00:00What do you think about the tech companies, Anne? We've been talking about some of these
00:05companies that have lost so much value. Goldman Sachs has written about it, and
00:09I just looked at Microsoft down 22 percent, not to talk about specific names, but just this
00:15whole group with amazingly resilient annual recurring revenue has just been sold off.
00:23Does it make sense to you? You know, in some ways it does, Matt,
00:27because we know that the innovation cycle with A.I. is real and that companies are going to
00:33continue to invest. This CapEx spending cycle doesn't look like there's any signs of slowing.
00:39There is, again, from the one big beautiful bill, incentives for companies to continue to spend.
00:46So we would expect that to happen. And, you know, when you get a four multiple point decrease in
00:54technology stocks, which appear likely to have still good earnings and free cash flow growth,
01:00it starts to get more attractive to to investors. And, you know, like technology has been acting like
01:06the new defensive stock sector, and it looks like investors are kind of turning back in that
01:11direction. I would just have a little bit of caution that they may be too impacted by some of the
01:18supply
01:18chain impacts that we're seeing because of this conflict. Helium is needed for semiconductors.
01:25About 30 percent of that comes from the Middle East. And so, again, depending on the duration of
01:30this conflict and the damage that's created, you could start to see some of those material costs
01:36costs or dislocations even impact technology.
Comments