Damn, Nvidia: What a tech beast. One overarching theme emerges from reading TheStreet's Eric Jhonsa's analysis of Nvidia's (NVDA) quarter: this company has a massive lead over rivals like AMD (AMD) and Intel (INTC) in hot areas of tech (crypto mining chips, gaming, etc.). As a result of that lead, it will be hard to take down Nvidia's explosive stock price for any sustained duration. Go buy some Bitcoin, Nvidia's quarter suggests the crypto could surge over $10,000 soon.
Calling BS: Disney (DIS) CEO Bob Iger brought out his best spin on challenged ESPN, noting this on Thursday evening's earnings call: "And while there's obviously been a lot of attention paid to ESPN and subs, et cetera, and so on, we've never lost our bullishness about ESPN. The brand is strong. The quality of their programming is strong. There are always opportunities to improve. We're just launching a new morning program, for instance. But we like where ESPN is these days and we believe that one of the best things that we've got going for ESPN is the new technology in the marketplace that's enabling people to watch sports on more user-friendly platforms and wherever they are."
Yeah, I hear ya. Nowhere in ESPN's results for the quarter does it suggest it's nearing an epic performance recovery. The reality is this: competition for consumer eyeballs has never been stronger, where once people watched ESPN to get the baseball scores in the morning they are now catching up on a Netflix (NFLX) original program on an iPad. That fundamental shift will only speed up the reallocation of precious ad dollars from TV players like ESPN to original content platforms. This will be huge for Roku (ROKU) , a player in the streaming business that is executing darn near flawlessly right now. I am talking with the company's founder later on today, so check back over the weekend for the piece.
Old Tech, That Is
I have asked a few people with money this week why they continue to like old tech stocks such as Microsoft (MSFT) and yes, Apple (AAPL) . They all challenged me instantly with the simple question: why do you consider them old tech stocks? In reality they have a point.
Otherwise sleep tech stocks that rose to fame during the internet birthing era no longer are hinged on PC sales data from third-party sources or even capex spending data from the government. Executives at these companies have done a fantastic job of selling their futures to investors and Wall Street. How can you dump Microsoft knowing it's playing a key role in the global cloud boom? How can you dump Apple after a so-so quarter seeing as it's products are so ingrained into our minute to minute lives (which helps ring the services register).
I bring this up after watching how each of the aforementioned tech stocks have traded since their strong third quarter earnings reports. The bullishness almost looks unstoppable -- a tax plan delay may not shake out the bulls either. On the one hand, it's good to hear investors I chat with involved in these tech stocks for the right reasons -- fundamentals -- rather than because "the stocks are hot, bro." But still, what in the world will bring shares of these cash rich tech giants down for a period of time? Yours truly isn't sure.
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