Take profits or double down?

**Dave** (0:00)
Morning, Zoe, got donuts.

**SPEAKER_2** (0:02)
Jeff Bridges, why are you still living above our garage?

**Dave** (0:05)
Well, I dig the mattress, and I want to be in a T-Mobile commercial like you. Teach me, Saldana.

**SPEAKER_2** (0:12)
Oh, no, I'm not really prepared. I couldn't possibly at T-Mobile get the new iPhone 17 Pro on them. It's designed to be the most powerful iPhone yet and has the ultimate pro camera system.

**Dave** (0:23)
Wow, impressive. Let me try. T-Mobile is the best place to get iPhone 17 Pro because they've got the best network.

**SPEAKER_2** (0:31)
Nice, Jeffrey.

**SPEAKER_3** (0:32)
You heard them. T-Mobile is the best place to get the new iPhone 17 Pro on us, with eligible trade-in in any condition.

**Dave** (0:40)
So, what do we have for lunch?

**SPEAKER_2** (0:41)
Dude, my work here is done.

**Dave** (0:55)
Best mobile network in the US based on analysis by Oakley of Speed Test Intelligence Data 1H2025.

**Dave** (0:59)
Visit tmobile.com.
Big tech earnings are here. Five of the magnificent seven stocks are going to be reporting earnings over the next 24 hours with Microsoft, Alphabet and Meta reporting tonight. Apple and Amazon following tomorrow. Five giants, trillions in market cap, and every trader on the planet is holding their breath. By the way, NVIDIA doesn't report for a couple of weeks, but this morning, they became the first $5 trillion company in history. All of these stocks are at or near all time highs, driven by arguably the biggest technological revolution in history. At the same time as we're seeing AI and its newfound efficiencies, we're also seeing widespread layoffs at major employers like Amazon, who announced 10% of their corporate workforce was out. Meanwhile, the president is meeting with China. We're going to see where we land with the 140% tariff threat. Oh, and did I mention the Fed? They're set to cut interest rates today. Jay Powell warming up the old money printer for a press conference about an hour before these earnings announcements hit. So, what will the next 24 hours bring? Is it time to take profits? Are we going to double down? Now is the time to make those last-minute moves. And today on Dumb Money, we're going to talk all about how we're playing big tech earnings.

**SPEAKER_3** (2:12)
This is Dumb Money Live.

**Dave** (2:17)
Hey there, Dave here, along with Chris and Jordan. We are Dumb Money. Welcome to Dumb Money Live. Quick reminder, if you don't mind, the almighty AI overlords need to hear from you right now. We need you to do your part to help others find the show. Hitting that thumbs up button, smashing like, liking the smash. It really does help others find the show. Chris, Jordan, the markets are roaring. They have been for months, especially if you're in the Mag 7 stocks, which interestingly, yesterday, in a green day in the market, more than half of the S&P 500 was actually red. The concentration at the top getting bigger and bigger. So we want to go through and give our thoughts on all of the big tech stocks with their earnings today and tomorrow. But first, let's talk big picture. How long can this momentum continue? Are we in the AI bubble or is it going to keep going up?

**Chris** (3:06)
Yeah, I think, I don't know if it was Bill Gates. I can't believe I'm quoting Bill Gates. He was in an interview this week. I think he said it, he might have actually said it best. I don't know if he gets anything right these days. But, you know, he said if by bubble, you mean that we're going through something revolutionary where there will be something brand new created that is way bigger than anything we had before, where there will be winners and losers, then yeah, we're in a bubble. There will be winners and losers, right? We all know that. There will be companies that are still have a lot of room to grow going forward. And then there's just a lot of stupid stuff being done because we're moving too quickly, and we don't fully understand it.
And there's a lot of money being thrown around, and DC is typically terrible at allocating money.

**Dave** (4:08)
A lot of money being thrown at startups, at the big companies, the spending for the hyperscalers is insane. But we've also seen projections that the cash flow or the free cash flow is just being dwindled down to nothing because they're spending all their money on this AI infrastructure.

**Chris** (4:31)
Yeah, and will there be more money in the system going forward, will there be a shift in in capital allocation, which is, I think, what we're essentially seeing where all capital allocation is being oriented towards infrastructure and AI and big tech. I think that's a big part of the Microsoft layoffs. If you're not Microsoft, excuse me, a big part of the Amazon layoffs. So if you're Amazon and you're looking at your competitors building out data centers around the world and you want to put every last dollar the next five years that you have into reinvestment in infrastructure and if you can cut a few billion dollars a year out of excess employees on projects you don't necessarily need to be chasing. I think the gaming unit lost a ton of employees this week. So if you can do that and reallocate those dollars to even more infrastructure, getting it out even faster when you know you have essentially an infinite demand for the next few years to utilize compute, it's a better use of capital.