Google Cloud has far outpaced AWS and Azure in terms of YoY Revenue growth.
This is a great chart from MS. Source: Ayesha Tariq, CFA
320 companies out of the S&P500 have reported earnings this season.
Of the 320, the average earnings surprise has been 20% so far, the US seeing the biggest beats in years. Source: Bloomberg, Negligible Capital
Investing at the time of high nominal growth...g all this money to build data centers with no revenue models. It's all going bust." (Clone)
BofA writes that nominal GDP is in the midst of a 75% boom in 7 years, from $20tn in ‘20 to $35tn in ‘27... In that kind of macro context, equities historically outperformed bonds. Period. Source: BofA, zerohedge
"AI is a fad, they are spending all this money to build data centers with no revenue models. It's all going bust."
Source: Lance Roberts, The Daily Shot, A16Z
$GOOGL Alphabet owns ~6% of SpaceX and 14% of Anthropic with its long-term investment portfolio now above $100B.
That portfolio was marked up by ~$40B this quarter as Google now has direct ownership in two of the hottest potential IPOs in market history. Source: Shay Boloor, Fiscal.ai
If the rumored Anthropic at $900 billion round goes through, Anthropic will be the first company in history to cross the $900 billion mark with negative Free Cash Flow.
Source: Packy McCormick
AI CapEx is the largest area of year-over-year cash use growth, followed by research and development.
> up 42% year-over-year > accelerating from 22% Buybacks, on the other hand, are out of favor. 🧐 > Falling to just 1% year-over-year > Had been up 6% Source: Markets & Mayhem
GAMESTOP CEO COHEN SAYS OFFERING TO BUY EBAY FOR $56B: WSJ
Cohen offering $56B for $EBAY, or a 20% premium to the closing price on Friday. He already has a 5% stake Offer is $125 / share in cash and stock. He has a letter from TD Bank to provide $20B in debt financing. According to Cohen: “There is nobody who is more qualified, based on my experience, to run the eBay business," "It could be a legit competitor to Amazon," Source: Negligible Capital
