Energy Addiction, Walmart and Mom & Pop Cos. in AI, Luxury M&A and More Investing Headlines
Let's scan through the headlines for the stories of the week that speak to our Pro Portfolio holdings.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
In a week that saw the Fed meet, Nvidia's NVDA, Jensen Huang give a major keynote speech and more tariff chatter, we still saw a myriad of other headlines that influence and confirm the Pro Portfolio’s strategies and holdings. First, AI continues to be a driver of activity as we see it bleeding across other themes and industries, especially cybersecurity. At the same time, consumers are tightening their belts and living paycheck to paycheck, more people are having their identities compromised, and mergers and acquisitions are heating up in the luxury goods space.
Following is a sampling of the key reports to read, and if you’ve found a news signal for the Portfolio you’d like to share, drop it into the comments section below.
Artificial Intelligence
Small businesses can now harness the power of Generative Artificial Intelligence (GenAI) to supercharge their operations. The newest product built directly for small businesses, Verizon Business Assistant is a GenAI-powered text messaging solution designed to help small businesses automate customer interactions and enhance engagement. Read more here
Recognizing the opportunity to streamline these tasks, we developed Wally, a GenAI-powered tool designed to be a productivity multiplier for our merchants. Built on Walmart’s proprietary data, Wally automates a variety of time-consuming processes, including:
Data entry and analysis – Instantly generating insights from complex datasets.
Root cause identification – Diagnosing why certain products are under- or overperforming.
How-to support – Answering operational questions and raising tickets for unresolved issues.
Advanced calculations – Automating complex formulas and predictions. Read more here
Ninety percent of surveyed healthcare executives report that their previous GenAI investments have already achieved a positive ROI, demonstrating the swift impact and efficiency of the technology in this sector. This is noteworthy given the typically lengthy timelines for returns on technology investments. Read more here
Portfolio: Alphabet GOOGL, Amazon AMZN, Elastic ESTC, Meta META, Microsoft MSFT, ServiceNow NOW
Artificial Intelligence, Cybersecurity
Most (87%) security professionals have reported that their organization has encountered an AI-driven cyber-attack in the last year, with the technology increasingly takes hold, according to a new report by SoSafe. Read more here
The European Union’s law enforcement agency cautioned Tuesday that artificial intelligence is turbocharging organized crime that is eroding the foundations of societies across the 27-nation bloc as it becomes intertwined with state-sponsored destabilization campaigns… “Cybercrime is evolving into a digital arms race targeting governments, businesses and individuals. AI-driven attacks are becoming more precise and devastating,” Read more here
According to a blog post by researchers from the cybersecurity company Veriti, a critical vulnerability in ChatGPT could be used by cybercrooks to gain unauthorized access to sensitive information. The flaw, CVE-2024-27564, could pose a risk to businesses that use the generative artificial intelligence (GenAI) application. “It allows attackers to inject malicious URLs into input parameters, forcing the application to make unintended requests on their behalf,” the post said. These attacks could lead to data breaches, unauthorized transactions, regulatory penalties and reputational damage. Read more here
Position: Elastic, First Trust Nasdaq Cybersecurity ETF, Microsoft
Artificial Intelligence, Digital Lifestyle
A growing number of consumers are finding their way to U.S. retail websites by clicking on links in generative artificial intelligence (GenAI) chat interfaces, Adobe Analytics said Monday (March 17). “While generative AI traffic remains modest compared to other channels, such as paid search or email, its growth has been notable — doubling every two months since September 2024” Read more here
Position: Alphabet GOOGL, Amazon AMZN, Meta META, Microsoft MSFT
Cash-Strapped Consumer
CPG giants have recently warned during their earnings calls that due to growing economic pressures and high grocery prices, more shoppers are forced to hold off on snackable items and focus on core meals. Moreover, when people are buying snack items, they’re prioritizing more nutritious alternatives like jerky, nuts and rice cakes over chips and cheese crackers. Now, big food manufacturers that make some of America’s most popular snacks are feeling a slowdown in sales. Read more here
