Data center investments have become the engine of Blackstone's growth. The Wall Street investment giant reported that QTS, the data center developer and operator it took private in 2021, was the single largest driver of gains in the company's $1.3 trillion portfolio in 2025. The results were a clear sign that Blackstone's bets on digital infrastructure amid the artificial intelligence boom have reaped returns as other segments of its business, including real estate and private credit, have run into headwin ...

"Can other people, please, for the love of God, in the name of all that is holy, can others please build this stuff?" Elon Musk made the plea in the final moments of Tesla's earnings call on Wednesday, sounding a bit fired up.Musk had just finished giving a blunt warning to American companies: build more battery-making infrastructure in the US or risk falling behind. The Tesla CEO argued that too many companies are underestimating their exposure to geopolitical risks posed by fragile supply chains, partic ...

The Bond King is steering clear of the US. That's one of the prevailing themes that defines Jeff Gundlach's latest investing playbook, the famed fixed-income investor said. In an appearance on CNBC on Wednesday, the DoubleLine Capital CEO pointed to two risks in particular that were swaying his macro outlook: Higher inflation. Inflation is running at about a 3% annualize rate, above the Fed's 2% target. While that difference sounds small, Gundlach estimates that it translates into a 56% increase in consum ...

Core Insights - Starbucks is experiencing a resurgence, achieving its first comparable transaction growth in the US in eight quarters, marking the beginning of a new strategic phase [1] - The company is focused on revitalizing its brand and culture, with leadership emphasizing the importance of a vibrant culture in the "Back to Starbucks" initiative [2] Strategic Plans - Starbucks is outlining its strategic plan through fiscal 2028, with expectations for clearer multi-year financial targets and details on cost savings [2][6] - The company aims to enhance customer experience and operational efficiency through various initiatives, including store remodels and menu innovations [7][9] Store Remodels - Approximately 200 coffeehouse redesigns have been completed, aimed at encouraging customers to stay longer, with plans to complete over 1,000 remodels by the end of the fiscal year [8] - Each remodel costs about $150,000 and is mostly completed overnight [8] Menu Innovations - Starbucks is refreshing its menu with new spring offerings, including espresso, matcha, and chai beverages, and is accelerating its pace of innovation [9] - The company plans to expand its wellness-focused menu, particularly with protein drinks and healthier snacks [10] Technology Enhancements - Starbucks is enhancing its AI-driven virtual assistant, Green Dot Assist, to support baristas with recipes and information [11] - A new point-of-sale system and an advanced espresso machine, the Mastrena 3, are set to be introduced, improving service speed [13] Staffing and Career Development - The company is establishing clearer staffing structures and pathways for career growth to reduce turnover [14] - A new coffee house coach role has been introduced to promote internal hiring and staff retention [15][16] Performance Metrics - Starbucks is streamlining its performance metrics from nearly 40 to a more focused set, allowing coffeehouse leaders greater control [17] - The company is implementing a "shot score" system to evaluate performance, with top-performing stores showing significantly higher sales [18] Customer Loyalty Program - Starbucks is updating its customer loyalty program with a tiered system and new rewards, including a $2 discount for redeeming 60 points [18] - The company plans to evolve staff recognition programs to reward employees at top-ranking coffeehouses [19]

Core Viewpoint - Tesla is transitioning from a traditional automotive company to a technology-oriented firm focused on AI and robotics, as evidenced by its decision to discontinue the Model S and X EVs to prioritize the production of the Optimus humanoid robot and its investment in AI initiatives [1][4][7]. Financial Performance - Tesla reported its first-ever annual revenue decline, with profits falling by 46% last year and car sales revenue decreasing by 11% year-over-year in the last quarter [2]. - Despite these challenges, Tesla exceeded Wall Street expectations, leading to a 3% increase in its stock price after earnings [5]. Strategic Shift - The company is phasing out traditional vehicle sales as its primary revenue source, with a significant focus on robotics and AI services [6][7]. - Tesla's executives believe that the future of transportation will be dominated by autonomous vehicles, predicting that less than 5% of miles driven will involve human drivers [5]. Full Self-Driving (FSD) Strategy - Tesla has transitioned its FSD software to a subscription model, removing the one-time purchase option, which analysts view as a move to monetize its technology and drive adoption [8][9]. - Currently, only 12% of Tesla owners have purchased FSD, with a significant portion of these being upfront purchases rather than subscriptions [11]. Robotaxi and Optimus Initiatives - The company is heavily investing in its robotaxi service and the Optimus humanoid robot, which are seen as critical to its future valuation [13][14]. - Tesla aims to have robotaxis operating in a significant portion of the U.S. by the end of the year, pending regulatory approval, with production of the Cybercab robotaxi set to begin in April [17]. Market Dynamics - Tesla continues to dominate the U.S. electric vehicle market, but faces increasing competition from Chinese manufacturers like BYD, which are gaining market share globally [20][21]. - The end of the $7,500 tax credit has contributed to a slowdown in the EV market, impacting Tesla's sales [20]. Future Outlook - Analysts suggest that Tesla's transition to a tech-oriented business model could lead to higher margins and revenue, transforming it from a capital-intensive automotive company to a high-margin services business [19][24]. - The company is expected to spend over $20 billion this year on new production lines and AI infrastructure to support this transition [19].

