Market after NVDA

[89th]

TARS, after some compliments about this approach basically said:

• Cybersecurity/IT: Crowdstrike and Palo Alto Networks
• Enterprise/Workforce Management: ServiceNow and Workday
• Smart building/HVAC: Johnson Controlls, Carrier Global, Lennox International
• Financial Services/Insurance: JP Morgan Chase and Progressive

[89th]

The Carrier Global one makes sense. Someone has to cool all of those data centers.

[Horace]

Market continues to put its money behind a software and AI collapse today.

I might consider the government restraining AI in private business to be a risk, but due to global competition, I don't see how they can.

The biggest looming issue I see is the mass job losses.

Enterprise software sold by the seat might be affected due to that as well, I guess.

[89th]

Also inflation and UBS downgrading the stock market. Pam Bondi can soon shout "But the DOW is at 45,000 dollars!"

[Axtremus]

Did she actually say “dollars” after “the DOW is at 50,000”?
If so, I need to think about whether that’s more or less embarrassing than saying “two Corinthians.”

[Horace]

@Axtremus said in Market after NVDA:

Did she actually say “dollars” after “the DOW is at 50,000”?
If so, I need to think about whether that’s more or less embarrassing than saying “two Corinthians.”

Yep she said that, but when she repeated it, she left "dollars" out. It was a slip of the tongue that she was aware of.

It's sort of accurate anyway. The DJIA actually is a function of stock prices, which are in dollars.

[Horace]

Fun fact about the DJIA, it is an astonishingly dumb way of computing how well the market is doing. It is a function of share price of those 30 companies, rather than market cap. A company with few shares and a high stock price means more than a company with a ton of shares and a low stock price, even though the latter company might be worth much more.

[jon-nyc]

Yeah one can search ‘shit index’ on old TNCR and see me go on about that very fact.

[Horace]

@jon-nyc The information is hereby vetted, and found to be accurate.

I inferred that a stock split would arbitrarily send the index down, but learned that they actually do account for that. So it's not quite as bad as it could be.

[Horace]

Berkshire Hathaway, which has the odd tradition of reporting on Saturday mornings, turned in a real flop. Profits down 30%. But the stock has been garbage for a while, so maybe this was priced in. It'll be interesting what it does on Monday.

I don't know how anybody justifies to themselves buying BRK when the executives of BRK, with an enormous cash pile, refuse to buy their own shares. If you believe in BRK because you think it's a wisely run business, then ironically you shouldn't be buying their stock.