Big tech earnings take centre stage this week as several of the largest U.S. technology companies report results following a pullback from recent highs. With artificial intelligence spending under scrutiny, investors are closely watching how markets react to results that either meet or miss expectations.
BNN Bloomberg spoke with Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth, about what investors should watch from the latest earnings, how sentiment around AI is evolving, and why reactions to results may offer insight into broader risk appetite.
Key Takeaways
- Investors are focused on whether AI spending is translating into revenue growth as major tech companies report earnings.
- Recent pullbacks in big tech stocks suggest expectations may be lower heading into results.
- Market reactions to earnings beats or misses are expected to be a key signal for overall AI sentiment.
- Capital allocation discipline, including data-centre and cloud spending, is a major area of investor focus.
- Shifts away from the most expensive areas of the market reflect a growing emphasis on valuation and selectivity.
Read the full transcript below:
ANDREW: Later today, we’re going to get results from some tech giants — Meta, Microsoft and Tesla. All of them are off their recent record highs. So what should investors look out for? Let’s bring in Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth. Great to see you once again. Thanks very much indeed for joining us.
KYLE: Good morning.
ANDREW: Give us your thoughts on Meta. It’s planning enormous spending on AI computing. Some investors may have misgivings. It’s a bit like the story we saw with the virtual world — Zuckerberg was so focused on it. What is your view on Meta?
KYLE: Well, it’s funny you bring up the metaverse. Of course, they had that big rebrand. They actually, in 2025, wound down all spending for the metaverse segment. So I really think the pressure is on Meta to show these AI-based revenue streams in comparison to the spending that they’re putting out. I think that will drive a lot of whether the stock can push higher. But you mentioned it yourself — this is a big week for AI earnings generally, and Intel should serve as a warning from last week as to what investors can maybe expect if earnings don’t meet expectations for all of these stocks.
ANDREW: Let’s pull up a one-year chart for Intel. Yeah, because there was some euphoria about Intel — Nvidia buying into the company, the U.S. government doing so — and progress has been slower than a lot of investors had hoped for.
KYLE: Yeah. I think investor reactions to these earnings beats or misses will be very telling about sentiment for the space overall. And as we know, given the concentration in the U.S. markets in particular, this will not only be a big week for their own stocks, it will be a big week for the overall direction of the market. One of the headlines we’ve seen over the past couple of weeks, and really throughout 2025, is this so-called “sell America” trade. I look at it a little differently. I don’t think the American economy is crashing or that inflation is going to run away. I think it’s more that investors are selling what’s expensive and moving to geographies and other areas of the market that are more reasonably priced and look more favourable from a risk-return perspective. That doesn’t mean they’re selling America outright. It just means investors need to be highly selective in the names and investments they’re making today.
ANDREW: You have some stock ideas for us. Wendy’s — where do you see the attraction here? We’ve heard that lower-income consumers in the U.S. are under pressure. Is that going to be a headwind?
KYLE: It was a headwind in 2025. There was a lot of talk about the K-shaped recovery and how the lower cohort of consumers wasn’t spending as much. I think 2026 will see some stabilization. Trump’s tax bill kicks into effect in the spring, which should offer some fiscal support for consumers in this segment. You also have the anticipated increase in foot traffic from the World Cup coming to Canada, the U.S. and Mexico, which should offer some stabilization and positivity, not only for Wendy’s but for the quick-service and fast-casual dining space more broadly. Sentiment is quite poor. Wendy’s has announced a turnaround plan to modernize and improve restaurants. It’s only been rolled out in corporately owned locations so far, but they’ve seen some positive early indications. The stock is trading at the lowest valuation it’s seen in over a decade, and you’re getting almost a seven-per-cent yield today. I think there’s room for multiple expansion from here.
ANDREW: Exchange Income Corp., EIF in Toronto. Just remind us what they do and why you see this stock as a potentially good buy.
KYLE: Exchange Income Corp. is a company I’ve talked about on the show before. They invest in businesses with strong cash flows, particularly in niche markets. They’re the leading air transport provider in northern Canada and are deemed an essential service, which reduces some of the cyclicality other airlines face. They also operate pilot training schools, medevac services and an aerial surveillance business with large contracts in the U.K. and Australia. They have a very conservative balance sheet and a well-run business that has compounded shareholder returns at more than 20 per cent annually over the past 20 years. Estimates for 2026 are favourable and don’t assume any M&A or major new contracts, which could provide additional upside. It’s not as much of a yield play as it was at the start of last year, but it’s still a company we really like.
ANDREW: And finally, RBC Bearings — symbol RBC in New York. Nothing to do with Royal Bank, though?
KYLE: No, it’s its own entity. It’s an aerospace and defence company that makes highly specialized products used in nuclear submarines and jet aircraft. Boeing and Airbus are two of its largest customers. About 90 per cent of revenues come from the U.S., so it benefits from increased U.S. defence spending and the national security emphasis from the Trump administration. Boeing and Airbus are ramping up production, and we saw Boeing’s earnings earlier this week along with delivery expectations for 2026 and 2027, which sets RBC up well. The company’s backlog from the defence side alone has grown from about $820 million last year to more than $2 billion entering 2026. Management has been very strong at expanding margins and making accretive acquisitions. They acquired Vacco Industries in late 2025, which expands the product lineup, and earnings expectations continue to move higher.
ANDREW: We’d better go. Thank you very much indeed, Kyle. Great hearing from you as ever. Kyle Taylor, wealth advisor and portfolio manager at Tridelta Private Wealth.
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This BNN Bloomberg summary and transcript of the Jan. 28, 2026 interview with Kyle Taylor are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
