The Japan Meteorological Agency says El Niño has formed across the Pacific, raising the threat of droughts, floods, and extreme temperatures worldwide. The climate phenomenon is the first since 2023 and could be one of the strongest on record. Bloomberg weather reporter Mary Hui explains what we can expect over the next few months. (Source: Bloomberg)
The Japan Meteorological Agency says El Niño has formed across the Pacific, raising the threat of droughts, floods, and extreme temperatures worldwide. The climate phenomenon is the first since 2023 and could be one of the strongest on record. Bloomberg weather reporter Mary Hui explains what we can expect over the next few months. (Source: Bloomberg)
Yuriy Komarov/iStock Editorial via Getty Images Introduction In previous articles, I've explained why I'm not investing in the traditional software industry. But I do have a position in Microsoft ( MSFT ). Of course, this is part of my long term position, but I decided not to add any more until I have a better understanding of the sector outlook, margins, and returns on investment. If the stock ri...
Yuriy Komarov/iStock Editorial via Getty Images Introduction In previous articles, I've explained why I'm not investing in the traditional software industry. But I do have a position in Microsoft ( MSFT ). Of course, this is part of my long term position, but I decided not to add any more until I have a better understanding of the sector outlook, margins, and returns on investment. If the stock rises a lot, I will make money. And if it falls, I'll use a stop-loss to exit with a positive, modest return. I made that decision because my strategy is to focus on AI hardware infrastructure, at least within the technology sector. So, any money coming into my wallet, I want to put into AI hardware. I consider opportunity cost and conviction very important when investing. Let's use an example of a mistake I believe I recently made so you can understand my point. In my portfolio, besides Microsoft, I also own Micron Technology ( MU ). But the second one weighs me much less than the first, and look at the results of both in the last year. Data by YCharts I mention this so you can better understand the context behind my Hold rating on Microsoft. If I were an analyst without context, Microsoft should be a Strong Buy. But given my strategy and my investment style, continuing to add to MSFT just doesn't fit into my plans. So, for you to take this thesis into consideration, I'll briefly explain what I see in the software industry and where MSFT stands. Then, I'll analyze its business model, its key metrics, and the two major AI-driven catalysts: Copilot and Azure. Software reinvention: where does Microsoft stand? I believe AI disruption could compromise the margins of several SaaS companies. In the largest companies, I see a need to invest a lot of capital, not to expand the customer base, but simply to retain existing customers, at best by charging more for services. For their part, large language models can already create code from scratch and eliminate several costs of tradition...
Yuriy Komarov/iStock Editorial via Getty Images Introduction In previous articles, I've explained why I'm not investing in the traditional software industry. But I do have a position in Microsoft ( MSFT ). Of course, this is part of my long term position, but I decided not to add any more until I have a better understanding of the sector outlook, margins, and returns on investment. If the stock ri...
Yuriy Komarov/iStock Editorial via Getty Images Introduction In previous articles, I've explained why I'm not investing in the traditional software industry. But I do have a position in Microsoft ( MSFT ). Of course, this is part of my long term position, but I decided not to add any more until I have a better understanding of the sector outlook, margins, and returns on investment. If the stock rises a lot, I will make money. And if it falls, I'll use a stop-loss to exit with a positive, modest return. I made that decision because my strategy is to focus on AI hardware infrastructure, at least within the technology sector. So, any money coming into my wallet, I want to put into AI hardware. I consider opportunity cost and conviction very important when investing. Let's use an example of a mistake I believe I recently made so you can understand my point. In my portfolio, besides Microsoft, I also own Micron Technology ( MU ). But the second one weighs me much less than the first, and look at the results of both in the last year. Data by YCharts I mention this so you can better understand the context behind my Hold rating on Microsoft. If I were an analyst without context, Microsoft should be a Strong Buy. But given my strategy and my investment style, continuing to add to MSFT just doesn't fit into my plans. So, for you to take this thesis into consideration, I'll briefly explain what I see in the software industry and where MSFT stands. Then, I'll analyze its business model, its key metrics, and the two major AI-driven catalysts: Copilot and Azure. Software reinvention: where does Microsoft stand? I believe AI disruption could compromise the margins of several SaaS companies. In the largest companies, I see a need to invest a lot of capital, not to expand the customer base, but simply to retain existing customers, at best by charging more for services. For their part, large language models can already create code from scratch and eliminate several costs of tradition...
