In Germany, deeply negative energy prices due to solar glut are forcing a rethink of the energy transition
Economy Minister called to end subsidies for excess renewable electricity after costs ran into the tens of millions last weekend alone. Source: Bloomberg, HolgerZ
We might soon have several $5T+ market cap companies...
Note how Alphabet is closing in on Nvidia in the battle for the world's most valuable company Source: companiesmarketcap.com
Hedge funds are offloading Magnificent 7 stocks at an UNPRECEDENTED pace:
Hedge fund net exposure to the Mag 7 is down to ~17% of total North American net exposure, near the lowest in 3 years. At the same time, the top-most purchased stocks by retail investors last week were Alphabet, $GOOGL, at +$273 million, Micron, $MU, at +$243 million, and Tesla, $TSLA, at +$234 million. This was followed by Meta, $META, at +$210 million and Intel, $INTC, at +$197 million. This means hedge funds are effectively offloading Mag 7 exposure directly to retail buyers. Wall Street is dumping tech stocks to retail. Source: Global Markets Investor, Morgan Stanley
US continues to drain SPR to export oil to Asia
SPR down 5.22MM last week (-22MM last month) US oil exports 4.75MM last week Source: www.zerohedge.com
Wall Street projects hyperscalers’ free cash flow to fall by over 70% from its peak by the end of 2026, even as earnings keep climbing
Source: Christophe Barraud, Bloomberg
🔥Silver and gold prices are surging:
Silver and gold are up +4.5% and +1.0% on Thursday, on track for the 3rd consecutive day of gains. Silver is now up +10% and gold is up +4.0% over the last 2 trading sessions. Following the recent pullback, investors are returning to gold and silver, with many viewing this dip as a buying opportunity. Furthermore, global growth concerns, central bank demand, and a macro environment increasingly favoring hard assets continue to support prices, reinforcing the broader bullish backdrop. At the same time, decades of underinvestment and constrained supply growth have created a structurally higher price environment for precious metals. Is another leg of the precious metals bull run now unfolding? Source: Global Markets Investor
Goldman: On the back of 3 large data center and hyperscaler transactions over the past week+ April IG supply finished at $205 bn, nearly doubling the informal street estimate (~$110bn).
This took IG supply over the past 12mo to new highs at ~$2trn (~20% of outstanding IG bonds), pari with peak Covid. Source: Neil Sethi
Upward revisions to earnings, which have been very sharp, have come mostly from AI infrastructure stocks where growth is very strong.
Source: Lance Roberts, Goldman Sachs, The Daily Shot
