Thursday, January 29, 2026

Microsoft's Hangover Hits Asia, Muting Apple's Relief Rally

As the U.S. session fades, the first read from overseas markets suggests the anxiety from Big Tech's earnings is far from over. Asian shares are opening broadly lower, with reports explicitly citing the fallout from Microsoft's (MSFT) daytime plunge as the primary catalyst. This indicates that global investors are, for now, weighing concerns over AI's return-on-investment more heavily than the after-hours relief provided by Apple's (AAPL) stellar report.

The trading day was defined by this exact divergence. Microsoft led a brutal sell-off in the software sector as investors punished the company for its massive spending in the face of slowing Azure growth. In sharp contrast, Apple surged in post-market trading by delivering on its core business: what CEO Tim Cook called "staggering" demand for the iPhone.

Other company-specific narratives continue to develop. M&A speculation is still providing a lift for Tesla (TSLA) on reports of a potential consolidation of Elon Musk's empire. Meanwhile, strong earnings from names like enterprise hardware provider Celestica (CLS) show pockets of strength exist, but the market's broader focus now shifts to Friday's major political wildcard: President Trump's expected announcement of his pick for Federal Reserve Chair.

Apple Reassures Market as Trump Fed Pick Looms

The after-hours session has provided a powerful dose of relief for the tech sector, but a major political wildcard is now set to dominate Friday's trading. Apple (AAPL) delivered a blockbuster earnings report, surging in late trading after crushing revenue and profit estimates on the back of what it called "staggering" iPhone demand. The results served as a crucial counter-narrative to the day's brutal sell-off, which was driven by fears over Microsoft's (MSFT) costly AI strategy.

However, the focus is quickly shifting from corporate earnings to monetary policy. Late-evening reports have confirmed that President Trump plans to announce his nominee for Federal Reserve Chair on Friday. This introduces a significant element of uncertainty for markets, as a change in leadership at the central bank could signal a major shift in the path of interest rates and economic policy, likely overshadowing other catalysts in the pre-market session.

The positive after-hours momentum wasn't limited to Apple. Tesla (TSLA) also caught a bid on continued M&A speculation, while storage maker Sandisk (SNDK) soared on a blowout forecast, suggesting pockets of exceptional strength remain within the tech hardware space.

Apple's Triumph Caps Day of Tech Turmoil as OpenAI Eyes IPO

The after-hours session has been dominated by two blockbuster developments that perfectly frame the market's current obsession and skepticism with AI. First, Apple (AAPL) surged in late trading after delivering a blowout quarter, crushing revenue and profit estimates on the back of what CEO Tim Cook called "staggering" demand for its iPhones. The strong execution provides a powerful counterpoint to the day's brutal sell-off in software, which was ignited by fears over Microsoft's (MSFT) costly AI spending.

Adding a massive new variable to the landscape, late reports indicate that OpenAI is reportedly planning an IPO for the fourth quarter. This potential public offering of the AI sector's crown jewel comes as investors are becoming far more discerning, rewarding tangible profits (Apple) while punishing expensive, long-term promises (Microsoft's intraday performance).

Meanwhile, the theme of tech restructuring continues. Expedia (EXPE) announced another round of job cuts, highlighting the ongoing "AI paradox" where companies are laying off staff even while investing heavily in new technology and reporting solid underlying business trends.

Tech's Wild Ride: Apple Soars as OpenAI Eyes IPO

The after-hours session is capping a day of violent rotation with a flurry of blockbuster news, setting the stage for a dramatic end to the week. While the regular session saw investors ruthlessly punish Microsoft (MSFT) for its costly AI ambitions, strong execution from Apple (AAPL) and fresh reports of a potential OpenAI IPO are scrambling the narrative.

Apple (AAPL) delivered the knockout punch bears were not expecting. The tech giant soared in late trading after reporting a record-breaking quarter, driven by what CEO Tim Cook called "staggering" demand for its new iPhones. The results provided a crucial dose of confidence, suggesting that tangible product sales can still trump even the most ambitious AI story.

However, the AI arms race is only intensifying. Late reports indicate that OpenAI is now targeting an IPO by the end of the year, a monumental development that follows earlier news of Amazon (AMZN) being in talks to invest up to $50 billion in the AI leader. The day's trading showed a market skeptical of AI's immediate ROI, but the prospect of a public offering for the sector's crown jewel adds a powerful new speculative element into the mix.

