Market scorecard
US markets closed higher on Friday, with the S&P 500 enjoying its sixth consecutive weekly gain. Strong corporate earnings and encouraging signs of economic strength provided a boost. Netflix surged 11.1% after delivering solid earnings, while Apple rose 1.2%, helped by a surge in sales of its latest iPhones in China.
In company news, Procter & Gamble has reported another slow quarter for sales growth, with only modest price increases and softness in segments like skin and baby care. Intuitive Surgical rose to a new all-time high, climbing 10.0% on strong sales of its da Vinci surgical robot.
On Friday, the JSE All-share was up 0.72%, the S&P 500 rose 0.40%, and the Nasdaq was 0.63% higher.
Our 10c worth
One thing, from Paul
If you are a Netflix shareholder, I assume that you are a subscriber too? Everyone seems to have their favourite series. Have you watched 'The Perfect Couple' and 'Nobody Wants This' or 'Tokyo Swindlers'?
We first bought Netflix shares for customers back in October 2011. In those days, the company still posted DVD movies, and the share price was just $10.74. Now they are at $763.89 per share. That's a new all-time high after some wild swings in recent years.
Regular readers might recall that I predicted that Netflix will one day have a billion customers paying $50 each per month. Well, according to their results last week, there are 283 million subscribers now, and the average revenue per user in their home market is only $17.06. Some way to go, but they are getting there.
Netflix has an increasingly successful advertising business too. Their ad-supported subscription plans are much cheaper, and advertisers like the ability to target ads at users with specific preferences based on their viewing patterns.
The content slate for the final months of the year looks great including a second season of Squid Game, the Jake Paul versus Mike Tyson fight and two NFL games on Christmas Day. I'm looking forward to 100 Years of Solitude based on the iconic novel by Gabriel García Márquez from Colombia.
If you don't currently own Netflix shares, send some fresh cash and add them to your portfolio.
Byron's beats
Last week I wrote about the Johnson & Johnson results and referred to the company as boring. That was probably a little unfair. The level of innovation in the healthcare sector is amazing.
This blog from J&J titled 6 ways J&J is using AI to help advance healthcare has some exciting stuff in it.
3D maps of internal organs, mass data processing, drug trial selection algorithms, AI-powered biomarker tests, and new drug discoveries are all examples of how AI is powering ahead healthcare innovation. The future is bright in the sector and we are very happy to put capital up for the ride.
Michael's musings
De Beers single-handedly created the global diamond market and the allure that goes with those shiny stones. Their monopoly has slowly been eroding in recent years, then a knockout punch was delivered by lab-grown diamonds. Have a look at the graph below; no wonder Anglo wants to sell De Beers.
What really amazed me is how quickly things have changed. In just over four years, lab-grown diamonds have gone from having an insignificant market share to almost being on par with their mined peers.
Statistics show that the market is splitting - natural diamonds for larger stones and lab-grown rocks when going smaller. That makes sense, if you're buying a very fancy piece of jewellery, you are happy to pay more for the natural diamond.
Bright's banter
Amazon's self-driving subsidiary, Zoox, is shaking up the transportation game with its unique robotaxi. The vehicle has no steering wheel or pedals, four inward-facing seats, and a pod that can drive in both directions.
It's designed entirely for passengers, not drivers, according to co-founder Jesse Levinson. He sees this people-first design as a key advantage as Zoox prepares to roll out its commercial driverless taxis in Las Vegas next year, taking on competitors like Google's Waymo and Tesla's CyberCab.
While Tesla relies on a camera-based vision system, Zoox uses a more advanced network of sensors, cameras, and mics. Levinson argues this setup allows Zoox's vehicles to handle different environments and potential sensor failures more safely.
Zoox's robotaxi is also built in-house with safety redundancies like dual-braking systems and motors. There are even human technicians who monitor the cars remotely for rare situations like construction zones. While full autonomy is still limited, Zoox aims to launch its service in 2025, expanding beyond its test routes in Las Vegas.
Linkfest, lap it up
Batrachologists found a fancy frog. This species croaks like 'Star Trek' special effects - Boatswain whistles and tricorder sounds.
These are the 5 best investment books of all time. This one article summarises them all - It's all about the long game.
Signing off
Most Asian markets were up this morning, with China's CSI 300 Index gaining after banks cut lending rates, fueling positive sentiment around recent stimulus measures. South Korea, Taiwan, and Australia also saw gains, though Hong Kong and India lagged behind with declines.
In local company news, Santova is anticipating a drop in first-half earnings of up to 21.9%. The supply chain solutions company has been navigating challenges, trying to secure vessel space for its clients as global freight rates continue to rise.
US equity futures are marginally higher pre-market. The Rand is trading at around R17.59 to the US Dollar. Gold hit a new high amid tensions in the Middle East.
Have a good week.