David Garrity

Apart from the fact that 26mm Americans are filing for unemployment benefits, things are not that bad from a market perspective. Thanks to the massive and relatively rapid monetary and fiscal policy response, COVID has not taken the S&P 500 down as much as the 2008 Financial Crisis did. At this point in the 2008 experience (start the sequence with 9/29/08, the first -5% move for the S&P), the index was down -17.6%. Now, (start with 3/9/20, the first -5% “crash” day), the S&P 500 is actually up +3.3%. So, based on the valuation for U.S. large cap stocks, this indicates a market view that the worst outcomes are off the table.

In the spirit of the Chinese curse, “may you live in interesting times,” we are certainly in the thick of it at the moment as efforts to contain the COVID-19 coronavirus to China have failed. There are now 140 countries that have reported infections and the weekend has seen the announcement of radical steps such as major U.S. cities (e.g. Chicago, IL; Los Angeles, CA; New York, NY) taking steps to sharply curtail public activities as the U.S. Centers for Disease Control & Prevention (CDC) has issued guidance that events involving 50 people or more not be held for the next two months...

Tech - Cloud Computing Growth Remains Solid, But Quality Control Issues Threaten Tech Majors: One of the major shifts of interest to investors has been that of enterprise computing to "cloud" platforms. In this regard, there have been three major competitors - AMZN, GOOGL & MSFT. While GOOGL results won't be out until after the close Mon 10/28, the indications from AMZN (AWS 3Q19 revenues $9bn, +34.7% year/year vs. +37% y/y in 2Q19) and MSFT (Commercial Cloud 3Q19 revenues $11.6bn, +36% y/y) indicate that while cloud adoption growth is decelerating from earlier levels, it still remains quite solid. With major growth areas such as cloud computing remaining robust, the near-term prospects for the tech sector remain positive...

Tech - Cloud Computing Growth Remains Solid, But Quality Control Issues Threaten Tech Majors: One of the major shifts of interest to investors has been that of enterprise computing to "cloud" platforms. In this regard, there have been three major competitors - AMZN, GOOGL & MSFT. While GOOGL results won't be out until after the close Mon 10/28, the indications from AMZN (AWS 3Q19 revenues $9bn, +34.7% year/year vs. +37% y/y in 2Q19) and MSFT (Commercial Cloud 3Q19 revenues $11.6bn, +36% y/y) indicate that while cloud adoption growth is decelerating from earlier levels, it still remains quite solid. With major growth areas such as cloud computing remaining robust, the near-term prospects for the tech sector remain positive...

Tech - Cloud Computing Growth Remains Solid, But Quality Control Issues Threaten Tech Majors: One of the major shifts of interest to investors has been that of enterprise computing to "cloud" platforms. In this regard, there have been three major competitors - AMZN, GOOGL & MSFT. While GOOGL results won't be out until after the close Mon 10/28, the indications from AMZN (AWS 3Q19 revenues $9bn, +34.7% year/year vs. +37% y/y in 2Q19) and MSFT (Commercial Cloud 3Q19 revenues $11.6bn, +36% y/y) indicate that while cloud adoption growth is decelerating from earlier levels, it still remains quite solid. With major growth areas such as cloud computing remaining robust, the near-term prospects for the tech sector remain positive...

Watch David Garrity explain why Amazon may be at more antitrust risk than Facebook. David Garrity, chief market strategist from Laidlaw and Company U.K and Dan Ives, managing director of equity research form Wedbush Securities, join CNBC's "Closing Bell to give their take on which tech companies are most at risk from antitrust concerns. Read More...

David Garrity Discusses the Impact of the Trade War with China Follow the links and read more below: 1) Bloomberg: https://www.bloomberg.com/news/audio/2019-05-28/we-are-in-a-technology-cold-war-laidlaw-s-garrity-radio 2) LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:6539488934144073729/ 3) Twitter: https://twitter.com/GVAResearch/status/1133724593385029632 1) Tech - Whoever Builds The 5G Platform First Sets The Standards And Thus The Rules Of The Game: Published in 2015, the same year the PRC State Council laid out Read More...

David Garrity on Big Tech Regulation Risk & Implications Follow the links and read more below: 1) Bloomberg: https://www.bloomberg.com/news/audio/2019-05-28/we-are-in-a-technology-cold-war-laidlaw-s-garrity-radio 2) LinkedIn: https://www.linkedin.com/feed/update/urn:li:activity:6539488934144073729/ 3) Twitter: https://twitter.com/GVAResearch/status/1133724593385029632 1) Tech - "Big Tech" Breakup Proposals on 2020 U.S. Presidential Election Radar: Legislators' interest in investigating and potentially regulating the tech sector has been building since the 2016 U.S. general elections. Concrete proposals Read More...