imaginima/iStock via Getty Images PE Multiple contraction Rick Rieder " highlights a unique setup - rising tech profits and falling multiples". Why is this important? Price leads the earnings - investors buy stocks in expectation of earnings growth, and this leads to a PE multiple expansion. This could be highly speculative if the earnings expectations never materialize - that's a bubble burst. Ho...
imaginima/iStock via Getty Images PE Multiple contraction Rick Rieder " highlights a unique setup - rising tech profits and falling multiples". Why is this important? Price leads the earnings - investors buy stocks in expectation of earnings growth, and this leads to a PE multiple expansion. This could be highly speculative if the earnings expectations never materialize - that's a bubble burst. However, in some cases, a PE multiple expansion proves to be correct when the expected earnings do materialize. Stocks with high PE ratios are known as growth stocks because investors expect high earnings growth from these companies in the future. But what happens when sequential growth expectations slow? In this case, growth investors exit and the PE multiple contracts. That's basically the status of the current AI cycle, as Rick Rieder noticed. The earnings expectations are materializing, but the future growth is expected to significantly slow, so the PE multiples for tech stocks are contracting. Growth expectations to sharply decelerate The earnings growth for all stocks in the AI ecosystem is directly related to the expected growth in AI capex. In addition, this growth rate has to keep increasing to support a multiple expansion. So, here is the table that shows the aggregate AI capex since 2023, with the expected AI capex in 2027 from the top 4 hyperscalers, Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet ( GOOGL )( GOOG ) and Meta ( META ) in billions. The AI capex growth rate was increasing each year, with the likely "climax" in 2026 with a 98% increase from 2025. However, the current growth estimates for 2027 are only 15-30% - that's a significant slowdown. What does it mean? It means that earnings growth will sharply slow for AI stocks in 2027, which means that the PE multiple should contract. Thus, the aggregate tech stock price, as proxied by Nasdaq 100 ( QQQ ) has likely peaked, or it's in the process of peaking in 2026. Year Total Capex YoY Growth 2023 140 — 2024 21...
总部位于英国的燃料电池领军者Ceres Power Holdings Plc本周股价延续近期猛烈涨势，随着股票市场围绕燃料电池技术的愈发乐观情绪激增推动该股升至多年来的最高位，其一年以来的累计股价涨幅高达惊人的1,000%。这家总部位于英国西萨塞克斯郡霍舍姆的电力巨头本周股价已上涨22%，有望连续三周实现两位数级别的强劲涨幅，使其市值从此前几乎被市场唾弃的区间升至约12亿英镑(大约16亿美元)。 ...
总部位于英国的燃料电池领军者Ceres Power Holdings Plc本周股价延续近期猛烈涨势，随着股票市场围绕燃料电池技术的愈发乐观情绪激增推动该股升至多年来的最高位，其一年以来的累计股价涨幅高达惊人的1,000%。这家总部位于英国西萨塞克斯郡霍舍姆的电力巨头本周股价已上涨22%，有望连续三周实现两位数级别的强劲涨幅，使其市值从此前几乎被市场唾弃的区间升至约12亿英镑(大约16亿美元)。 在美国燃料电池同行Bloom Energy Corp.(BE.US)公布无比强劲业绩并且将全年业绩展望上调至远远高于预期的增长区间之后，市场围绕全球AI热潮之下最核心电力供给设备链条的看涨情绪大幅升温;几乎同一时间，华尔街金融巨头高盛在更强营收预测和改善后的制造假设基础上，将其目标价上调至华尔街最高的670便士目标价。 燃料电池之所以成为AI电力链最大受益者之一，关键在于它解决的是AI数据中心最稀缺的变量：time-to-power，即电力快速交付与稳定、高效运行能力，凸显出AI数据中心建设浪潮之下，市场对“稳定、可快速部署、可现场发电”的燃料电池类电力资产的重估。类似“星际之门”的超大规模AI数据中心不是普通商业楼宇，而是在短期内迫切需要快速实现交付流程且连续、稳定、高可用的24/7电力;驱动天量级别AI训练/推理工作负载的AI GPU/ASIC集群对停电、电压波动、供电冗余和冷却系统稳定性可谓极其敏感。 从AI GPU军备竞赛到电力设备军备竞赛 这轮上涨反映出清洁能源股更广泛的强劲反弹，主要因为再次发生中东地区的伊朗冲突使市场更加关注能源安全，叠加来自AI和电气化的天量级别需求上升正在推动对全球各国电力和电网系统的史无前例投资规模，这也是为何“AI尽头是电力”这一宏大叙事愈发火热。国际投资巨头瑞银集团(UBS)汇编的一篮子UBS Group AG欧洲可再生能源股票今年以来已上涨30%。 如上图所示，Ceres Power股价猛烈上涨——燃料电池股受到前所未有AI数据中心建设狂潮和全球能源担忧双重提振。 本周强劲涨势使Ceres的估值达到约未来一年预期销售额的20倍——大致与总部位于美国的燃料电池巨头Bloom Energy相当，但较可再生能源股票篮子1.7倍的估值存在陡峭溢价。 来自高盛的资深分析师Michele Della Vigna指出，Weichai Power ...
