Core Insights - Pagaya Technologies Ltd. (NASDAQ: PGY) is a global technology company focused on artificial intelligence infrastructure within the financial ecosystem, headquartered in New York and Tel Aviv [1] - The company reported earnings per share (EPS) of $0.36, which was below the estimated $0.75, indicating ongoing challenges in profitability [2][6] - PGY's revenue for the period was approximately $334.8 million, missing the estimated $349.5 million, suggesting potential growth concerns [3][6] Financial Metrics - The price-to-sales ratio of PGY is 0.91, indicating that the stock is valued at less than its sales, reflecting investor caution regarding future growth prospects [3] - The current ratio of 5.11 suggests good short-term liquidity, indicating that the company is well-positioned to meet its short-term obligations [4][6] - The debt-to-equity ratio of 1.71 highlights a higher level of debt compared to equity, which could pose risks if not managed carefully [4][6] - The enterprise value to sales ratio is 1.39, and the enterprise value to operating cash flow ratio is 8.84, suggesting challenges in generating cash flow from operations despite a higher valuation than sales [5]

A trifecta of key economic releases and earnings from several noteworthy firms will be of interest to market watchers this week. Investors will watch for delayed January jobs data, consumer inflation and retail sales reports in the coming days. The employment and CPI reports. were delayed by a brief government shutdown last week; retail sales data for December was pushed back as a result of the 2025 government shutdown. Traders will also be watching for earnings from Cisco, an artificial intelligence i ...

Nvidia stock traded higher on Thursday, supported by fresh signals of heavy spending on artificial intelligence infrastructure from Google-parent Alphabet, even as much of the broader technology secto... ...

Arista Stock On Weekly Win Streak As Big Tech Spending Plans Ramp Up | Investor's Business DailyBREAKING: [Trump Names Warsh New Fed Chairman] --- Arista Networks (ANET) is headed toward its third straight week of gains, with demand for artificial intelligence infrastructure showing no signs of ahating after its Big Tech customers outlined their capital spending plans. Arista stock has been building the right side of a cup base with a 164.94 buy point, according to IBD MarketSurge's pattern recognition tool ...

Economic Indicators - The Commerce Department revised third-quarter U.S. GDP growth higher to 4.4%, above expectations of 4.3%, reinforcing confidence in economic resilience despite high interest rates [2][19] - Core Personal Consumption Expenditures (PCE) inflation rose 2.9%, matching forecasts and indicating contained price pressures [17][21] - Weekly jobless claims came in at 200,000, below forecasts, signaling a labor market that is gradually cooling rather than deteriorating [2][19] Stock Market Performance - The Russell 2000 index gained 1.25% to reach 2,731.77, leading the market rally, while the S&P 500 rose 0.70% to 6,924.01 and the Nasdaq Composite jumped 1.03% to 23,463.04 [1][21] - Trading volume surged nearly 16% on the Nasdaq, indicating heavy institutional participation in the market [1][21] - The Dow Jones Industrial Average climbed 435 points, or 0.89%, to a historic 49,512.87, supported by strength in industrials and healthcare [1][21] Sector Performance - Amgen's shares rose nearly 2% to a fresh all-time high near $350, driven by strong demand for its oncology and inflammation treatments, as well as optimism around its pipeline [11][20] - The broader biotech sector outperformed, with the SPDR S&P Biotech ETF gaining roughly 2.5%, as investors returned to biotechnology amid stabilizing valuations and improving expectations for regulatory approvals [12][20] - Abbott Laboratories saw its shares plunge more than 7% after reporting quarterly results that fell short of expectations, with weakness in diagnostics impacting sentiment [13][20] Technology Sector - Large technology stocks contributed to the market advance, with Meta Platforms jumping more than 3% ahead of its earnings report, despite analysts' caution [14][21] - Nvidia rose about 1%, while Tesla gained modestly, as traders focused on delivery trends and margin outlook in the competitive electric vehicle market [15][21] - Arm Holdings and Datadog posted strong gains, reflecting enthusiasm for semiconductor design and cloud software, while Intel and Netflix lagged [16][21] Commodity Markets - Oil prices eased, with WTI crude falling toward $59.60 a barrel, reflecting ample supply and muted near-term demand signals [10][21] - Gold prices moved higher, extending recent gains, while silver surged nearly 3%, outperforming most asset classes [7][21] - Natural gas jumped more than 4% due to tightening inventory expectations, contrasting with the overall softening in energy prices [10][21]

Market Update - The S&P 500 is experiencing its fourth consecutive losing session, with Nasdaq-listed companies leading the decline due to concerns over overspending on artificial intelligence infrastructure [1] - Oracle's AI infrastructure trade faced setbacks as talks with Blue Owl Capital stalled, raising uncertainty about the backing of one of its giant data centers [1] - Oracle refuted the report, stating it is partnering with Related Digital and that the equity deal remains on schedule, but this did not alleviate market fears [1] AI Industrial Sell-off - The sell-off affected not only tech stocks but also industrial companies involved in data center construction and electrical equipment supply, indicating market worries about potential project delays and canceled orders [1] - Companies like Eaton, GE Vernova, Caterpillar, Vertiv, and Cummins saw declines, with GE Vernova giving back almost all gains from its Investor Day [1] - GE Vernova reported signing 18 GW of gas turbine contracts and is sold out of new equipment through 2028, yet market volatility is prompting a preference for more stable stocks like Procter & Gamble [1] Defense Stocks - Defense stocks such as Lockheed Martin, L3Harris, and RTX Corp declined following reports of potential limitations on dividends, buybacks, and executive pay for contractors facing budget overruns [1] - L3Harris had the highest trailing-12-month capital deployment at 7% of market capitalization, followed closely by Lockheed Martin at 6% [1] - Boeing, facing challenges in defense projects, is not expected to be affected by the executive order, as it has not returned cash to shareholders and is projected to end 2025 with $26.2 billion in net debt [1] Upcoming Reports - Micron, a key supplier in the AI ecosystem, is scheduled to report earnings, with other key reports from Darden, Cintas, Accenture, and CarMax expected before the market opens [1] - Economic data releases include November CPI and weekly jobless claims [1]

