Big Tech nearing a breakdown?

AI theme & Big Cloud. What's the risk/reward on this?

"It will be easy to forget your vision and purpose once you have fine clothes, fast horses, and beautiful women. In that case, you are no better than a slave, and you will surely lose everything." —Genghis Khan

Let’s start with the Big Tech trade, and by extension, the Long Indices trade that has been doing well for so long.

Apple

Apple reported this week, and people weren’t happy...

My tweet on Apple’s valuation went viral on X. Broad-based weakness on the Products side was covered by growth in Services. Weakness in China and some strength in Europe and the US resulted in higher sales y/y — but lower net income.

Right now, AAPL is selling for ~43X earnings… OOOF, I bought it for a bit more than 10X, 11 years ago. It was a great trade back then, now it’s just a joke.

Even Papa Buffet offloaded 2/3 of BRK’s Apple stake in the past year or so.