This podcast discusses the latest Amazon earnings, the indictment of former President Donald Trump, Apple's earnings report, and the impact of big earnings on investment decisions. Topics include higher than expected sales and operating income for Amazon, AWS's return to growth, the importance of content for Prime Video, Trump's formal notification and charges, Apple's service division compensating for weaker hardware sales, and the benefits of private credit as non-dilutive capital for businesses.
Private credit is becoming a vital source of capital for lower middle market companies.
Lower middle market businesses have experienced strong revenue growth and aggressive hiring.
Monitoring valuations relative to earnings and considering the narrowness of the equity market rally is essential.
Deep dives
Earnings report and stability in the markets
Despite some selling, there is stability in the broader markets following the earnings reports from Apple and Amazon. The S&P 500 is down 0.1%, the Dow is down 0.1%, and the Nasdaq is down 0.1%.
The role of a Chief Impact Officer at the Copia Group
As the Chief Impact Officer at the Copia Group, Bioticur is focused on measuring the impact of their capital investments, particularly in diverse-owned businesses in the lower middle market. Their goal is to help narrow the wealth gap for underrepresented communities in the US.
Private credit as an alternative to banks
Private credit has become an increasingly important capital provider for lower middle market companies as banks have retrenched due to regulatory constraints. Private credit offers non-dilutive capital for growth and acquisition, allowing business owners to retain equity.
Anticipating the jobs report and its impact on private markets
While economists are expecting a positive jobs report, Bioticur focuses more on the impact of job growth on the lower middle market businesses. She notes that lower middle market businesses have experienced strong revenue growth and have been hiring aggressively, contributing to a positive trend in private markets.
Outlook on equity markets and private credit
Bioticur sees the potential for a new bull market in equities, but advises monitoring valuations relative to earnings and considering the narrowness of the rally. In private credit, there is enthusiasm from allocators looking for cash flowing businesses with yields while the equity markets may experience volatility.
Bloomberg Intelligence Senior US Retail Analyst Poonam Goyal talks the latest Amazon earnings. Bloomberg Law Host and Legal Analyst June Grasso, Bloomberg US Legal Reporter David Voreacos, and Robert Mintz, Former Federal Prosecutor and Partner at McCarter & English, discuss the indictment of former President Donald Trump. Thomas Thornton, President & Founder of Hedge Fund Telemetry gives us the latest Apple earnings. And we Drive to the Close with Beata Kirr, Chief Impact Officer at The Copia Group.
Hosts: Tim Stenovec and Madison Mills Producer: Sara Livezey