News From The Summit - #2
Beast Games breaks records, luxury stocks are back, ASML drops on DeepSeek concerns, and more.
Dear reader,
Welcome to News From The Summit - #2.
Every other Tuesday, you’ll receive a roundup of the most important news and developments related to the companies I own.
I write these posts to stay up-to-date, and I believe it could be valuable to you as well.
This edition covers the period from January 13 to January 26.
Amazon
Amazon Prime Video’s “Beast Games” Breaks Records
Amazon’s game show “Beast Games” has become Prime Video’s most-streamed unscripted show ever, hitting 50 million views in just 25 days. The show, produced in partnership with YouTube star Jimmy Donaldson, better known as MrBeast, seems part of Amazon’s strategy to collaborate with influencers—something that fits seamlessly into its broader ecosystem.
When someone watches Beast Games, Amazon gains valuable insights, including:
Who watched and for how long
What they search for or browse afterward on Amazon.com
What they add to their cart or purchase
Because all of this happens within Amazon’s ecosystem, the company has a strong competitive edge over rivals like Walmart.
Amazon to Close All Facilities in Quebec, Canada
Amazon has announced plans to shut down all its operations in Quebec, Canada, leading to nearly 2,000 employees to lose their job. This follows a move by 300 workers at one of its warehouses to unionize and demand a $6 wage increase, from $20 to $26 per hour.
Amazon insists the closures are purely for cost-saving reasons, claiming that outsourcing in the region is cheaper over the long-term. But given Amazon’s long history of opposing unions, it’s hard not to see this as a message—that unionizing doesn’t exactly help.
Sources:
LVMH
LVMH Olympic Medals Are Rusting
LVMH is under after fire after reports surfaced that Olympic medals from last year’s Games are deteriorating fast. The medals were designed by Chaumet, a luxury jewelry and watchmaker under the LVMH Group.
So far, more than 100 athletes have requested replacements.
LVMH is claiming no responsibility, stating that Chaumet only designed the medals but didn’t produce them. The problem reportedly stems from a faulty varnish, a coating that is supposed to prevent oxidation. Monnaie de Paris, the actual manufacturer, has taken responsibility and will replace the medals with identical versions.
Richemont and Burberry Results Boost Luxury Stocks
Early quarterly reports from Richemont and Burberry have given the luxury sector a lift, surprising investors with better-than-expected results.
Richemont, the parent company of Cartier, posted strong quarterly sales on January 16th, beating forecasts. The following week, Burberry also reported better-than-expected sales, further boosting sentiment.
Sources:
https://www.nytimes.com/2025/01/20/business/medals-paris-olympics-lvmh.html
https://www.investopedia.com/european-luxury-stocks-jump-on-richemont-record-quarterly-sales-8775521
https://www.investopedia.com/burberry-stock-soars-after-q3-sales-fall-less-than-estimated-8779655
ASML
Chinese AI Startup DeepSeek Triggers Tech Sell-Off
U.S. and European tech stocks are taking a hit this Monday, with ASML—one of my core holdings—down nearly 12% as I write this. The sell-off comes amid growing concerns over DeepSeek, a Chinese AI startup that has reportedly developed a cost-effective large language model (LLM), raising questions about the massive AI investments made by Big Tech.
While this news is still fresh, I’d carefully argue the market reaction—at least for ASML—is overblown. AI is far more than just LLMs, and ASML’s advanced chipmaking equipment isn’t suddenly obsolete because of a new Chinese LLM.
This could be a great opportunity to buy more shares.
Source:
Salesforce
Marc Benioff at the World Economic Forum
Salesforce CEO Marc Benioff attended the World Economic Forum in Davos, Switzerland, last week, where he gave multiple interviews.
In one interview, he pointed out that today’s leaders are the last generation to manage fully human workforces as AI adoption accelerates. This aligns with Salesforce’s growing focus on Agentforce, its latest AI-driven product.
A World Economic Forum survey found that 41% of employers plans to reduce their workforce by 2030 as AI takes over more tasks. Salesforce is well-positioned to benefit from this shift.
Source:
Airbnb
No important news.
Sanlorenzo
Sanlorenzo and MAN Partner to Develop the First Yacht With a Bi-Fuel Engine
Sanlorenzo unveiled its latest innovation last week, partnering with MAN to develop the first yacht equipped with a bi-fuel green methanol propulsion system. The new system is expected to reduce emissions by up to 70%.
Sanlorenzo is a leader in sustainability within the industry, and this effort strengthens its position.
Source:
Evolution
Evolution to Launch 110 New Games in 2025
Evolution has unveiled several titles from its planned 110+ game releases for 2025 at ICE Barcelona, a key event for the gaming industry.
Chief Product Officer Todd Haushalter highlighted the company’s focus on fast-paced action games, emphasizing the need to adapt to shorter attention spans in today’s “TikTok world”.
Source:
https://www.evolution.com/news/evolutions-big-splash-at-ice-barcelona-with-ice-fishing-live-game-show-and-110-plus-new-live-casino-rng-and-slot-titles-for-2025/
MSCI
No important news.
As we head into the most important weeks of earnings season, I’ll be covering the key results—especially those from my own stocks.
Stay tuned for the next edition in two weeks!
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.