Brian Stewart

Yeah, there's a lot going on.

Thank you very much.

Yeah, I think jumping on earnings, right?

So we had a bunch of big name earnings.

We had Microsoft, we had Meta, Apple, Tesla.

this past week, kind of the meat of the earnings season getting going.

I think it's interesting to look at Microsoft and Meta as a pair.

Both companies beat expectations.

Both companies revealed higher CapEx spending.

For Meta, they're now spending $17 billion in the past quarter.

For R&D, that's 41% growth from last year.

It was $15 billion in Q3, it was $13 billion in Q2.

Back when Meta changed its name from Facebook to Meta, in that specific quarter, they had spent $6 billion on R&D.

So you can just see them constantly cranking up the amount they're spending.

Meanwhile, the stocks, Microsoft and Meta, went in different directions.

So...

Microsoft was down 10%.

Meta was up about 10%.

And so there's kind of an interesting dichotomy in how the market was reacting to what seems on the surface is relatively similar news.

I think one thing to look at is just the relative placement that Microsoft stock and Meta stock had going into the earnings report.