The Weekly Brief (As of April 30)
- Warner Bros (WBD) shareholders approved the mega merger with Paramount (PSKY) in an $81 billion takeover. The deal is expected to reshape Hollywood and the competitive dynamic of the media industry.
- Despite reporting revenue growth of 21%, ServiceNow (NOW) stock sank, dragging the whole software sector along with it, as AI disruption fears continued to persist.
- Meta (META) announced it will enter a multiyear agreement to use Amazon (AMZN) Graviton chips to power its AI capabilities.
- Google (GOOGL) announced the company will invest in Anthropic, with another $30 billion potentially to follow if performance targets are met.
- In the first quarter of 2026, Microsoft (MSFT) reported solid double-digit cloud growth (Azure grew 40%) driven by AI demand. Microsoft stock was pressured as surging capital expenditures and near-term capacity constraints raised concerns about returns on its aggressive AI spending.
- Alphabet (GOOGL) reported strong overall results. Alphabet stock surged as Google Cloud growth of over 60% highlighted clear AI monetization traction, easing investor concerns around heavy capex.
- Amazon (AMZN) stock rose as AWS growth and accelerating AI demand reassured investors that its aggressive investments are already translating into revenue momentum.
- Despite beating revenue expectations with over 30% growth, Meta (META) stock fell as sharply higher AI-related capital expenditures and slowing user trends overshadowed strong operating performance.
*Analysts of 5i Research responsible for this report have a financial or other interest in AMZN, META, GOOGL, and MSFT. The i2i Fund does not have a financial or other interest in securities mentioned. Clients of i2i Capital Managements Private Investment Counsel service (i2i PIC) may hold a financial interest in any companies discussed and the views of i2i PIC may differ from the views of 5i Research.
New Update
We have initiated new coverage on Electrovaya (ELVA). ELVA operates as a technology-driven lithium-ion battery manufacturing company that has been in a re-investment process to expand production capacity over the years. It is currently at an inflection point of profitability and scale. ELVA has been on solid momentum and benefits from the long-term tailwinds of electrification.
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Report Update
We have posted a report update on A & W Food Services of Canada (AW). AW operates as one of the largest restaurant chains in Canada and almost entirely as a franchisor. In recent years, the company went through a large corporate transition to convert itself from an open-ended trust with a stable, high-yield profile to a growth-oriented, capital-light franchisor. AW has experienced near-term headwinds from weak consumer spending and challenging growth.
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