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Alphabet (GOOG, GOOGL) delivered an earnings beat, sending the stock higher and fueling confidence in the “Magnificent Seven” group. With Microsoft (MSFT), Meta Platforms (META), Amazon (AMZN), and Apple (AAPL) set to report this week, Capital Fund Management head of macro strategy Christian Dery joins Market Domination Hosts Julie Hyman and Josh Lipton to discuss the impact of the Magnificent Seven on the broader market.
“These companies have gotten so large that on earnings events…you’re getting these swings in market cap on the order of $2 [billion] to $400 billion,” Dery says, highlighting Nvidia (NVDA) and its impact on the S&P 500 (^GSPC) specifically. The chipmaker doesn’t report earnings until Nov. 20.
As the Magnificent Seven companies report earnings, capital spending will likely be closely watched by investors as Big Tech companies invest billions into artificial intelligence (AI) infrastructure without a definitive timeline on AI monetization. The strategist says, “The reality is that the existing incumbents have to build out this technology because they can’t risk falling behind their competitors,” but “We haven’t found the killer use case just yet, and the market is going to start to be more discerning in terms of [the] path to profitability scale. They’re going to focus on CapEx and projections for CapEx.”
For more on how Dery navigates investing in the Magnificent Seven, watch the video above.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Naomi Buchanan.
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