Hundreds of investing and finance newsletters hit my (and maybe your) inbox every week. This is the best of the best.
This week, we bring you
- The Cloud’s New King? Azure’s Rapid Ascent
- The Rebirth of Mutual Funds
- Eco-Caps: The New Norm for Data Centers?
- Gen-Z Job Seekers: What Do They Want?
- Mega-Merger: A New Streaming Powerhouse
- Pershing Square’s NYSE Debut: Democratizing Hedge Funds?
- 3 Stocks To Consider
Thanks for reading.
Table of Contents
The Cloud’s New King? Azure’s Rapid Ascent
Microsoft’s Azure cloud is seeing blockbuster 30% growth – nearly triple AWS’s 13% pace last quarter – by aggressively chasing the AI boom.
Already generating 29% of Microsoft’s revenue and 46% of profit, analysts estimate Azure has gone from half to nearly 75% the size of AWS in five years.
More from the team at Short Squeez.
The Rebirth of Mutual Funds
Mutual funds are poised to make a comeback with the ability to offer ETF share classes, thanks to the expiration of Vanguard’s exclusive patent.
This blend could offer investors the best of both worlds: the strategic benefits of mutual funds and the cost-effectiveness and tax efficiency of ETFs.
Eco-Caps: The New Norm for Data Centers?
Governments are limiting permits for power-hungry data centers over climate change concerns.
Ireland, for example, is capping their electricity usage at 32% of the country’s supply.
As digital data storage needs skyrocket globally, the race to erect more infrastructure won’t be stopping anytime soon.
Gen-Z Job Seekers: What Do They Want?
Job seekers today, particularly the highly educated, value a company’s sustainability credentials on par with work-from-home flexibility when considering roles, regardless of age or gender.
Specifically, recent research shows that firms with ‘ethical’ brands draw 9% more applicants than conventional ones.
Mega-Merger: A New Streaming Powerhouse
ESPN, FOX, and Warner Bros. Discovery are teaming up to launch a live sports streaming app, sparking antitrust worries as it could control 55% of US sports rights.
This move has already affected smaller companies like Scripps and Fubo, causing a drop in their shares and raising concerns over competition fairness in the market.
Pershing Square’s NYSE Debut: Democratizing Hedge Funds?
In a bold move away from the usually exclusive world of hedge funds, Bill Ackman’s Pershing Square is launching a closed-end fund on the NYSE.
With no performance fee and a waived management fee for the first year, Ackman is making a play for the masses.
Should we be bullish or bearish?
[Ed note: I think this is just Bill Ackman cashing in]
What I’m reading
I get a lot of mail asking where I find all this good stuff. Here are a few of my favorite newsletters, all of which are free to subscribe to:
The Rundown AI
The latest news, tools, and step-by-step tutorials of all the latest in AI.
Stocks and Income
I write this every weekday. All the content you need to get your investing day started off right.
Transacted
Become a better dealmaker. Get the latest trends and transactions with the Street’s most informative M&A update.
Stock ideas
Let’s check back in with Yellowbrick Road, which highlights 15 stocks every week. Here are three of my favourites from this past week.
Analysis provided by public.com. Remember to always DYOR.
Calumet Specialty Products Partners ($CLMT)
Bull Case:
- Renewable Investments: Calumet’s investments in renewable diesel and sustainable airline fuel (SAF) position it as a potential leader in SAF by 2025.
- Transition to C-Corp: Converting from an MLP to a C-Corp could attract a broader investor base.
Bear Case:
- Financial Pressure: Despite refinancing, Calumet faces significant high-interest debt and negative net margins.
- Volatility & Competition: Operating in a volatile oils/energy sector exposes Calumet to intense competition.
- Operational Risks: Expanding into renewable energy carries operational risks.
Spirit Airlines ($SAVE)
Bull Case:
- Potential for Rebound: With a drop in stock price to $6.26 in 2024, analysts see a 30.5% upside.
- Improved Earnings: A better-than-expected EPS in Q4 indicates a possible turnaround.
- Low Valuation Metrics: A price-to-book ratio of 0.47 implies the stock might be undervalued.
Bear Case:
- High Debt: A debt-to-equity ratio of 2.31 and negative profitability metrics signal financial instability.
- Diminishing Revenue: A 5.0% revenue drop and consistent losses raise doubts about future profitability.
- Analyst Caution: Analyst opinions with a “reduce” consensus may deter investors.
Suncor Energy ($SU)
Bull Case:
- Financial Strength: Suncor Energy shows solid financials with a net income of C$8.22 billion and a high dividend yield of around 5.04%.
- Operational Diversification: The company has diverse operations in oil sands, exploration, and refining, coupled with a 20.56% return on equity.
Bear Case:
- Regulatory Challenges: Suncor faces risks from fluctuating oil prices and strict environmental regulations.
- Market Volatility: The company’s close tie to the volatile global oil market can significantly affect performance.
- Insider Selling: Insider selling activities might indicate concerns about the company’s future.
That’s it for this week.
If you write amazing content and want to be featured, please send it through for consideration.
Cheers,
Wyatt
Disclosures
- There are affiliate links above; we’ll get a couple of bucks if you take action after you click.
- Nothing above is financial advice. DYOR, you filthy animal.
