Bill Baruch breaks down why he was comfortable increasing META stake ahead of earnings and what’s driving the AI narrative.
Transcript:
Bill and we say, okay, all all’s Okay, in a part of the market that’s been so reliant, so relied on and we’re willing to buy better today up 7% And we think that you know if there is going to be more turmoil about the economy and the data is going to be a little lumpy moving forward at least, is that the trade that’s going to start working again even though today obviously, it’s down one and a quarter percent because outside of Mehta and Microsoft you have a lot of red on the board ahead of Amazon and Apple Yeah,
I think this is really great point. So as we as I looked at the earnings themselves, you go back to end of April, metal had a big mess and the spending was a big fear the report itself really wasn’t wasn’t great. So flushing that out, I mean, the capex numbers that they cited in the report yesterday was was actually going to continue to increase for me looking at that that quarter that report at the end of April I think they flushed a lot of that out so we added meta in portfolios that did not have meta up to wait before before earnings comfortable to do that. And I also want to concentrated fund I lifted meta yesterday before the earnings report up to 12 and a half percent in that fund. So I like to lean into kind of gaming these are the earnings a little bit and seeing how that kind of played out but I think when you take a step back I mean these big mac make seven companies I think the reports overall great they’re showing you the trajectory of AI being implemented you’re seeing you know as well the AI assistant AI studio and the AI concert recommendations driving the operating margins for metal so I think what we’re seeing here is some of this being implemented I think we’re gonna hear more about it from Apple and Amazon later but I look at the the move in the the momentum that took hold yesterday it’s surprising to see it all dissipate but it’s not quite dissipated in the big names yet. They’re they’re more flattish relative to the broader market.
