7th November 2024

Gold lastly dipped a bit, after toying with the $2,800/ounceslevel for a day or two, so we lastly get to speak about another stuff.

Let’s begin with the Treats we acquired throughout Halloween week… I believe they’re threefold: Nice progress out of our two favourite huge tech corporations, and a powerful quarter from one in every of our favourite insurance coverage corporations that additionally had sufficient hair on it, principally within the type of low progress, to disappoint some buyers, and supply a reasonably strong shopping for alternative.

Alphabet (GOOGL, GOOG) has been my favourite huge tech firm for a few years, and I’m glad we’ve quietly held on and completed slightly shopping for over the previous couple years as buyers have been frightened about them “dropping” to ChatGPT in AI or in search, and as antitrust and regulatory stress has elevated. This was, once more, a reasonably outstanding quarter by way of each progress and improved working effectivity.

It’s not simply my opinion, in fact — this quarter’s report elicited a cheer from buyers, with good progress in Google Cloud and a few huge numbers from YouTube sending the inventory again into the $180s for a second… not fairly testing the all-time highs from July, however fairly shut. And even with a barely greater worth now, I believe it’s nonetheless the perfect mixture of progress and worth in huge tech.

Google actually has two drivers nowadays, the core promoting/search enterprise, together with YouTube, which is doing even slightly higher than anticipated, and the booming Google Cloud enterprise, which is blowing away expectations proper now, largely as a result of Cloud adoption is pushed by AI enthusiasm amongst Google’s prospects. There are nonetheless aggressive threats on the market, there are nonetheless causes to fret about Google changing into extra “evil” or getting damaged up by the federal government… nevertheless it’s additionally nonetheless true that an organization which generates greater than $100 billion in working money circulate yearly, and runs a bunch of companies which can be virtually magically scalable, has quite a lot of ammunition to throw at these challenges.

And Alphabet’s work additionally brings to thoughts the flip facet of the “AI is consuming all of the electrical energy” argument — sure, they’ve partnered with a SMR developer to purchase future nuclear-generated electrical energy to satisfy their net-zero ambitions… however additionally they mentioned one thing that actually caught my eye about their effectivity:

“We’re additionally doing essential work inside …

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