Key Stories from the past week: Disney Magic & Google AI Woes

Key Stories from the past week: Disney Magic & Google AI Woes

Macro
Saxo Be Invested
Saxo

Markets have been closely monitoring developments regarding trade-related uncertainties, and therefore it was clearly quite welcome news on sentiment when the White House showcased the US / UK trade deal along with more positive comments from President Trump on US-China tariffs. Several big earnings releases hit throughout the week, including Rheinmetall and Disney reporting strong figures vs estimates, whereas Palantir failed to meet lofty expectations – declining 12% despite an increase in full-year forecast. The Bank of England cut policy rate 25bps & Federal Reserve kept rates steady, meanwhile Bitcoin surpassed $100k again and Google might be facing elevated competition from AI. Read more in this week’s key stories below:

Rheinmetall grows with EU military spend
Europe’s push for military rearmament bolstered demand for Rheinmetall’s combat vehicles, artillery and munitions with the firm’s first quarter earnings beating estimates with operating profit jumping +49% YoY. The company reaffirmed its full year forecast of +25% to +30% sales growth.
Riding the wave of Europe's defence boom

Disney Magic
Disney’s quarterly earnings results beat estimates from strong performance in experience segment (parks) & significant subscriber growth in Disney+ streaming service. The company also nearly doubled their annual growth expectation to 16%, while CEO Bob Iger acknowledge “confident but cautious” view as broader economic uncertainties and their implications still linger.
Disney shines bright as streaming and parks outperform expectations

Could AI shake Google’s core business?
On May 7th shares in Google-parent Alphabet declined more than 7% after Apple executive Eddy Cue’s testimony confirmed Safari search volumes are falling as users shift to AI tools like ChatGPT. Investors were quick to react to the comments, as search remains Alphabet’s core business, contributing over 50% of total revenues.
Alphabet’s Kodak moment?

Palantir’s lofty valuation
Palantir revenue for the first quarter jumped 39%, beating analyst’s estimates with the company also raising its full year revenue forecast. This wasn’t sufficient to meet incredibly high expectations and shares sold off by -12%. Most of this was regained by the end of the week and general risk sentiment grew.
Buy the dip or brace for a reset?

Next week markets will adjust to any developments from initial US-China trade talks. Q1 company earnings highlights include Sea Ltd, Softbank, JD.com, Nu Holdings (Tues). Tencent, Cisco Systems, Sony (Weds). Alibaba, Walmart, Deutsche Telekom, Allianz, Mitsubishi Financial, Deere, Applied Materials (Thurs). Richemont (Fri). Key data announcements include German May ZEW economic sentiment, US Apr CPI (Tuesday), EU & UK Q1 GDP, US Apr Retail Sales, US May Philadelphia Fed Manufacturing (Thursday), Japan Q1 GDP, US May Michigan Consumer Sentiment (Friday).


Quarterly Outlook

01 /

  • Upending the global order at blinding speed

    Quarterly Outlook

    Upending the global order at blinding speed

    John J. Hardy

    Global Head of Macro Strategy

    We are witnessing a once-in-a-lifetime shredding of the global order. As the new order takes shape, ...
  • Equity outlook: The high cost of global fragmentation for US portfolios

    Quarterly Outlook

    Equity outlook: The high cost of global fragmentation for US portfolios

    Charu Chanana

    Chief Investment Strategist

  • Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Quarterly Outlook

    Asset allocation outlook: From Magnificent 7 to Magnificent 2,645—diversification matters, now more than ever

    Jacob Falkencrone

    Global Head of Investment Strategy

  • Commodity Outlook: Commodities rally despite global uncertainty

    Quarterly Outlook

    Commodity Outlook: Commodities rally despite global uncertainty

    Ole Hansen

    Head of Commodity Strategy

  • Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    Quarterly Outlook

    Macro outlook: Trump 2.0: Can the US have its cake and eat it, too?

    John J. Hardy

    Global Head of Macro Strategy

  • Equity Outlook: The ride just got rougher

    Quarterly Outlook

    Equity Outlook: The ride just got rougher

    Charu Chanana

    Chief Investment Strategist

  • China Outlook: The choice between retaliation or de-escalation

    Quarterly Outlook

    China Outlook: The choice between retaliation or de-escalation

    Charu Chanana

    Chief Investment Strategist

  • Commodity Outlook: A bumpy road ahead calls for diversification

    Quarterly Outlook

    Commodity Outlook: A bumpy road ahead calls for diversification

    Ole Hansen

    Head of Commodity Strategy

  • FX outlook: Tariffs drive USD strength, until...?

    Quarterly Outlook

    FX outlook: Tariffs drive USD strength, until...?

    John J. Hardy

    Global Head of Macro Strategy

  • Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Quarterly Outlook

    Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges

    Althea Spinozzi

    Head of Fixed Income Strategy

Content disclaimer

None of the information provided on this website constitutes an offer, solicitation, or endorsement to buy or sell any financial instrument, nor is it financial, investment, or trading advice. Saxo Bank A/S and its entities within the Saxo Bank Group provide execution-only services, with all trades and investments based on self-directed decisions. Analysis, research, and educational content is for informational purposes only and should not be considered advice nor a recommendation.

Saxo’s content may reflect the personal views of the author, which are subject to change without notice. Mentions of specific financial products are for illustrative purposes only and may serve to clarify financial literacy topics. Content classified as investment research is marketing material and does not meet legal requirements for independent research.

Before making any investment decisions, you should assess your own financial situation, needs, and objectives, and consider seeking independent professional advice. Saxo does not guarantee the accuracy or completeness of any information provided and assumes no liability for any errors, omissions, losses, or damages resulting from the use of this information.

Please refer to our full disclaimer and notification on non-independent investment research for more details.

Saxo Bank A/S (Headquarters)
Philip Heymans Alle 15
2900
Hellerup
Denmark

Contact Saxo

Select region

International
International

All trading and investing comes with risk, including but not limited to the potential to lose your entire invested amount.

Information on our international website (as selected from the globe drop-down) can be accessed worldwide and relates to Saxo Bank A/S as the parent company of the Saxo Bank Group. Any mention of the Saxo Bank Group refers to the overall organisation, including subsidiaries and branches under Saxo Bank A/S. Client agreements are made with the relevant Saxo entity based on your country of residence and are governed by the applicable laws of that entity's jurisdiction.

Apple and the Apple logo are trademarks of Apple Inc., registered in the US and other countries. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.