Moonshots speaks with Emad Mostaque: Gemini passes 1 billion users while Alphabet suffers its worst day for its share price, and even the most profitable Big Tech companies are borrowing to fund AI.
China’s infrastructure investment has shifted from growth in previous years to contraction, while local land revenue and the borrowing capacity of financing vehicles are both constrained. Barclays believes the latest round of leadership transitions could still spur investment, but both its funding sources and destinations will change.
Microsoft’s Azure constant-currency revenue growth rose to 48% in the first quarter of fiscal 2027, while adjusted Microsoft 365 Commercial cloud growth reached 19%; Barclays raised its price target but expects capital spending to continue squeezing free cash flow.
Large US actively managed credit funds have generally underperformed their benchmarks over the past month. Goldman Sachs believes the economy can still support most issuers operating normally, but spreads remain tight by historical standards. It advocates select non-AI credit and prefers dollar to euro credit assets.
Weak restaurant demand and intensifying competition weighed on soy sauce and oyster sauce sales, while higher raw material prices and expense ratios further squeezed profit. Goldman Sachs cut its earnings forecasts for the next three years while maintaining its Buy rating on the H shares.
Revenue fell short of Goldman Sachs’ expectations, but the product mix, tariff refunds and cost control supported operating profit; fair-value losses on an investment weighed on net profit.
Water Quality revenue and core growth both exceeded Goldman Sachs’ expectations, while Product Quality & Innovation revenue fell short, though its margin improved significantly. The company raised its full-year earnings-per-share and margin guidance.
Samsung’s HBM4 revenue tripled quarter over quarter, and Goldman Sachs raised its fourth-quarter profit forecast; BYD and Geely reported results below the bank’s expectations, while Weichai improved its margins through its power generation business.
International transport volumes returned to growth, but higher chartering and fuel costs pushed third-quarter profit below BofA’s expectations. The bank raised its fourth-quarter freight-rate assumption and expects quarterly net profit to rise to 7 billion yuan.
Unitree Robotics’ revenue rose 70% year over year in the third quarter of 2026, but net profit fell 17%. BofA cut its earnings forecasts and believes the current valuation already reflects substantial expectations for future growth.
Oracle expects to raise 20 billion dollars in new financing over the next three years, below the market estimate of approximately 50 billion dollars. Bank of America also raised its revenue forecast but expects capital expenditure and cash flow pressure to remain substantial before fiscal 2028.
Stronger third-quarter orders and operating profit in 2026 and advanced packaging equipment support long-term growth, but intensifying competition and shifts in the timing of HBM demand led BofA to cut its earnings forecasts and valuation multiple.
JPMorgan says the decline in Longyuan’s third-quarter net profit attributable to shareholders exceeded its expectations. Wind power generation is stabilizing, but electricity prices and costs remain under pressure. Improved subsidy collection and expectations of a recovery in utilization hours in 2027 support its decision to maintain an Overweight rating.
JPMorgan says lower raw material costs for sulfate-process titanium dioxide supported a recovery in operating profit per tonne. However, the company’s third-quarter revenue and net profit both fell from the previous quarter, while downstream demand and export tariffs remain constraints.
The company’s third-quarter gross margin beat J.P. Morgan’s and market expectations, but revenue and net profit fell short of market consensus. J.P. Morgan expects TPU-related shipments to drive further revenue growth in the fourth quarter, while new projects put short-term pressure on gross margin.
Third-quarter net profit attributable to shareholders fell 47% quarter on quarter; copper concentrate processing charges continued to weaken, while prices for the sulfuric acid by-product also retreated from highs. JPMorgan expects profit to decline further in the fourth quarter and has lowered its earnings forecasts for the next three years.
JPMorgan believes expanded indications and dosing regimens will support continued growth for Eylea HD, although declines in the original Eylea will offset some of that growth. Whether competition from new drugs can change the landscape also depends on payer restrictions and clinical advantages.
Both companies’ third-quarter capital spending fell short of expectations, but their full-year plans still point to higher fourth-quarter spending. JPMorgan is optimistic about the server supply chain while wary of pressure from PC demand and inventories.
Tencent believes the key to enterprise AI adoption is connecting workflows, internal knowledge and authorization systems. WorkBuddy is deeply integrated with WeCom and connected to business travel services; Citi maintains its Buy rating on Tencent with a target price of HK$755.
Azure grew 48% at constant currency in the first quarter of fiscal 2027, and its second-quarter guidance also exceeded market expectations. Bank of America raised its earnings forecast and price target while expecting capital expenditure to accelerate in the second half and full-year free cash flow to decline.
