Tech stocks hit hard after Samsung, Fortinet, and ServiceNow miss earnings

00:00 Speaker A

So, let’s start with the Samsung numbers, just to get those out of the way. Samsung, uh, expecting CapEx to grow by 60% to $63 billion this year as it chases market share against SK Hynix, against Micron’s, the world’s biggest memory chip maker. But chip division operating income falling 2% shy of estimates, and the company’s withholding plans for future shareholder payouts until January. That’s a bit of a tough pill to swallow for investors.

00:23 Speaker B

Yeah, they were wanting that news now with how much, especially after SK Hynix announced a buyback yesterday.

00:29 Speaker A

They were wanting it now. Announced a huge buyback.

00:31 Speaker B

They were, they were looking for that today. So, like it feels like today, okay, so we’ve got Microsoft is sort of a little bit of an island. Oracle, which as you say, we’ll get to a little bit of an island. But then you have Alphabet, you have Samsung, you have a report, uh, from Bloomberg that Marvell is in talks to buy Lumentum in a big deal. Marvell shares down sharply. Um, you also have Fortinet reporting disappointing numbers, taking out, wiping out cybersecurity stocks this morning. You have ServiceNow with slowing bookings growth that seems to be weighing on that stock in a very dramatic fashion. So you have here, like,

01:13 Speaker A

ServiceNow.

01:21 Speaker B

for several weeks, it felt like the AI trade was getting hit by vibes, right? Like by concerns, how are we going to finance this? What’s happening with the new clouds? What’s going on with the, with, you know, the financing costs. The stuff you have this morning, like, okay, you can argue that Samsung it’s a little nitpicky. But like some of this stuff is

01:23 Speaker A

the new cloud stuff.

01:40 Speaker C

It’s real.

01:40 Speaker B

real stuff, right? The alphabet concerns are real concerns about its business model and what happened.

01:41 Speaker A

It’s real.

01:44 Speaker C

I think it’s tied, it does tie back to the vibes. 100%, right?

01:46 Speaker B

It is vibe, but but I guess what I’m saying is it’s not just vibe, right?

01:49 Speaker C

Well, it’s, it’s proving the vibes.

01:50 Speaker A

Yeah, right.

01:51 Speaker B

Right. In some respects.

01:52 Speaker C

Yeah. We’re seeing this a bit of a SaaS-pocalypse right now, right? With the ServiceNow and Fortinet. Uh and you’re talking about concern with with Google sorry, Alphabet with with their spending, right? And eating up their real businesses. Uh, that’s a concern there. And you know, it’s funny that you mentioned that that Marvell deal. Isn’t isn’t Marvell like tiny compared to Lumentum?

01:53 Speaker A

Yeah.

01:57 Speaker B

Yeah.

02:12 Speaker B

Like, it seems like it’s No, Marvell has gotten really big. That was one of these creepers.

02:14 Speaker C

Is it? I I misunderstood. I thought it was I thought Lumentum was bigger.

02:18 Speaker B

But

02:19 Speaker A

But this is a this is a huge deal regardless.