What KKR and Blackstone just got asked about data centers

MARKET SIGNAL REPORT
POWERED BY STOCKSTOTRADE

SAT OCT 31 · WHAT BROKE THIS WEEK SPY −0.56% QQQ −1.97% DIA −0.81% IWM +1.30%

TOGETHER WITH THE OXFORD CLUB · (Ad)
Washington is asking BlackRock and KKR about data centers.
Alexander Green says one fund sits near the center of it.
Senator Warren's questions to four big investment firms caught Green's eye. His briefing covers a little-known fund tied to the AI buildout that ordinary investors can learn how to access for around $15.

Watch the Briefing

KEY TAKES

SPY lost 0.56% and QQQ lost 1.97% on the week, while small caps (IWM) gained 1.30%.
Software and internet names took the damage. Three of them lost more than a fifth of their value, and two had beaten on both profit and sales.
Tim Bohen on an after-hours trading window most people sleep through (From Millionaire Publishing)

WHAT BROKE

Last quarter was fine. Next quarter got sold. Prices run from the Oct 23 close to the Oct 30 close.

Reddit (RDDT): $144.25 to $91.73, −36.4%. Thursday's Q3 beat on EPS ($1.40) and revenue ($895 million, up 53%), but Q4 sales guidance of $1.00 billion to $1.03 billion missed about $1.05 billion. The CEO said AI answers cut Google search referrals "meaningfully," and Reddit warned daily users could fall by a low double-digit percent. Friday's 29.2% fall was its worst day as a public company.

ServiceNow (NOW): $158.96 to $105.12, −33.9%. Wednesday after the close, adjusted EPS of $1.00 missed $1.02, its first miss in six quarters, and Q4 revenue guidance of $4.25 billion to $4.26 billion came in under $4.36 billion. It fell 27% Thursday, its worst day on record.

Twilio (TWLO): $261.79 to $205.03, −21.7%. Thursday's Q3 beat on EPS ($1.65 vs $1.47) and revenue ($1.56 billion vs $1.52 billion). Then it guided Q4 organic growth to 11% to 12%, down from 16%. It fell 15.2% Friday.

THE LESSON

ServiceNow and Twilio both raised their full-year outlooks in the same reports. Neither mattered. A stock priced for fast growth gets judged on next quarter's growth rate, and a slower one outweighs any beat. Reddit's worst news was about users, not revenue, and it still fell the most.

ONE TO WATCH MONDAY

Palantir (PLTR) closed Friday at $184.11, −6.4% on the week, including a 6.3% drop Friday. It reports after Monday's close, with the call at 5:00 PM ET. The tell is the fourth-quarter outlook. This week showed what a slower one costs.

SHH. THIS IS A CLUB.

This recap goes to readers who open and click. Keep reading and your seat stays yours. See you Monday.

Market Signal Report
powered by StocksToTrade

HANDPICKED FOR YOU

Sponsored · Banyan Hill
The founder they call Silicon Valley's Oppenheimer
Banyan Hill's colleagues say he could be the next Elon Musk. They'll show you a ticker for pre-IPO exposure to his newest company.
See more

Sponsored · The Oxford Club
Mark Skousen on the defense IPO insiders get into first
He says pre-IPO buyers lock in most of the gains before the public gets a shot. He's sharing the ticker he uses to get in ahead of the announcement.
See more

Signal over noise. Saturday evening look at what broke from the Oct 23 close to the Oct 30 close. Next session is Monday.

What KKR and Blackstone just got asked about data centers

Keep Reading

Market Signal Report