News From The Summit - #1
Amazon selling its ad technology, ASML CEO's trip to Taiwan, Salesforce stops hiring software engineers, and more.
Dear reader,
Welcome to a new format called News From The Summit.
Every other Tuesday, you’ll receive a roundup of the most important news and developments related to the companies I own.
I’m introducing this format to stay up-to-date, and I believe it could be valuable to you as well.
This edition covers the period from December 30, 2024, to January 12, 2025.
Amazon
Amazon Retail Ad Service
My largest position is Amazon, and for good reason. This online and physical retailer, cloud computing giant, advertiser, entertainment provider, marketplace operator, and more, continues to find new revenue streams.
Most recently, Amazon launched Amazon Retail Ad Service, enabling other online retailers to integrate Amazon’s ad tools into their own websites. While still in beta, things look promising.
In its latest quarter, Amazon’s advertising services generated $14.3 billion, making it the third-largest digital advertiser. Brands eagerly advertise on Amazon’s platform—through search results, product pages, Prime Video, and more—due to its massive customer base.
Now, by letting other retailers use its ad technology while managing their data via AWS, Amazon deepens its ecosystem integration.
History doesn’t repeat, but it often rhymes, and this move is reminiscent of AWS’s beginning, which began as Amazon’s internal cloud infrastructure. While this initiative is unlikely to reach the same success as AWS, the potential is exciting nonetheless.
“We are excited to work with Amazon on the launch of its new Retail Ad Service. This innovative solution and proven technology allow us to deliver more relevant and personalized ads to our shoppers, enhancing their experience while driving stronger engagement and conversions." — Neil Folgate, SVP of Global Marketing at iHerb, an early adopter of Retail Ad Service.
Source:
LVMH
No important news.
ASML
ASML Executives Travel to Taiwan
ASML executives, led by CEO Christophe Fouquet, are traveling to Taiwan to meet with leaders of TSMC,one of their key customers. The visit coincides with TSMC’s upcoming quarterly earnings release on January 16. As the world’s largest chipmaker, TSMC’s results and outlook will be a major focus for investors this week.
Industry sources say the talks will likely the address the geopolitical landscape—a critical risk for ASML—particularly in light of the upcoming inauguration of U.S. President-elect Donald Trump. The talks are also expected to focus on TSMC’s roadmap for their chipmaking process technology and its procurement plans for the coming years.
Following the announcement of the visit, ASML’s stock surged nearly 9%.
Source:
https://www.digitimes.com/news/a20250106PD227/tsmc-asml-ceo-earnings-euv.html
Salesforce
Salesforce To Hire No New Software Engineers in 2025
While this news isn’t brand new, I believe it’s worth noting: Salesforce will not hire additional software engineers in 2025. According to CEO Marc Benioff, Agentforce and other AI technologies have boosted engineering team productivity by over 30%.
Agentforce, Salesforce’s latest product, is revolutionizing workflows both internally and for customers. It employs advanced AI bots capable of handling complex tasks. For instance, a customer service agent delivers intuitive, conversational, and highly personalized interactions to resolve customer inquiries effectively.
The product offers countless types of pre-built AI agents for specific roles, such as customer service, sales assistance, or technical support. Moreover, Salesforce customers can create their own AI agents using the platform, enabling them to address unique business needs and workflows.
Whereas I first underestimated Agentforce’s potential, it’s now evident that Salesforce is fully committed to this product. And the results speak for themselves: a 30% productivity boost is remarkable.
“Everything needs to become about Agentfoce at Salesforce—this is the only thing that really matters today”—Marc Benioff.
Instead of bringing on more software engineers, the company aims to hire 1,000 to 2,000 salespeople in the short term.
Source:
Airbnb
Airbnb Provides Free Housing for LA Wildfire Victims
Airbnb.org, the nonprofit established by Airbnb, is dedicated to providing housing during crises. When devastating wildfires broke out in Los Angeles, the organization stepped up by offering emergency housing to those affected. Airbnb is now committed to helping more than 30,000 people, a fantastic and meaningful initiative.
Airbnb Sued After Discrimination Allegations
The U.S. Department of Justice recently filed a lawsuit against Airbnb over an incident that occurred in late 2020. At that time, a host refused to rent an apartment to Charisse Ylitalo, a mother with three children aged 9, 11, and 14, stating that “this apartment is not suitable for kids.” The Department stated that this rejection violated the Fair Housing Act.
Airbnb later told Ylitatlo that hosts don’t have to accept children and suggested she find another rental. This seems to clash, however, with Airbnb’s policy, which says hosts can’t discriminate based on “familial status.”
The company faces ongoing challenges related to discrimination, safety, and other issues, that come with its people-driven business model. Since Airbnb is a marketplace where people interact directly, it’s more vulnerable to human behavior—sometimes that behavior isn’t always friendly.
Sources:
Sanlorenzo
No important news.
Evolution
On January 7, Evolution announced that CFO Jacob Kaplan will step down and be replaced by Joakim Andersson in February.
Kaplan, who joined the company in 2016, has been with Evolution through its rapid growth and has played a key role in its success.
Andersson, coming from outside the company, brings experience as CFO at several firms, including publicly listed companies.
Source:
https://mb.cision.com/Main/12069/4088572/3194676.pdf
MSCI
No important news.
That’s all I’ve got for you today.
Before you go, I’d love your opinion on how often I should publish these posts. Right now, I’m planning to publish them biweekly, which keeps the news relevant and up-to-date. On the other hand, switching to a monthly schedule might feel less spammy while giving you plenty to read. The downside to monthly publishing is that some news might be nearly a month old by the time I share it.
In case you missed it:
Disclaimer: the information provided is for informational purposes only and should not be considered as financial advice. I am not a financial advisor, and nothing on this platform should be construed as personalized financial advice. All investment decisions should be made based on your own research.
Great idea! Love it