QQQs +1.2% gaining back all of Friday losses. AI levered capex names got more good news today as France announced their own “Le Stargate,” with Macron saying they will invest €109 Billion in AI (Bloomberg). Another fun headline today you likely didn’t expect to see: Elon Musk-Led Group Makes $97.4 Billion Bid for Control of OpenAI. (WSJ). BTC +2.3%; Oil +3%; China +2.7%. Fed expects ticked in a slightly dovish direction with Fed now expecting 40bps worth of cuts throughout the year. Yields roughly flat. More outperformance from expensive software and AI today.
Let’s get to it…
Internet
UBER +5.5%: More follow through on rip last week. We wrote in our weekly yesterday why we thought the path was likely higher over the next couple of months: UBER has been shaking off bad news around AV and next month we finally get some good news as they will be launching with Waymo in Austin (followed by Atlanta in the summer). Seems like sentiment has turned over the last couple of days that AV rollouts willincreasingly need a demand side platform and with UBER being the biggest, they are positioned well. The BYD announcement also raised a salient point in investors minds: the more fragmented the FSD market, the better UBER is positioned as the largest demand aggregator. Sentiment on the AV front also being helped some by reports of a TSLA FSD crash that is going around X and LYFT’s announcement. This is a narrative that will ebb and flow going forward, but NT the momentum of the narrative seems to be on the side of UBER being a beneficiary rather than a co that will be eaten — that’s a big change in investor perception from 1-2 months ago.
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