The Fed conveniently excludes Food and Energy price increases from its Core CPI calculation. Speaking personally, our grocery bill is up approximately one-third vs. last year. We wouldn't be surprised if many Americans were experiencing grocery price increases of 25-50% over last year. At some point Food (and Energy), price increases translate into consumers buying … Continue reading Price Inflation Caused Consumers To Shop Less, Not COVID Fears. More Automation Is Coming.
AWS, Azure and GCP are to thank in large part for the proliferation of applications powered by broadly-defined AI. The big three remote server platforms have made it increasingly easy for companies of all sizes from all industries to build applications that incorporate core AI, machine learning, deep learning and related capabilities. A wide variety … Continue reading Artificial Intelligence Is Electricity 2.0
The lofty valuations enjoyed by many Technology companies won't last forever. Whether it be Biden corporate tax increases (we will know more after January 5th), the Fed allowing interest rates to tick higher (likely not in 2021), or some other event, there is more downside risk than upside opportunity for many richly valued Technology companies. … Continue reading Would Snowflake Leverage Its Currency to Acquire SAS?
We rank three FinTech companies - FactSet, IHS Markit and SS&C Technologies - from a relative risk standpoint. We also outline key long-term trends that will impact the capital markets and companies that sell into this segment of the Financial Services industry. A few long-term trends will impact the capital markets and participant organizations. These … Continue reading 3 FinTech Names & Long-Term Trends
Regardless of who wins November's general election we expect higher corporate income tax rates in 2021 or more likely 2022. Today's 21% U.S. corporate tax rate will likely climb back to 35% or higher should Trump win re-election or to 40-45% should Biden win the Presidency. We expect companies to control expenses as a result … Continue reading Higher Corporate Income Tax Rates and Advanced Automation Are Coming
Consistent pursuit of a focused mission tends to pay dividends over time. We provide several examples of public FinTech companies that have successfully done so. We include growth opportunities and near-term risks for each company. Companies mentioned: FactSet Research Systems (tkr: FDS); PayPal (tkr: PYPL); SS&C Technologies (tkr: SSNC); Stripe (private) FactSet Research Systems (tkr: … Continue reading For These FinTech Names Staying the Course Paid Off.Premium
Companies mentioned: Adobe (tkr: ADBE), Alteryx (tkr: AYX), Amazon (tkr: AMZN), Automation Anywhere (private), BNY Mellon (tkr: BK), DataRobot (private), Google (tkr: GOOG), Microsoft (tkr: MSFT), Pegasystems (tkr: PEGA), Salesforce (tkr: CRM), SAS (private), SS&C Technologies (tkr: SSNC), Tableau (tkr: CRM, acquisition closed August 1st 2019), Tibco (private). Word count: 1,111. Two major trends have … Continue reading AI as A Competitive Differentiator for Asset Managers
Companies mentioned: Accenture (ACN), Alibaba (BABA), AWS (AMZN), Azure (MSFT), Bottomline Technologies (EPAY), Broadridge (BR), DataRobot (Pvt.), GCP (GOOG), IHS Markit (INFO), Oracle (ORCL), Palantir (Pvt.), Qlik (Pvt.), Solera (Pvt.), SS&C (SSNC), Tibco (Pvt.), Verisk (VRSK). Accenture’s CEO of North America, Julie Sweet, will become CEO of Accenture effective September 1st 2019. Ms. Sweet is … Continue reading Accenture Is Preparing to Double-Down on M&A. We Share Our Ideas for Likely Target Areas.
The supply of Data Scientists is a constraint toward building Advanced Analytics practices including broadly-defined AI. Therefore, we expect this supply constraint to be a catalyst for M&A activity. We covered this "supply" topic last week in our article "AI: Today’s Mysterious Miracle Technology Is Tomorrow’s Electricity" The supply of data scientists is being stretched … Continue reading Salesforce to Acquire Tableau Software – Expect More Such Deals
Many insurers are hesitant to invest aggressively in AI & ML initiatives given that the ROIC is difficult to quantify. This conservatism combined with market disruption bodes well for technology & service providers that offer an Outsourcing option with a demonstrable ROI. Examples include Accenture, EXL Service, IBM Global Services and SS&C Technologies. Plus - … Continue reading We Expect Outsourcing Providers to Gain Traction with Insurance Carriers