Today, some 67% of Americans say they live paycheck to paycheck, according to a recent PYMNTS Intelligence study. The paycheck-to-paycheck lifestyle spans income brackets, education levels and professions. The every-other-week rhythm of waiting for the next paycheck has become America’s most common financial heartbeat. Read more here
Position: Amazon, Costco COST
Cybersecurity
Over 300 malicious Android applications downloaded 60 million items from Google Play acted as adware or attempted to steal credentials and credit card information. The operation was first uncovered by IAS Threat Lab, who categorized the malicious activity under the name "Vapor" and said it has been ongoing since early 2024.IAS identified 180 apps as part of the Vapor campaign, generating 200 million fraudulent advertising bid requests daily to engage in large-scale ad fraud. Read more here
Cyberattacks on public entities across the U.S. — from police stations to school districts and courts — are causing wide-ranging issues for thousands of residents and public employees. Atchison County has more than 16,000 residents and is one of several municipalities to announce restrictions on services due to cyberattacks. Nearly three weeks after announcing a cyberattack had brought down its systems, Cleveland’s Municipal Court still has not recovered, hampering dozens of trials that had been slated to begin in March. Read more here
“AI is no longer just a tool for innovation, it’s a weapon,” says Setareh. “Hackers now use generative AI to craft hyper-targeted phishing campaigns, spread disinformation, and even automate attacks on telecom networks.” Recent incidents, like a 300 Gbps DDoS assault that temporarily crippled a GCC country’s connectivity services, underscore the scale of the challenge. “We once thought 20 Gbps defences were sufficient. Now, attackers deploy 15 times that volume,” he adds. Read more here
Position: Elastic, First Trust Nasdaq Cybersecurity ETF, Microsoft
Data Privacy & Digital Identity
The Pennsylvania State Education Association (PSEA), the largest public-sector union in Pennsylvania, is notifying over half a million individuals that attackers stole their personal information in a July 2024 security breach. The union represents over 178,000 education professionals, including teachers, support staff, higher education personnel, nurses, retired educators, and future teachers. Read more here
Digital Infrastructure
Global telecommunications firms are talking up advances in key technologies like artificial intelligence as they look to transition away from being perceived as the “dumb pipes” behind the internet. At the Mobile World Congress technology conference in Barcelona, CEOs of multiple telecoms companies described how they’re piling money into new technological innovations, including AI, next-generation 5G and 6G networks, satellite internet and even smart cities. Read more here
Position: Marvell MRVL, Nvidia NVDA, Qualcomm QCOM
Digital Lifestyle
Shoppers are continuing to utilize artificial intelligence to research products, even if they end up buying the item in-store. Most (77% ) respondents research products online before buying, regardless of if the purchase happens online or at a physical store, according to Enterprise AI platform Covero's fifth-annual Commerce Relevance Report. More than six-in-10 (62%) consumers claim they are more likely to make purchases with Generative AI-driven guidance. Read more here
Position: Alphabet GOOGL, Amazon AMZN, Apple AAPL, Costco COST, Microsoft MSFT
Digital Payments
Buy now, pay later (BNPL) options from Klarna will soon be available for DoorDash orders. The payments company announced its new integration partnership with the delivery platform in a Thursday (March 20) press release, saying it offers DoorDash customers in the U.S. flexibility and convenience when paying for delivery of restaurant food, groceries and retail goods. Read more here
Positions: American Express AXP, Mastercard MA
Energy Pain Point, Rebuilding America
Electricity demand rose by 4.3% in 2024 and will continue to grow at close to 4% annually through 2027, according to a new report from the International Energy Agency… What’s actually behind this demand growth is complicated. Much of the increase comes from China, India, and Southeast Asia. Air-conditioning, electric vehicles, and factories all play a role. And of course, we can’t entirely discount the data centers. Here are a few key things to know about global electricity in 2025, and where things are going next. Read more here
A New Jersey congressman with the largest district in the state said nuclear energy should be part of a multi-faceted response to the nation’s energy crisis as questions about offshore development continue and double-digit electricity rate hikes loom for nearly half of the state’s ratepayers this summer. Read more here
