Market Dips, Google Breakup Looms, and Key Earnings to Watch
Key earnings from Oracle and Adobe will set the tone for tech stocks this week, as Google is one step closer to a breakup. I'll report back about a Nebius event later this week as well.
What is going on investors!
Path of least resistance still appears to be lower for most stocks.
Continue to identify areas you want to buy and act on it.
Remember, the more stocks go down the worse the news cycle will be.
That’s normal.
For those of you who have automatic investments through a 401K or similar program … these are the times you log in and increase your contributions.
Investors don’t panic.
They plan.
Google Breakup?
I’ve discussed the Google breakup story a few times here on the newsletter. There was a small chance the incoming Trump administration changed things for the search giant.
But it appears Google is one step closer to a forced sale of some key products. Here’s what we know now:
The Latest: The Department of Justice (DOJ) under President Trump's administration is maintaining its push to break up Google, reaffirming a proposal to force the sale of Google's Chrome browser.
Why Google Chrome?: Selling Chrome is seen as a way to allow rival search engines better access to users, as Chrome is a primary gateway to the internet.
Google’s Response: Google opposes the DOJ's proposals (obviously), calling them excessive and harmful to consumers. The company has proposed alternative solutions, but most fell on deaf ears.
Proposed Remedies: In addition to Chrome divestiture, the DOJ suggests other measures, such as requiring Google to display a "choice screen" for search engine selection in its browsers.
Next Steps: Both Google and the DOJ will present their arguments on proposed solutions in court in April.
My take: These court cases are hard to predict. Google seems likely to lose initially but will almost certainly appeal to the U.S. Court of Appeals and, if necessary, the U.S. Supreme Court. This will delay the outcome for years.
Meanwhile Google could adjust its business practices for Google Chrome - either juicing up the valuation, or creating alternatives to nuke a potential sale.
Important Earnings This Week:
Oracle and Adobe headline earnings this week.
Oracle was incredibly bullish on its last conference call about its modular data center offering and new database partnerships with the cloud providers. If the market takes it down further, it’s a clear buying opportunity.
Adobe is interesting for a different reason. I currently have Adobe on my “Avoid” list due to rising competition. Several competitors are shipping software that’s just flat out better than Adobe. You also have social media apps like TikTok and Meta’s Instagram shipping editing software that’s far easier (and cheaper) to use than Adobe’s alternatives. Can the software maker rebound after shares have fallen 20% in the past year? I’d be surprised if they do.
Monday
Oracle ORCL 0.03%↑ Earnings
Tuesday
Dicks Sports DKS 0.00%↑ Earnings
Kohl's KSS 0.00%↑ Earnings
Wednesday
Adobe ADBE 0.00%↑ Earnings
Starbucks SBUX 0.00%↑ Annual Meeting
Thursday
Ulta Beauty ULTA 0.00%↑ Earnings
DocuSign DOCU 0.00%↑ Earnings
Dollar General DG 0.00%↑ Earnings
Blink Charging BLNK 0.00%↑ Earnings
I interviewed the CEO back in January.
I’ll be at a Nebius NBIS 0.00%↑ even on Thursday. It’s aimed at attracting developers, which is exactly why I’m going. If the event is enthusiastic and crowded - that’s incredibly bullish for the stock longer term. If it’s a ghost town, that won’t be good. CoreWeave potentially going public will be a key event as well considering both operate a similar business model.
If you could do me a favor - my social media links are all below, check me out across platforms. I try to post unique content depending on the site. I’ll be back later this week to report on Nebius and other happenings.
PS: Coming soon: The Equity Empire book club. Let me know what books you’d like to read and I’ll try to get them in the rotation.
Colin
Hi Colin, I remember that you said on YouTube that you will release a robotic report soon. Can you share how can we get the report? Thank you so much