AMD *JUST* TANKED [AI Warning] & Reddit, Google EXPLOSION [EARNINGS] Stocks

well we just got earnings and here's a

quick rundown of everything that you

need to know before we get into all the

details of the earnings calls here you

go first of all watch reddit reddit this

thing just came in with a crazy surprise

I mean it is up 177% right now uh in

after hours this is going to Skyrocket

this to alltime highs we've never been

at this level before uh for Reddit uh

Reddit comes in with average revenue per

user

$5.88 per quarter which means if you use

Reddit every quarter You Were Somehow

earning this company

$5.88 and they've got like

48.2 million daily active users in the

United States they've got

97.2 million active users worldwide and

this company was not expected to be

profitable until next year so uh they

were expected to have a 13 .8 million

loss they actually came in with uh a

gain here of

$29.9 million which is actually really

really incredible uh if you consider the

um net income they're expected to have

next year of about 226 million that's a

net income bottom line they're expected

to be at about a buck a share for uh for

EPS it still puts their valuation pretty

dang Rich up there because you know

you're looking at now basically a $95

stock selling for a 95p ratio but their

revenue could also double over the next

you know it's expected to go up 85 86%

in 26 another 90% in 2027 and 23% in

2028 so maybe it's a growth story might

be a little early to tell though how

their um their actual earnings look uh

and how sustainable that could be

because sometimes when they take

adjusted EPs and they're like oh yeah

all of a sudden we're we're profitable

you know there could be kind of

gamesmanship going on in there I'm not

trying to sound jaded on Reddit but I

mean hey we'll just take a quick look at

their financials their revenue exploded

so I mean they're pulling this cat you

know bunny out of a hat or whatever you

want to call it somehow I mean look at

the 9 months ended you went from 554

million to 872 million you went from uh

the quarter ended from 207 to 348 this

is a great boost of Revenue now you did

boost your sales and marketing but I

mean you almost doubled your revenue and

uh your sales and marketing are up like

50% so so you have this positive

operating leverage you are spending more

money on research and development but I

mean you're still making money you're

bringing money to the bottom line now so

a lot of people pretty excited about

what's going on over at Reddit uh they

do have at the moment it looks like

you've got uh free cash flow which is

great they did sell some crypto how dare

they sell they paper handed some crypto

uh so it looks like they sold about oh

what do we got here this looks like

thousands million about $7 million worth

of crypto and if I jump into their

balance sheet for a moment I see assets

of about $2 billion and I see total

liabilities of $194 million this company

is like cash Rich so honestly good job

Reddit this is really impressive I don't

use the product I don't know much about

it but you know what good for them uh

then you got AMD and Lisa Sue says that

there's insatiable demand for more

compute they matched on earnings per

share on an adjusted basis however their

Q4 forecast was down by just 66 basis

points just to like reiterate what that

means for a moment that means they were

down

66% on the forecast uh and uh then their

stock fell 4% and then their forecasted

forecast margin fell by 20 basis points

and then you started getting the Doomer

headlines AMD forecast falls short

suggesting a slower pace of AI growth

and now the stock's down I mean I'm

watching it right here it's down you

know 7% it's only taking Nvidia down

like a quarter of a percent with it so

it's pretty nominal for NVIDIA but you

get a little bit of a bleed Here In

fairness the stock was up 4% today and

it's kind of been rallying going into

this so maybe it's not that big of a

deal and quite frankly you know they're

still growing pretty well because when

you actually look at their earning

statement which is right here you can

see that they're expecting to see

year-over-year growth of 22% and 10%

quarter like sequential growth which

means from last quarter to this quarter

still 10% that's really really good so

you know I don't I don't actually see

this as bad uh I actually think this is

just this is just good the problem is

when you get markets that are at sort of

all-time highs and they have lofty

expectations you kind of think you just

keep growing forever but then the law of

large numbers catch up and it's sort of

like reality sets in you're like oh yeah

that's right we can't really do that

forever now one company that I think

really crushed it here that I think

should be up way higher than this so I

have no exposure to the stock right now

