Good morning investors! Iran tensions continue to persist as investors look forward to new data.
Today we cover:
What to expect this week
Iran war updates
Aramco records big numbers
📊 Economy and News
What to Expect This Week
Here’s what to keep an eye on this week:
Monday, May 11
Hims & Hers will report
Tuesday, May 12
CPI Report (8:30 a.m. ET) – April inflation data. Energy prices will be in focus after March’s sharp rise driven by Middle East tensions.
Under Armour (UA / UAA) – Fiscal Q4 results (pre-market) + conference call.
On Holding (ONON) – Q1 results (pre-market) + conference call. Investors will watch the reaction to the recent co-CEO leadership change.
Wednesday, May 13
Cisco Systems (CSCO) – Q3 results after market close + conference call. Focus on profit margins amid rising memory component costs.
Birkenstock (BIRK) – Q2 results (pre-market) + conference call.
Asics – Quarterly results (OTC).
Thursday, May 14
Retail Sales (8:30 a.m. ET) – April data, key gauge of consumer spending strength.
Klarna (KLAR) – Q1 results (pre-market) + webcast. Performance in clothing and accessories “buy now, pay later” will be closely watched.
Friday, May 15
No major economic reports or significant earnings scheduled.
Global hits:
Trump may pull more U.S. troops from Europe.
2027 net German borrowing needs are close to €200bn, almost double 2025 levels.
China exports jump 14.1% as AI boom outpaces war disruptions.
Iran War: Netanyahu says Iran war is ‘not over’ as Trump rejects latest Iranian offer with Iran rejecting U.S. demand to dismantle nuclear sites. The ceasefire, however, is still in place as the U.S. sanctions companies and individuals in the Middle East and China for helping Iran.
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📈 Stocks
S&P 500 7,398.93 (+0.84%)
DJIA 49,609.16 (+0.024%)
NASDAQ 26,247.08 (+1.71%)
BRENT CRUDE 101.3 (-0.37%)
* Prices as of May 10th, 12:20 AM UTC
Aramco Reports Impressive Numbers
Saudi Aramco reported a strong first-quarter performance on Sunday, with adjusted net income rising 26% year-on-year to $33.6 billion, beating analyst forecasts of $31.2 billion.
The result marks a 34% increase from the previous quarter’s $25.1 billion profit. The profit surge was supported by a key pipeline reaching full capacity, helping Aramco bypass disruptions in the Strait of Hormuz amid the Iran conflict.
The company maintained a solid balance sheet with a gearing ratio of just 4.8%. Aramco’s board approved a base dividend of $21.9 billion for the quarter, representing a 3.5% increase from the same period last year.
Interesting: Trump’s attempt to impose new 10% tariffs gets struck down by a panel of judges.
The first prediction markets exchange-traded funds were anticipated to launch as early as last week, but the Securities and Exchange Commission delayed approval.
Surprising: Federal judge rejects immediate approval of Elon Musk’s $1.5m SEC settlement.
💵 Personal Finance
Alphabet’s 160% Surge: Why Wall Street Sees Google as an AI Powerhouse
Alphabet has staged an impressive comeback in the AI era. Its stock has surged approximately 160% over the past year, briefly surpassing Nvidia in market capitalization last week in after-hours trading. The rally reflects growing investor confidence that Google’s parent company is uniquely positioned to win across multiple layers of the artificial intelligence boom.
Analysts highlight that Alphabet owns “most of the stack” — from custom Tensor Processing Units (TPUs) and AI models like Gemini, to its vast Google Cloud infrastructure and powerful distribution channels through Search, YouTube, and Android. This vertical integration gives the company multiple ways to monetize AI.
Google Cloud has been a standout performer. The company’s backlog nearly doubled to $462 billion following its latest earnings, driven in part by a massive reported $200 billion, five-year commitment from Anthropic. JPMorgan named Alphabet its top tech pick, citing accelerating growth and strong cloud momentum. Mizuho also raised its price target, noting that consensus estimates may still undervalue future Google Cloud revenue.
However, some analysts caution about concentration risk. The large Anthropic deal could represent over 40% of the cloud backlog, raising questions similar to those faced by Oracle and Microsoft regarding their heavy exposure to individual AI customers like OpenAI.
Despite the risks, many investors view Alphabet’s custom silicon strategy and massive scale as major advantages. The company plans capital expenditures of up to $190 billion this year to support AI infrastructure growth.
As Google prepares for its upcoming I/O event, expectations are high for updates on its AI agent strategy and long-term monetization plans. Once considered an AI laggard, Alphabet has rapidly transformed into one of the sector’s strongest contenders.
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