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Speaker 2: This is the Bloomberg Daybreak Aisia podcast. I'm Doug Krisner.
Speaker 2: You can join Brian Curtis and myself for the stories,
Speaker 2: making news and moving markets in the APAC region. You
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Speaker 3: Joining us now for look at markets in the Asia
Speaker 3: Pacific and globally is Jamie Cox, Managing partner at Harris
Speaker 3: Financial Group. Jamie, thanks very much. So I was characterizing
Speaker 3: the CPI report as offering some positives to the market
Speaker 3: and the FED meeting. Well, I suppose you could take
Speaker 3: that either way. One rate cut penciled in this year
Speaker 3: instead of three and then one more next year still
Speaker 3: means that for the next eighteen months a year and
Speaker 3: a half, FED policymakers are expecting one fewer rate cut
Speaker 3: than what the market is thinking. Yet the markets were buoyant.
Speaker 3: So just your thoughts on the current environment.
Speaker 4: Well, I mean, this is the third consecutive session that
Speaker 4: you've seen, you know, all time highs for the S
Speaker 4: and P five hundred. Markets don't need rate cuts. That's
Speaker 4: the bottom line. I mean, we're sitting at a situation. Yeah,
Speaker 4: I really believe that it's that investors are begging for
Speaker 4: the wrong thing when they're asking for the Fed to
Speaker 4: cut rates. You know, historically, the time between the last
Speaker 4: increase in the FED funds rate and the first decrease
Speaker 4: in the FED funds rate sometime later is when the
Speaker 4: markets are strongest and and the majority of the return
Speaker 4: during that period is front loaded. So investors need to
Speaker 4: be careful what they wish for when they when they're
Speaker 4: talking about rates. If rates are pushed into the future,
Speaker 4: it's actually very very positive for stocks. It's been It's
Speaker 4: actually the Goldilock scenario in markets. So I believe that
Speaker 4: most people will be happy to for the Fed to
Speaker 4: be you know a little bit more sanguine in their
Speaker 4: need to cut rates quickly.
Speaker 2: Soldilocks and no bears looking around the corner. Is that
Speaker 2: the way you see it now, Jamie, Well.
Speaker 4: You know, it's really interesting. I mean, we were sitting
Speaker 4: at a very similar time to the mid nineties, where
Speaker 4: you have this massive productivity wave that is yet to
Speaker 4: be realized. You're seeing you know, massive infrastructure investment, the
Speaker 4: likes we haven't seen in such a long time try to,
Speaker 4: you know, build out the AI infrastructure. We have not
Speaker 4: yet seen the benefits of it. We've only seen the
Speaker 4: beginning of the investment component, and that's going to be
Speaker 4: very negative for inflation in the future. So I think
Speaker 4: markets are looking beyond the temporary factors that have you know,
Speaker 4: you know, kept the last mile of inflation from coming
Speaker 4: down to the target from the Fed, and looking at
Speaker 4: the future and saying, gosh, there's some really positive things
Speaker 4: that are happening in tech and energy and industrials. This
Speaker 4: is a really good time to invest. And you know,
Speaker 4: there's a lot of people who are afraid and that
Speaker 4: is and they think markets aren't good and it's just
Speaker 4: not true. I mean, people aren't paying attention to all
Speaker 4: of the benefits and all the earnings, all the money
Speaker 4: that's being made. And now, what's interesting to me, I
Speaker 4: work with a lot of retired people, and for the
Speaker 4: first time in the long time, people's retirements are a
Speaker 4: lot more secure now because they can actually earn respectable
Speaker 4: face income rates on their investments. It's the irony is
Speaker 4: not lost on me on how much better things are
Speaker 4: when rates are higher.
Speaker 3: Doug, you listen to me every day. This guy's in
Speaker 3: my head. This is what I've been talking about. I mean,
Speaker 3: I couldn't agree more. Who cares what I think? But
Speaker 3: we do care what you think, Jamie, and I know
Speaker 3: that you're sort of big on the broadening theme, and
Speaker 3: I was just having a look a little bit earlier
Speaker 3: this morning. The S and B five hundred is up
Speaker 3: about twenty four percent over the past twelve months, and
Speaker 3: the equal weight S and P is up sixteen percent.
Speaker 3: Now that's not as much, but it's not bad.
Speaker 5: No, it's actually good.