Tesla Jumps on Musk Merger Buzz; Sandisk Soars After-Hours

The after-hours session is buzzing with significant, company-specific catalysts, adding another layer of intrigue to a day defined by a brutal tech rotation. Tesla (TSLA) shares are jumping in late trading on reports that Elon Musk is exploring a potential merger between SpaceX and either Tesla or his AI venture, xAI, ahead of a planned public offering.

This speculative M&A news follows a stunning earnings report from storage maker Sandisk (SNDK), which is soaring after issuing an eye-popping forecast. The company's revenue guidance was nearly 60% above Wall Street consensus, with profit guidance more than double what analysts expected, signaling incredible demand in its corner of the tech hardware market.

This flurry of positive after-hours activity, which began with Apple's (AAPL) strong earnings report right after the bell, provides a sharp contrast to the regular session. During the day, investors ruthlessly punished the software sector, led by a massive plunge in Microsoft (MSFT), over fears that the massive capital spending on AI was not yet yielding a profitable return.

A Tale of Two Titans: Apple Soars as Microsoft Stumbles

In a crucial after-hours report, Apple (AAPL) has delivered a powerful counter-narrative to the tech sector's day of reckoning. Shares are surging in post-market trading after the company announced a blockbuster quarter, handily beating revenue and profit estimates on the back of what CEO Tim Cook described as "staggering" demand for its new iPhone lineup. The results were bolstered by a sharp rebound in China sales, easing major investor concerns about competition in the key market.

Apple's execution-driven success provides a stark contrast to the market's brutal verdict on Microsoft (MSFT) during the regular session. The software giant's stock plunged, wiping out over $350 billion in market value, as investors punished the company for its massive AI spending in the face of slowing growth in its core Azure cloud business. The sell-off created a contagion effect, dragging the entire software sector down with it.

The divergent paths of the market's two largest companies highlight a critical theme: while the AI arms race continues to intensify—with fresh reports that Amazon (AMZN) may invest up to $50 billion in OpenAI—investors are now demanding tangible results and are punishing even the most powerful players for costly, story-driven strategies that have yet to translate to the bottom line. Apple's ability to deliver on its core product has, for now, restored a measure of confidence in Big Tech.

Apple Surges on iPhone Boom, Easing Tech Fears After-Hours

In a dramatic after-hours session, Apple (AAPL) delivered a powerful earnings report that is soothing nerves across the tech sector. The company posted quarterly revenue and profit that sailed past Wall Street estimates, citing what CEO Tim Cook called "staggering" demand for its latest iPhone lineup. Shares are surging in post-market trading, providing a much-needed dose of confidence for investors.

The strong results from Apple stand in stark contrast to the day's brutal trading session, which saw the software sector suffer its worst single-day drop in 10 months. The sell-off was ignited by Microsoft (MSFT), which plunged after its earnings report stoked fears that massive capital spending on AI was failing to offset slowing growth in its critical Azure cloud business. The market punished the entire software space, sending a clear message that the era of unconditional spending on future tech is over.

Adding another major development to the AI arms race, reports from the Wall Street Journal indicate that Amazon (AMZN) is in talks to make a colossal investment of up to $50 billion in OpenAI. The news highlights the incredible scale of capital being deployed by Big Tech to secure a dominant position in artificial intelligence, a narrative that will continue to drive market action.

S&P 500 Closes Flat as Brutal Tech Wreck Offsets Gains

The market ended the day effectively unchanged, but the flat close for the S&P 500 masks a violent rotation beneath the surface. The Nasdaq was the clear loser, dragged down by a fierce sell-off in the software sector following a disastrous post-earnings reaction for Microsoft (MSFT).

Investors punished Microsoft, sending shares plunging after its report fanned fears that massive AI capital expenditures are not yet translating into profits, especially with growth in its core Azure cloud unit slowing. The anxiety created a contagion effect, leading to the worst day for software stocks in nearly a year. The market's message was unequivocal: the era of writing blank checks for AI without a clear path to profitability is over.

The tech-led weakness, however, was almost perfectly counterbalanced by strength in 'old economy' sectors. Industrials, financials, and energy stocks found a strong bid, with M&A chatter in the oil patch lifting names like Coterra (CTRA) and Devon Energy (DVN). The session was a textbook example of a rotation out of high-valuation growth and into tangible value. All eyes now turn to after-hours earnings from Apple (AAPL) to set the tone for tomorrow.

