies like Apple and Amazon, dissecting how these changes impact earnings and overall market volatility. The duo also examines the competitive landscape of generative AI and its implications for Google’s search business. Lastly, they discuss shifting investment strategies towards smaller tech firms as traditional giants face new pressures.
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Market Reaction to Tariffs
- The market's negative reaction to Trump's tariff announcement is surprising, given prior signals.
- This reaction reflects concerns about inflation and interest rate impacts, key factors for tech investors.
Interest Rates and AI Trade
- The current interest rate environment is less concerning than the rapid increase from zero a couple of years ago.
- A recession, historically triggered by high rates, could negatively impact the AI trade.
NVIDIA's Stock Reaction
- Despite positive commentary from Microsoft and Meta about AI spending, NVIDIA's stock reacted negatively.
- This market behavior is concerning, especially given NVIDIA's growth potential in the AI sector.