Magnificent Seven Momentum and GameStop's AGM | Bloomberg Technology

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Magnificent Seven Momentum and GameStop's AGM | Bloomberg Technology

Stock Market and Economy

  • The stock market is on pause as investors await the Federal Reserve's comments on interest rates and monitor political tensions in Europe.
  • Inflation is cooling down, but the Federal Reserve is still far from its target, with goods deflation but sticky service prices and housing costs.
  • The Federal Reserve may not raise interest rates in December due to political risks in France and the upcoming US elections.
  • Investors should hold cash and look for opportunities in unloved sectors like small and mid-cap stocks, which are relatively cheap compared to large-cap stocks.

Artificial Intelligence (A.I.)

  • Artificial intelligence (A.I.) is evolving and will benefit various industries, not just technology. Investors should look for companies that will benefit from implementing A.I.
  • Infrastructure development is needed to support the growth of A.I. and other technologies.
  • Google has reorganized its A.I. labs, combining Google Brain and Deep Mind into a single unit called Google Deep Mind.
  • DeepMind's cutting-edge AI research is not always connected to Google's commercial services.
  • Google is attempting to shift DeepMind's focus towards product development, with Gemini being a flagship product competing with OpenAI.
  • Hugging Face, an AI startup, has acquired a Spanish company called Argilla for $10 million. Argilla specializes in data sets for AI, which are essential for machine learning and AI growth.
  • Apple's recent unveiling of AI features for the iPhone has generated excitement among consumers, potentially challenging Microsoft's previous lead in AI integration.

GameStop

  • GameStop's annual meeting, delayed due to technical issues, is rescheduled for today at 12:30 PM local New York time.
  • Keith Gill, a prominent GameStop investor, has shifted his holdings from options to actual shareownership, becoming a top four holder with over nine million shares.
  • Ryan Cohen, co-founder of Chewy and current Chairman, CEO, and President of GameStop, is the focus of attention due to his potential plans to transform the company.

Legal Issues

  • Adobe is facing legal action from the FTC for allegedly deceiving consumers with hidden early termination fees and difficult subscription cancellation processes.
  • The U.S. Supreme Court has agreed to review a case involving NVIDIA's cryptocurrency mining revenue, with the company seeking to stop a lawsuit accusing it of being deceptive about its revenue.

Box Office and Streaming

  • The box office saw its biggest debut since Barbie, with Inside-Out 2 drawing crowds back to theaters and potentially helping AMC's attendance records.
  • Disney's recent success at the box office, particularly with "Inside-Out 2," demonstrates that the right movie, released at the right time, can attract audiences back to theaters.
  • Streaming platforms are investing in "appointment television," creating highly anticipated content that draws viewers to their platforms.
  • Audiences are embracing both theatrical releases and streaming content, seeking out a variety of entertainment options.

Overwhelmed by Endless Content?