Core Insights - Starbucks has reported a positive turnaround in sales for the second consecutive quarter, reversing an 18-month downward trend since Brian Niccol took over as CEO [2] - Niccol's strategy focuses on revitalizing the Starbucks experience, encouraging customers to enjoy the ambiance rather than just using the app for quick orders [2] Company Strategy - The company has implemented several changes, including streamlining the drink menu, enhancing efficiency, and refurbishing locations to create a more inviting atmosphere for customers [3] - New store designs feature comfortable seating and aesthetic improvements, aiming to attract customers back to the "third space" concept of coffee shops [6][7] Customer Experience - The updated menu now emphasizes "Coffeehouse Classics," simplifying choices for customers and moving away from overly complex drink options [10] - Despite efforts to enhance the in-store experience, some customers still exhibit behaviors that detract from the desired coffee shop atmosphere, indicating a need for cultural adjustment among patrons [9]

Core Viewpoint - Tesla is transitioning from an electric vehicle (EV) manufacturer to a comprehensive AI and robotics company, with significant investments planned for the future [1][4]. Investment and Financials - Tesla plans to invest $20 billion in its future AI and robotics initiatives, significantly higher than the $8.5 billion in capital expenditures reported for the 2025 fiscal year [2]. - A $2 billion investment in Musk's xAI was announced, part of a larger $20 billion Series E funding round, aimed at enhancing collaboration and advancing Tesla's autonomous vehicle and robotics agenda [5][6]. - The energy segment achieved record gross profits, contributing to nearly $12.8 billion in revenue for the year [14]. Product Strategy - Production of the Model S and Model X will be discontinued to allocate resources for humanoid robot production, leaving Tesla with four models: Cybertruck, Model 3, Model Y, and the upcoming Cybercab [3][6][7]. - The Cybercab is expected to start production in April for integration into the Robotaxi fleet [8]. Robotaxi and Autonomous Driving - Tesla aims to expand its Robotaxi service to several cities, including Dallas, Houston, and Miami, by the first half of 2026 [9]. - Full Self-Driving (FSD) technology is reportedly operating "100% unsupervised," with limited unsupervised rides already offered in Austin [10]. Chip Development - Musk emphasized the importance of in-house chip manufacturing, referring to the Tesla "Terafab" concept, which aims to integrate logic, memory, and packaging to mitigate supply chain limitations [12]. Optimus Robot Development - The Optimus humanoid robot is still in the research and development phase, with no material contribution to manufacturing yet [13].

Core Insights - Microsoft is experiencing capacity constraints in its cloud computing business, significantly impacted by OpenAI, which accounts for approximately 45% of its commercial bookings backlog, which has increased by 110% year over year to $625 billion [1] Group 1: Financial Performance - Microsoft reported a record capital expenditure of $37.5 billion in the second quarter, reflecting a 66% year-over-year increase, driven by the competitive landscape in AI [4] - Despite an overall earnings beat, Microsoft's shares fell over 6% in after-market trading, indicating market concerns about its dependency on OpenAI and slower growth in Azure revenue [3][4] Group 2: Strategic Focus - CEO Satya Nadella emphasized the importance of acquiring Azure clients while also maintaining focus on other services like M365, GitHub, and Dragon Copilot, indicating a balanced approach to business growth [2][3] - CFO Amy Hood highlighted the need to allocate resources effectively among various applications and research initiatives, while also addressing the growing demand for Azure capacity [5] Group 3: Partnership with OpenAI - OpenAI has committed to spending $250 billion on Azure services, but faces limitations due to a lack of compute resources, which affects its product and research capabilities [6] - Microsoft holds a 27% stake in OpenAI, and the partnership is viewed positively, contributing to innovation and leadership in app development [7]

Tesla CEO Elon Musk said on Wednesday that the company will be discontinuing the Model S and X in the next quarter, bringing an end to the EV maker's more premium SUV and sedan models. "It's time to basically bring the Model S and X programs to an end with an honorable discharge, because we're really moving into a future that is based on autonomy," the CEO said during Tesla's fourth-quarter earnings call.This is a developing story. Check back for updates. ...

After Microsoft reported results on Wednesday, CFO Amy Hood sent an internal memo to employees calling attention to recent developments in AI chips and coding tools, and deals with OpenAI and Anthropic. Hood sends these emails every quarter when Microsoft discloses its financials. Her missives mostly rehash what the company reports publicly, such as how revenue and profit are growing, or what is discussed on analyst earnings calls.Still, these memos provide insight into what Microsoft executives deem most ...