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Post-Market Alpha

Daily Alpha · Reddit

Retail sentiment is heavily focused on the memory cycle peak debate, GOOGL's upcoming earnings, and GameStop's corporate actions.

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Alphabet's potential GAAP earnings impact from SpaceX stake

Alphabet's Q2 earnings may include a ~$70B unrealized gain from its ~5-6% stake in SpaceX, which could add up to $4.50 to GAAP EPS, significantly exceeding the $2.89 consensus estimate.

After tax and share count it could be up to and additional $4.50 to EPS on top of the $2.89

A headline-grabbing GAAP earnings beat could drive short-term bullish momentum for GOOGL, potentially shifting investor focus away from concerns regarding AI capital expenditure.

Watch Monitor the Q2 earnings release to see if the SpaceX gain is reported through the income statement or Other Comprehensive Income (OCI).

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Micron's peak earnings cycle risk

Micron is currently printing record margins (86%) due to a memory shortage, but the author argues this is a cyclical peak that will reverse as massive committed capital from competitors (Samsung, SK Hynix, CXMT) hits the market in 2028-2029.

When it does, margins do not glide lower, they fall off a cliff, because 86% gross margins in a capital

The market's low P/E multiple for Micron suggests investors are already pricing in a peak earnings scenario, implying significant downside risk if the cycle turns.

Watch Monitor DRAM average selling prices; the first quarter of decline is the identified trigger for the cycle reversal.

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South Korean leverage restrictions on single-stock ETFs

The South Korean government is implementing strict new rules for single-stock leveraged ETFs, including a tripling of the minimum cash deposit requirement to 30 million won by August 5 and a ban on using stocks/bonds as collateral by August 19.

* **August 5:** The minimum cash deposit required to trade single-stock leveraged ETFs will jump from 10 million won to

These measures are designed to curb market volatility and could significantly reduce liquidity and speculative activity in Korean tech stocks, potentially impacting broader memory sector sentiment.

Watch Monitor trading volume and volatility in Korean tech stocks following the August 5 and August 19 implementation dates.

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