AI Investment Fuels Market Winners and Losers

0:00 Speaker 1 Well, Sunday morning, John Terrett is with us. Well, the markets are up, markets are down. Oil it’s going up a lot, but you never know to go down a lot too, John Terrett, give us a report.

0:15 Speaker 2 My analysis of the last week on wallfreet is it was a battle between earnings and the armed conflict. So let’s look at the earnings. First of all, Google pretty good, but they were overshadowed by the billions of dollars being spent on AI. Wallstreet worries that Google will never see that money again, at least not all of it. There

0:30 was something in those earnings which is known as free cash flow, and it is what it sounds like. And the problem is free cash flow at Google was negative for the very first time ever. Wall Street unished Google.

0:40 They were down about seven percent when the news came out. Tesla a similar story, profit miss revenue beat. But the problem again is that ex expenditure on AI. Tesla down fourteen percent when the news came out, and Intel, the chip maker out of California on Thursday night reporting the fastest growth in fifteen years, up twenty five percent. They’re

0:59 really riding AI way. Remember, the government owns about ten percent of Intel these days. The shares were up seven percent on the news they settled up cent, but then on Friday they were down four or five percent, showing that Intel is still a very vulnerable company. As for markets themselves, last week, John, well, they followed oil, or

1:18 rather they didn’t. If oil was up, they were down. If oil was down, they were up. The cryptocurrency story of the week is the Clarity Act, which is edging its way to the Senate floor by contacts in Washington tell me there will be a vote on this cryptocurrency framework in August. They’re just doing last minute negotiations with

1:35 the Democrats now were unhappy with what President Trump made in all that money with cryptocurrency in twenty twenty five. That is indeed the sticking point, and so the weak ahead. Well, second quarter earnings continued with some big names, the biggest of them all Microsoft, Meta Platforms, An and Apple. All of that in the week ahead.

1:52 Speaker 1 John Banks did very well last week.

1:57 Speaker 2 They certainly did with JP Moore and Chase turning in the biggest banking quarterly profit in US corporate history.

2:06 Speaker 1 Remarkable and I have a lot of jpeople are in stock for But if Jamie ever retired I’m selling it. Thank you so much, Thank you so much, John Terror for calling in and we’ll talk to you again real sir.

2:21 Speaker 2 Thank you John, see you next Sunday. Thank you, by bye.