Finimize - 🗒️ Apple and Amazon open the books

What’s going on here?

Amazon and Apple shared the spotlight Thursday, with both delivering earnings that outshined Wall Street’s expectations.

What does this mean?

As two of the biggest stars in the Magnificent Seven, the duo had investors at the edge of their seats. Amazon delivered, with $158.9 billion in revenue and a hefty profit improvement, fueled largely by its advertising and AWS cloud business both growing 19% year-over-year. And Apple’s quarter was similarly sweet, with $94.9 billion in revenue, up 6% year-over-year, after an unexpected bounce in iPhone sales (even before the release of its buzzy AI tools). But it also saw a huge bite taken out of its net income, after a European tax court ruling that had the firm forking over $10.2 billion.

Why should I care?

Zooming in: Doing a service.

Apple’s not just the “iPhone and MacBook company” anymore – its services now snag a bigger slice of the pie. Last quarter, they made up over 25% of the firm’s revenue, more than iPads and wearables combined. But there’s a twist that is raising eyebrows: Disney has now joined Netflix and Spotify in skipping the app store for new subscriptions. Instead, they’re nudging customers to sign up directly, sidestepping the 30% fee Apple typically pockets from in-app purchases. Services revenue has just started to slow, so investors will be keeping a sharp eye on this one.

The bigger picture: Power plant, two-day shipping.

Amazon’s dealing with its own set of high-voltage headaches. Big Tech’s AI obsession is sucking up so much electricity there’s hardly enough to go around. So Amazon’s eyeing up nuclear energy projects to keep the lights on – and touting its zero-emission benefits. But let’s be real: Amazon may be the “everything store”, but nuclear energy isn’t exactly its area of expertise, and these projects are eating up cash. No wonder then, that investors are giving the side-eye to the mounting bills and wondering where those AI-driven profits are.

What’s going on here?

Global demand for gold just smashed an all-time high, crossing the $100 billion mark for the first time.

What does this mean?

Economics 101 says demand should drop as prices rise – but gold buyers must’ve skipped class that day. Despite a 35% price jump this year (and a double-digit climb last year), they’re not backing down. The World Gold Council’s latest figures show that total demand rose to 1,313 tons in the third quarter. That’s more than $100 billion at market prices – a new record. But look closer, and gold’s demand may not be as bling-bling as it seems. Jewelry makers, who are a major part of the market, and even central bankers have recently taken a step back from buying. So, it’s investors that are driving the metal higher. And in their world, nothing fuels a buying spree quite like seeing prices on the rise.

Why should I care?

For markets: Beware of FOMO.

Demand has kept price declines small, with latecomers jumping in to grab the dip at the first opportunity, fueling even more momentum. But as more folks pile in, the market becomes more fragile. If sentiment shifts, not only would there be fewer buyers for the dip, but the tardy, less confident investors could rush to sell, potentially sparking a sharper price drop. So make sure you’re investing for the right reasons and are prepared for some bumps along the way.

The bigger picture: Good havens.

Gold’s thriving even without its usual macro buddies – like low interest rates, high inflation, or sluggish growth. And while geopolitical tensions and economic uncertainty are lending support, gold’s real allure comes from its status as the ultimate safeguard in the most extreme situations. Two major risks are on investors’ radar: record-high government debt loads and a quiet, determined global shift away from the US dollar that could challenge its dominance.