Market Flatlines Amid Brutal Tech Sell-Off

The S&P 500 is churning around the flatline late in the session, but the lack of movement masks a fierce underlying rotation. The Nasdaq remains under significant pressure as investors continue to punish the software sector in the wake of disappointing guidance and fears over the return on massive AI investments.

The sell-off's epicenter remains Microsoft (MSFT), still down double-digits as its slowing Azure growth overshadows its AI ambitions. The contagion has spread aggressively, dragging down other enterprise software giants like Salesforce (CRM) and sending the iShares Expanded Tech-Software Sector ETF (IGV) plunging nearly 6%. The market's message is clear: the era of blank-check spending on AI is over, and Wall Street is now demanding to see the payoffs.

This tech-centric anxiety is being offset by strength in other corners of the market, including financials and industrials. Meanwhile, a new speculative narrative has emerged with reports that Elon Musk's SpaceX and xAI are in merger talks, a story the market is digesting as it awaits the day's main event: earnings from Apple (AAPL) after the bell.

Musk's Empire Consolidates: SpaceX, xAI in Merger Talks

A major new narrative is hitting the wires, with reports that Elon Musk's SpaceX and xAI are in discussions to merge ahead of a planned IPO. The exclusive report suggests a combination that would bring rockets, satellites, the X social media platform, and the Grok AI chatbot under a single, formidable roof to compete directly with other tech giants in the AI arms race.

This forward-looking, empire-building story provides a stark contrast to the market's punishing mood toward existing tech giants today. The Nasdaq is under significant pressure, dragged down by a brutal sell-off in Microsoft (MSFT), which has plunged nearly 12%. Investors are punishing the software titan for its massive AI capital expenditures in the face of slowing growth in its core Azure cloud unit, creating a contagion effect across the entire software sector.

The broader S&P 500 is treading water around the flatline, masking this intense rotation. While software stocks get hammered, strength in the 'old economy' is providing a powerful offset. Airlines like Southwest (LUV) are soaring on positive outlooks, and merger rumors are lifting energy names like Coterra (CTRA) and Devon (DVN), highlighting a market that is rewarding immediate results and tangible assets over tech's costly promises.

S&P 500 Goes Nowhere as Microsoft Plunge Batters Tech

The broader market is churning around the flatline in midday trading, but the lack of movement in the S&P 500 masks a brutal underlying rotation. The Nasdaq is under significant pressure, dragged down by a continuing sell-off in Microsoft (MSFT), which has shed nearly 12%. The post-earnings hangover is severe, as investors question whether the company's massive AI spending can justify slowing growth in its core Azure cloud business.

This tech-centric anxiety is creating a contagion effect across the software sector. However, the weakness is being met by notable strength in the 'old economy.' Industrials are finding a bid, exemplified by UPS, which is gaining after reports that its investment in automation has successfully cut package costs by 28%. The move highlights a market that is rewarding tangible efficiency and profitability over speculative growth stories.

The divergence extends even within the tech sector itself. While software gets hammered, conflicting narratives are swirling around key names ahead of earnings. Tesla (TSLA) is a battleground, with bulls praising its pivot to robotics while analysts call its aggressive spending plan and cash burn "difficult to justify." Similarly, Apple (AAPL) is facing renewed criticism over its AI strategy, even as news breaks that it has acquired an audio AI startup, setting a tense stage for its upcoming report.

S&P 500 Flat as Microsoft Drags Nasdaq Down

The market is locked in a tug-of-war at midday, with the S&P 500 hovering around the flatline as a brutal sell-off in software stocks cancels out strength in other sectors. The Nasdaq is the clear laggard, weighed down by a double-digit plunge in heavyweight Microsoft (MSFT).

The sell-off in Microsoft, now down nearly 12%, is creating a significant contagion effect. Investors are punishing the stock after its earnings report stoked fears that massive AI capital expenditures are not yet offsetting slowing growth in its crucial Azure cloud business. This anxiety has rippled through the entire software sector, sending the iShares Expanded Tech-Software Sector ETF (IGV) into a tailspin and dragging down names like ServiceNow (NOW), which has also shed more than 10%.

