The Russell Micro-cap Index includes the smallest 1000 securities in the Russell2000 Index, plus the next 1000 smallest eligible securities by market cap.
This index is on pace to finish November at its highest monthly close in its entire history. Risk appetite or Risk aversion? Source: J.C. Parets @JC_ParetsX
When Zoom ($ZM) was $600/sh in 2020, it had $20 million in income.
Now, Zoom is $87/sh with $2 billion in income. What does that tell you about the current AI companies? Source: Kevin Malone @Malone_Wealth
Interesting view by Shay Boloor @StockSavvyShay about why the AI cycle is nothing like the dot-com era.
"Early-2000s fiber ran at roughly 7% utilization because the industry built far ahead of demand that never showed up. The physical layer scaled faster than the software. Today is the inverse. $NVDA clusters inside $MSFT, $AMZN, $GOOGL and $META are running ~80% utilization because every model lab is capacity-constrained. The software layer is scaling far faster than the physical. One cycle had excess supply and no demand. This one has excess demand and not nearly enough supply. That’s the entire difference". ➡️ True. At least for now. But are we sure that capacity utilization will remain as high when hyperscalers would have spent trillions of dollars in additional capacity? What if demand does not pick up as much as supply??? The 7% utilization rate of fiber optics is the one which applied to the end of the cycle, once all fiber optics got built. When the telecom companies started to over-invest, they never assumed that capu would be that low at the end...
Dow Theory says this is a bull market
Most people watch the Dow Jones Industrial Average (DJIA) and think they understand the market. But smart investors know: The trend isn’t real until the Transportation Index agrees. Here’s why ⬇️ 🔍 The Logic (100+ years old… still undefeated) If manufacturers (Industrial Average) are doing well, they should be shipping more goods. If more goods are being shipped, transportation companies (Transportation Average) should also be trending up. Production ↑ → Shipping ↑ → Healthy trend confirmed If Industrials rise but Transports fall? 🚨 Something’s off. Demand may be weakening. 🧠 How Dow Theory Uses This ✔️ Bull trend confirmed Both DJIA and DJTA make higher highs + higher lows. ✔️ Bear trend confirmed Both make lower lows + lower highs. ❌ No confirmation One goes up, the other flat/down → The trend is suspect. Momentum may be false or weakening. Source chart: J-C Parets
In case you missed it...
Oracle $ORCL is now approaching its largest drawdown in a decade Source: Shay Boloor @StockSavvyShay
Magnificent 7s Cash Position💰:
$MSFT: $102 Billion $GOOGL: $98 Billion $AMZN: $94 Billion $NVDA: $56 Billion $AAPL: $55 Billion $META: $44 Billion $TSLA: $41 Billion Patient Investor @patientinvestt
An incredible ride $GOOGL 🚀
Source: Trend Spider
🚀 Big Tech Is Carrying the Entire Stock Market — Literally
Alphabet ($GOOGL) has been the single biggest driver of the S&P 500 this year… accounting for 19.4% of the index’s entire YTD gain. That’s what happens when you add $1.3 trillion in market cap in 11 months. Right behind it? Nvidia ($NVDA): +16.0% contribution (+$1.05T) Broadcom ($AVGO): +$520B Microsoft ($MSFT): +$380B Together with the rest of the mega-cap giants, the top 10 stocks now make up 59.4% of the S&P 500’s total gain this year. Which means the other 490 companies combined contributed just 40.6%. Source: The Kobeissi Letter, econovisuals
