If we posted a picture to lead the Interim Brief posts, this week’s would undoubtedly be one of a roller coaster. Where we are on that ride remains to be seen, but it is undeniable that volatility related to the global news cycle is at a new peak.
But only one of the ten stocks we track ended down for the week (Charter, down a mere $1 billion), and Google/ Alphabet and Microsoft are actually higher than the April 2nd tariff announcement. Apple is once again knocking on the door of a $3 trillion valuation. AT&T is still up 18% for the year, and T-Mobile up 17% for the year. Many retirement savings plans are looking better this morning.
Now we face telecom and tech earnings season (nearby is the updated calendar with Google and Amazon dates still unannounced). How will wireless companies “new phone every year/ two years” plans be adjusted to reflect the new China tariffs? Will/ can T-Mobile and Verizon simply absorb the increased cost? How will Apple source the next iPhone (re: Tim Cook in particular and Apple as a company excel in supply chain and logistics)? How are falling gas and diesel prices (roughly -10% from this day last year according to AAA) changing cost structures? How do the events of the last several months change the data center-focused capital spending plans? Many questions remain, and this quarter’s earnings will be closely watched.
Lastly, Amazon released their annual letter to shareholders. This is a “must read” for tech investors. We have included it below and find the AI section particularly insightful. Full file is below as well. Have a terrific week!
