Daily Alpha · Reddit
· Post-Market Alpha · by Buzzberg Research
Retail sentiment is highly skeptical of recent tech earnings, focusing on the negative implications of hyperscaler capex and questioning the validity of unaudited backlog figures.
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by score · day changeSMCI unaudited earnings release concerns
Community members are skeptical of SMCI's early release of unaudited numbers, noting the absence of EPS and net income figures and explicit caveats that the $60B backlog may not be firm.
Nothing is going to happen until GOOG earnings. [+6] u/Temporary-Equal-774: This smci release looks pretty suspicious:
The lack of transparency and suspicious timing are being interpreted as a potential attempt to hide negative fundamental news, leading to bearish sentiment and interest in put debit spreads.
Watch Monitor SMCI's full earnings report for discrepancies with the unaudited figures and backlog firmness.
Source →Alphabet earnings beat vs. market reaction
Alphabet reported a significant earnings beat (EPS $9.11 vs. $2.88 expected) and strong cloud growth (+82% YoY), yet the stock remained flat or declined in after-hours trading, causing confusion among retail traders.
GOOG EPS $9.11 vs $2.88 forecasted [+8] u/Agreeable-Taste-3183: Release the pump! Data WAS AMAZING!! [+8] u/CUbuffGuy:
The market's negative reaction to a massive beat suggests that investors are prioritizing capital expenditure (CapEx) concerns and negative free cash flow over headline earnings growth.
Watch Observe if the stock reverses at market open; continued weakness despite the beat would confirm that CapEx spending is the primary market concern.
Source →Alphabet (GOOGL) capex funding concerns
Alphabet reported negative free cash flow for the first time since its IPO, driven by $45B in Q2 capex, with guidance for $180-190B in full-year spending.
How do they plan to pull this off when Free Cash Flow was negative this quarter?
Aggressive AI infrastructure spending is forcing the company to tap capital markets (equity, preferred, debt), raising questions about long-term dilution and capital efficiency.
Watch Monitor future cash flow statements and any further capital market issuances to fund the remaining H2 capex guidance.
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