I I wish I did after this it's up 4.2%

but but I don't uh and it's Google uh so

Google beat on Cloud by 5.1% YouTube

basically math matched expectations but

their earnings per share were up

15.2% at Revenue beat by about 5050

basis points which is really low I think

the reason the stock isn't up more

though is because ad revenue is the vast

majority of this business uh just a

fraction of the business is cloud we'll

look at the statement in just a moment

uh and and you know a lot of people are

saying they don't give forecasts I don't

have a forecast or anything from them so

you know who knows uh but at least for

the quarter ended in September they

killed it I mean just look at the

statement for a moment Google services

up 133% Cloud up 35% total op operating

income up 34% and I'm a a Google Cloud

customer and frankly they're they keep

introducing new AI products and they

keep wanting to charge more and more for

them for for Enterprise uh AI products

and and uh you know I I keep I feel like

I keep giving them more and more money

so maybe I should have been my own

indicator uh sometimes I feel like I

should just listen to myself but anyway

uh it's worth noting that 12.8% of

Google Revenue comes from cloud uh most

of their revenue comes from like YouTube

and network and Google Google search and

I will say the AI built directly into

Google search is pretty amazing it's

it's a very very smart integration of

artificial intelligence I love it I

think it's very useful and I'm a big fan

so shout out to Google here I think they

did a fantastic job uh read through a

little bit of their statement here and I

think they have very very reasonable

operating leverage increases here their

margins are moving up uh they've got

over uh $16 billion dollar of free cash

flow and this is just a yeah 17.6

billion this is just a fantastic company

so so big fan here uh Google just tried

and true I mean it it it feels like a

great company so so great great great

job Google I I don't really have

anything bad to say here we'll see what

happens in the earnings uh next one to

mention is uh since I haven't yet uh

house hack has uh a really cool offering

in case you want to invest in house hack

then we're going to talk Snapchat and

chiple it uh we've got uh uh a pretty

awesome offer so if you want to learn

about that go over to house hack.com you

get all the the upside in the stock uh

you know once we go public or get a

valuation in the future but in the

meantime you lock in a 5% Distribution

on an annual basis that we pay out to

you monthly learn about that over at

house act.com there's a whole video and

presentation disclosures and a PPM so

make sure to read all that stuff okay so

Snapchat came in with uh an alert that

there might be slower holiday

advertising sales which is interesting

because it's kind of also what UPS

warned that there might be sort of a

tempered Outlook for this holiday season

the stock still went up about

4% and their Q3 basically matched

expectations but they're also doing a

$500 million buyback so that could be

what's what you're getting there uh then

you had Chipotle so Chipotle missed they

did authorize a $900 million buyback but

they missed about 1.6% on their revenue

forecast and they missed by about

7.9% on new stores

and they missed on comp sales by about

6% all of those were sort of enough to

maybe tell the market like hey the

Chipotle valuation is a little on the

rich side may maybe we don't want to be

paying this much money for this sort of

stock and so I mean it's still you know

it's closed at like 60 bucks today it's

only down 5% like big deal it's still

you know pretty remarkable in terms of

where its pricing is but I mean consider

this is a company that's selling for a

55 times uh you know multiple and you've

got a projected growth of maybe 18% over

the next four years on average so you

know when you divide that out that's 55

divided by 18 you're trading for a three

peg for a company that's giving you rice

and beans it's a little Rich uh but

their margins are great you know

operating margin at 16.9% beat the 15.7%

expectation I got give it to us pretty

damn good First Solar Miss uh they

missed on uh Revenue they missed on

operating income by

11% uh they are down about 6.9% in after

hours they are reducing their capex and

uh their um operating income forecast

unfortunately there's probably just a

lot of uncertainty around solar right

now in general because like markets are

basically pricing in at Trump which is

you know he's obviously a little bit

more anti uh how dare you say uh you

know clean energy but I mean you heard

him on the if you want me to do a

summary on The Joe Rogan pod I'll do the

summary on The Joe Rogan pod but you

know Trump's anti- windmills and EV

mandate and all I I think we all kind of

