Anthropic’s net revenue retention is about 900%. In plain terms, business customers who were paying it a year ago now pay nine times as much, on average. What are they paying for? Mostly usage. 80% of revenue in the first half of 2026 came from customers paying for what they use, whether through Anthropic directly or through Amazon, Google and Microsoft’s clouds. That covers companies building Claude into their own products and staff running Claude Code all day. The other 20% came from subscription plans. The 900% leaves out people on the Pro and Max plans for individuals, so it isn’t people upgrading their plans. It is companies putting Claude to work on more and more of what they do. And the biggest companies have barely started. More than half the Fortune 500 now pay Anthropic at least
We think Anthropic is in good health today, and that the next two years decide whether it stays that way, as the computing bills arrive faster than the revenue that has to pay them. Watch for “buy the rumour, sell the news”. Chip stocks had a rough October. The Philadelphia Semiconductor Index fell 19% from 6 October to 22 October, on worries about how much is being spent on AI. Then the filing came out and the index jumped about 3% in a day, with Nvidia and Broadcom up about 3% each. The excitement can fade just as fast once trading starts. A listing this size also needs buyers, and some funds will sell other AI stocks to make room for ANT. Remember Facebook. It listed at US$38 in May 2012, fell below US$20 by August, and slid further when the first lock-up ended. We wouldn’t chase AI sto
Alphabet paid a US$5.2 billion EU fine, and it built up US$3.2 billion of chip systems it will sell to customers later. Even after adding both back, free cash flow is still slightly negative. Over the last 12 months it was US$19.7 billion, against US$73.3 billion for 2025.,the spending is not slowing. Alphabet expects US$195 billion to US$205 billion of capex this year, and says 2027 will “increase significantly” from there. That spending comes back as a cost later. About 65% of it went into servers and networking, which Alphabet writes off over six years. Depreciation was US$8.4 billion this quarter, up from US$5.6 billion a year ago. The chief financial officer said it will “continue to weigh on the P&L”. In plain words, today’s capex is tomorrow’s expense, and most of it has not sta
We have seen AI stocks fall this hard twice before, and each time the reason was different. In January 2025 the worry was demand. China’s DeepSeek showed it could build a capable AI model for a fraction of the usual cost, and investors wondered whether the world needed so many expensive chips. Nvidia fell 17% in a single day. In June and July this year, the worry was a glut of chips, made much worse by forced selling due to overleveraging.This time, bond prices went up instead. That points to a flight to safety. Investors are selling risky assets and piling into government bonds, and the extra demand pushes bond prices up. Their worry is that some of the money lent to AI companies could go bad. And if it does, who is going to fund the AI build-out? The credit market is saying the same thin
What happened to last quarter stock price? The second quarter was weak. Organic revenue fell 1%, US pet medicine sales fell 11%, and management cut its full-year revenue forecast for the second time this year, to $9.12 billion to $9.32 billion. The stock rose 3.9% on the day anyway, a sign the price was pessimistic. In September, management said the discounts it was using to win customers back from rivals hadn’t worked well enough, so it made them bigger in the third quarter. List prices were not cut though, just bigger discounts. stock like Zoetis It fell to $69.10 on 1 Oct, then recovered to $82.00, 6% above where i wrote about it before Where we stand the fair value is $125 to $155, and the stock trades 34% below the low end.this show market still not very pessimistic yet
On 9 October, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim tabled Budget 2027, the fifth and maybe the last of the MADANI government.The headline figure is a record RM510 billion in total spending and investment, up from RM470 billion. Within that, federal expenditure is RM459.8 billion, made up of RM376.8 billion operating and RM83 billion development. The government is forecasting 4.2% to 5.2% GDP growth for 2027 and targets a fiscal deficit of 3.3% of GDP, narrowing to 3% by 2028.This is an expansionary budget, and very possibly the last one before GE16. So the question most readers care about is a simple one. How much more money will I actually have, and when? One timing point before the numbers. Personal income tax changes apply from Year of Assessment 2027. That means
Before diving in, I want to outline my biases in ETF selection. Firstly, my preference leans towards equities over other asset classes. This bias stems from equities' proven track record as the highest long-term return asset class, despite their inherent higher volatility. Consequently, you'll notice that all five ETFs I'm discussing are equity-based. Secondly, my preference is for strategy-based ETFs over those concentrated in specific countries, sectors, or themes. The reasoning is clear: choosing a country, sector, or theme necessitates accurate and timely selection, which may not be ideal for long-term holding. In contrast, a strategy-based ETF dynamically adjusts its exposure according to its investing criteria, offering a more resilient approach for investors. It's also worth noting
Markets continue to face a challenging combination of rising bond yields,persistent inflation pressures and uneven economic performance. Whiletechnology and semiconductor-related companies have continued to benefit from strong artificial intelligence-driven demand, weakness across cyclical andconsumer-sensitive sectors suggests that economic conditions remain mixed. Higher interest rates and elevated energy prices may continue to createperiods of volatility in the near term. Nevertheless, the portfolio remains focused on businesses with durable competitive advantages, strong balancesheets and favourable long-term earnings drivers. Portfolio positioningcontinues to emphasise quality, profitability and exposure to structural growththemes while remaining selective in sectors facing increasing
Higher-yielding bonds carry higher volatility and should be sized according to your goals and time horizon, and with a clear understanding of what determines their performance. yields (= government bond yields) could rise further, and a longer dated government bond-heavy allocation may be more vulnerable to “rate risk”. If your bond allocation is concentrated in developed market (DM) government bonds, it may be worth looking beyond traditional index-like exposures (40%–50% of which, by market value of outstanding debt, are made up of government bonds) into active management. Diversification spreads a bond allocation across different return drivers, and emerging market (EM) bonds are one part of that wider opportunity set worth a fresh look. Bonds have been in the spotlight in recent weeks,