On this Daily Editorial, we’re joined by Joel Elconin, co-host of the PreMarket Prep show and founder of the Stock Trader Network. With major tech players like Microsoft, Google, Amazon, and Meta reporting this week, the conversation centers around the unprecedented earnings growth and massive investments in AI infrastructure. Is the market overreacting to capital expenditures, or is there a longer-term play here? We dive into the shift between software and hardware stocks and the broader implications for the economy as companies continue to bet big on the AI revolution. Key Discussion Points Big Tech Earnings Explosion: Analyzing the double-digit percentage revenue and earnings growth from the week’s major reports. AI Infrastructure vs. Software: Exploring the market’s reaction to high capital expenditures and the emerging divide between hardware and software performance. Diversity and Resilience: A look at how diversified tech giants like Google and Amazon are faring compared to more focused players like Meta. The Long-Term AI Bet: Discussing the risks of overcapacity and the potential for AI to create a lasting competitive moat for early adopters. Market Outlook Beyond Tech: Examining current trends in heavy equipment, crude oil’s impact on transport stocks, and the latest from the Fed. Stocks Mentioned: MSFT, GOOGL, AMZN, META, NVDA, MU, WDC, CAT, DE, RCL Click here to visit Joel’s PreMarket Prep website - https://www.premarketprep.com/ Click here to visit the Stock Trader Network - https://www.stocktradernetwork.com/ --------------- For more market commentary &amp; interview summaries, subscribe to our Substacks: The KE Report: https://kereport.substack.com/ Shad’s resource market commentary: https://excelsiorprosperity.substack.com/ Investment disclaimer: This content is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security or investment product. Investing in equities, commodities, really everything involves risk, including the possible loss of principal. Do your own research and consult a licensed financial advisor before making any investment decisions. Guests and hosts may own shares in companies mentioned.

Joel Elconin - Tech Earnings Recap: Big Revenue Growth, CapEx Spending Continues, Markets Extending All-Time-Highs

The KE Report

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**Podcast:** The KE Report

## Transcript

Hey everyone, welcome to the KE Report in a daily editorial on Thursday, April 30th. We are chatting with Joel Elconin. Joel is the co-host of the Pre-Market Prep Show, also the founder of the Stock Trader Network. Both of those links will be in the show notes. Joel, we got to talk earnings and big tech earnings. We had pretty much all of the major tech stocks report this week just in the last couple days. And look, quite frankly, my biggest takeaway is that earnings,

growth is almost mind-boggling. We're seeing double-digit percentage gains in revenue and earnings. These companies continue to just generate a ton of cash, and they're still spending a lot on AI infrastructure build-out. So balancing that out, it seems like if you follow just the earnings, you've got to think that these stocks are moving higher. And then you look at CapEx, which the market does care about. CapEx continues to increase. So there's that balance there.

What's your takeaway? What caught your eyes in terms of some of these big tech earnings? Good afternoon, gentlemen. Thanks for having me. I mean, the market was waiting, I mean, on yesterday, right? Unprecedented having, you know, four of the mega cap tech reporting on the same day.

Microsoft, Microsoft, Google, Amazon, and Meta, all major reports, all, you know, playing out a little bit differently. But our theme of software versus hardware here, it's kind of playing out. Microsoft, big run, pre-run earnings. Street just not convinced that it's going to be able to keep up the earnings that it's had and needs new ways to create revenue from AI.

Meta, you know, which had a monster run in its report, you know, it was really not convinced. It's still software, right? I mean, they, you know, you're on, you're on Facebook, you do the advertising. So Meta fell a little bit, you know, a little bit short, at least, you know, the pre-earnings run.

Amazon had a great quarter, just seeing some profit taking in that, right? The stock, big, thick stock like that blast to all-time highs. And then sticking with the good, you know, Google, you know, up 9%, very, you know, unusual move for Google.

But think about it, you know, Google made their first attempt at AI with bar. That didn't work. They went back to the well, Gemini. And just think about Google, you know, as you know, of course, you know, they're going to lose some of their, you know, their, their ad share.

But, you know, look at, look at the other things that they, you know, the Gemini, look at the, look at YouTube. I mean, you can't get like, you're on the road, you can't get a normal TV station, right? You know, you got to have something. And a lot of you, a lot of people go into YouTube and YouTube TV. So, you know, different things, you know, you know, feeding into it a little bit more diversified commodities or a little bit more diversified stocks performing a little bit better.

Well, Joel, let's dig on...

Joel Elconin - Tech Earnings Recap: Big Revenue Growth, CapEx Spending Continues, Markets Extending All-Time-Highs

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Joel Elconin - Tech Earnings Recap: Big Revenue Growth, CapEx Spending Continues, Markets Extending All-Time-Highs

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.