already know that uh but anyway uh so

you know take a look over here as we

approach the end of 2024 we remain

pleased with the progress across our

business navigating against a backdrop

of Industry volatility and political

uncertainty there it is Al Berto here

says Market is screaming melt up all

right uh so then you've got over here

with a continued focus on balancing

growth profitability and liquidity we

expect our disciplined long-term

approach will get us through the uh us

election so they're basically just going

to blame the election the problem is if

these sort of like negative numbers keep

coming in I mean look look at this

downside the 3 months ending June 30th

they had over a billion in revenue and

now they're at under

900 million

you know that's a hit their gross

profits down like 10% that's a hit their

sgna is the same their R&D is the same

production startup costs down a little

bit but then they have a litigation well

and then they're comping against the

litigation loss so that's a benefit for

them uh since they don't have that here

but uh you know when we look at net

income they're net income still down

like 10 to 15ish perc or whatever so so

you are getting slapped in the face a

little bit they're blaming the election

but once the election comes and goes

there going to be a little bit of a

problem

so uh we we we'll see what happens here

uh some people in the comments are

asking yeah what's going to happen with

Tesla uh you know I think that is also a

big irony is that like you know Donald

Trump is so blunt about like I'm going

to get rid of the EV mandate and Elon is

such a you know proponent of of Elon or

of of Donald Trump but then I think the

counterargument here is that you know

Elon thinks Tesla will be the Eevee

maker to survive and it'll really just

hurt the Fords and the GMS and the other

ones okay Visa is uh laying off about

1,400 employees by the end of the year

4.6% of their staff gone this is not

good especially with that weaker jolts

report it just sort of reiterates again

that one of the ways companies are

bumping profits is just by firing people

uh that is unfortunate because

eventually that is going to catch up to

the economy especially in an environment

where yields are

rising this is this is a slow growth

economy you know the econom is

slowing and and everybody hopes we're

going to have that soft Landing but you

know as it's slowing they're actually

adding more weight to our back with

these uh with with with higher yields in

markets it's not exactly ideal uh with

that said though Visa is still

forecasting an increase of high single

digits to low double digit Revenue

growth uh for this holiday season coming

up uh and then cheesecake actually beat

on comp sales 1.6% versus the

expectation of 1.03% expected it's

pretty good and Caesar's matched

expectations but they were still down

like 5% cheesecake's actually up like 5%

though on this by the way they they're

they're pretty enthused and I think

that's just because they've gone nowhere

over the last 3 years so is what it is I

guess uh but uh some things to watch for

tomorrow and if you want we can do you

know sort of another S I don't I don't

know if you find these useful or

whatever but if if you do you know let

me know uh but uh we're obviously going

to get some more earnings tomorrow we're

going to get uh Wing Stop caterpillar

Eli Lily in the morning we'll get the

ADP report GDP annualized we'll get the

advance report price index for GDP uh

Wednesday p.m we'll get Microsoft meta

coinbase Robin Hood carvana Etsy Roku

Starbucks Dash St Dash lemonade and eBay

uh and the Thursday we'll get pelaton

MasterCard Uber Norwegian the employment

cost index report in the PM we'll get

Amazon Apple Intel Friday morning we'll

get Wayfare assignment Property Group

Chevron and the jobs report which is

expected to come in poopy dupy so we'll

see what happens but so far this is a 7%

drop on AMD kind of curious to see what

this is going to end up doing to you

know markets tomorrow I'm looking at

Tesla down about 43 bips I got the q's

almost flat although they're pretty much

at alltime highs 500 on the q's is

really impressive and BTC dropped a bit

after some of these AMD earnings but it

looks like you're already kind of on its

way uh back to to uh to sort of recovery

here so we shall see anyway uh that's

all I got for us if you got questions

about house email us at IR house act.com

otherwise thanks so much for being here

we'll see you in the next one goodbye

and good luck why not advertise these

things that you told us here I feel like

nobody else knows about this we'll we'll

try a little advertising and see how it

goes congratulations man you have done

so much people love you people look up

to you Kevin P there financial analyst

and YouTuber meet Kevin always great to

get your take