Market Moves: Strategy - May 16th, 2024
 
 
Investment decisions have broad repercussions
Market Moves: Strategy | View online
 
May 16, 2024
Dealing with tech’s dislocations

Investing in new technologies is non-negotiable — and has been for centuries, whether corporations as we now know them were involved or not. This newsletter didn’t set out to explore the ramifications of that business maxim in 2024 but that’s roughly where we landed while scanning the Endeavor landscape for possible stories. For example:

• At a storied manufacturer, putting money into new product development for its most famous brands means other divisions might be divested

• One of the country’s largest utilities is asking regulators to approve a new pricing plan for power-hungry data centers so that costs aren’t unfairly pushed onto other customers

• The growth of data-driven priorities has, writes one contributor, made it more important than ever to retain a focus on the people who run the data-spewing equipment

Handling these stresses will take open-hearted and sometimes difficult conversations as well as compromises. Good thing we can still handle those better than the machines.

— Geert De Lombaerde
 

Growth investments are being focused on the company’s best-known brands. Others are in line for “a little pruning.”
AEP’s proposal would require operators to make long-term commitments before building.
Companies made big spending plans for 2023 — and then underspent those budgets.
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