Speaker 4: I'm actually glad because it's been way worse than that
Speaker 4: over the past couple of years. I mean, you've had,
Speaker 4: you know, the top tech stocks which are consistently bringing
Speaker 4: the average hire, but you're so already to see the
Speaker 4: rest of the rest of the field catch up, and
Speaker 4: last year financials were a gigantic drag on the equal
Speaker 4: weight SMP. That seems to be turning around some and
Speaker 4: you're also seeing some of the other the other areas
Speaker 4: of utilities and things like I start to get some
Speaker 4: life behind them. So the broadening out of of the
Speaker 4: of the sector weightings I think is very positive. It's
Speaker 4: been talked about and talked about and talked about that
Speaker 4: never happened, and I believe it's happening in earnest now
Speaker 4: and there's a lot of people who had diversified portfolios
Speaker 4: who have really been kicking themselves for not having it
Speaker 4: all in the Nasdaq or in the queues are finally
Speaker 4: going to benefit from that diversification. So so here here
Speaker 4: to that.
Speaker 2: Yeah, I'm wondering whether we can't make the same statement
Speaker 2: about being overly diverse in geographically when it comes to
Speaker 2: equity markets around the world. Proof it kind of the
Speaker 2: data points that Brian just mentioned that maybe you really
Speaker 2: needed to be overly exposed to the US through this period.
Speaker 4: Yeah, that's that is for sure. There is no question
Speaker 4: that the US markets have dominated everything, and I don't
Speaker 4: think that's going to change. I mean, there are some divergence,
Speaker 4: you know, in central bank policy that may change the
Speaker 4: dynamic a little bit, But when everything is so tech dominant,
Speaker 4: there's really no other part of the world that can compete.
Speaker 4: And that's just the bottom line. And as long as
Speaker 4: that persists, I think that's the way it's going to be.
Speaker 4: Unless there's a major turnover in tech. I think that
Speaker 4: US markets will remain the leader period in the discussion.
Speaker 3: So that said, the tai X in Taiwan is up
Speaker 3: sixteen percent year to date. That's more than the S
Speaker 3: and p's thirteen percent. And also the EK in yen
Speaker 3: terms is up sixteen percent. There's only up four percent
Speaker 3: in dollar terms. But that's kind of the crux of
Speaker 3: the problem, isn't it. The dollar has been so strong
Speaker 3: that it's kind of pummeled a lot of foreign markets.
Speaker 1: Yeah, it's been.
Speaker 4: It's been difficult to be a US US investor and
Speaker 4: devote some of your capital overseas. That is definitely the
Speaker 4: currency translation is in your way, But that doesn't mean
Speaker 4: that there aren't plenty of opportunities. And you know, it
Speaker 4: has been such a long time since international markets dominated.
Speaker 4: At some point the pendulum will switch, but I don't
Speaker 4: think that's any time soon. I think that it's very
Speaker 4: much a sector specific story, perhaps in Taiwan, but I
Speaker 4: don't think that you're going to see much change, not
Speaker 4: for a while. The US is so dominant from a
Speaker 4: consumption point of view, it's really difficult to change the
Speaker 4: narrative there.
Speaker 3: All right, Jamie, thanks very much for joining us here
Speaker 3: live on the program. Enjoyed the chat. We'll get you
Speaker 3: back again, Jamie Cox, managing partner at Harris Financial Group.
Speaker 2: Well after the belt here in the US, Broadcom reported
Speaker 2: quarterly results and gave an annual forecast, both topping estimates.
Speaker 2: This is a reflect reduction of robust demand for artificial
Speaker 2: intelligence products. We have a bit more from Bloomberg's Charlie Pellett.
Speaker 5: Broadcom is a chip supplier to Apple and other big
Speaker 5: tech companies. It said sales in the full fiscal year,
Speaker 5: which runs through October, will be about fifty one billion dollars.
Speaker 5: Analysts had projected about fifty point six billion. The race
Speaker 5: to build artificial intelligence systems has benefited semiconductor companies like Broadcom,
Speaker 5: even though they don't sell the highly prized AI chips
Speaker 5: that are made by Nvidia in New York, Charlie Pellett
Speaker 5: Bloomberg Radio, and.
Speaker 3: The stock jumped almost fifteen percent in late trading. Joining
Speaker 3: us for more on Broadcom is Kunjhon Sobani, senior semiconductor
Speaker 3: analyst for Bloomberg Intelligence. Kunjohn, thanks very much for coming in.
