‼️ The IBM revival. The stock has doubled over the past 18 months, breaking through its historic ~$250bn market cap ceiling from 1999 and 2012.
So how can we explain such a comeback for this iconic company? It is primarily due to its successful transformation into a leader in enterprise artificial intelligence (AI) and hybrid cloud solutions, which has driven strong financial performance and investor confidence. Key factors behind this surge include: ▶️ Strong AI and Cloud Growth: IBM's AI business bookings have surged to over $5 billion, growing nearly $2 billion quarter-over-quarter, and its Red Hat subsidiary, a major hybrid cloud platform, grew 17% in a recent quarter and is expected to contribute $3 billion in revenue this year. This software-led strategy and expanding AI capabilities have been pivotal. ▶️Robust Financial Results: IBM reported solid earnings beats and a bullish 2025 forecast with expected revenue growth exceeding 5% and free cash flow growing even faster, targeting about $13 billion in free cash flow.
In case you missed it... Copper is up +29% year-to-date.
Better than gold.
BlackRock's Bitcoin ETF drives more revenue than its S&P 500 fund.
Blackrock makes 0.25% fees on their IBIT ETF. That currently translates to $184 million in annual revenue (just for custody) and it's based on AUM (assets under management.) Source: Bloomberg
A golden cross for the S&P 500 (the S&P 500's 50d moving average has crossed above its 200d moving average).
Source: Bloomberg, Kevin Gordon
UK 30yr gilt yields soaaaaaaaaring
Source: Bloomberg, Mike Bird @Birdyword
Another Liz Truss Moment in the UK? 10y Gilt yields jump 16bps on doubts over Chancellor Reeves’s future.
The yield on 30y gilts rose >20bps past 5.4%. Source: Bloomberg, HolgerZ
Vietnam is to pay 20% tariffs on all goods sent to the US. Meanwhile, the US will get total access to the Vietnamese markets - they can sell US products there for 0% tariffs.
Moreover, the US will charge Vietnam a 40% tariff on 'any transhipping', a steep levy that could rattle countries still hoping to secure significant relief from Trump’s 'liberation day' tariffs. Source: FT
Buying a Tesla is becoming more and more affordable with each passing month.
The average price of a used Tesla has moved down to a record low of $28,487. That's 58% below the peak price from July 2022. $TSLA Source: Charlie Bilello
