Core Viewpoint - The stock market is currently experiencing signs of an AI bubble, despite the long-term bullish outlook on artificial intelligence. Group 1: Market Performance - The Invesco QQQ Trust, tracking the Nasdaq-100 index, has achieved a total return of 117% over the past three years, largely driven by the "Magnificent Seven" stocks and AI ventures [2]. Group 2: Warning Signs of an AI Bubble - **Enormous Capital Outlays**: Major data center operators, including Amazon, Microsoft, and Alphabet, collectively spent hundreds of billions on AI-related capital expenditures last year, indicating a surge in investment activity [4]. - **Funding Challenges for OpenAI**: OpenAI plans to spend $1.4 trillion on computing resources over the next eight years, raising questions about funding sources despite reaching $20 billion in annualized revenue last year [5]. - **Financial Engineering**: Companies with strong net income are still raising capital through financial engineering, such as a $27 billion joint venture between Meta Platforms and Blue Owl Capital, which keeps debt off Meta's balance sheet [6]. - **Interconnectedness of AI Sector**: The interconnected nature of AI companies means that struggles within one entity could lead to broader issues across the sector [7]. Group 3: Long-Term Return Uncertainty - Despite rapid adoption of AI tools, with OpenAI's ChatGPT reaching 800 million weekly users and Alphabet's Gemini app having 650 million monthly active users, only 3% of AI users pay for premium access, raising doubts about the adequacy of returns on AI investments [8]. - There is a possibility that AI may only provide incremental benefits to the economy, potentially disappointing those who expect transformative changes akin to past innovations like PCs and mobile devices [9].

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's und ...

Disney posted a strong first quarter, powered by box-office hits “Zootopia 2” and “Avatar: Fire and Ash.” But the entertainment giant cautioned that in the second quarter its Experiences division, which includes its theme parks, will likely see modest operating income growth due in part to a decline in visits from international tourists to the U.S. There's been a drop in foreign visitors to the U.S. since last year that travel analysts warn could persist well into the future. The decline has been attrib ...

Ford held talks about bringing Chinese EVs to the U.S., according to the Financial Times. ...

Core Insights - Options-based ETFs gained significant popularity in 2025, with derivative income ETFs attracting $54 billion, increasing their total asset base to $127 billion [1] - Defined outcome strategies managed assets worth $76 billion, indicating a strong market presence and investor interest in these financial products [1] Group 1 - The rise of options-based ETFs reflects a growing trend in the investment landscape, showcasing investor appetite for derivative income strategies [1] - The substantial inflow of $54 billion into derivative income ETFs highlights the effectiveness of these products in attracting capital [1] - The total asset base of $127 billion for derivative income ETFs signifies a robust growth trajectory within this segment [1] Group 2 - Defined outcome strategies, with $76 billion in assets under management, demonstrate a solid foothold in the market [1] - The performance of defined outcome strategies suggests they are appealing to investors seeking specific risk-return profiles [1]

Core Insights - Giverny Capital Asset Management's portfolio returned 0.01% in Q4 2025, underperforming the S&P 500's 2.66% return, and YTD returns were 12.58% compared to the Index's 17.88% [1] - The firm faced challenges due to its underweight in large technology stocks and overweight in smaller niche leaders, despite strong earnings growth from portfolio companies [1] - The market's focus on AI investments has overshadowed the actual benefits of the portfolio's holdings [1] Company Highlights: The Charles Schwab Corporation - The Charles Schwab Corporation (NYSE:SCHW) is a leading brokerage and financial services company, with a stock price of $103.92 and a market capitalization of $188.638 billion as of January 30, 2026 [2] - Schwab's stock delivered a 0.17% return in the past month and has increased by 25.58% over the past twelve months [2] - Schwab's earnings grew by over 50% in 2025, with potential growth of over 20% in 2026, and the company added 1 million new brokerage accounts per quarter, totaling over 38 million active accounts [3] - In 2025, Schwab attracted $519 billion in net new client assets, raising total client assets to $11.9 trillion by year-end [3] - Schwab maintains the lowest expense structure in its industry while attracting new clients at a remarkable rate [3] Investment Sentiment - The Charles Schwab Corporation is not among the 30 most popular stocks among hedge funds, with 99 hedge fund portfolios holding its stock at the end of Q3 2025, down from 100 in the previous quarter [4] - While Schwab is recognized for its potential, certain AI stocks are viewed as having greater upside potential and less downside risk [4]

Core Viewpoint - Norway's Equinor has agreed to sell its onshore business in Argentina's Vaca Muerta basin to Vista Energy for a total of $1.1 billion, with half of the payment made in cash and the other half in Vista shares [1] Group 1 - The sale price of $1.1 billion reflects Equinor's strategic decision to divest from its onshore operations in Argentina [1] - The transaction structure includes a combination of cash and equity, indicating Vista Energy's confidence in its future growth potential [1] - Vaca Muerta basin is known for its significant shale oil and gas reserves, making it a key area for investment in the energy sector [1]

Oracle Corp (NYSE:ORCL) stock fell Monday following the company’s announcement of a financing plan for 2026. The stock’s decline comes as the company is raising funds to expand its Oracle Cloud Infrastructure business.Additionally, Oracle intends to raise about half of the required funding through equity-linked and common equity issuances, including a newly authorized at-the-market equity program of up to $20 billion. The remaining funds will be secured through a one-time issuance of investment-grade senior ...

Oil prices fell after positive signals from Washington and Tehran. ...

Group 1 - Revvity exceeded fourth-quarter estimates and forecasts for 2026 revenue and profit, driven by strength in its diagnostics business despite ongoing weakness in academic research funding [1][2] - The company anticipates adjusted profit per share for 2026 to be between $5.35 and $5.45, slightly above analysts' estimates of $5.32 [2] - Revvity projects annual sales for 2026 to be between $2.96 billion and $2.99 billion, surpassing the estimated $2.93 billion [2] Group 2 - Revvity's diagnostics unit achieved 7% organic growth, generating revenue of $390.1 million, significantly exceeding the $377.7 million forecasted by analysts [3] - The life sciences unit reported revenue of $382 million, slightly below the estimated $385.6 million [4] - Quarterly adjusted profit was $1.70 per share, surpassing the expected $1.55 per share, with total quarterly sales reaching $772.1 million, exceeding estimates of $761.3 million [4]