I have just been listening to a TED talk with Eric Schmidt, a former CEO of Google/ Alphabet. He could not be further from sceptics who say we are already at peak AI. His view is that AI is underhyped and will have a staggering impact. He talks of global productivity rising by 30% a year!!!
He believes every organisation must get on board with AI or be left behind, Alex Karp’s quick and the dead with a vengeance.
Coppock is all about momentum, up and down. The ultimate loss of momentum in a stock market like the Nasdaq 100, which is in a strong secular uptrend, is a falling market. Even rising more gently can represent a loss of momentum, which is why a falling Coppock is so hard to read. It is possible, even common, for Coppock to fall while a share or index keeps climbing.
This does lead to a safety-first trading strategy, which involves selling whenever Coppock starts to fall. What you are doing is buying and holding whenever a rising Coppock shows accelerating momentum and stepping aside whenever a falling Coppock shows decelerating momentum.
Looking at QQQ3, my favourite canary-in-the-mine stock, this strategy would work well. The safety aspect is that since a falling price is the ultimate loss of momentum, you are unlikely to be caught holding the stock when that happens. You have exited the stock at the first sign of fading momentum.
According to Eric Schmidt, the biggest constraint on the AI boom is power supplies. He says another 90 gigawatts of energy will be needed, which means another 90 nuclear power stations, none of which are being built, he says. In a world threatened by accelerating climate change, this power needs to be supplied in ways that have the least impact on climate change, which is where GE Vernova comes in.
I have shown the weekly chart so that you can play the Coppock game. Buy and hold while Coppock is rising, look for the exit when it starts to fall.
GEV came out of General Electric.
On November 9, 2021, General Electric announced that it would split into three publicly traded companies. The following year, they announced the names would be GE HealthCare, GE Aerospace, and GE Vernova.[18] GE Healthcare was the first to be spun off, on January 4, 2023.[19] GE Vernova was the second to be spun off. In preparation for the spin-off, GE Vernova, LLC was founded on February 28, 2023.[20] The LLC was incorporated on April 2, 2024,[21] as GE Vernova Inc. and was listed on the New York Stock Exchange under ticker symbol GEV.[22] After the completion of the two spin-offs, General Electric rebranded itself GE Aerospace.[23][24]
Wikipedia
As you can see from the chart, the shares are trying to find a level. The other one that is going well is GE Aerospace; one to look at for another day.
Business is good.
As a result of the strong orders, our backlog continued to grow both year-over-year and sequentially across equipment and services, reaching $123 billion. Equipment margin in backlog remains healthy, reflecting higher price as well as our focus on disciplined profitable growth. Revenue increased 15% with higher equipment and services revenues in all three segments. Equipment revenue grew 22% with double-digit growth in Onshore Wind, Power and Electrification while services revenue increased 8%.
In addition, price was positive in each segment. Adjusted EBITDA increased nearly 70% to approximately $460 million, and adjusted EBITDA margin expanded 170 basis points. Margin improved in all three segments, driven by more profitable volume, price and productivity, which more than offset investments as well as inflationary impacts.
We generated positive free cash flow in the first quarter of approximately $1 billion, a significant first quarter milestone for GE Vernova. Free cash flow improved $1.6 billion year-over-year, reflecting higher down payments from rising orders and slot reservation agreements at Power, along with ongoing actions we’re taking to improve linearity.
Ken Parks, CFO, GE Vernova, Q1 2025, 23 April 2025
GEV looks like a class act.
We are pleased with our performance to start the year and are excited about our future as we help our customers electrify and decarbonize the world. I have increased conviction that GE Vernova is well positioned to lead. Markets remain robust in Power and Electrification.
At Wind, markets remain tough. We continue to execute better in all three segments. We remain in the early stages of substantial margin expansion, and I am pleased with our momentum and adoption of lean. We are reaffirming our 2025 guidance and are taking action to mitigate the current outline of tariffs and resulting inflation.
Our balance sheet is solid, and we’re growing free cash flow, which gives us confidence in our ability to invest in the businesses, while also returning significant capital to shareholders. Our team is core to all of these efforts, and we are accelerating a stronger culture to ensure GE Vernova can meet its full potential. We are just getting started.
Scott Strazik, CEO, GE Vernova, Q1 2025, 23 April 2025
Share Recommendations
GE Vernova. GEV
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