However, the weakness isn't universal. A distinct divergence is clear within Big Tech itself, as Meta (META) is rallying sharply on investor confidence in its AI strategy. Furthermore, chipmaker Intel (INTC) is surging over 10% following reports it's in discussions to secure major chip orders from Nvidia (NVDA) and Apple (AAPL), providing a powerful counter-narrative within the semiconductor space.

Market Fractures: Microsoft's AI Hangover Sinks Tech, Industrials Rise

The market is caught in a significant divergence mid-morning, with the S&P 500 and Nasdaq struggling as a sharp sell-off in software weighs on the major indices. The pressure originates squarely from Microsoft (MSFT), which continues to slide as investors digest the tech giant's earnings. The core issue for the market is the narrative mismatch: slowing growth in the crucial Azure cloud unit is being paired with a massive surge in AI-related capital spending, leading to concerns about the immediate return on that investment.

This isn't an isolated incident. The negative sentiment is hitting the broader software space, with European peer SAP (SAP) plunging after its own results and other high-valuation names like Atlassian (TEAM) hitting 52-week lows. The message is clear: the era of unconditional spending on AI is over, and investors now demand to see a clear path to profitability.

However, the weakness is largely contained. A powerful counter-rotation is underway into 'old economy' sectors. Energy stocks are climbing as oil prices surge nearly 5% on rising geopolitical tensions. Meanwhile, upbeat earnings from names like Mastercard (MA) and a stellar outlook from cruise operator Royal Caribbean (RCL) suggest the consumer, particularly in the experience economy, remains remarkably resilient.

Tech Slides on Software Woes; Strong Jobs Data Lifts Old Economy

Markets are opening with a significant divergence, leaving the broader S&P 500 struggling for direction. The technology sector is under clear pressure, dragged down by the ongoing fallout from earnings at Microsoft (MSFT) and European software giant SAP. Investors are punishing the entire software space, fearing that slowing cloud growth and massive AI capital expenditures are not yet translating into the expected profit boom.

Providing a powerful counterbalance is fresh economic data that reinforces the 'strong economy' narrative. Weekly jobless claims came in at a solid 209,000, suggesting the labor market remains resilient. This gives the Federal Reserve more ammunition to keep interest rates elevated, a dynamic that pressures high-valuation tech stocks but benefits cyclical and industrial sectors that thrive on economic activity.

Adding to the inflationary undertones, oil prices are climbing on reports the U.S. is weighing potential strikes on Iran, pushing energy stocks higher and further fueling the rotation out of growth and into value.

Microsoft's AI Hangover Weighs On Tech; Industrials Provide Support

The market is bracing for a divergent open, caught in a tug-of-war between a sharp sell-off in mega-cap tech and surprising strength in the industrial economy. The pre-market session is dominated by the fallout from Microsoft's (MSFT) earnings, with the stock sliding over 6% as investors grow impatient for a tangible return on its massive AI spending amid slowing Azure growth.

This tech-centric anxiety, however, is being powerfully offset by robust earnings from the 'old economy.' Industrial bellwether Caterpillar (CAT) is climbing after delivering a record quarter, bolstered by strong demand for its machinery. This strength is echoed across the sector, with positive results from names like Lockheed Martin (LMT) and Norfolk Southern (NSC), suggesting the physical economy remains on solid footing.

The backdrop for this rotation is a market still digesting the Federal Reserve's hawkish pause. With Chair Powell signaling rates will remain elevated amid a surprisingly strong economy, investors are showing a clear preference for companies delivering immediate profits over those, like Microsoft, investing heavily for a future payoff. Rising oil prices, with Brent crude topping $70/bbl, are only adding to these inflationary concerns and supporting energy stocks.

A Tale of Two Consumers: Travel Booms, Media Stumbles

A split is emerging in pre-market trading, not just in technology, but within the consumer itself. The latest batch of earnings reveals a consumer eager to spend on experiences while cutting back on household staples, creating clear winners and losers before the opening bell.

Cruise operator Royal Caribbean (RCL) is surging after posting a stellar outlook fueled by record-setting bookings, signaling robust demand for travel and leisure. This strength is echoed by strong results from refiner Valero (VLO), benefiting from healthy demand. This paints a picture of a consumer that is still actively spending on the go.

