Travis Hoium

The private market funding year has not run out.

If it does, I promise you these companies are going public tomorrow.

In the case of the different reactions, I think that has to do with different levels of expectations for both of these companies heading into earnings.

But to be honest, I really can't rationalize the market's reaction, especially to things like capex spend.

I want to shake the market.

If the market was a living entity and say,

What did you want?

Did you want CapEx or did you want no CapEx?

Because I promise you, if Microsoft or any other tech giant had come out and said, hey, we're cutting expenditures, that would have sent the market into a panic.

I said on the show before that I think big tech earnings are much more of a leading indicator as to whether or not we're in a, quote, AI bubble than NVIDIA earnings, for instance, because they're the ones actually building out and buying the chips that are driving a lot of this demand.

So the fact that Microsoft is still...

Planning on spending so heavily here is a conceptually good sign that the people at the top still see value in return on investment and their AI-related initiatives.

That's what's been propping up the market.

Conceptually, if you are Mr. Market, I'm shaking you metaphorically right now, what did you want?

You wanted this.

But I understand the market's reaction to Microsoft in terms of the share price because longer term, the analysts that I talk to here at our company, they always have the question about when you spend this much money on CapEx and you're a software company, you stop looking like a software company.

You start looking more like an industrial company.

Yeah, they're becoming utilities.

If you spend this much money, then we're going to start valuing you respectively.

You don't generate as much cash flow.