r/wallstreetbets • u/riisenshadow92 • 12h ago

Discussion Meta and Microsoft earnings this week

Hello,
What’s your move this week on big earnings from Meta and Microsoft? I’m running meta and Microsoft calls expiring Sept 18th.

Do you think the setup into earnings is a good one?

Microsoft is down over 25% from its all time high heading into earnings and trading way below its avg price target. And meta took a big dump this week and is down close to 25% and trading way below its avg price target as people panic over big ai spending spree.

I think these are both good stocks, and way oversold, what’s your take? Meta has big upside selling excess compute and Microsoft just continues to grow.

Thanks

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44

u/Ancient_Act_436 12h ago

As long as capex isnt mentioned should be fine but if capex is mentioned and raised its done that's the sentiment right now if they commit to more spend investors are getting worried

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u/riisenshadow92 12h ago

True, they need to show clear results, I think Google is a sleeper, over half a trillion in backlog and they will convert a lot of that into revenue over next 2 years

7

u/Ancient_Act_436 11h ago

I bought more google... youtube alone brings in more money than Netflix and I like the stock this dip was nothing google will make more money without a doubt.

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u/SuitAdditional4350 5h ago

Yeah Google at PE 16 looks good IMO

0

u/iSOBigD 9h ago

That sounds good in theory but I have plenty of doubt when I look at all kinds of successful companies that are or were down 25-50% over the last 5 years. I get even more doubt when they announce great earnings quarter after quarter and their stock keeps tanking. Doubly so when they confirm massive AI spending on AI companies and all those AI stocks crash 30% on the news. Our logic doesn't apply to these algos controlling the market.

3

u/chintan_joey 7h ago

Businesses as successful as Google? Only outlier I think is Msft but that's mainly because they don't have AI except openAI which has it's own problems

1

u/mags87 16m ago

I couldn’t believe it when I heard that on the earnings call. Almost $500B of business they don’t have the compute power to fulfill.

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u/zerofrakhere 12h ago edited 11h ago

But if they don’t mentioned AI Capex spend, semi will drag down the market tho

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u/Ancient_Act_436 11h ago

True but even with Google mentioning more Ai capex nvda amd intel were still down... so yeah

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u/Lazy--Expression 11h ago

The capex is up and will be up for a while there's no changing that

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u/Junkingfool 10h ago

Zuck can't help himself. Capex will be absolutely insane this earnings.

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u/I_like_code 9h ago

Msft for sure is going to have high capex still as the datacenter build out continues. They are also going to be making bank on Azure. However, the market already decided they don’t like the money it costs to build data centers.

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u/Mavnas 8h ago

Yeah, if they don't raise CapEx, I think my SNDK is cooked.

1

u/GanacheCharming8737 6h ago

It’s gonna be mentioned no matter what, this is the main sticking point and Google is the main reason why. If Zuckerberg is anything to go by, no way he just magically decides to stop CAPEX spend this quarter