Rafmaster/iStock via Getty Images China's northeastern city of Changchun has unveiled a 2030 plan to revamp its auto industry and accelerate its EV transition, aiming to attract major manufacturers including BYD Company ( BYDDF ) and Xiaomi ( XIACF ). The city is home to state-owned automaker FAW Group, which has seen production and sales decline in recent years, raising pressure for reform at the...
Rafmaster/iStock via Getty Images China's northeastern city of Changchun has unveiled a 2030 plan to revamp its auto industry and accelerate its EV transition, aiming to attract major manufacturers including BYD Company ( BYDDF ) and Xiaomi ( XIACF ). The city is home to state-owned automaker FAW Group, which has seen production and sales decline in recent years, raising pressure for reform at the state-owned automaker. Changchun plans to use FAW's presence in the city to attract partners like Leapmotor ( ZJLMF ) and introduce new vehicle models. The city's strategy reflects broader efforts across China to modernize established industrial bases and capture growth in the fast-expanding EV sector. More on China FXI And MCHI: China Is A Perfect Example Of A Value Trap Xiaomi: The Market May Be Missing The EV Potential Of The Makers Of New Electric Supercars, BYD Shares Are Preferable To Ferrari's Asian equities mixed as Iran conflict escalates; Brent Crude hits $92, U.S. futures try to rebound BYD chairman Wang Chuanfu bets on global No. 1 auto spot in five years
China’s postal regulator has opened an investigation into J&T Express over failures in safety management, sending shares of the Hong Kong-listed courier down as much as 11 per cent on Thursday. The State Post Bureau said it had formally launched a case against J&T Express Co after multiple work process safety accidents occurred this year at enterprises using the J&T brand, business name and delive...
China’s postal regulator has opened an investigation into J&T Express over failures in safety management, sending shares of the Hong Kong-listed courier down as much as 11 per cent on Thursday. The State Post Bureau said it had formally launched a case against J&T Express Co after multiple work process safety accidents occurred this year at enterprises using the J&T brand, business name and delivery waybills. After trading as high as HK$8.87 earlier in the day, the stock slid to HK$7.85...
Good morning . The US completes a second day of strikes against Iran. The European Central Bank is set to hike rates. And foreigners are heading to China for life-saving treatment. Listen to the day’s top stories . The US military launched strikes against “multiple” targets in Iran for the second straight day after Donald Trump accused the country of dragging out talks on an interim peace deal. Br...
Good morning . The US completes a second day of strikes against Iran. The European Central Bank is set to hike rates. And foreigners are heading to China for life-saving treatment. Listen to the day’s top stories . The US military launched strikes against “multiple” targets in Iran for the second straight day after Donald Trump accused the country of dragging out talks on an interim peace deal. Brent crude edged higher while global stocks fell to the lowest in more than a month and European equity futures slid. The European Central Bank is set to raise interest rates for the first time since 2023, judging it can no longer ignore the upswing in inflation caused by the Iran war. With more than three months of fighting keeping oil prices elevated, economists see the deposit rate being lifted by a quarter point to 2.25%. SpaceX’s IPO is whipping Elon Musk’s fans into a frenzy , attracting demand for more than four times the available shares , according to people familiar with the matter. But veteran short seller Jim Chanos called it a “ hopes-and-dreams IPO ,” with a valuation that defies business fundamentals. Here’s what you need to know about the listing. UK Chancellor Rachel Reeves said she will ease the tax burden faced by rich US investors wanting to relocate to Britain . Reeves plans to address the issue of so-called double or treble taxation faced by British residents who are members of US limited liability companies. Corporate roundup: Frasers Group offered to buy the rest of Hugo Boss for about €2 billion as billionaire Mike Ashley seeks to add another fashion brand to his growing collection. Oracle shares fell in extended trading after the company reported higher-than-expected data center spending . More Top Stories Europe Is Finally, Slowly Getting Its Act Together UK Housing Market Slump Shows Signs of Stabilizing, Agents Say Nigeria’s Stock Market Frenzy Sends Zombie Firm Share Price Up 250% Check out our Markets Today live blog for all the latest news and...
Global Compliance Applications ( FUAPF ) will conduct a private placement financing of up to 190M shares at $0.01 each, aiming for gross proceeds of up to C$1.9M. The funds will be used for general working capital to support the company's goals. Finder's fees may apply, and the transaction requires approval from the Canadian Securities Exchange. There will be a hold period of four months and one d...
