00:00 Speaker A
Which report do you think is really crucial and needs to come out here and set the tone for all these names reporting.
00:07 Speaker B
Oh, well, I mean, I think all of them. Um, look, meta on CAPEX spending, um, Apple on the fact that it hasn't been the kind of AI player, but it is the case that the stock has accelerated because of demand for iPhones. So that's important too. Uh, I think if I had to, I really had to say which one, maybe meta and also Microsoft.
00:46 Speaker A
Yeah, Microsoft, probably a good quarter of them. Uh Ally, a little concerned about Amazon, especially as it relates to AWS. Sure you had the outage, maybe you didn't contribute to Amazon's growth rate or the commentary they may share on the earnings call regarding AWS's growth.
01:08 Speaker C
Yes, and I'm sure they'll get quite a few questions about that outage during the call. What led to the outage? Is there a systemic concern or is this a one-off event? And that situation also just reminded me how fragile our overall economy is in terms of how much we rely on the internet, how much we rely on these cloud service providers. And that's why these are the most important stocks in the S&P 500, because we're so tied to them operating efficiently
01:41 Speaker C
and maintaining this growth momentum, especially within their various cloud businesses. So I agree that all these earnings reports serve their specific purpose and taken as a whole can give us a better idea of the supply and demand picture, and of course it sets us all up for the Nvidia juggernaut that we will receive in a few weeks. And I think the market is so connected to Nvidia and the commentary that Jensen brings and how the stock ultimately performs.
02:12 Speaker C
There are very high expectations across the board for all these names, including Nvidia. So it's just a question mark as to whether or not these companies can surpass that very high bar.
02:22 Speaker A
Chad, of course, no stock goes up every day forever. It just doesn't work that way when it comes to investing. But looking at the Mag 7, are these stocks virtually indestructible?
02:37 Speaker D
Uh, that would be me, that would be. I would be careful to say that. I mean, you know, it's a concentrated market within the S&P 500 right now and there's going to be a leadership reversal. If all this capital expenditure doesn't yield a return on investment, and it's about a trillion dollars I'm just adding up. Uh, then you're going to see a slowdown in business investment when it comes to data centers and computers.
03:15 Speaker D
Uh, and that will then reverse a lot of the multiples and a lot of the momentum. This happened in the year 2000 with Cisco and all you needed was a change in revenue growth, the delta that caused the market to start to decline and become more normalized. Uh, and that could happen 12 months from now and 24 months from now, but it will definitely happen.
03:42 Speaker A
I'm assuming Chad isn't, you're not a fan of Tesla's stock here. Maybe I'm wrong, but I'll put that aside for now. The mag six, of these six names, which one do you like the most when it comes to your end?
03:52 Speaker D
So, just to be clear, Washington Crossing Advisors owns Microsoft and we have owned it for a number of years. Um, that one I think is the more diversified way to play artificial intelligence, hyperscaling and computing. They do have an embedded customer base and they are really hitting on all cylinders. So if I had to choose one, I would choose that one.
04:23 Speaker A
And as a final word for you: we are obviously not choosing shares here. You all fund uh from our team, but do you have a favorite mag 7 name? Which company do you like?
04:31 Speaker B
Uh, I like, I think I actually want to see what Apple says because I feel like we've talked about the AI game so much and that Apple can continue on the trajectory that it's been on recently with its stock without that AI being that big AI player. So as an outlier, that's the one I like.
5:00 am Speaker A
And I don't want AI from Apple. I'm still trying to figure out what all they put on my new iPhone 17 Pro Max. I barely know how to use the damn thing. I mean, I have to go back to school to figure out how to use it. It's absolutely ridiculous. No way, Apple, I don't want it.
