LIVE: MICROSOFT & META 2026 EARNINGS REPORT
In a Nutshell
Markets opened volatile on July 29th with Microsoft and Meta reporting earnings—Microsoft showed resilience while Meta dropped 7.6% after a 13.8% EPS miss driven by AI overspending. The speaker emphasizes avoiding leverage, maintaining small positions in quality companies, and distinguishing between short-term trading and long-term investing during the ongoing market pullback. The core message: stay positioned conservatively without leverage, as markets may decline further before recovery.
These notes were generated by AI and may contain inaccuracies.
Markets opened volatile on July 29th at 12:57 p.m. with the speaker trading live with the LPP team. Markets attempted recovery throughout the day but reversed after the FOMC rate decision. Microsoft was down less than 1% while Meta was down 1.5% at market close. The primary concern was whether these companies would report negative cash flow rather than poor earnings.
Trading or holding positions right before earnings reports creates significant volatility. If there's no intention to carry a position overnight, maintaining the position makes no sense. The risk of leaving positions open overnight is a deliberate choice that traders must accept. Markets officially closed with NASDAQ continuing to drop in after-hours trading.
Microsoft reported strong earnings, demonstrating the company's resilience. Meta dropped 7.6% and showed a 13.8% miss on earnings per share according to Investing Pro software. The miss was attributed to overspending, particularly on AI investments. Meta fell from a 1.5 trillion dollar valuation to nearly losing 10% in a single session.
Robin Hood reported earnings and initially pushed up 2% before showing signs of an overbought reversal. Starbucks rallied significantly, reaching 111 after being stagnant for an extended period. The speaker noted this as a positive development for a company that had been flat for some time.
Markets transitioned from bullish sentiment where nothing could stop gains to experiencing volatility starting in June. The speaker described this as a long-overdue pullback, noting that some traders fought the decline and are now paying the price. The overall NASDAQ market has more room to fall according to the analysis.
The speaker distinguishes between trading and investing, noting that trading involves taking advantage of intraday plays while investing means buying and holding over long periods. The $330 profit from Microsoft was cited as a good small trade, but the emphasis remained on positioning for long-term investment rather than short-term gains.
The critical question for traders is whether they're well-positioned, meaning not overaggressive or using leverage. The advice emphasizes buying light but buying good quality companies that one values. The speaker works with financial advisors for their children's portfolios, adding small amounts during market drops as the only time they increase exposure.
South Korea serves as an example of why leverage should be avoided. Crypto investors represent another example of leverage dangers. The speaker emphasizes that markets can get worse before improving, and traders must be positioned to handle extended periods without action. A famous quote is referenced about great investors being skilled at doing nothing for long periods.
Meta's overspending on AI represents the main concern, creating short-term volatility due to uncertainty about overinvestment. The company prints money but may be overinvesting in AI, which is a risk they're willing to take. The advice is straightforward: if the strategy doesn't align with personal investment philosophy, stay away from the risk and consequently the reward.
The LPP daily live sessions occur every morning at market open with one-time payment for lifetime access. Prices are currently reduced due to market conditions. The program emphasizes accountability and trading together live each morning. Preview sessions are available for those considering joining.
SanDisk investors experienced a 58% decline in 30 days, with leveraged positions potentially facing margin calls. The speaker uses this as an example that while being invested isn't something to fear, using leverage creates dangerous situations. The emphasis remains on calculated participation with intentional position sizing.
The goal is to end the year on a green note. For those with investment intentions rather than trading intentions, holding positions is advised despite stress and downturns. The key is being mindful of exposure levels and having tolerance for volatility before expecting recovery.
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