The heavyweights are tapping out and US tech giants are catching Ls. Coincidence?
We know that big money is running for the door – Bank of America’s numbers show the pros dumped more than $4 billion in US stocks last week alone. The sell-off is real.
Now we are getting strong “get me outta here” vibes, but the question is: Do they know something we don’t?
Because these big institutional investors are offloading EVERYTHING: tech giants, small caps and even ETFs. They’re basically ghosting the stock market, leaving individual investors clueless and nervy about the next plot twist.
Meh-crosoft and Meh-ta season
One thing is for sure, the numbers that matter aren’t wowing anyone. As we wrote recently, a vanilla “beat” in the red-hot tech sector just won’t cut it this quarter.
Microsoft’s cloud growth? Yawn. And Meta’s still burning cash on its sci-fi fantasies, with no payoff in sight. Sure, both “beat expectations,” but who’s really cheering? The market’s response was a big, loud “meh”.
- Microsoft’s shares dived 4%, leading to a whopping $129 billion wipeout.
- Meta wasn’t far behind, dropping a whole 3%.
- The pricier the stock, the sharper the pinch. Google – the “bargain buy” of the Magnificent Seven – climbed after earnings.
- But Microsoft, which is 30% pricier than the S&P 500, fell hard and quick.
The mood’s clearly cautious. The big players are making their moves, but the markets aren’t biting.
Coming plays
Apple’s dropping results on Thursday night, and Wall Street’s expecting, again, a big meh. Inline, maybe a hair above estimates, with a so-so outlook. That’s not likely to impress anyone.
Feeling frisky? There’s $AAPS, a leveraged ETP to go bearish on Apple, if you’re brave enough to bet against the world’s largest company.
Amazon’s AWS also needs to come out swinging harder than Google Cloud or Microsoft Azure if it wants to buck the trend. Its e-commerce engine is already sputtering and Temu is threatening to blaze right past.
Is this just a minor vibe shift or is the market’s “it crowd” moving on like an ex who’s fully made up their mind? Stay tuned… things are about to get spicy.