Any time you're making money, it's a good thing. Any time you're making money passively without much effort, it's much better. The latter is always easier said than done, but dividends are a way virtually anyone can begin receiving passive income. Dividend stocks can be a two-for-one benefit: Passive income, as well as the chance for your stocks' prices to appreciate. Ideally, both happen. But if ...
Any time you're making money, it's a good thing. Any time you're making money passively without much effort, it's much better. The latter is always easier said than done, but dividends are a way virtually anyone can begin receiving passive income. Dividend stocks can be a two-for-one benefit: Passive income, as well as the chance for your stocks' prices to appreciate. Ideally, both happen. But if a stock's price struggles, dividends still provide reliable income. There are exchange-traded funds (ETFs) specifically designed to pay high dividends , but others focused on other objectives can also deliver impressive dividends. One of those is the Vanguard Total International Stock ETF (NASDAQ: VXUS) . It's an ETF you can feel comfortable holding for the long haul, and one you should consider adding to your portfolio. Continue reading
Nvidia stock was rising ahead of the open Friday, with the shares poised to open just above the closely-watched $200 level after tumbling 4.6% in the previous session. Nvidia stock suffered on Thursday after recent earnings from Amazon and Alphabet suggested the chipmaker could see rising competition from the tech giants. A decline of more than 4% on Thursday saw the stock plunge below the $200 pr...
Nvidia stock was rising ahead of the open Friday, with the shares poised to open just above the closely-watched $200 level after tumbling 4.6% in the previous session. Nvidia stock suffered on Thursday after recent earnings from Amazon and Alphabet suggested the chipmaker could see rising competition from the tech giants. A decline of more than 4% on Thursday saw the stock plunge below the $200 price level which has been a matter of close attention from investors.
Updates from seven County Championship matches This week’s Spin | comment BTL or email Tanya Division One Southampton : Hampshire v Glamorgan Continue reading...
Updates from seven County Championship matches This week’s Spin | comment BTL or email Tanya Division One Southampton : Hampshire v Glamorgan Continue reading...
Earnings Call Insights: SPX Technologies (SPXC) Q1 2026 Management View SPX opened the year with raised full-year expectations after what management described as a strong quarter. “We had a strong start to the year with year-over-year growth in adjusted EBITDA of 23% and adjusted EPS of 22%,” said (President, CEO & Director Eugene Lowe), adding, “We are raising our full year guidance range to refl...
Earnings Call Insights: SPX Technologies (SPXC) Q1 2026 Management View SPX opened the year with raised full-year expectations after what management described as a strong quarter. “We had a strong start to the year with year-over-year growth in adjusted EBITDA of 23% and adjusted EPS of 22%,” said (President, CEO & Director Eugene Lowe), adding, “We are raising our full year guidance range to reflect our strong performance in Q1 and outlook for the remainder of the year, partially offset by the impact of the recent changes to the Section 232 tariffs.” Management reiterated the tariff timing and duration expectations. “We do not expect these tariffs to impact 2027 earnings,” said (CEO Lowe), while emphasizing ongoing M&A capacity: “Looking ahead, we remain well positioned to continue executing on our organic and inorganic value creation initiatives supported by our robust M&A pipeline.” Capacity and product initiatives were framed as key to meeting data center and custom HVAC demand. “The capacity expansions across our HVAC facilities to meet the strong demand for our data center cooling and custom air handling solutions are progressing well,” said (CEO Lowe). He also noted operational milestones: “In Q1, we began producing highly engineered aluminum dampers in TAMCO's new Tennessee facility,” and “We also began production of the OlympusMAX in our Olathe, Kansas facility in the first quarter.” The company highlighted product/software expansion in Detection & Measurement. “Our location and inspection platform, recently launched a new locate performance management software that meaningfully expands the real-time analysis of our customers' critical data,” said (CEO Lowe). Financial performance and balance sheet flexibility were emphasized. “Year-over-year, adjusted EPS grew by 22% to $1.69,” said (VP, CFO & Treasurer Mark Carano), and “Our leverage ratio... was approximately 0.9x quarter end, below our long-term target range of 1.5 to 2.5x, giving us significant capacit...
Reddit shares jumped 16% in premarket trading on Friday after an upbeat quarterly revenue forecast underscored growing returns from the social media company's AI-driven advertising tools. The company's AI-optimized ad platform helps advertisers place targeted ads directly within relevant discussion threads across its interest-based communities called subreddits. The strong results signal that t...
Reddit shares jumped 16% in premarket trading on Friday after an upbeat quarterly revenue forecast underscored growing returns from the social media company's AI-driven advertising tools. The company's AI-optimized ad platform helps advertisers place targeted ads directly within relevant discussion threads across its interest-based communities called subreddits. The strong results signal that the company's strategy is paying off as Reddit takes on bigger ad rivals such as Meta's Instagram and Facebook.