00:00IBM down 22% in some ways it's sort of overshadowing all this amazing bank news we're getting today so
00:07and this is on top of the fact that IBM stock was already down about 2% year to date
00:11so the company is out with a preliminary look at second quarter sales and profits and they fell short of
00:17expectations IBM CEO Arvind Krishna is saying the company failed to predict that its customers would shift their spending away
00:25from IBM's products to servers storage and memory purchases
00:29to hedge against further price increases especially when it comes to AI storage so to quote Arvind we did not
00:38adapt and move quickly enough what played out last quarter was worse than expected and the stocks getting punished punished
00:46as a result yeah it's just anything discretionary it seems like on the tech is kind of getting paused or
00:53pushed aside and just going all in AI my brother's a big shot at this and the uncertainty
00:59I heard in our last phone call Alexis nobody has a clue about the sequencing the schedule I will say
01:08this Paul they're all making it up as they go it's an educated guess at best at this point right
01:12next you got one well do I have one I mean look at the news flow today let's just pick
01:17JP Morgan I know we've been talking about it all morning but it's worth digging in here a little bit
01:21more because I mean from the outside looking in this looks like a spectacular report right profits at a record
01:27high once
01:28again trading revenue blowing past estimates coming in better than six billion dollars that's a climb climbing 86 percent from
01:36a year earlier but there was a little problem and fixed income slightly missed those lofty expectations and that is
01:44what investors are getting hung up on shares of JP Morgan Chase down now about two and a quarter percent
01:50as a result also Jamie Dimon you know he always seems to sprinkle a little bit of caution
01:55whatever the report is whatever the report is so CEO Jamie Dimon cautious about the prospects for the future once
02:01again talking about geopolitical tensions and sticky inflation those were his words for you know possible reason to want to
02:09be cautious and maybe pause in the months ahead okay and we've got Apple this is a rare one receiving
02:15a rare bearish rating at KeyBank Capital Markets
02:19the analyst the analyst there Brandon Nispel downgrading the stock to underweight he's citing concerns over both demand and valuation
02:28he says the stock's valuation relative to the broader market was quote unwarranted and that consensus I feel iPhone growth
02:36of 8 percent next year is way too aggressive
02:39all right so you heard from Mark Gurman earlier that he's pretty bullish on some of these new products I
02:44mean Paul and I don't give opinions on this but we boy we get a lot of different opinions
02:47I'm looking at the chart I'm telling you when you're a sell side analyst to go off a record high
02:53yep and say lighten up it's tough it's that's a tough one on valuation you're basically saying
02:58everybody in management's watching what you're doing yep how long do they give on a busted call
03:03six months three months depends who you are yeah it depends who you are if you're a youngster not not
03:08very long
03:09and just so you know this analyst at KeyBank uh price target on the stock 250 that would be down
03:15about 20 percent from where it is right now
03:17you
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