What's going on?

Both Amazon and Alphabet (Google�s parent company) released their latest results to investors late on Thursday. Amazon�s stock price hit a new record high � but Alphabet received mixed reviews.

What does this mean?

The better news came from Amazon, which made more revenue and profit than research analysts expected. It also said that it expects revenue growth to increase by about 40% in the next quarter (versus a year ago), thanks to cloud computing and, yes, online shopping � extraordinary for a company of its size.


Alphabet�s revenue, meanwhile, jumped 24% versus a year ago, also ahead of consensus. Significantly, however, the amount it pays other platforms (like phone makers and web browsers) to host its advertising is increasing relative to its revenue growth, which suggests that its income is slowly being squeezed � and may help spell out why its profit fell short of expectations.

Why should I care?

The bigger picture: Tech has had a GREAT run � so some weakness now wouldn�t be surprising.

Big tech companies like Alphabet and Amazon have been living the dream for years � and investors have spent many moons nodding appreciatively as their stock prices rose. Eventually expectations get so high that they become near-impossible to meet � and it seems that some of these tech giants may be approaching their near-term zenith. The point? Investor enthusiasm may be waning somewhat for now � but it shouldn�t be a surprise nor, in any universe, a concern in the long run.


For markets: The bond market isn�t helping stocks right now.

Bonds have sold off significantly this week, and the investor exodus accelerated on Thursday. The problem, for stocks, is that a bond selloff makes bonds relatively more attractive (why? Click here), meaning investors may soon want to start selling stocks in order to buy bonds (perhaps the main reason that stocks, in general, have also had a rough week).