FactSet data show the S&P 500’s blended net profit margin rose to 16.9% in Q2, up from 14.8% in Q1 and a year‑earlier 12.9%, the highest since tracking began in 2009. Alphabet, Amazon and broad sector gains are driving the surge, bolstering earnings and backing the ongoing equity rally.
MSCI gave SpaceX a CCC rating, the lowest possible, putting it in the same tier as Russia after its 2022 invasion of Ukraine. The rating, driven by a 1‑out‑of‑10 controversies score and weak governance, spotlights flaws in ESG methods for high‑profile private firms.
The Aug 14 13F reveals Berkshire now holds 106 million Alphabet shares worth $37.9 billion, an 83% jump that makes Google’s parent its third‑largest holding after Apple and American Express. The bet signals Buffett’s growing tilt toward high‑growth tech and may encourage other value investors to follow.
Alphabet’s profit jumped 81% and Amazon’s rose 77% in Q1 2026, but almost half of each company’s earnings came from marking up their Anthropic equity stakes, not from core AI services. The boost exposes how the AI boom feeds on itself, linking the two giants’ fortunes.
Cheesecake Factory, BJ’s, IHOP and Chili’s posted double‑digit sales gains and rising foot traffic in Q1, boosting their share prices. By contrast Wendy’s logged its sixth straight quarter of same‑store revenue decline, prompting activist investor Nelson Peltz’s Trian to consider a take‑private bid. The split hints at a broader consumer shift toward sit‑down experiences over drive‑thrus.
U.S. retail sales fell 0.6% in July, the first drop in nine months and the steepest decline in 14 months. The dip, driven by fading tax refunds and a pull‑forward of Amazon’s Prime Day, forces economists to trim Q3 growth forecasts and raises the odds the Fed will pause rate hikes.
Pershing Square disclosed a fresh Netflix stake, snapping up the stock four years after a full sell‑off. Ackman argues Netflix now dominates with 325 million subscribers, stronger margins and a valuation halved from its 2025 peak, positioning it for double‑digit revenue growth and near‑20% earnings expansion. Shares jumped about 4% on the news.
Amazon founder Jeff Bezos, via his K5 Global fund, led a $7.1 billion purchase of roughly one‑third of Liverpool FC, giving the consortium an option to take majority control at $8 billion within a year. The deal marks his first sports ownership and signals a new wave of tech capital into Premier League clubs.
Big tech firms moved from using profit‑based AI capex to tapping shareholder and bond‑holder capital, and now they’re deploying that outside money to fund rivals and startups. The shift mirrors Milton Friedman’s matrix: spending other people’s money on other people erodes cost discipline, raising the risk of an AI financing bubble.
Google’s token processing rose 300‑fold from 2024‑26, forcing a massive wave of data‑center construction. Communities across the U.S. are fighting back, fearing noise, power strain and environmental harm. The resistance could slow the AI infrastructure that now fuels a third of the nation’s economic growth.
Model licensing fees have dropped dramatically, driving companies, from startups to Fortune 500s, to replace pricey OpenAI services with lower‑cost alternatives, including Chinese offerings. The shift is tightening AI spend, reshaping vendor power balances and forcing a new era of budgeting discipline across the tech sector.
You’re caught up.
That was all 11 stories in the 15 August issue.