Big Tech stocks warning early ahead of earnings season...so what could this mean for Tech? Google, Microsoft, Meta
Guy Adami says Google is a compelling story based on valuation alone.
Guy also discusses Microsoft and whether or not they have a demand problem going forward.
Guy Adami says Google is a compelling story based on valuation alone.
Guy also discusses Microsoft and whether or not they have a demand problem going forward.
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00:00 A big tech will be front and center this earnings season, but with early warnings from names
00:04 like Microsoft and Snap, what should we be prepared for?
00:07 Let's trade it.
00:08 And the plot thickens because we also basically got the cautionary words from Bill McDermott
00:12 of Service Now Guy.
00:15 I think, to me at least, in terms of valuation, the one you can get your arms around, I'm
00:19 sure Karen would agree, is Google.
00:21 I think just on valuation alone, it's a compelling story.
00:24 Problem obviously is ad spend and what's going on in that world.
00:27 But to me, the key to this whole thing, does Microsoft say they have a demand problem going
00:32 forward?
00:33 They warned on currency a month or so ago.
00:35 Do they warn on demand?
00:37 That to me could be very problematic for the broader market.
00:39 Karen, how do you think about ad spend in this environment when it comes to Meta and
00:43 Google?
00:44 I think it'll be lower.
00:45 The question is, will it be lower by more or less than the stock is already lowered
00:49 on the anticipation of it?
00:50 Just touching on one thing that Guy said, Microsoft on cloud, if what we just heard
00:57 from Bill McDermott is the case, and I have every reason to believe it is, then Microsoft
01:02 is more levered to the cloud than Google, which also, you know, the number three player.
01:07 So I'm most comfortable with Google and Meta.