Federal Reserve Governor Stephen Miran has suggested that the burden of trade tariffs is not being shouldered by Americans, as widely believed by economists. Miran, during an event at the Boston University Questrom School of Business, stated that accounting treatment may be obscuring the true burden of tariffs, as reported by Reuters on Monday. He pointed out that the data might show a U.S. entity bearing the burden is “entirely inappropriate” because, in reality, it is just the U.S. subsidiary of a foreign ...

Legendary investor Warren Buffett ended his run as the CEO of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK) at the end of 2025. Buffett may have another long run coming to an end as of Tuesday. Buffett Drops Out Of Top 10 Richest Once the richest person in the world, Buffett finished 2025 ranked 10th at a net worth of $151 billion, up $9.44 billion for the year. Just over one month into 2026, Buffett has fallen out of the top 10 richest people in the world, with Walmart Inc (NYSE:WMT) heir Jim Walton replacing ...

Core Insights - OpenAI CEO Sam Altman criticized Anthropic's Super Bowl ad campaign, which indirectly targets OpenAI's decision to incorporate ads into its ChatGPT platform [1][3] - Anthropic's commercials emphasize its commitment to keeping ads out of its chatbot Claude, contrasting with OpenAI's ad strategy [2][4] - Anthropic is projecting significant revenue growth, aiming for $18 billion by 2026 and over $50 billion by 2027, representing a nearly 180% annual increase [4][5] Company Strategies - OpenAI plans to run its own Super Bowl commercial while defending its ad strategy as aligned with its principles [3] - Anthropic's business model focuses on enterprise customers, with around 85% of its revenue coming from this segment, differentiating it from OpenAI's consumer-led approach [5] - By integrating Claude into corporate platforms like ServiceNow and JPMorgan, Anthropic is securing large, long-term contracts [5] Market Position - Anthropic is perceived to be winning the business model war against OpenAI due to its focus on enterprise clients and substantial projected revenue growth [4][5] - OpenAI's increased focus on ChatGPT has reportedly led to senior research-level departures within the company [5]

Matthew Tuttle, CEO of Tuttle Capital Management, warned that investors may be underestimating a growing shift away from U.S. assets, particularly large technology firms, as Europe and other regions move to reduce dependence on American platforms and policies.In a note released on Monday, titled “Europe Just Started Building a ‘Kill Switch’ for U.S. Tech – And the Market Isn’t Priced for It,” Tuttle pointed to what he described as a growing push by governments and corporations to build alternatives to U.S.- ...

When Walmart last week announced that David Guggina, its U.S. e-commerce chief executive, would become CEO of its nearly $500 billion U.S. division, one thing stood out in his résumé: Unlike his predecessors, Guggina has no experience running stores and has never held a merchandising role, at Walmart or elsewhere. These are two classic job requirements in retail. Incoming Walmart CEO John Furner, for example, who has run U.S. operations since 2019, began his Walmart career as an hourly associate in 1993, a ...

Core Insights - Martin Shkreli highlighted the traffic data of leading AI websites, revealing significant disparities in chatbot usage, with OpenAI's ChatGPT and Alphabet's Gemini leading in user engagement [1][2]. Group 1: Traffic and Engagement Data - In November 2025, a total of "55 billion minutes" were spent on leading AI sites, with ChatGPT accounting for 64% and Gemini for 15% of total user minutes [2][3]. - Other notable AI websites include China's Deepseek and xAI's Grok, which experienced year-over-year growth rates of 7,725% and 23,300%, respectively [4]. Group 2: Market Dynamics and Competition - The recent rise of Google’s Gemini 3 has prompted OpenAI to shift its focus from monetization strategies to addressing quality issues and retaining its user base [6]. - Alphabet's stock closed at $307.73, reflecting a slight decline of 0.51% on Tuesday, but has shown positive momentum in the short, medium, and long term [7]. Group 3: Industry Perspectives - Some industry experts, like biotech investor Peter Suzman, criticized Shkreli's analysis as misleading, arguing that user minutes do not accurately reflect the success of AI chatbots, particularly for companies like Anthropic, which focus on corporate users [5].

Core Insights - OpenAI plans to spend $1.4 trillion in the coming years but is currently generating significantly less revenue than its operating costs, expecting to burn $115 billion through 2029 before generating cash in 2030 [1] - The tech giants driving AI spending, such as Alphabet and Microsoft, have vast resources and are committed to continued investment, but concerns about growth rates and profitability are rising [2][3] - The AI sector is experiencing skepticism, with signs of a potential bubble as companies like Nvidia and Oracle face stock selloffs and increased scrutiny over their spending and growth projections [3][4] Investment Trends - Major tech companies, including Alphabet, Microsoft, Amazon, and Meta, are projected to spend over $400 billion on capital expenditures in the next 12 months, primarily for data centers, but their AI-related revenue growth is not keeping pace with these costs [11] - Rising depreciation expenses from data center investments are a significant concern, with Alphabet, Microsoft, and Meta's combined depreciation costs increasing from about $10 billion in Q4 2023 to an expected $30 billion by next year [13] - The shift in strategy towards AI spending represents a departure from the traditional model of generating rapid revenue growth at low costs, raising concerns about future profitability and cash flow [15] Market Sentiment - The current market environment reflects a mix of optimism and caution, with some investors questioning the sustainability of AI-related growth and the potential for a market correction if growth projections plateau [12][19] - While valuations for major tech companies are high, they are not at excessive levels compared to historical periods, suggesting that while there are risks, the market is not yet in a panic state [16][18] - Investors are faced with a dilemma as they navigate the AI trade, balancing the potential for significant returns against the risks of overvaluation and market corrections [19]

