00:00 President
Most major technological income, as we know, are now in the rear view mirror. Prices remain a dark cloud of uncertainty for the sector, the threat of renewed volatility that persists. We are going to take a look at the state of technology with the director general of Baird, who would be Ted Mortenson. Ted, delighted to see you.
00:14 Ted Mortenson
Nice to see you.
00:16 President
So maybe start, Ted, overview regarding technology. I'm just curious to know how you could judge, ted, how you would characterize the feeling towards the sector at the moment. How would you describe it?
00:29 Ted Mortenson
Yeah, that's a great question. The feeling is quite negative, in fact. If you look at some of the portfolios that have been structured, they are very defensive. So, if you look at what happened, uh, I would say that the first week of February, we had a lot of complacency and the market was at its heights of all time. Then we really have, we passed to a drop cycle. We are almost down 22%. Between this period in February and April, uh, people have become very defensive and I had, in my career, I have never seen a weighting of size as I saw in technology, you know, I would say, uh, April 7 was the stockings. Hmm, you saw a snapback of about 15%, and I think it is people who try to get an equal weight in certain sectors that they can see growth on this sustainable.
01:56 President
It's so interesting, Ted, because before this decline, there was a lot of discussion that technology was the new defensive in some respects, or that it had defensive characteristics because of its size, due to the long -term history of AI growth. And that does not seem that this kind of underlying beliefs necessarily disappeared or did it?
02:28 Ted Mortenson
They did not do it. III think that one of the biggest reports of the winning season was Microsoft, okay? They killed him. Uh, they killed him on Azure on growth of 35% and half of this growth was only people who moved the cloud. They cannot even maintain the curves of the AI, Uh generation demand for supply. Same thing with Amazon. They cannot they cannot meet Gen Ai demand. So these companies if you look at Meta, Microsoft, UM, in particular, their fluid free money that Argentina, frankly. They set up free cash flows in the range of $ 18 billion, and this gives them a lot of latitude that they can spend, as they spend on the AI generation. I would say they are somewhat defensive if you look where the market takes place.
