2025: Finding Value in Established Tech
Why Mature IT Companies Matter for Long-Term Investors
Hey friends!
Hope you're doing well! I’ve got some interesting updates for you today that I think will give you something to chew on.
Let's dive straight into some news, and I’ll break down what’s going on.
2025 Banking Outlook: Deloitte Report
Deloitte recently published its 2025 outlook for the banking industry, and the message is clear: banks are facing a low-growth, low-interest-rate environment.
Despite the challenges, banks are focusing on tech modernization and noninterest income growth to sustain profitability.
With inflation cooling and interest rates dropping, banks are expected to shift their strategies toward credit, particularly mortgages, which are set to benefit from lower rates.
What to Watch: For investors, the emphasis is on how banks are leveraging technology to stay competitive.
With more banks investing in AI and automation, the IT space is becoming crucial for their operational efficiency.
Keep an eye on how these investments play out in 2025 as it could present new opportunities for growth. Read more from Deloitte’s report here.
Coca-Cola Partners with Microsoft for AI and Cloud
Coca-Cola recently announced a five-year partnership with Microsoft, where they’re committing $1.1 billion into Microsoft Cloud and its generative AI capabilities.
This collaboration aims to enhance Coca-Cola’s global operations, from supply chain management to customer service, using AI-driven solutions like Microsoft’s Azure OpenAI Service.
The deal marks a significant step in Coca-Cola’s digital transformation, focusing on AI innovation to drive efficiency and discover new growth areas.
What to Watch: This partnership is a prime example of how even non-tech companies are investing heavily in IT to stay competitive.
For investors, it signals that AI is becoming an essential tool for traditional industries. Watching how companies like Coca-Cola implement these technologies can provide insights into broader market shifts.
Check out the full story here.
McKinsey’s 2024 Technology Trends Report
According to McKinsey's latest report, the enterprise adoption of frontier technologies like generative AI and electrification is skyrocketing.
Generative AI has seen a 700% increase in interest from 2022 to 2023, with substantial investment across multiple industries.
The report highlights that while some sectors faced slowdowns in 2023, AI and renewables have thrived, with companies pushing these technologies from experimental phases to scaling them for broader use.
What to Watch: Generative AI is rapidly becoming a staple for businesses looking to innovate.
For value investors, this trend offers a glimpse into where future growth might come from as more companies scale their AI initiatives.
Keeping track of how leading firms adopt and integrate AI solutions could be key in identifying long-term opportunities.
Read more about McKinsey’s findings here.
That’s all for today! Hopefully, these insights spark some thoughts as we head into 2025. Just a friendly reminder—none of this is financial advice, but it’s always good to stay in the know!
Catch you later!
•All information in the article is sharing my own experience and is not a financial advice. It is only for educational and entertaining purposes.