Data #1
Apple Drops Car Making, Who Could they Buy?
Why does this data matter?
This week, Apple made waves by halting its car-building venture. Many viewed this as a promising avenue for the tech giant's continued expansion, especially considering the synergy between electric vehicles and Apple's ecosystem. However, reports suggest that after investing over $10 billion in the project, Apple has redirected its workforce toward generative AI development. The accompanying chart outlines potential acquisition targets for Apple to enter the EV market, with Rivian standing out at $6 billion, aligning well with its innovative design and manufacturing approach. While I'm not suggesting definite acquisition plans, it's worth noting that Apple hasn't explicitly stated that their electric vehicle aspirations have come to an end.
Data #2
Snowflake Sandbagging Guidance?
Why does this data matter?
Snowflake's recent report delivered a double blow. Firstly, they forecasted a significant deceleration in product revenue, dropping from 38% at year-end to 22% for the upcoming year. Secondly, CEO Frank Slootman announced his retirement. Slootman, known for his success in the industry, leaves big shoes to fill. It's plausible that the guidance was intentionally conservative to set up the new CEO for success in their inaugural year, but if not, the 22% projection raises doubts about the company's ambitious goal of achieving $10 billion in revenue by 2030. I am a big fan of Snowflake, and if this fear drags on, this may setup opportunities.
Data #3
PCE Inflation is at 2.4% and down for nearly 12 months straight
Why does this data matter?
By 2025, I hope we've put the topic of inflation behind us. It seems we're on track as inflation has eased. The Personal Consumption Expenditures (PCE), the Fed's preferred measure, has comfortably dropped below 3%, hitting 2.4%, the lowest since March 2021. With 1-2 more favorable inflation reports, we may see the beginning of a cutting cycle.
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