Group 1 - SpaceX is now selling Starlink hardware on Amazon's e-commerce platform, expanding its distribution channels [1][2] - The available Starlink products include a Mini Router, Standard Wall Mount Kit, replacement cable, 3rd generation WiFi Routers, Pipe adapter, and Pivot Mount kit [2] - Amazon has rebranded its Project Kuiper to Amazon LEO and is launching a preview program to test its hardware and network services [3] Group 2 - Amazon LEO's Ultra terminal features a phased array antenna capable of delivering download speeds of up to 1 Gbps and upload speeds of 400 Mbps, making it the fastest of its kind [4] - Starlink has entered into a partnership with Kyivstar Group Ltd. to provide direct-to-cell technology, which has been in testing for over a year [5] - Elon Musk has proposed the concept of orbital AI datacenters, claiming they would be more cost-effective than terrestrial datacenters [6]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Technology Sector - **Key Focus**: Analysis of technology valuations, AI performance, software versus semiconductors, and hyperscaler capital expenditure trends Core Insights 1. **Technology Valuations**: - Global technology trades at a 36x HOLT Economic P/E, which is in the 75th percentile of historical valuations, only exceeding 40x during the dot-com bubble [7][8][12] - The sector has shown strong fundamentals, with earnings revisions outpacing other sectors since summer, leading to forecasts of all-time high returns [2][12] 2. **AI Performance**: - The AI Winners basket has returned +46% in 2025, while the AI Risk basket has declined by 33% [3][20] - Despite a decade-high valuation premium for AI Winners, near-term fundamentals remain strong for both groups, with AI Winners expected to achieve a CFROI of 20% [23][20] 3. **Software vs. Semiconductors**: - Software has underperformed semiconductors this year, with recent sell-side earnings upgrades favoring semiconductors [4][30] - In the software sector, Palantir (PLTR) leads in revenue growth expectations, while Adobe (ADBE) is priced for the lowest long-term sales growth [4][33] 4. **Hyperscaler Capital Expenditure**: - Hyperscaler capital expenditure (Capex) is projected to reach an all-time high of $780 billion in 2026, with R&D spending expected to increase by 40% [5][37] - Companies like META, MSFT, and ORCL are forecasted to see a decline in CFROI in the near term, but overall economic profit for hyperscalers is expected to reach $400 billion in 2026, driven by growth [5][45][43] Additional Important Insights 1. **Market Sentiment**: - The technology sector has a disproportionate number of firms ranking in the top quintile on HOLT's Momentum Factor, indicating strong market sentiment [9][12] - CFROI revision breadth has been strong, with the largest tech firms outpacing others in earnings revisions [12][16] 2. **Valuation Screening**: - A screening of tech companies with strong price performance and rising CFROI revisions identified 71 attractive stocks, including NVIDIA, Microsoft, and Broadcom [18] 3. **Sales Growth Expectations**: - Market-implied sales growth for AI Winners is expected to be in double digits over the next decade, contrasting with low single digits for many AI Risk firms [26][28] 4. **Investment Recommendations**: - Companies such as Amazon, Microsoft, and Broadcom are rated as "Buy," while Adobe is rated "Neutral" [64] This summary encapsulates the key points discussed in the conference call, highlighting the current state and future outlook of the technology sector, particularly in relation to AI, software, semiconductors, and hyperscaler investments.

Core Insights - The U.S. corporate sector is experiencing a significant surge in earnings, with the growth rate reaching a four-year high despite trade war concerns [1][2] Earnings Growth - The median year-on-year earnings growth across the Russell 3000 index reached 11% in Q3, up from 6% in the previous quarter, marking the strongest growth since Q3 2021 [2][3] - Six of the eleven sectors in the S&P 500 posted positive average earnings growth in the three months through September, an increase from only two sectors in the previous quarter [3] Sector Performance - Ford Motor Co. indicated that tariffs represent a $2 billion headwind, restricting future investments, while JAKKS Pacific Inc. reported negative impacts on sales and margins due to trade policies [3] - General Motors lowered their 2025 gross tariff expectation to $3.5-$4.5 billion from $4-$5 billion, indicating some adjustment to tariff impacts [4] - Financial sector stocks, including JPMorgan Chase, Goldman Sachs, Wells Fargo, and Citigroup, exceeded Wall Street expectations, showcasing strength in lending, trading, and consumer banking [4] Corporate Adaptation - U.S. corporations have found ways to absorb the impact of tariffs, with predictions of resilient consumer spending as long as employment remains strong [5] - The tech sector is seeing notable profit increases due to the implementation of AI and other technologies, although this has resulted in job losses at companies like Amazon, Meta, and Salesforce [5] Market Concerns - There are concerns about a potential AI stock bubble, with investors questioning the sustainability of current valuations, leading to a selloff in tech and AI-linked stocks despite strong earnings [6] - Warnings of a potential market correction in the next two years suggest a possible 10-20% drawdown in equity markets, as advised by Goldman Sachs and Morgan Stanley CEOs [7] Price Action - Over the past six months, the SPDR S&P 500 ETF Trust climbed 15.09%, while the Invesco QQQ Trust ETF increased by 20.06% [8]