Long post, but some thoughts o-To The Moon - Tiger Brokers Online Investing Community - To The Moon

Long post, but some thoughts on what happened in the market today…

Today was a particularly weird storm of price action because the logic going into the open was as follows:

- $MU crushed, saved the AI trade

- AI stocks should go higher due to MU proving its not cyclical, this should help the broader market get a lift

Instead, what we got right before the open…

- $AAPL announces massive price hikes and effectively uses MU earnings to be like, “See! It’s not us, but if memory gets 86% margins, then we have to raise prices!”

- This happens right after the hottest PCE in 3 years is reported, even with oil (the biggest proponent of inflation the past few months) still coming down

- Microsoft then joins the party and raises prices across all XBOX products, once again citing memory costs

Market then proceeds to take a nasty dip in every sector…except Memory.

I think what is happening here will be studied for a long time. The hyperscalers, the companies that are RESPONSIBLE for $MU and $SNDK being multibaggers, are getting destroyed because…well they can’t buy back stock, they can’t get FCF positive, and they don’t have memory’s pricing power.

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It’s not us, but if memory gets 86% margins, then we have to raise prices!”</p>\n<p>- This happens right after the hottest PCE in 3 years is reported, even with oil (the biggest proponent of inflation the past few months) still coming down</p>\n<p>- Microsoft then joins the party and raises prices across all XBOX products, once again citing memory costs</p>\n<p>Market then proceeds to take a nasty dip in every sector…except Memory.</p>\n<p>I think what is happening here will be studied for a long time. The hyperscalers, the companies that are RESPONSIBLE for $MU and $SNDK being multibaggers, are getting destroyed because…well they can’t buy back stock, they can’t get FCF positive, and they don’t have memory’s pricing power.</p></body></html>","htmlText":"<html><head></head><body><p>Long post, but some thoughts on what happened in the market today…</p>\n<p>Today was a particularly weird storm of price action because the logic going into the open was as follows:</p>\n<p>- $MU crushed, saved the AI trade</p>\n<p>- AI stocks should go higher due to MU proving its not cyclical, this should help the broader market get a lift</p>\n<p>Instead, what we got right before the open…</p>\n<p>- $AAPL announces massive price hikes and effectively uses MU earnings to be like, “See! It’s not us, but if memory gets 86% margins, then we have to raise prices!”</p>\n<p>- This happens right after the hottest PCE in 3 years is reported, even with oil (the biggest proponent of inflation the past few months) still coming down</p>\n<p>- Microsoft then joins the party and raises prices across all XBOX products, once again citing memory costs</p>\n<p>Market then proceeds to take a nasty dip in every sector…except Memory.</p>\n<p>I think what is happening here will be studied for a long time. The hyperscalers, the companies that are RESPONSIBLE for $MU and $SNDK being multibaggers, are getting destroyed because…well they can’t buy back stock, they can’t get FCF positive, and they don’t have memory’s pricing power.</p></body></html>","text":"Long post, but some thoughts on what happened in the market today… Today was a particularly weird storm of price action because the logic going into the open was as follows: - $MU crushed, saved the AI trade - AI stocks should go higher due to MU proving its not cyclical, this should help the broader market get a lift Instead, what we got right before the open… - $AAPL announces massive price hikes and effectively uses MU earnings to be like, “See! It’s not us, but if memory gets 86% margins, then we have to raise prices!” - This happens right after the hottest PCE in 3 years is reported, even with oil (the biggest proponent of inflation the past few months) still coming down - Microsoft then joins the party and raises prices across all XBOX products, once again citing memory costs Market then proceeds to take a nasty dip in every sector…except Memory. I think what is happening here will be studied for a long time. The hyperscalers, the companies that are RESPONSIBLE for $MU and $SNDK being multibaggers, are getting destroyed because…well they can’t buy back stock, they can’t get FCF positive, and they don’t have memory’s pricing power.","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/579225795973920","repostId":0,"isVote":1,"tweetType":1,"viewCount":0,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":[],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":952,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/579225795973920"}