In stark contrast, Comcast (CMCSA) is under pressure after shedding more broadband customers than anticipated, a victim of intense competition from wireless providers. This suggests households are scrutinizing recurring bills and making cuts. The action highlights a key theme for the session: strength in the 'experience economy' is providing a powerful counterweight to weakness in other consumer-facing sectors and the ongoing hangover in Big Tech, where futures remain torn between a rising Meta (META) and a falling Microsoft (MSFT).

Industrials Flex as Chip Warnings Cloud Tech Outlook

U.S. stock futures are pointing to a stronger open, but the strength is coming from the engines of the 'old economy,' not the high-flying tech sector. A flurry of pre-market earnings reports from industrial giants is painting a picture of resilient global demand, providing a powerful counter-narrative to the tech-centric jitters that have dominated the past 12 hours.

Industrial bellwethers Honeywell (HON) and Caterpillar (CAT) are both indicating strength ahead of the bell after posting robust fourth-quarter revenue that topped estimates. This suggests that demand for aerospace services and heavy machinery remains solid. Similarly, Dow Inc. (DOW) is getting a lift after beating earnings estimates and announcing significant cost-cutting measures, a move investors are rewarding in the current environment.

However, a significant headwind is building for consumer technology. Following up on earlier reports, Samsung's latest commentary makes it clear that the voracious demand for high-end AI chips is directly squeezing the supply of memory for PCs and smartphones. This cost pressure creates a direct and immediate challenge for companies like Apple (AAPL), which reports its pivotal earnings after today's close, setting up a classic battle between industrial value and tech growth for the session ahead.

IBM Earnings Lift Futures Amid Broader Tech Jitters

U.S. equity futures are pointing to a higher open, but the source of strength is showing a clear divergence from the recent AI-centric rally. The positive sentiment is being driven by solid execution from established tech, not speculative hype, creating a complex picture for the trading day ahead.

Leading the charge is IBM, which is surging in pre-market trading after delivering a convincing beat on both Q4 earnings and revenue. The strong report provides a welcome counterpoint to the anxiety that has settled over the software sector following disappointing cloud growth updates from Microsoft (MSFT) and Europe's SAP.

However, a new headwind is emerging for consumer tech. Chip giants Samsung and SK Hynix are warning that the voracious demand for high-end AI chips is squeezing the supply of memory for PCs and smartphones. This is a critical development for investors to watch, as it could directly impact margins for companies like Apple (AAPL), which is set to report after today's close.

SAP Plunge Deepens Tech Fears Ahead of US Open

The aftershock from yesterday's U.S. tech earnings is rattling European markets, providing a clear warning for the Nasdaq ahead of the opening bell. German software giant SAP (SAP) is suffering its biggest one-day drop since 2020 after disappointing investors with slower-than-expected cloud contract growth. This mirrors the exact concerns that punished Microsoft (MSFT), reinforcing a market narrative that is unforgiving of any execution flaws in high-valuation tech. The malaise is spreading, with Nokia (NOK) also sliding on a cautious outlook.

However, the weakness is largely contained to the tech sector. A stark divergence is emerging as 'old economy' stocks show surprising strength. Deutsche Bank (DB) shares are rallying after the lender posted its largest annual profit in nearly two decades, lifting sentiment across the European financial sector. This suggests underlying economic resilience and sets up a potential rotation from growth into value for the U.S. session.

Adding to the cautious mood surrounding mega-cap tech, reports surfaced that billionaire Ole Andreas Halvorsen's influential Viking Global fund dumped its entire stakes in Nvidia (NVDA) and Amazon (AMZN). While U.S. futures are currently flat, the stage is set for a battle between a vulnerable tech sector and strength in other parts of the market.

Shutdown Deal Lifts Macro Mood as Focus Shifts to Apple

As U.S. equity futures hold steady in the pre-market, a significant political headwind has been removed. Overnight reports indicate a deal has been reached to avert a U.S. government shutdown, providing a dose of stability and removing a key source of macro uncertainty for investors.

This positive development, however, is running against the lingering hangover from yesterday's tech earnings. The post-market weakness in Microsoft (MSFT) has been confirmed in European trading, keeping pressure on the high-valuation tech sector. The market's attention now pivots squarely to the day's main event: Apple (AAPL), which is scheduled to report after the closing bell.

