I come to you today as a humble servant of the business and investment world with good news and bad news.
First, some good news, because I think we can agree that we need something comforting after watching the market get burned, blown up, and shredded in the aftermath of the blue wave.
Nothing changes in Washington overnight, if at all. It is the fundamentals of companies that will determine their stock prices in the long term. I don’t think business fundamentals were destroyed this week, at least not to the extent that it would justify some of the selloffs we saw.
The construction of a Hut 8 (HUT) data center is not experiencing any work stoppages today that would derail the fourth quarter figures. Democrats aren’t jailing AI data center executives and sending their companies into bankruptcy.
Texas Governor-elect Hinojosa isn’t sending construction crews into data centers to demolish them and turn the land into parks. Elon Musk’s SpaceX (SPCX) – based in Texas – is still up and running this weekend, from what I can tell. Musk is still on track to produce robotaxis and Tesla robots (TSLA) in large numbers in 2027.
AMD (AMD) didn’t offer a huge 2027 outlook this week during its earnings call as it fears a blue wave could halt its processor momentum.
In fact, Lisa Su, CEO of AMD, told me that the demand she’s seeing is off the charts!
Hilton (HLT) CEO Chris Nassetta is so confident in his company’s trends that he told me this week he feels compelled to share his 2027 guidance with investors. Nassetta doesn’t normally share these types of details about the coming year.
“Here’s the reality. Our political system has been pretty well constructed,” Nassetta said on Sozzi Unleashed. “Our founders have done a very good job of creating a resilient system. We always succeed. We will succeed this time. The reality is that in the next two or three years, I don’t see a real, dramatic impact from the last two days.”
Nassetta is entering his 20th year as CEO of Hilton, an almost unheard-of career in the C-suite. I don’t think you can log 20 years as CEO of Hilton if you’re wrong about a lot of things – and I think Chris makes a valid point about the political winds still blowing.
Now for the bad news – and it’s short and to the point.
We can no longer believe the profit estimates for 2027 and 2028. If on the one hand I tell you that business fundamentals were not destroyed this week, on the other I recognize that they were slightly affected.
Data center projects will not come to a screeching halt in the United States. We will simply have to raise the bar higher to build them. And it will be more expensive to close the deals.
Gn bussni