Speaker 3: So we had a revenue beat and a profit beat,
Speaker 3: and then we also had a forecast beat. But these
Speaker 3: were not really massive beats. There is this stock split,
Speaker 3: but it's a little tricky trying to figure out what
Speaker 3: drove the stock up nearly fifteen percent in late trading.
Speaker 3: So I'll put that question to you. What did.
Speaker 6: Yeah?
Speaker 7: So, I mean, the short answer is everything that investors
Speaker 7: and as analysts were looking and hoping for during the
Speaker 7: call sort of came in line. There were three things
Speaker 7: going into Gold. We wanted to see an upside to
Speaker 7: the AI numbers, which did happen, actually significant upside to
Speaker 7: the AI specific numbers, even though on a total revenue
Speaker 7: as you said, it was not a big upside. Second,
Speaker 7: we wanted to look at better or upside to the
Speaker 7: VMware numbers, both for the quarter and the outlook, which
Speaker 7: did happen. VMware numbers came better than what the speed estimated,
Speaker 7: and the outlook looks again better both in terms of
Speaker 7: revenue growth as well as the cost cutting and the
Speaker 7: integration part of it. And Third, we wanted to see
Speaker 7: a sort of a confirmed bottom and a clarity of
Speaker 7: recovery in its non AI sychnical business, which again did happen,
Speaker 7: most of it non AI cyclical business. The company said
Speaker 7: Q two will be the bottom except for broadband, which
Speaker 7: will continue to persist weakness.
Speaker 2: Con John, you know, semiconductor is such a broad category.
Speaker 2: We talk about the AI accelerators, when we talk about
Speaker 2: in Nvidia, we talk about the memory chips companies like
Speaker 2: Micron and Samsung. Sk Heinex help me understand the products
Speaker 2: that Broadcom is involved in manufacturing and how that fits
Speaker 2: into the overall chip ecosystem.
Speaker 7: Yeah, so I'll Broadcom has many semiconductor businesses, but for
Speaker 7: this I'll stick to the AI portion.
Speaker 6: So it has two.
Speaker 7: Major products when it comes to AI. One is the accelerators,
Speaker 7: which is the ACIC accelerators that it only sells to
Speaker 7: these large cloud providers and hyperscalers like Google and Facebook,
Speaker 7: And this is sort of an alternative to the merchant
Speaker 7: GPU Silicon do, Nvidia and AMD Cell. So there's a
Speaker 7: portion of that market where Dotcom is the leader actually
Speaker 7: and the number one and has majority share in that market.
Speaker 7: Other than that, in AI, they sell a lot of
Speaker 7: networking and connectivity chips, so you need to connect all
Speaker 7: of these memories and GPUs on networks and optics. So
Speaker 7: there's a lot of chips and components involved here that
Speaker 7: Broadcom sort of supports the ecosystem.
Speaker 3: Yeah, it's a it's a very complex and big company.
Speaker 3: There's a there's a big software component too. And one
Speaker 3: of the reasons that maybe Broadcom stock had lagged a
Speaker 3: little bit over the past quarter. And I say that
Speaker 3: because a week ago the stock was at about thirteen
Speaker 3: hundred dollars and change, and you know, it had gotten
Speaker 3: to over fourteen hundred way back when it announced earnings
Speaker 3: a quarter ago. Hasn't done all that much. And that
Speaker 3: coincided with a lot of selling and software company, I
Speaker 3: mean software has struggled quite a lot. And if you
Speaker 3: look at Broadcoms mix you talked about the semiconductors, I
Speaker 3: think they run about sixty seventy percent. You've got twenty
Speaker 3: percent VMware another ten or fifteen percent in software. So
Speaker 3: maybe a little bit of relief from investors today that yeah,
Speaker 3: the software portion was okay.
Speaker 6: Yeah, you're definitely on spot.
Speaker 7: And one of the concerns with this VMware deal is
Speaker 7: their largest and a bit different than the typical software
Speaker 7: assets that they've acquired in the past, where they only
Speaker 7: focus on select few large customers. But VMware has hundreds
Speaker 7: of thousands of customers, so exactly put right, you know,
Speaker 7: the coster coming down better than what they had laid out,
Speaker 7: and the revenue growth is not being impacted as some
Speaker 7: had worried. So a relief over there that the software
Speaker 7: per piece is still doing.
Speaker 5: Fine, Kunchan.
