Mega-cap tech spending scare hits Microsoft and Apple — fade the bounce
The biggest names in tech — Microsoft, Apple, and Palantir — are all getting crushed at the same time. Microsoft investors hate the spending, Apple is passing costs to consumers, and Palantir is down 30% in a month despite the AI boom.
Idea
Microsoft is in a historic June selloff because investors are losing patience with massive capital spending. Apple just had its worst day in a year after raising prices on Macs and iPads to offset rising chip costs — a sign margins are under pressure. Palantir is down over 30% this month despite the AI narrative. When the market's most beloved mega-caps all break down simultaneously on different fundamentals — spending concerns, cost inflation, and valuation compression — it signals a broader loss of confidence in the sector. Rather than catching falling knives, this setup favors riding the downside momentum.