Microsoft vs Google—not all tech is the same

Microsoft v. Google

Political strategist James Carville famously said, “It’s the economy, stupid,” in 1992 while advising Bill Clinton on his run for the White House.

Now “it’s the cloud.”

I have repeatedly said that Microsoft is the stronger player and that Google (Alphabet) will face all sorts of challenges. In fact, I said for the “foreseeable future” more than a decade ago during a keynote presentation.

That’s still true today.

Why?

Repeat after me… NOT. ALL. TECH. IS. THE. SAME!

The former is a “must have” while the latter is a “nice to have.”

Google—aka Alphabet—dropped in extended trading despite a “double beat” on the top and bottom lines.

Microsoft, on the other hand, continues to track higher. And, I submit, probably will.

My pairs trade idea still stands…. Long MSFT, short GOOG.

Tesla: Are you an investor or a speculator?

Tesla’s return is 75.78% YTD and 18,565% since inception. It’s still 112.67% above its more recent 52-week low.

But people are losing their minds now that it’s dropped -27.66% from the 52-week high it set on July 19, 2023??!!

Chill.

Tesla is THE leader in EVs, AI, big data, and more. Anybody thinking about it as “just” a car company lost the plot a long time ago. Tesla’s charging network is becoming the de facto global standard and could be an $8–10B annuity. Plus, Unka Elon is getting into distributed power generation, finance, probably insurance, and more—none of which is priced in yet.

Do your homework. (Read)

MyPOV: There are loads of people who think they’re investors but who are finding out the hard way lately that they’re speculating. Keep your emotions out of the equation! Change up your tactics. Buy smaller or slower. There is always a way to play offense, even if you must think defensively.

Just sayin’.

This will create a new generation of millionaires

Every once in a while, you stumble onto a super-important story that is almost totally underreported.

Like this one…

Google’s venture fund and Nvidia are both backing CentML, a new startup focused on making GPUs super-efficient by identifying underutilization and redistributing processing tasks. (Read)

Think of it as an MPG booster for AI.

Keith’s Takeaway: We talk frequently about why crisis is an opportunity… because it speeds up innovation. Nylon toothbrushes, panty hose, Scotch tape, and car radios were all invented during the Great Depression. In this case, a startup has figured out how to squeeze more out of every GPU chip at a time when those things are in critically short supply and AI development is accelerating.

What happens next will create a new generation of millionaires.

Honda to GM: Deal’s off

GM can’t catch a “brake,” apparently.

According to Bloomberg, Honda just canceled a plan to develop smaller, more affordable EVs with GM. (Read)

Honda CEO Toshihiro Mibe is playing it close to the vest in true Japanese fashion, but I can almost guarantee you he’s seething. Cost fears are not the half of it if I know the Japanese like I think I do after 35 years in the country.

Short GM or pile on the putskies.

GM has just taken out my $30 target, and $20 a share doesn’t seem a stretch at this point. GM managed to turn a profit despite the UAW strike so far, but I think it could be a very different story a quarter or two from now.

42 AGs have it out for El Zucko

Forty-two attorney’s general are suing Meta alleging that Facebook and Instagram are addictive, especially when it comes to features aimed at teens and younger children. (Read)

What took ‘em so long?

Interestingly, I don’t think this’ll do much to the stock itself.

Mark Zuckerberg seems to be made of Teflon, and legions of META believers will probably use any dip as an excuse to pick up shares.

I’ll stick with another, though. Upgrade to Paid

Bottom Line

Buy the best, ignore the rest.

Now get out there and MAKE it a great day.

You got this—I promise!

Keith 😊