Speaker 2: When you look at the overall industry right now, so
Speaker 2: much of this, as we've been discussing, revolves on the
Speaker 2: around the AI trade. Are you seeing signs of any
Speaker 2: type of a slowdown in demand or is thing? Are
Speaker 2: things still firing on all cylinders.
Speaker 7: From our perspective, for the pure play AI chip makers,
Speaker 7: not the ones you know, not the wannabes, but the
Speaker 7: ones who are currently selling, see don't see any slowdown.
Speaker 7: One proof point of that is if you look at
Speaker 7: all the biggest US hyperscalers and cloud service providers, they
Speaker 7: inaggregate have raised their CAPEX spending for twenty twenty four
Speaker 7: by forty percent over twenty three levels, which were already
Speaker 7: at sky high. So as long as those guys don't
Speaker 7: pause or slow down spending, the AI chip pure play
Speaker 7: names should be fine, because those are the ones who
Speaker 7: are they're spending the most money on.
Speaker 3: You know, it's kind of funny. I was just looking
Speaker 3: inside the costp here for some of the gains this morning,
Speaker 3: and you know you can imagine after the broadcon print
Speaker 3: and the reaction to it, information technology is up two
Speaker 3: and a half percent, But it's not the biggest gainer.
Speaker 3: What's the biggest gainer utilities? So you know that's kind
Speaker 3: of tied now utilities and power producers sort of tied
Speaker 3: to the AI trade. A lot of people exposed to this.
Speaker 3: So my question to you, Ken John is what's the
Speaker 3: most important thing to watch for? Is it a warning
Speaker 3: from in video when in Vidia finally does say worn
Speaker 3: on revenue? Is that the time you know, up until
Speaker 3: that time, you're okay, but then look out?
Speaker 7: Yeah, I think Nvidia could be definitely a good bogie.
Speaker 7: So if Nvidia says any concerning comments, that's definitely a
Speaker 7: big signal given that they have about more than ninety
Speaker 7: percent share there. Another good proxy point could be again
Speaker 7: the CAPEX spending from the large four or five cloud
Speaker 7: to the providers and hyperscalers. If they come out and
Speaker 7: say that they're reducing their spend for twenty twenty five,
Speaker 7: that could be to say.
Speaker 2: Another concern you mentioned the wannabes, and I'd like you
Speaker 2: to expand on that the companies that are aspiring to
Speaker 2: rise to the level of Nvidia, maybe they've got a
Speaker 2: heavy lift ahead of them, but the R and D
Speaker 2: spending that would be required to engineer a chip as
Speaker 2: sophisticated as some of the AI accelerators that in Vidia manufacturers.
Speaker 2: Can you imagine a world where a company rivals in
Speaker 2: Vida at some point?
Speaker 6: I mean, you could never say never.
Speaker 7: You know, we have a good precedent from Intel at
Speaker 7: one point the largest semiconductor company by revenue, by unit sales, etc.
Speaker 7: And we used to you know, I've covered this sect.
Speaker 7: I've been in this industry for twenty years. I used
Speaker 7: to think of like, nobody could ever overtake Intel, right,
Speaker 7: but it did happen, So you can.
Speaker 6: Never say never. But yes, you're right.
Speaker 7: I mean, at this point you were talking about tens,
Speaker 7: if not in fifties, you know, billions.
Speaker 6: Of dollars of R and D to catch up to Nvidia.
Speaker 7: So it's really that Nvidia has to misstep itself or
Speaker 7: hit itself in the foot to get someone else ahead
Speaker 7: of them.
Speaker 3: All right, Cunjohn, thanks so much for joining us. Some
Speaker 3: great information there. Kunjohn's Bonnie Senior semiconductor analyst for Bloomberg
Speaker 3: Intelligence looking at Broadcom in its earnings earlier today. Joining
Speaker 3: us here on the program is Sarah Ponzak, financial advisor
Speaker 3: at UBS Private Wealth Management. Well, let's talk about the
Speaker 3: FED here. On the face of it, this was actually
Speaker 3: a hawkish FED meeting, given the one rate cut this
Speaker 3: year down from three in the dot plots, and also
Speaker 3: the raising of the core inflation forecast by the end
Speaker 3: of the year. But the market response was, as we know,
Speaker 3: quite positive, with the S and P five hundred up
Speaker 3: almost one percent. I think many would say that this
Speaker 3: is that the market has confidence in disinflation and confidence
Speaker 3: in the FED. Would you agree, I.
Speaker 1: Would absolutely agree with you.