Investors will be scrutinizing the tech giant's results for signs of slowing iPhone demand and rising costs. After yesterday's divergent reactions to tech earnings, the key question will be whether Apple is judged on its hard numbers or its forward-looking narrative around AI, setting the tone for the entire market heading into the end of the week.

Microsoft's Post-Earnings Hangover Hits Europe

The negative sentiment surrounding Big Tech's earnings is solidifying in overseas trading, giving U.S. investors a preview of potential weakness ahead of the opening bell. Shares of Microsoft (MSFT) fell roughly 6% in Frankfurt, confirming that the after-hours sell-off was no fluke. International investors are echoing the same concerns: the massive spending on AI isn't yet offsetting worries about slowing growth in the core Azure cloud business.

Adding to the cautious tone in the tech sector, Nvidia (NVDA) faces a fresh headwind. Reports indicate that China is still finalizing the necessary licenses for its crucial H200 AI chip, introducing a dose of geopolitical uncertainty for a stock that has been a market bellwether.

However, the mood isn't universally negative. Strong results from European financials, led by a significant profit beat from Deutsche Bank (DB), suggest underlying economic resilience outside of the high-valuation U.S. tech sphere. This creates a classic push-pull dynamic for the market to navigate later today.

Big Tech's AI Spending Spree Intensifies Overnight

As U.S. equity futures remain subdued in the early hours, the market's singular focus on the AI capital expenditure arms race is only growing sharper. Overnight reports are reinforcing the narrative that drove yesterday's chaotic after-hours session: investors are aggressively rewarding companies with the most ambitious AI spending plans, while punishing any hesitation.

The latest headlines confirm that Meta (META) is dramatically boosting its AI investment amid a strong revenue outlook. This provides further context for its stunning 10%+ post-market surge yesterday. Investors have clearly embraced the 'spend now, dominate later' strategy, creating a stark contrast with Microsoft (MSFT), which fell despite a solid earnings beat. For Microsoft, the massive capital outlay was viewed through a lens of skepticism as its core Azure cloud growth showed signs of maturing.

The dynamic suggests the market is no longer grading on a curve. A commitment to AI is now table stakes; the perceived conviction and scale of that commitment, as seen with Meta and Tesla (TSLA), are what's driving alpha, at least for now.

Tech Titans' Split Verdict Lingers; Intel Eyes New Alliances

In the quiet of the overnight session, equity futures are muted as investors continue to process yesterday's chaotic after-hours earnings reports from Big Tech. The market is grappling with a starkly divergent reaction, rewarding forward-looking AI narratives while punishing even the slightest hint of execution risk.

Yesterday's post-market session saw Meta (META) surge over 10% after boosting its spending plans in a confident pursuit of AI dominance. In sharp contrast, Microsoft (MSFT) fell roughly 6% as investors fixated on slowing growth in its Azure cloud unit, questioning the massive capital expenditures despite an overall earnings beat. The verdict is clear: at current valuations, a strong story is proving more valuable than strong immediate results.

Adding a new dimension to the AI infrastructure narrative, overnight reports suggest Intel (INTC) is in talks to become a key foundry partner for giants like Nvidia (NVDA) and Apple (AAPL). This potential collaboration underscores the immense scale of the chip manufacturing build-out and marks a significant strategic development for Intel's long-term turnaround efforts.

AI's Tug-of-War: Tesla Gets Vote of Confidence as Amazon Plans Cuts

As the U.S. market looks toward the opening bell, the overnight session is extending yesterday's chaotic after-hours theme: a deep split between AI-fueled narratives and operational realities. While equity futures are currently quiet, fresh headlines are adding fuel to both sides of the debate.

Building on its stunning after-hours rally, Tesla (TSLA) received a symbolic nod of approval. Berkshire Hathaway's (BRK) Pilot Travel Centers will partner with Tesla to install Semi Chargers. While not a direct investment from Warren Buffett, the association lends significant credibility to Tesla's non-automotive ambitions, a narrative investors were eager to buy into yesterday despite plummeting profits.

In the other corner, the cost-cutting continues. Amazon (AMZN) inadvertently revealed impending layoffs in its profitable AWS cloud division. This reinforces the market's skepticism, seen in Microsoft's (MSFT) post-earnings slide yesterday, that even as Big Tech pours billions into AI, the immediate return on investment remains a key concern amid tightening in core businesses.