#FedKeepsRatesSteady
Market Analysis: Fed Policy, Tech Earnings, and Strategy Adjustments
Following the Federal Reserve's decision to keep interest rates steady and the recent earnings reports from major tech companies, here are direct answers to the current market discussion points:
1. What financial metrics does the market currently value most: revenue growth, profitability, or AI investments?
The market is currently prioritizing revenue growth connected to Artificial Intelligence, combined with clear indicators of future profitability. The different reactions to Microsoft and Google demonstrate this. Microsoft's 48% Azure growth satisfied investors, leading to a stock increase. Conversely, Google's 103% cloud growth was substantial, but the drop in Alphabet shares suggests the market is concerned about the high capital expenditures required for AI development and the timeline for returns. Pure AI investment without immediate monetization is currently being penalized.
2. Following the reports from Microsoft and Google, will Amazon's upcoming data meet expectations?
Amazon Web Services (AWS) is expected to report high revenue growth, similar to its competitors, as demand for cloud and AI infrastructure remains high. However, investor focus will likely be on Amazon's profit margins and capital expenditure. If AWS shows strong growth but indicates high spending on AI infrastructure, the market reaction may be mixed, similar to Alphabet's. Meeting expectations will require a balance between high growth and controlled expenses.
3. Given the Fed's decision and these earnings results, will you adjust your current trading strategy?
Yes, adjustments are necessary.
· Crypto (BTC/ETH): Since rates remain unchanged and markets expected this, there is no immediate macroeconomic change. I will maintain current positions but monitor the upcoming Fed press conference for any future policy signals that could impact the current trading range.
· Equities: I will focus on companies demonstrating actual revenue realization from AI rather than just announcing future investments. I will avoid overexposure to tech stocks with high capital expenditures until their profitability metrics stabilize.
The data shows that the market is currently evaluating companies based on their financial efficiency rather than just revenue expansion. #USEarningsSeason

#GoogleCloudSurges103%ButStockFalls
#Gate广场万圣节 Seven Numbers That Explain Why Doubling Cloud Revenue Cost Alphabet 10%
Alphabet closed its regular session near $322.35, up 1.7% into the report, then fell about 10% after hours to roughly $288 to $294 depending on the share class, wiping out more than $280 billion in value. The options market had priced a move of about 5.3%, a range near $305 to $339, so the drop was roughly twice what traders expected. Cloud revenue doubled to a record, so the selloff is not a verdict on Cloud. It is a verdict on what surrounds it. Here are the seven numbers that explain it.
1. $30.71 billion, up 103%. Google Cloud revenue rose from $15.16 billion a year ago and beat the roughly $28.7 to $29.6 billion analysts expected. It is the fastest growth Alphabet has reported for the unit, driven by AI infrastructure, core cloud and, for the first time meaningfully, TPU system sales. The Gemini app also reached one billion users.
2. $11.12 billion. Cloud operating income rose from $3.59 billion, and the margin widened to 36.2% from 23.7%. Cloud is 24% of revenue but 27% of operating income. Backlog reached $561 billion, up 9% from $514 billion last quarter, which equals about 4.6 years of revenue at the current pace. This is profitable growth, not growth bought with margin.
3. $2.12 versus $3.02. Reported EPS missed by about 30%, and net income fell 25% to $26.17 billion from $34.98 billion. An $8.7 billion loss on equity investments drove much of it, a mark-to-market item, and adjusted EPS was $2.67. Operating income actually rose 30% to $40.58 billion at a 31.8% margin. Net income per share also reflects roughly 1.3% more shares by my math, which fits the equity raise announced in June.
4. $127.58 billion. Total revenue grew 25% but came in slightly below the $128.2 billion forecast. Search and other revenue rose 12% to $63.35 billion and YouTube ads rose about 9% to $11.2 billion, but overall advertising fell short. Cloud's record could not cover a softer ad line.
5. Negative $9.07 billion. Free cash flow was far worse than the negative $2.7 billion analysts expected. Capex of $51.4 billion was up 114% from last year, although below the $55.1 billion forecast, and operating cash flow slipped to $42.3 billion from $48.4 billion. A $5.2 billion cash payment on a 2018 European Commission fine and a TPU inventory build contributed. Without the fine, free cash flow would still be about negative $3.9 billion. Trailing 12-month free cash flow is $19.7 billion, down from $73.6 billion a year earlier. Full-year capex guidance stayed at $195 to $205 billion, and the CFO said 2027 will be significantly higher, with reports pointing to roughly $300 billion.
6. The Microsoft mirror. On the same night Microsoft reported Azure up 48% to $33.2 billion, free cash flow of positive $18.6 billion and cash capex of $39.4 billion, and its stock rose about 4% after hours. Alphabet spent about 30% more on capex for about 7% less cloud revenue, and its cash flow swung $27.7 billion lower than Microsoft's. The market is paying for growth that comes with cash, not growth alone.
7. $288.35. That is the after-hours low for the Class C shares, a 10.4% drop from $322.22, while Class A traded near $294 and some feeds showed an 11% decline.
The technical read
The after-hours price breaks the $315.29 and $297.45 supports that held earlier this week. The next support is the 52-week low at $268.43, 16.7% below the $322.35 price and 6.9% below the after-hours low. On any recovery, $297.45 (+3.2% from $288.35) and $315.29 (+9.3%) turn into resistance, and the $322.35 close is the gap to fill (+11.8%). The 52-week high of $404.47 is 25% above the close, and the $351.81 Berkshire placement price sits 18% above the after-hours level. A stock that rose 1.7% into the print and then reversed shows how crowded the positioning was. Net cash of about $140 billion ($265.1 billion in cash and securities against $125.1 billion of long-term debt) cushions the balance sheet, but it does not change the cash-flow trend.
The central argument
Cloud performed. Investors looked past the 103% headline to the earnings miss, the soft advertising line and the cost of building capacity. Alphabet has to show that AI infrastructure spending turns into free cash flow, and the next evidence is the Q4 call with its 2027 capex detail.
#ShareWeekly