Speaker 8: I think, especially if you just look at today's market action,
Speaker 8: the market would agree.
Speaker 1: With you as well. Look, when it comes.
Speaker 8: To the FED meeting today, you highlighted it. Really what
Speaker 8: the big news was was that dot plot, the fact
Speaker 8: that the median dot in the dot plot is now
Speaker 8: only pointing to one rate cut in twenty twenty four.
Speaker 1: But if you listen to many market watchers strategists, you.
Speaker 8: Even look at what the market is pricing, what a
Speaker 8: lot of people are thinking is that, well, maybe you
Speaker 8: know these FED officials submitted their dots before this morning's
Speaker 8: inflation data. Because this morning's inflation data, and you laid
Speaker 8: it out right at the top of the show, the
Speaker 8: fact that we saw CPI rise year every year by
Speaker 8: three point four percent in May, that's the slowest pace
Speaker 8: of more than three years. I think the Fed might
Speaker 8: be patting themselves on the back a little bit saying,
Speaker 8: all right.
Speaker 1: We're seeing disinflation now.
Speaker 8: The market really latched onto that and said, okay, well,
Speaker 8: inflation's coming down. Sure, the Fed is saying only one
Speaker 8: cut this year, but you add it all together, what
Speaker 8: do you get. You have a market that's still pricing
Speaker 8: in two cuts this year. So the market is still
Speaker 8: called the fence bloff there.
Speaker 2: So maybe we can agree that the degree of easing
Speaker 2: really hasn't changed much. I mean, Brian talked about the
Speaker 2: fact that now there are more rate cuts forecast in
Speaker 2: twenty twenty five. Timeline has changed a little bit here.
Speaker 2: But in your view, Sarah, what does it mean for
Speaker 2: the market, for the equity market in particular, correct, So.
Speaker 8: I don't think today's events really mean all that much
Speaker 8: as it pertains to change for the equity market. Sure,
Speaker 8: if we get a cut one quarter or one month
Speaker 8: later than expected before, that's not that big of a
Speaker 8: difference as long as the direction of travel remains the same, and.
Speaker 1: The direction of travel for interest rates.
Speaker 8: As of now still remains lower. The expectation is that
Speaker 8: the Fed's going to start cutting. Whether it's at the
Speaker 8: end of twenty four or the beginning of twenty twenty five,
Speaker 8: doesn't really matter, as long as they start cutting interest
Speaker 8: rates and they continue.
Speaker 1: Along that path.
Speaker 8: So when we look at the outlook for the equity market,
Speaker 8: we actually see reason for its stocks to potentially grind
Speaker 8: higher from here. A few fundamental factors there, one of
Speaker 8: course being the expectation that interest rates are going.
Speaker 1: To come down.
Speaker 8: But behind that, really the fact of the matter being
Speaker 8: that the US economy remains solid. But we have seen
Speaker 8: this modest deceleration towards a soft landing. If you look
Speaker 8: at JOLDS data, if you look at housing data, credit
Speaker 8: card spending, ism, manufacturing data, we've seen a softening, but
Speaker 8: not to a point that would warrant a complete falling
Speaker 8: out of the economy, rather to a point in which
Speaker 8: we can say, all right, we're seeing the economy slow.
Speaker 8: We're seeing dissinflation. That's exactly what the Federal Reserve wants,
Speaker 8: and that means that interest rates can come down over
Speaker 8: the next year or so.
Speaker 3: Yeah, it's kind of a quirky world though, Sarah, in
Speaker 3: that if let's say interest rates come down, that will
Speaker 3: actually hurt megacaps to a certain degree. And all of us,
Speaker 3: all of you listening, who have more interest in yield
Speaker 3: income than you have loans. That's a lot of people.
Speaker 3: I mean, not all of us have a whole lot
Speaker 3: of loans, but we're all taking advantage of getting five
Speaker 3: percent yield, you know, in short term treasuries and in
Speaker 3: cash equivalents. So I want to put it to you
Speaker 3: that it might be one reason to hire for longer.
Speaker 3: Is actually a good thing for many in this in
Speaker 3: this economy, for savers.
Speaker 1: And retireies, it is. And we have plenty of clients who.
Speaker 3: Well, not just that, but think of the megacaps. They
Speaker 3: have all this cash and no loans. The megacaps themselves,
Speaker 3: there's a well.
Speaker 1: Within the within the tech space, yes, megacap.
