Major Breakthrough: Meet Google’s Willow

HEADLINES
What You Need To Know

Google’s new quantum chip, Willow, marks a significant leap in computing power, performing tasks in minutes that would take classical supercomputers billions of years. While the technology isn’t solving real-world problems yet, this breakthrough brings us closer to quantum’s transformative potential in medicine, finance, and beyond. With Willow, Google is proving quantum computing isn’t just theoretical—it’s the future, and that future is getting closer.

Walgreens shares soared 20% on reports of buyout talks with private equity firm Sycamore Partners. Facing challenges like declining pharmacy revenues and fierce competition, Walgreens has struggled to regain momentum. The potential acquisition could bring much-needed restructuring and a new path forward for the retail pharmacy giant.

General Motors is shutting down its Cruise robotaxi unit after investing over $10 billion, redirecting focus to autonomous systems for personal vehicles. The move, citing intense competition and high costs, will cut GM's Cruise-related expenses by more than half and fold the division into GM's broader tech teams.

Costco delivered strong quarterly results, beating Wall Street expectations with $62.15 billion in revenue and $4.04 earnings per share. E-commerce sales surged 13%, and demand for items like jewelry, luggage, and premium meats highlighted consumer spending. Memberships and store traffic rose, while Kirkland Signature products outpaced the overall business. Costco's growth momentum, new store openings, and cost-cutting initiatives reflect its continued dominance, as shares climb nearly 50% year-to-date.

UPCOMING
What You Need To Watch

On Tuesday, the November retail sales report will reveal how much consumers spent during the start of the holiday season. This report is a crucial indicator of economic health, as consumer spending drives about 70% of the U.S. economy.

On Wednesday, the Federal Reserve will announce its latest interest rate decision, followed by a press conference from Fed Chair Jerome Powell. Investors will be listening closely for Powell’s insights on inflation, the labor market, and future rate cuts.

Friday marks the deadline for U.S. government funding, and all eyes are on Congress to avoid a shutdown. It’s expected that lawmakers will pass a continuing resolution (CR), a temporary measure to keep the government running while negotiations continue.

Friday is Triple Witching Day, a quarterly event when stock options, stock index options, and stock index futures all expire on the same day. This convergence often leads to higher trading volumes and increased volatility as traders close or roll over positions.

The Core Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred measure of inflation, will be released on Friday. Unlike CPI, Core PCE excludes volatile food and energy prices, providing a clearer picture of underlying inflation trends.

TIP
WATCH FOR FOMO

Chasing the latest investment hype can lead to costly mistakes. Take Rivian, the electric vehicle startup, as an example. When Rivian went public in 2021, its stock soared to over $170 as investors rushed in, excited about the EV boom. But within a year, the stock dropped below $30, leaving many who bought at the peak with significant losses.

The takeaway? FOMO often leads to buying high and selling low. Instead, focus on investments you’ve researched and that align with your long-term goals. Patience and discipline are your best tools for success.

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TERM
P/S Ratio

The Price-to-Sales (P/S) ratio measures how much investors are paying for each dollar of a company’s revenue. It’s calculated by dividing the market capitalization by total revenue or by dividing the stock price by revenue per share. For example, if a stock trades at $10 and generates $2 in revenue per share, the P/S ratio is 5. A lower P/S ratio can suggest a stock is undervalued, while a higher ratio might reflect growth expectations. It’s especially useful for evaluating companies that aren’t yet profitable, like early-stage tech firms, where earnings may not tell the full story.

Actions
Steps to Level Up

READ: Identifying Quality Compounders

LISTEN: Buffett’s Early Investments

WATCH: A $100 Million Side Hustle

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