Surging electricity demand has revived interest in nuclear energy across the U.S. As new data centers and EVs gobble up power, self-described “nuclear bros” argue the nation can’t rely on intermittent resources like wind and solar alone to meet its growing energy needs. Utilities also require “baseload power,” largely supplied by coal plants, to keep the grid humming at all hours. Read more here
Position: Eaton ETN, VanEck Uranium & Nuclear ETF NLR
Luxury Buying Boom
Ferraris are becoming increasingly popular among younger buyers, with the CEO of the luxury automaker revealing that 40% of new buyers are now under the age of 40. That reflects a significant upswing from just over 18 months ago, when Ferrari’s chief said the figure stood at 30%. Read more here
Three luxury giants—LVMH and Kering of France and Richemont of Switzerland—accounted for 31% of global personal-luxury-goods sales in 2023, up from 19% in 2014, according to bcg, a consultancy. Acquisitions helped fuel that growth. Since 2000 bcg counts at least 33 deals by the three groups. Many independent brands are now concluding that they cannot survive alone in an increasingly difficult market. A new wave of deals seems likely. Read more here
Position: American Express AXP
Safety & Security
Norwegian defense authorities recently approved a series of upgrades to modernize and expand the capabilities of the ranger unit. Among these is the acquisition of new unmanned technologies, including long-range maritime surveillance drones, according to Frode Nakken, commanding officer of the Coastal Rangers. Read more here
The partner countries involved in the Lockheed Martin F-35 remain fully committed to the fighter jet, and there’s no sign the United States is changing course on the Joint Strike Fighter program, Dutch Minister of Defence Ruben Brekelmans said. “It’s in the interest of all of us to make sure that the F-35 program remains operational, that it remains as successful as it is right now, and I don’t see any signs of the United States backtracking,” Read more here
The Federal Aviation Administration (FAA) is paving the way for a revolution in public safety drone operations, with a landmark waiver granted to the Fort Wayne Police Department at the end of 2024. This first-of-its-kind approval, detailed in a Government Technology report, allows the Indiana agency to deploy drones as part of its Drone as First Responder (DFR) program without a dedicated visual observer. By leaning on advanced sensor technology, this move expands operational capabilities, cuts manpower needs, and signals a broader shift in FAA policy that could soon see DFR programs multiply across the U.S. Read more here
Position: Axon AXON, Lockheed Martin LMT
The Strategies Behind Our Thematic Models
Aging of the Population - Capturing the demographic wave of the aging population and the changing demands it brings with it.
Artificial Intelligence – Software, chips, and related companies that facilitate the collection and analysis of large data sets and autonomous generation of solutions given non-machine language prompts.
Cash Strapped Consumer - Companies poised to benefit as consumers stretch the disposable spending dollars they do have.
CHIPs Act – Capturing the reshoring of the US semiconductor industry and the $52.7 billion poised to be spent on semiconductor manufacturing.
Cybersecurity - Companies that focus on protecting against the penetration of digital networks and the theft, ransom, corruption, or destruction of data.
Data Privacy & Digital Identity - Companies providing the tools and services that verify authorized users and safeguard personal data privacy.
Digital Infrastructure & Connectivity -The buildout and upgrading of our Networks, Data Storage Facilities, and Equipment.
Digital Lifestyle - The companies behind our increasingly connected lives.
Digital Payments - This model focuses on companies benefitting from the accelerating structural adoption of digital payments and financial technology (FinTech).
Energy Pain Point - Companies poised to prosper from rising power demand.
EV Transition - Capturing the transition to EVs and related infrastructure from combustion engine vehicles.
Guilty Pleasure – Companies that produce/provide food and drink products that consumers tend to enjoy regardless of the economic environment and potential long-term health hazards associated with excessive consumption.
Homebuilding & Materials – Ranging from homebuilders to key building product companies that serve the housing market, this model looks to capture the rising demand for housing, one that should benefit as the Fed returns monetary policy to more normalized levels.
Luxury Buying Boom - Tapping into aspirational buying and affluent buyers amid rising global wealth.
Rebuilding America - Turning the focused spending on rebuilding US infrastructure into revenue and profits.
Safety & Security – Targeted exposure to companies that provide goods and services primarily to the Defense and security sectors of the economy.