Speaker 8: Now, megacap tech sucks are seen as quality stocks because
Speaker 8: they have extremely.
Speaker 1: Sturdy balance sheets. But if you think of tech as
Speaker 1: a whole and growth. There are a lot of tech
Speaker 1: companies and a lot of growth companies that still are
Speaker 1: hanging on to a lot of debt.
Speaker 8: And look, a lot of these you know, a lot
Speaker 8: of these corporations, a lot of their executives are very smart,
Speaker 8: and they locked in lower interest frees years ago. But
Speaker 8: at some point in time, there is going to be
Speaker 8: this wall of deep that's coming due, and there are
Speaker 8: a lot of corporations out there that are going to
Speaker 8: have to figure out what to do if all of
Speaker 8: a sudden they have fixed debt maturing at higher interest.
Speaker 1: Rates and now they have to work that into.
Speaker 8: Their balance sheet and revenues and profits and whatnot.
Speaker 1: So, yes, you're right. Look, if you're talking about the
Speaker 1: biggest of the big.
Speaker 8: Megacap tech SUCs that have strong balance sheets, and they're
Speaker 8: in a fine place no matter what.
Speaker 1: But at the same time, if you think about the
Speaker 1: majority of the growth space, the majority.
Speaker 8: Of the tech space, a lot of these companies do
Speaker 8: have dit on their balance sheet. And if we see
Speaker 8: interest rates come down, we probably will see that as
Speaker 8: a boon to some growth stocks as well.
Speaker 2: Yeah, and lower rates obviously going to take a lot
Speaker 2: of pressure off of some of the regional banks. We've
Speaker 2: been talking about potential stress in things like commercial real estate.
Speaker 2: Powell kind of pushed back against that notion. Today thought
Speaker 2: the financial system was doing pretty well. Let's talk about
Speaker 2: the AI trade. Brian was mentioning Broadcom earlier. This is
Speaker 2: part of the narrative that we've been discussing for months.
Speaker 2: It's the Nvidia story, is it's the open AI Microsoft story.
Speaker 2: Are you still feeling positive about this now?
Speaker 1: We are.
Speaker 8: You know, everyone's been talking about AI now quite some time,
Speaker 8: and it seems like there's so much hype surrounding artificial intelligence.
Speaker 1: You know, it's the aihive. You hear AI.
Speaker 8: All of our clients are constantly asking about it, calling,
Speaker 8: oh am I invested in AI?
Speaker 6: How are we investing in AI?
Speaker 1: You know it's important, but we do.
Speaker 8: We believe in it, even considering the games that we've
Speaker 8: already seen. I mean, if you think about what's really
Speaker 8: fueling AI into the future, it is semiconductors, which we've seen.
Speaker 1: You just mentioned.
Speaker 8: But if you look at the socks the Philadelphia Semiconductor
Speaker 8: Index this year already here to date, it's up another
Speaker 8: thirty percent. So we just continue to see semi conductors
Speaker 8: move higher, but there's reason behind that, you know, if
Speaker 8: we look.
Speaker 1: At the numbers, if we look at the earnings behind
Speaker 1: what's fueling this.
Speaker 8: Our Chief Investment Office actually expects global semi conductors to
Speaker 8: deliver earnings growth of fifty percent this year in twenty
Speaker 8: twenty four, and another twenty five percent in twenty twenty five.
Speaker 8: So what's amazing is that, Yes, there's a lot of talk,
Speaker 8: there's a lot of high expectations here, but there's numbers
Speaker 8: behind it as well.
Speaker 3: Yeah, especially the Nvidia numbers, but if you look at Broadcom,
Speaker 3: the revenue and the profit piece were hardly knocked out
Speaker 3: of the park numbers, nor was the forecast. I guess
Speaker 3: there's this stock split, but it's hard to fathom a
Speaker 3: fifteen percent jump on those numbers, don't you think.
Speaker 8: Yeah, look, I can't speak to any one individual stock,
Speaker 8: but when you look at what's been happening at large,
Speaker 8: is already there's such high expectations baked into these stock
Speaker 8: prices before these earnings reports. And what's happening is if
Speaker 8: these companies just report, they don't necessarily have to be
Speaker 8: they just have to meet these lofty expectations and investors
Speaker 8: are clearly happy with that.
Speaker 3: Okay, Sarah, thank you so much for joining us. Sarah Ponzak,
Speaker 3: Financial advisor at UBS Private Wealth Management.
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