Q1 Earnings Momentum with Headwinds & Dispersion Unwind
Key Questions
Which Mag7 stocks beat earnings expectations recently?
MSFT, GOOG, and AAPL reported beats, though AAPL faces a $340 price target amid hyperscaler sell-offs. Earnings momentum continues with mixed results across banks and other sectors like SBUX and SOFI.
What is driving the dispersion unwind in the market?
The climax of dispersion unwind is occurring amid momentum extremes, with semis and earnings shorts like PLTR, MU, and INTC seeing setups post-earnings. Thin volumes and VIX below 17 are contributing factors.
How are AI stocks performing ahead of earnings season?
AI stocks face a major test as earnings approach, with GOOGL noted as overvalued due to insider selling. A major AI/semis crash is adding headwinds and prompting rotation into energy, financials, and staples.
Mag7 MSFT/GOOG/AAPL beats but hyperscaler sell-offs AAPL $340 tgt; BE $296 explode rev beat FY26 guide SBUX surge SOFI 15% crash TSLA +4% China rally DDOG/FTNT/AXON cyber winners JPM/GS/TSM/FICO/SPOT/HOOD/TTD/OZK/SFNC/FHB/TRV banks mixed thin vols VIX<17 dispersion unwind climaxing with semis/earnings shorts PLTR/MU/INTC/SPY post-earn setups amid momentum extremes risks. Major AI/semis crash adds to headwinds, rotation into energy/financials/staple. Latest: AAPL momentum extreme warning (Seth Golden) – 17% 12-day ROC only seen once before in 2020, preceded 8 months of underperformance. Treasury liquidity drain ($56B+ issuance) adds volatility. AI stocks face major test as earnings approach; GOOGL overvalued with insider selling. Earnings season kicks off with GOOGL/TSLA/INTC this week.