The Tail Wagging the Dog: Big Tech Earnings And the 2022 Market

The Razor’s Edge

Last week was a wild one. Given we’re not in a period of acute crisis, and that the market finished higher on the week, the swings from Wednesday to Thursday to Friday were especially pronounced, even before you throw in Monday’s comeback rally. The triggers to those moves? At least on the surface, big tech earnings.

To figure out what’s happening there and what these outsized moves say about the companies involved and the market as a whole, Akram’s Razor and Daniel break down Google, Amazon, and Facebook’s earnings. We talk about the market set up, whether this is as good as it is going to get for these companies, and why no one predicts a massive growth slowdown in their compounding business line.

Topics Covered

• 2:00 minute mark – Initial reaction including the muted note with Google
• 7:00 – What explains the outsized moves
• 14:00 – The nature of Amazon’s segments
• 18:00 – Facebook’s issues and how they might overcome it
• 30:30 – Peak online time
• 36:00 – AWS’s future growth
• 46:00 – Is this what slowdowns look like
• 1:00:00 – The market set-up