Motley fool co-founder and CEO Tom Gardner stopped by today on the podcast. There, he and the team browke down the changing dynamics behind earnings from four of the Magnificent 7 companies, what to make of consumer sentiment at a 60 year low, and answering a guest question about the new competition for NVIDIA chips. Tom, Tyler, and Jon discuss: - The markets reaction to Alphabet, Microsoft, Amazon, and Meta’s earnings report - What matters most about AI infrastructure spending - Rising costs for the hyperscalers: fear or opportunity? - Making sense of the lowest consumer sentiment readings of all time - What works when everyone is miserable - NVIDIA’s customers are building their own chips: Is this a problem Companies discussed: Alphabet (GOOG, GOOGL), Amazon (AMZN), Meta Platforms (META), Microsoft (MSFT), Micron Technologies (MU), NVIDIA (NVDA), Walmart (WMT), Target (TGT) Kroger (KR), Dell Technologies (DELL) Host: Tyler Crowe Guests: Tom Gardner, Jon Quast Engineer: Dan Boyd Disclosure: Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, “TMF”) do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. We’re committed to transparency: All personal opinions in advertisements from Fools are their own. The product advertised in this episode was loaned to TMF and was returned after a test period or the product advertised in this episode was purchased by TMF. Advertiser has paid for the sponsorship of this episode. Learn more about your ad choices. Visit ⁠⁠⁠⁠⁠⁠⁠⁠megaphone.fm/adchoices⁠⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Mag 7, Markets, and Mailbag with CEO Tom Gardner

Motley Fool Hidden Gems Investing

# Full Transcript

**Podcast:** Motley Fool Hidden Gems Investing

## Transcript

57% of the Mag 7's earnings today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing, new name, same great investing podcast. I'm Tyler Crowe, and today I'm joined by longtime Fool contributor John Quast. And we have a special guest today, Motley Fool CEO Tom Gardner. Tom, thank you for joining us today. Pleasure to be here.

I want to put you on the spot because we just did the name change to Motley Fool Hidden Gems Investing. Give me the quick elevator pitch with the name change. Well, the spirit of our podcast of The Motley Fool, our Hidden Gems Investing Podcast, and our Rule Breaker Investing Podcast is to present our two primary approaches to long-term investing. In the case of Rule Breakers, it's to look for innovative breakthrough businesses, and in the case of Hidden Gems, it's to really look at the ownership, leadership, and the financial management of companies on a growth path.

Both styles are very similar, but in that they both share a passion for holding stocks for the very long-term, being investors in the stock market throughout our entire lives. But we have two different wrinkles on how to look at companies, and we love having those two different brands in The Motley Fool, and they're expressed here in podcast form. Great that we get to do this on this podcast. And for today, on the docket, we're going to pull a question out of the mailbag that we're getting lots of responses for.

We're going to do what we're calling Tom's mystery box topic, because he's the guest of the honor today. But first, we're going to start with the magnificent seven earnings, or specifically four out of the seven, because within the past 24 hours, or at least since we posted our last show, we've had Alphabet, Amazon, Microsoft, and Meta all post results. And it's remarkable how the market seems to be playing this, one of these things is not like the other. Right now, go up and down the press releases for all four of these companies, and you more or less see the same thing.

Massive top and bottom line beats of analysts, to the point where maybe Wall Street analysts are bad at their jobs. You've got cloud revenue for all of these companies growing 20% to 30%, and all are raising capital spending plans for 2026. Maybe not for the reason people were hoping, but big raises nonetheless. And yet, the market reactions, we have Alphabet up 6%, Amazon's about down 1%, Microsoft down 4%, and Meta down a whopping 10% as we're recording. John, I'm going to go to you first.

As far as what you saw, these kind of similar reactions across the board, what were some of the big themes across all four that you saw? Well, for sure, three out of these four companies that you just mentioned, Tyler, are the large public cloud providers with Microsoft, Amazon, and Alphabet's Google Cloud. As you look at these three businesses, all three of them posting just massiv...

Mag 7, Markets, and Mailbag with CEO Tom Gardner

Transcript

Built for investment professionals

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

Mag 7, Markets, and Mailbag with CEO Tom Gardner

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.