On one of the busiest days of earnings season, Ram works through the reports from the driver's seat with Grok: Amazon, Reddit, ServiceNow and Norwegian Cruise Line, then Intel and the talks between Marvell and Lumentum.
On one of the busiest days of earnings season, Ram works through the reports from the driver's seat with Grok: Amazon, Reddit, ServiceNow and Norwegian Cruise Line, then Intel and the talks between Marvell and Lumentum.
On Amazon, he sees the cloud as the crown jewel. Hyperscalers keep handing cash to the chipmakers, Google is closing the gap in cloud, and Trainium takes aim at NVIDIA, which he still sees in pole position. He finds consumer spending brisk, and calls Amazon an expensive stock with great businesses inside it.
Reddit sold off on its outlook as AI search pulls traffic away from Google results, and he asks who should buy it. He is bearish on ServiceNow, a ticketing system he expects AI to pressure, and sees cruise lines and airlines as cheap on energy fears while baby boomers keep traveling.
He closes on Intel spending as a CapEx payer rather than a receiver, Marvell's move for Lumentum, NVIDIA playing chess, and the rush of capital into AI assistants.
Chapters
(00:00) One of the busiest days of earnings season
(01:08) Amazon's Trainium push and NVIDIA's lead
(01:55) Grok on Amazon's quarter
(03:44) AWS CapEx and the backlog
(05:13) Hyperscalers hand cash to semiconductors
(05:56) Google closes the cloud gap
(06:24) Trainium, OpenAI and revenue visibility
(07:19) A services economy driven by cloud
(07:32) Consumer spend runs ahead of inflation
(08:06) Why Amazon trades at a premium
(08:36) Return on capital from Amazon's logistics
(10:01) What Amazon's report implies for Shopify
(10:44) Amazon's third-party seller business
(11:49) Tech sells off, Reddit included
(12:19) Reddit loses Google traffic to AI search
(13:05) AEO over SEO
(13:33) Grok on Reddit's quarter
(15:42) Why Reddit sold off
(17:49) AI changes traffic patterns on the web
(18:03) Is Reddit good value?
(18:24) Who should buy Reddit
(18:52) AI owning the customer relationship
(20:42) Bearish on ServiceNow
(21:11) Grok on ServiceNow's quarter
(24:31) ServiceNow's AI pivot
(25:12) Norwegian Cruise Line's quarter
(27:48) Higher energy costs create opportunities
(28:11) More days per year and the baby boomers
(28:43) The Costco hot dog strategy
(29:15) 252 episodes and counting
(29:55) Airlines, cruise lines and the aging demographic
(30:36) Intel, the CapEx payer
(32:02) Marvell and Lumentum
(33:29) Lumentum and the momentum back test
(34:10) NVIDIA is playing chess
(34:55) Big rounds for AI assistants
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