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As we enter the heart of the third-quarter earnings announcement season, hope for wave after wave of better-than-expected results to propel the stock market dramatically higher. It will be hard to be bearish in the midst of stunning earnings announcements, so let’s just enjoy the ride.
Of course, there was a correction in tech stocks last Thursday after Meta Platforms missed the consensus analyst earnings estimates by almost 30%. Meta is also burning through cash due to its aggressive AI spending plans, so due to Meta’s deteriorating cash flow, some bears on Wall Street spread the narrative that AI spending would grind to a halt. I want to make it crystal clear there is no slowdown in AI spending, which is why we are seeing order backlogs growing longer, now stretching into the 2030s….
As we enter the heart of the third-quarter earnings announcement season, hope for wave after wave of better-than-expected results to propel the stock market dramatically higher. It will be hard to be bearish in the midst of stunning earnings announcements, so let’s just enjoy the ride.
Of course, there was a correction in tech stocks last Thursday after Meta Platforms missed the consensus analyst earnings estimates by almost 30%. Meta is also burning through cash due to its aggressive AI spending plans, so due to Meta’s deteriorating cash flow, some bears on Wall Street spread the narrative that AI spending would grind to a halt. I want to make it crystal clear there is no slowdown in AI spending, which is why we are seeing order backlogs growing longer, now stretching into the 2030s….
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