Impact of Google, AI and tech on the stock market

Welcome back. Buckle up. The Nasdaq is about to open and the futures are in deep red territory, potentially down hundreds of points. Joining us now is financial advisor Clark Geranen. Clark, are you with us? Good morning. Good morning, Frank. Happy Friday. Yeah, Happy Friday, unless you own a lot of chip stocks and a lot of tech stocks. I just happened to look at the futures this morning, down 2.6 percent before the gate opens. What's going on? It's going to be a bloody Friday. And I think a lot of it stems from what we saw happen yesterday with Google. Investors were really frustrated with the earnings that came out and just seeing this continued AI spend, but not seeing the return on investment. And I think what also bothered them was, you're seeing this continue to AI spend, and it was actually eating into their advertising revenue, which is one of their key drivers. And I don't think it's just Google, that's the problem, but we're going to see that a lot of these other companies are going to be under further scrutiny, like they are today. Yeah, I think a lot of people aren't using Google to search now, they go to ChatGPT. And some of the other A.I. search engines and and when you don't do that, ad revenue goes down. So Google could be a potential victim of A.I. in a way. Right. Sure. It's almost like they're shooting themselves in the foot. But we've seen this before. And it's really companies just being dynamic. So when one revenue source maybe has a drop, they're going to continue to find another revenue source. This isn't news to Google. They knew that this was going to happen. I think it's just investors seeing this now. And they're trying trying to figure out where that Goldilocks situation is, because they... Everybody wants them to spend on AI but not too much and not too little and it's finding that sort of middle ground where we're actually starting to see return and I think as we continue through this investors are just going to get more and more impatient on seeing a return on the investment and I can't blame them. Yeah, well, I think we're all used to, you know, AMD going up 50 points in a day and go, oh, great, great, great. It's almost like a cash register. And then all of a sudden it goes down 60 points the next day. So do you think it's going to be a bumpy ride, at least for the chip stocks or the tech stocks till till the holidays? Are you having any holidays? It will be a bumpy ride. These earnings seasons can always be tumultuous. So after seeing some, it sort of has this waterfall effect where we're going to see more people get nervous and try to come out. But overall, the whole AI landscape, let's say, I think we're still early innings. So people talk about a bubble brewing and, oh, is this going to be the moment that the bubble pops? I think we're probably still in the third inning. So it's going to be Be bumpy along the way. But overall, I think we still have a long way to go. Yeah, you need an iron stomach, because I recall when Facebook now Meta IPO'd years ago, it went down to 19 bucks a share. And oh, by the way, don't you wish you loaded up then? So just hang in there, I guess, is the best thing. Clark, thank you very much. Have a great Halloween weekend. And we always appreciate your insight, my friend. Happy Halloween. Thanks for having me.