WHY DID $AMD CRASH AFTER GREAT EARNINGS?!?

So, if you're newer to the market, you might be asking, "How does AMD and SpaceX report better than expected earnings, but the stocks still drop?" That's exactly what I'm going to answer in this video. I really hope that you guys learned something new. If you do, please consider dropping a thumbs up and subscribing if you feel like we earned it. SpaceX reported better than expected earnings as many of you guys saw. It is down 7.2%. Again, you can see AMD also beat markets expectation. Uh, and so did SpaceX, right? Cool. Um, let me share my thoughts. SpaceX super speculative. It's still way too early, right? It's still a company that loses billions of dollars every single year. Hopefully, it can actually end up being profitable, but it's also burning through a bunch of capital through its capex spend. I don't think anyone's really surprised through this volatility. It's a stock that went from $230 per share down to 104 within a few weeks, right, from its IPO. Is anyone really surprised that it's down 7% after running up 9% within the given day for no reason? Not really. Right. When it comes down to AMD, I would say that this is the one that more people are probably scratching their head. This company was doing good. If you look at the 4hour time frame, it's a stock that's gone from 180 per share to 600. Well, I would say that probably has a lot to do with it. But Ricky, semiconductor stocks, memory chip stocks are doing and performing much better than AMD. They're not necessarily selling off after reporting earnings. You're right. SanDisk and Marvel Technologies actually report earnings tomorrow, right? As many of you guys know, I do plan to live stream it. So, just another reason to subscribe to the channel. But that being said, like do we just expect those stocks to grow uh crash? No, not necessarily. Not only were those strong performing companies, you know, price-wise, but also fundamentally, they were growing even quicker, right? If you actually look into the fundamentals of maybe SanDisk, especially Micron Technologies, Micron Technologies is actually trading at such a premium that it makes AMD look incredibly overpriced. Um I, you know, there's no reason to kick AMD down when it's down, right? Like it reported amazing earnings. Its EPS, like we said, was a beat. Revenue was at one of the best ever, 11.5 billion. This is great earnings. Analysts will tell you, oh, they missed and list line item this. It's all right? You've seen these companies report worse earnings and they still skyrocket. What changed? In my opinion, two things. It's too expensive. It's too expensive. And if there's any signs of disappointment, the market will not tolerate it. It's already gone from $180 per share to 600. Market has done what it wanted with AMD and it's now trading at too high of a premium that if it's not delivering at the finest and highest level, then guess what? It disappoints. And I believe that's what we're seeing. On top of that, markets have not been in big favor of big capex spend. Not did not only did AMD's capex not double, but actually triple from 389 million right to $88 million again, maybe a little bit more than what investors were expecting and capex spend is kind of a concern. Again, is this an investment that's going to pay off? It just investors are a little sensitive right now, right? We saw that with Meta and I think it was with Google uh who also is possibly overinvesting into their capex spend. Nonetheless, as soon as AMD reported earnings and it started selling off, SpaceX announced a partnership with Nvidia. Again, Nvidia is the juggernaut. It's the market leader in what AMD wishes it was. That's just that's my take. I would 100% rather invest in Nvidia than invest in AMD. AMD has been squeezed out for what it had to offer and it's calling it even the second best is an overstatement. No question SpaceX would announce a partnership with Nvidia over AMD. And if you look at, you know, in comparison, remember AMD is trading at 171 times its earnings. meaning that what it's currently valued at to what the company actually makes in net income 171 times of what it actually earns in net income. Nvidia, who's the market leader, you're you're the best, but yet you're only trading at 32 times. This is a much better deal for me. It's it's black and white. It's super straightforward. I can I can and I would rather invest in Nvidia, who's again the juggernaut, the market leader. there is nothing or no one that compares to it versus AMD who's been squeezed out of all the juices it had to offer and is trading at such a premium that it's just asking to get shorted at this point. If there's any more signs of market downturn, market disappointment, AMD is likely to be the one that takes one of the biggest hits versus many of the others. Again, that's just my opinion. Um, but that being said, you know, we can talk about the specifics for SpaceX if you really care to. In my opinion, it's still too early on. You're really just investing into the dream of Elon Musk. I've said it before. I believe Elon's one of the greatest minds of our generation. He does like to overpromise and often underdel. Like, where's my freaking Roadster? Right? It's been years. It's been a decade almost. Yet, we still don't have that. And now he's talking about, oh, we're going to be selling tickets to Mars. orbital data centers. Sure. Right. Let's see it. People are optimistic and I think it's it makes more sense to have some skin in the game than nothing at all. With that being said, this is what they had to say. Q2 revenue came in at 7.8 billion against 6.8. So, beat their capex was slightly below the expectation uh of the 18.58 billion. Starlink reached 12 million subscribers at the end of Q2 and revenue came in at 15% above estimates. So again, some good milestones, but I still think that SpaceX is incredibly speculative. And the idea that in just two days, a tier, a number, a large number of private Tesla investors are going to have the option to start selling, I think is instilling maybe some more fear into SpaceX investors. Something that I'm really looking forward to and learning more about. I am invested in SpaceX for my kids, but it's just a very small position size. If it drops below $100 per share, I would welcome it, right? I'm I I would love to see SpaceX get cheaper. I would love to buy more SpaceX, but at much cheaper levels, and I wouldn't be surprised by that. Again, while markets are trading at all-time highs, as of right now, SpaceX is struggling. It's only to be expected if markets begin to downturn. Then again, so can and will these speculative stocks. So, I'll do my part in keeping you guys up to date. And like I've said before, if you ever want to join us for our live trading session, we go live every morning at market open. It's a great way to start your morning. If you haven't done so already, take two minutes, click the second link in the description down below. You can even preview one of my recent live trading sessions. So you can see exactly what you would experience if you were part of our LPP team. It's a onetime payment, lifetime access. It's not a subscription. We have members that signed up back in 2018. They paid once and they still get to watch me trade live today. So, if you want to check it out, LPP 3.0, second link in the description down below. I appreciate you guys' time like always. Let's make sure that we end the year on a green note.