Core Viewpoint - Oracle's stock has experienced a significant decline due to uncertainty surrounding financing for a key artificial intelligence infrastructure project, particularly after Blue Owl Capital withdrew from a proposed $10 billion data center deal [1][2][4]. Financial Performance - Oracle's shares have fallen nearly 40% over the past three months, erasing gains from previous multibillion-dollar contracts with notable clients like OpenAI [2]. Project Financing - Blue Owl Capital was in negotiations to invest in a Michigan data center project for OpenAI, but those discussions have stalled, leading to uncertainty in financing [3][4]. - Oracle confirmed that Blue Owl will not participate in the deal but stated that final negotiations for the equity deal are still on schedule [4][5]. Market Sentiment - The developments have raised concerns about Oracle's aggressive spending on mega-data centers and the potential for excess capacity in the AI investment boom [6]. - Investor worries have intensified regarding the sustainability of Oracle's partnership with OpenAI and the overall AI investment cycle, compounded by rising debt levels and increased capital expenditure commitments [7]. Credit Market Impact - Oracle's corporate bonds are under scrutiny as investors assess potential stress points in the AI funding model, with expectations that pressure on these bonds will continue into the new year [8]. Analyst Outlook - Despite the stock's decline, some analysts remain optimistic, with Mizuho maintaining an Outperform rating and a $400 price target for Oracle [9]. - Mizuho has raised its projections for fiscal 2027 while keeping fiscal 2026 estimates unchanged, suggesting that Oracle's current valuation presents an attractive entry point [10]. Sensitivity to Uncertainty - The recent selloff highlights the sensitivity of Oracle's shares to any signs of uncertainty regarding financing and execution, particularly in the context of the global rush to build AI infrastructure [11].

Core Viewpoint - The SPEED Act aims to reform the National Environmental Policy Act (NEPA) to streamline the permitting process for projects, particularly in the AI sector, to enhance U.S. competitiveness against China and other global players [1][3][4]. Group 1: Legislative Context - The SPEED Act is designed to reduce the bureaucratic hurdles imposed by NEPA, which requires federal reviews for projects that may impact the environment [1]. - Bipartisan support is evident, with co-sponsors from both parties advocating for the bill to facilitate the development of AI infrastructure [6][10]. - The bill faces procedural challenges in Congress, particularly from the ultra-conservative House Republican Freedom Caucus, which opposes certain amendments [11][12]. Group 2: Industry Impact - Major tech companies, including OpenAI, Meta, and Microsoft, are advocating for the SPEED Act to ensure a more efficient permitting process for building AI infrastructure [3][4]. - The Data Center Coalition emphasizes that comprehensive permitting reform is essential for economic growth and maintaining U.S. leadership in AI [6]. - The industry is poised to invest hundreds of billions of dollars annually in U.S. digital infrastructure, contingent on streamlined permitting [7]. Group 3: Proposed Changes - The SPEED Act proposes to shorten the review timelines for federal agencies and limit the ability of NEPA to delay projects [7][8]. - It also aims to reduce the statute of limitations for challenging permit decisions from six years to 150 days, which proponents argue will decrease litigation delays [8]. - The bill addresses the need for increased energy infrastructure to support the energy demands of data centers [9].

Core Insights - Brookfield is launching a new strategy focused on investing in AI-related infrastructure, with plans to build and acquire up to $100 billion worth of such infrastructure, supported by $10 billion in equity from its balance sheet and third-party investors, including Nvidia [2] Group 1: Investment Strategy - The company aims to establish a global backbone of infrastructure across various sectors, including real estate, pipelines, roads, and rail, which has been a long-standing practice for decades [3] - The focus is on partnering with companies and countries to develop AI infrastructure, emphasizing its necessity for economic growth and business retention in nations [4] - The strategy includes finding power sources, building data centers, and ensuring high credit quality counterparties to secure intelligent investments with long-term returns [5] Group 2: Market Dynamics - Concerns about capital saturation in the AI infrastructure space are acknowledged, but the company believes that having strong counterparties mitigates risks associated with market cycles [6][7] - The company is not worried about the level of debt taken on by hyperscalers, as these investments are viewed as long-term commitments to future growth [8] - The deployment of AI across 400 companies is seen as a significant opportunity, with the next 10 to 15 years expected to be transformative for businesses that adopt AI technologies early [9]

Group 1 - Brookfield and Qai have established a $20 billion joint venture to develop AI infrastructure in Qatar and select international markets [1] - The joint venture aims to position Qatar as a leading AI hub in the Middle East and plans to create an Integrated Compute center to enhance regional access to high-performance computing capabilities [1] - Qatar's $500 billion sovereign wealth fund is setting up its own national AI company, Qai, following the trend of regional peers like the UAE and Saudi Arabia to become global AI hubs [2] Group 2 - The global demand for AI is driving significant investments in both software and physical infrastructure, particularly in data centers [3] - A McKinsey report estimates that a $5.2 trillion investment in data centers will be required by 2030 to meet worldwide AI demand [3] - Brookfield will invest in the joint venture through its Artificial Intelligence Infrastructure Fund, which aims to invest up to $100 billion globally [3]