Dear valued client,
Markets lost slight ground this week amid a flood of big tech earnings reports. Alphabet, Microsoft, Meta, Apple, and Amazon reported strong Q3 figures. Alphabet led with $88.27 billion in revenue. However, many tech companies – Microsoft and Meta especially – face investor pushback over substantial AI expenditures. Microsoft’s spending surged to $14.9 billion, a 50% increase year-over-year, while Meta raised its full-year AI spending forecast to as high as $40 billion, fueling concerns about overspending. Even with solid earnings, the high cost of AI has introduced market volatility, casting a shadow over the potential of future gains in big tech.
With the U.S. election less than a week away, The Washington Post and Los Angeles Times have opted not to endorse a candidate, breaking a longstanding tradition. Many believe this shift, influenced by each paper’s ownership — Amazon founder Jeff Bezos for the Post and Patrick Soon-Shiong for the Times — was motivated by the desire to avoid potential fallout with Donald Trump, should he win the election. The move sparked controversy within the publications, leading to resignations from high-profile staff like Robert Kagan and Michele Norris at the Post, and Mariel Garza at the Times. Critics argue that purveyors of ‘news’ should not be in the business of endorsing a candidate anyway, which undermines the sources’ credibility and highlights their bias.
An investigation by Le Monde – a French newspaper – has revealed that Strava, a popular fitness tracking app, may pose national security risks by inadvertently exposing the movements of world leaders. Reporters were able to track locations associated with leaders such as Joe Biden, Emmanuel Macron, and Vladimir Putin through Strava data posted by their security personnel. They identified sensitive locations, including a hotel President Biden visited in San Francisco in 2023, by following a Secret Service agent’s jogging route. Strava data even indicated runs near a luxurious estate allegedly linked to Putin. Although French and U.S. officials acknowledged the investigation, they downplayed security concerns, despite previous issues with Strava’s Global Heat Map revealing military personnel locations in sensitive areas.
“The law of unintended consequences is the only real law of history.” – Niall Ferguson
Have a terrific weekend,
PW
