Name: Stocks Lower as Microsoft Revives AI Spending Angst | Bloomberg Businessweek Daily 01/29/2026
Uploaded: 2026-01-29T21:05:32+00:00
Duration: 1256 s

Speakers

Angelo Zino — Senior Equity Analyst, CFRA Research

David Gura — Host, Bloomberg This Weekend

Summary

The episode opens with markets lower as Microsoft drops after earnings on AI spending and cloud-growth concerns, while Meta rallies and Tesla falls. CFRA's Angelo Zino discusses buying Microsoft on the dip, Meta's faster growth, OpenAI concentration risk, Tesla and xAI's importance to physical AI, and Apple's upcoming earnings. Later, David Gura covers the political fight over ICE operations in Minnesota and broader Democratic leadership questions.

U.S. equities were lower, led by a sharp Microsoft selloff after earnings.
Meta shares rallied as investors reacted positively to its results.
Tesla fell after earnings and reports of a $20 billion AI-related investment.
Angelo Zino of CFRA said he would buy Microsoft on the post-earnings dip.
Zino flagged OpenAI concentration risk but said Microsoft has strong bookings and free cash flow.
Zino said Tesla/xAI are critical to the broader physical AI and autonomous-vehicle story.
Zino previewed Apple earnings with focus on China sustainability, memory costs, and services growth.
David Gura discussed Minnesota ICE operations, political pressures, and Democratic leadership.

Ideas

Angelo Zino Senior Equity Analyst, CFRA Research 5:00

Buy Microsoft dip on compelling valuation

He would buy Microsoft on its post-earnings dip. It trades around 20 times CFRA's calendar estimate, slightly cheaper than Meta, and its business model remains very strong. Azure growth was solid and beat expectations, with a slight miss mainly due to industry-wide supply constraints. OpenAI concentration risk is real: OpenAI is about 40% of Microsoft's backlog and needs more funding, but Microsoft has over $300 billion in bookings, multi-year capacity visibility, a broadening customer base, and strong free cash flow, unlike Oracle.

Angelo Zino Senior Equity Analyst, CFRA Research 5:15

Meta grows faster but Microsoft preferred

He maintains a Buy on Meta, which is growing much faster than Microsoft, with 30% growth on the same day. That fast growth makes Microsoft's slower growth look less impressive by comparison, but Meta's valuation is slightly less attractive than Microsoft's after Microsoft's selloff, so his current preference is to buy Microsoft on the dip rather than flip the ratings.

Angelo Zino Senior Equity Analyst, CFRA Research 9:41

Tesla key to physical AI evolution

Tesla and xAI are on CFRA's radar and critical to the broader AI story. Musk is probably the biggest spender in GPU services, and the entire Musk ecosystem is extremely important to AI evolution. With Jensen Huang highlighting physical AI and autonomous vehicles, Musk is positioned to lead the next wave, making Tesla a key monitoring name.

Angelo Zino Senior Equity Analyst, CFRA Research 10:52

Watch Apple China, memory, services

He previews Apple's earnings with a focus on sustainability. He expects a very strong China number in the December quarter, but that is priced in; the bigger issue is whether Tim Cook can show year-over-year China growth in the March quarter. Rising memory costs and iPhone 17's shift to 256GB entry-level memory could create the most prolonged constrained memory cycle, though it may not hurt March-quarter margins. Apple's service growth and margin expansion story must be sustained with low-to-mid-teens services growth.

Stocks Lower as Microsoft Revives AI Spending Angst | Bloomberg Businessweek Daily 01/29/2026

Summary

Ideas

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