{"id":1454313,"date":"2024-01-31T01:24:07","date_gmt":"2024-01-31T06:24:07","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1454313"},"modified":"2024-01-31T01:24:07","modified_gmt":"2024-01-31T06:24:07","slug":"this-is-the-way-mega-cap-tech-earnings-begin-not-with-a-bang-but-a-whimper","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/this-is-the-way-mega-cap-tech-earnings-begin-not-with-a-bang-but-a-whimper\/1454313\/","title":{"rendered":"This Is The Way Mega-Cap Tech Earnings Begin: Not With A Bang But A Whimper"},"content":{"rendered":"

This Is The Way Mega-Cap Tech Earnings Begin: Not With A Bang But A Whimper<\/span><\/p>\n

\n

After a two month meltup which priced-in not one but several quarter of sheer earnings (and guidance) perfection, there was zero room for disappointment today when $5 trillion in market cap reported between GOOGL and MSFT, not to mention AMD and a bunch of other tech and consumer names. Alas, it was not meant to be, and the mega-cap tech earnings began not with a bang but a whimper.<\/p>\n

Below is the EOD wrap from Goldman’s Mike Washington which is titled, appropriately enough, “All about tech (prints go 0 for 3)<\/strong><\/em><\/p>\n

Another choppy session today as investors digested a hotter than anticipated JOLTS report (back above 9mm and an upward revision to previous month), megacaps slid ahead of the $5.7 trillion in market cap that reported tonight, and we got a slew of idiosyncratic movers as we enter the heart of earnings.<\/p>\n

After hours, Tech went 0 for 3: <\/strong><\/p>\n

MSFT flat on a solid print (azure +28% cc growth = in line w\/ expectations),
\n\tGOOGL -4% on mixed print (slight top line beat, but Op inc missed street),
\n\tAMD -4% on a slight beat but guide FQ1 below (after trading down 3% today on a d\/g away).<\/p>\n

We have seen de-risking in megacap tech space since the beginning of last week which should damper the downside risk to this group a bit… but these prints certainly did not clear the high bar.
\n\u00a0
Other Standouts:<\/strong> Autos positioning was light headed into GM earnings this morning. Stock closed +8% after reporting sales & EPS upside and very strong guidance (F +2% in tandem). Banks and rate sensitives acted well on a competitor upgrade with the expectation for less onerous regulatory changes, and pockets of Semis\/AI outperformed after a big raise from SMCI.
\n\u00a0
\nOur desk was a 5 on 1 \u2013 10 scale in terms of overall activity levels. Overall executed flow on our desk ended with a -44bp sell skew vs 30d avg of -81bps. L\/Os finished -8% net sellers, driven by supply concentrated megacap tech and discretionary vs demand in Financials and REITs. <\/strong>HFs finished +31bps buy skew, with sector skews benign and offsetting in nature. HFs sold mega cap tech, Hcare vs bought Staples, REITs, and discretionary.<\/strong><\/p>\n

Derivatives: <\/strong>Active day in the tech space, as clients traded several names ahead of earnings. We saw buyers of short dated upside in AMZN, GOOG & SNOW, including a buyer of 13.5k next Friday AMZN call spreads. At the index level, flows trended the opposite way as clients focused on fix-strike protection in both SPX and NDX. The straddle for the rest of the week went out at 1.20%. (h\/t Pat Grahling)<\/p>\n

And here is something interesting: not even Goldman believes the bullshit spewed by Biden Department of Labor Propaganda.<\/em><\/p>\n

We’ve been watching the workforce reduction dynamic closely into 2024. UPS and PYPL today joins the list of companies with layoffs announced over the last 3 months:
\n\u00a0
\n1. Twitch: 35% of workforce
\n2. iRobot: 31% of workforce
\n3. Hasbro: 20% of workforce
\n4. Spotify: 17% of workforce
\n5. Levi’s: 15% of workforce
\n6. Zerox: 15% of workforce
\n7. Qualtrics: 14% of workforce
\n8. Wayfair: 13% of workforce
\n9. Duolingo: 10% of workforce
\n10. Washington Post: 10% of workforce
\n11. eBay: 9% of workforce
\n12. Business Insider: 8% of workforce
\n13. Paypal: 7% of workforce
\n14. Charles Schwab: 6% of workforce
\n15. Blackrock: 3% of workforce
\n16. UPS: 2% of workforce
\n17. Salesforce: 1% of workforce
\n18. Citigroup: 20,000 employees
\n19. Pixar: 1,300 employees<\/p>\n

We, for one, can’t wait for this Thursday’s initial claims report to show another record low number just as US corporations lay off tens of thousands all around.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nTue, 01\/30\/2024 – 20:24<\/span><\/p>\n

\u200bRead More<\/a>\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

This Is The Way Mega-Cap Tech Earnings Begin: Not With A Bang But A Whimper After a two month meltup which priced-in not one but…<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1454313","post","type-post","status-publish","format-standard","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1454313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1454313"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1454313\/revisions"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1454313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1454313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1454313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}