Global Compliance Applications ( FUAPF ) will conduct a private placement financing of up to 190M shares at $0.01 each, aiming for gross proceeds of up to C$1.9M. The funds will be used for general working capital to support the company's goals. Finder's fees may apply, and the transaction requires approval from the Canadian Securities Exchange. There will be a hold period of four months and one day on the shares after closing. More on Global Compliance Applications Corp. Financial information for Global Compliance Applications Corp.
Wizz Air Holdings Plc said the Iran conflict shaved €50 million from earnings in its fiscal full year, almost wiping out profit in the period, while vowing to take advantage of market dislocations to push for growth. Net income dropped to €2.2 million in the year through March, compared with net income of €225.8 million a year earlier. The company said it can’t provide an outlook for this year, gi...
Wizz Air Holdings Plc said the Iran conflict shaved €50 million from earnings in its fiscal full year, almost wiping out profit in the period, while vowing to take advantage of market dislocations to push for growth. Net income dropped to €2.2 million in the year through March, compared with net income of €225.8 million a year earlier. The company said it can’t provide an outlook for this year, given “the lack of visibility across our trading seasons, uncertainty related to the ongoing conflict in Iran and the closure of the Strait of Hormuz.” The carrier was estimated to report a loss of €34.9 million, according to Bloomberg estimates. Revenue of €5.69 billion was just shy of estimates. Chief Executive Officer Jozsef Varadi said the industry will see more capacity coming out of the market in the slower winter months as weaker carriers seek to cut costs, which in turn should provide an opportunity for Wizz to take market share. At the same time, the airline isn’t actively engaged in potential deals, with Varadi saying any takeovers would add unnecessary complexity to operations. The Middle East conflict has pushed up the cost of jet fuel, which in turn has dampened many airline earnings ahead of the peak summer travel season. The rising prices have led to higher fares, putting off consumers from booking flights. Wizz shares have fallen about 24% so far this year. The company issued a profit warning in March, saying it expects the war to hit net income by €50 million. It also predicted guidance for fiscal 2026 to drop below its previous range of anywhere from a gain of €25 million to a loss of €25 million. Ryanair Holdings Plc Chief Executive Officer Michael O’Leary has said that Wizz is one of the airlines at risk of failing if the Strait of Hormuz remains restricted until later this year. Wizz has disputed his claims, saying they are “flatly untrue and false.” Wizz continues to face groundings of its Airbus SE A320 family jets because of Pratt & Whitney engine main...
halbergman/iStock Unreleased via Getty Images Introduction In my latest (and first) coverage on Oracle Inc. ( ORCL ), I rated the stock a Buy. To sum it up, the thesis back then was the following: The long thesis for Oracle, however, is their transition from a SaaS and data center play to increasingly becoming a cloud and AI infrastructure provider, which is both a large and a rapidly expanding ma...
halbergman/iStock Unreleased via Getty Images Introduction In my latest (and first) coverage on Oracle Inc. ( ORCL ), I rated the stock a Buy. To sum it up, the thesis back then was the following: The long thesis for Oracle, however, is their transition from a SaaS and data center play to increasingly becoming a cloud and AI infrastructure provider, which is both a large and a rapidly expanding market. SA The company reported their FY2026 Q4 earnings today; let's check if they still align with said thesis. Q4 Financials Oracle reported a strong fiscal Q4, with revenue increasing 21% YoY to $19.18B, slightly ahead of consensus expectations of around $19.1B. Adjusted EPS also came in ahead of expectations, at $2.11 compared to a consensus of $1.96. This shows that fundamental momentum is holding up so far, as these earnings have received more upwards than downwards revisions and were still largely beat, paving the way for further upward revisions. SA Cloud is the largest and fastest-growing revenue segment. I believe it can become the most profitable as well. Fiscal year 2026 total revenues were up 17% to a record $67.4 billion. Cloud revenues increased 39% to $34.0 billion. Software revenues were down 1% to $24.5 billion. Services revenues were $5.7 billion, up 10%, and Hardware revenues were $3.1 billion, up 5%. Cloud revenues now make up 52% of total sales and grew at 47%. At the same time, operating expenses for cloud and software combined grew 56%. Since both segments are consolidated, it is hard to pinpoint the exact cost growth for Cloud, but I do not believe it to be unreasonable to assume it is lower than the revenue growth rate of 47%. Therefore, this already crucial segment also has a lot of potential for operating leverage, which opens the possibility of a long runway of earnings growth in the future. That, of course, leaves out heightened research and development as well as sales and marketing expenses, but I do believe that some part of those is only tem...