Sam and Bret unpack a volatile earnings and macro week, focusing on investor concerns about Alphabet’s search business and the muted reaction to Microsoft’s strong results. They also discuss the Fed’s rate decision, other economic and political headlines, and practical lessons about patience around earnings and long-term investing.

Talking Points 👇

🔹 Sam and Bret contrast concerns about Alphabet’s search-ad business with its growing AI search use and strong cloud business.
🔹 Bret describes Alphabet’s stock history: an AI-fear selloff near $85-$90 followed by a rally to around $400, while Sam flags the 200-week moving average near $200 as a potential chart level.
🔹 The hosts discuss search revenue growth of about 12% and the challenge of adapting a core business amid rapid AI changes and high investor expectations.
🔹 They note Microsoft beat across key measures, including cloud revenue and guidance, yet reversed from an after-hours gain to trade lower, despite positive free cash flow and disciplined capital spending.
🔹 Sam advises investors to let the market digest earnings before acting, rather than chasing the initial move or speculating ahead of reports.
🔹 Bret says Microsoft had already climbed roughly 50% from its June low, providing context for its post-earnings pullback.
🔹 They discuss rotation among Mag Seven stocks and the increasingly unforgiving response to missed expectations or cautious guidance.
🔹 The Fed held rates as expected; Sam and Bret also touch on PCE inflation, the ECB leadership news, the UK budget, and political-event uncertainty.

Make sure you subscribe and follow eToro on social media: 👇

YouTube: https://www.youtube.com/@etoro
etoro's platform: https://www.etoro.com/
Facebook: https://www.facebook.com/etoro/
X: https://x.com/eToro
Instagram: https://www.instagram.com/etoro_official
LinkedIn: https://www.linkedin.com/company/etoro/
TikTok: https://www.tiktok.com/@etoro_official

This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient’s investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. etoro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication

See omnystudio.com/listener for privacy information.

TAD DREX & KARA PODCAST FRIDAY OCTOBER 9

About this episode

Comments

Rate this episode

Episode Details