The AI Boom Rolls On: AI Partnerships Pay Off as Stocks Soar & Meta, Google & Microsoft Go All-In

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Oct 31, 2025

Steve Eisman dives into the latest market shifts, highlighting a tentative US-China trade truce that fueled stocks to new highs. He unpacks the Fed's recent rate cut and its mixed market reaction. The surge in AI investments is palpable, with major players like Meta, Google, and Microsoft reporting strong earnings. Meanwhile, Amazon prepares for future AI endeavors by laying off 14,000 workers. Other sectors reveal a mix of weak homebuilder results and Eli Lilly's impressive performance in the weight-loss drug arena.

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ADVICE

Prepare For AI-Driven Workforce Shifts

Expect AI-driven layoffs as companies reallocate spending toward automation and models.
Prepare for labor disruption when firms explicitly cite AI investment as the reason for cuts.

INSIGHT

AI CapEx Race Favors Big Cloud Players

The big AI players (Meta, Google, Microsoft) all boosted 2025 CapEx and reported strong revenue and EPS beats.
Meta faces tougher capital constraints versus Google and Microsoft, making ROI on AI spending harder.

INSIGHT

Why Markets Penalized Meta More Than Google

Market reaction differed because Google and Microsoft monetize cloud AI now while Meta's AI spending is product-focused.
Meta's smaller market cap and shrinking cash make heavy CapEx riskier for investors.

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On this episode of The Weekly Wrap, Steve Eisman breaks down everything happening in the market this week. He discusses earnings for both AI and non-AI related companies. He also gives updates on the US/China trade deal, the Fed cutting rates again, Amazon laying off 14,000 workers, and more.

00:00 - Intro
01:01 - The Trade Deal Between the US and China
01:31 - The Fed Cuts Rates Again
02:29 - AI Announcements
04:14 - Amazon Lays of 14,000 Workers to Invest in AI
04:29 - Earnings: Microsoft, Meta, Google, Amazon, Apple
10:42 - Non AI Earnings: Homebuilders, UnitedHealthcare, Payments, Solar, Cellular, Chipotle, Starbucks, Eli Lilly, Carvana
19:13 - Outro

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