MICHAEL KRAMER AND THE CLIENTS OF MOTT CAPITAL OWN MSFT, GOOGL, AAPL, AND AMZN
3 Actionable Takeaways
Meta’s steep drop reflects growing investor concern over negative free cash flow and potential overinvestment in AI, mirroring past metaverse missteps.
The broader market remains in rotation mode, swinging between mega-cap and equal-weight performance due to limited liquidity.
Volatility compression post-Fed and earnings could reverse as dispersion trades unwind, likely pushing index volatility (VIX) higher.
Meta’s stock plunged over 12% as concerns mounted over rising capital expenditures and a shift away from its historical cash-cow model, echoing investor reactions from its 2022 metaverse spending spree. Meanwhile, broader market dynamics show sectoral rotation, a decline in implied volatility, and a potential rise in index volatility as dispersion trades begin to unwind post-earnings.