Recent action in a lot of data center stocks as well as software is becoming very concerning. The AMAT warning and of course the recent action in crwv, crcl, and fig as well. This kind of crazy IPO action usually occurs near tops. The latest action looks to be a shot across the bow and combined with the latest PPI data, im turning cautious which means trades will be extremely short term in nature. Dont get me wrong, things could easily change but im just very cautious at the moment.
The major problem is that you don't have the KSA knowledge skills ability to press SELL button first, then BUY button later. Ended up you are filled with concern/worry/anxiety.... Also don't expect Reward : Risk ratio to be in a few tens or few hundreds/thousands.
AMAT is in the semiconductor business and it's cyclical in nature. The manufacturing cycle time from order to delivery is about 12 to 20 weeks depending on the complexity of the chip. With such a long cycle time, managing orders is challenging for both suppliers and customers. As a result, there are a lot rushing and cancelling.
There's a very obvious solution to all the data center consternation. Just give them a new name. When Comcast pissed off their 1 billionth customer and their average customer review was .3 on a 1-5 scale, they simply renamed themselves Xfinity. When Puff Daddy caught one too many cases he became P Diddy and proudly proclaimed that "P Diddy ain't never been arrested". These things confuse the Karens enough to keep plodding forward and it will work great for data centers.