TMS Insights February 2025: The year starts with a bang
Google will spend US$75 billion on data centres this year because it can't keep up with demand. In this episode of TMS Insights, Ben and Jeremy open 2025 with the US earnings season, Trump's flying start, and the strange logic of CBA as an AI winner.
In this episode:
- Big tech delivers great results and gets sold off anyway, as the market digests a step change in AI capex.
- Old world businesses quietly outperform, with banks and retailers rallying on the productivity gains AI promises them.
- Commonwealth Bank at 26 times forward earnings is nosebleed territory, unless it turns out to be our market's biggest AI beneficiary.
- REA delivers one of its best results in years as Owen Wilson announces his departure, with the housing market almost perfectly balanced between buyer and seller for the first time in memory.
- And the bond market prices three and a half rate cuts for 2025, a tailwind if it's right, which it usually isn't.
Companies discussed: Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), Commonwealth Bank (CBA), REA Group (REA) and CSL (CSL).
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