In the current economic environment, public capital markets have become increasingly demanding when it comes to explanations of significant R&D expenditures aimed at higher-risk, longer-term payoffs. Compared to just two years ago –– when moonshot investments like the metaverse were welcomed by the capital markets –– that appetite for risk has changed. The heightened scrutiny among today’s investors […]
Over the past weeks, there has been a growing sense that the U.S. economy may be heading toward a broad, systemic crisis. To-date, these fears are inchoate, a mix of concerns triggered by, among many other things, the high-profile collapse of a number of regional banks, looming worries about the state of the commercial real estate […]
A recent YouGov poll revealed that a significant portion of Americans harbor concerns about Artificial Intelligence (AI), with many supporting a temporary pause on its development. The apprehensions range from potential job loss to the end of the human race on Earth. At the same time, many investors are excited about the technology’s vast promise, such as increased efficiency, productivity, and innovation –– and as a result, are pouring […]
It has often been the case that big events that take place in Western democracies tend to echo. For example, a shift to the left or right in an election in the UK or Germany often hints at a similar dynamic coming to the US or vice versa. That insight should be front of mind […]
Over the course of a few days, two Breakwater Strategy colleagues –– Arik Ben-Zvi and Steven Weber –– engaged in an extended email debate over the merits and downsides of the now-famous Open Letter: Pause Giant AI Experiments put forward by the Future of Life Institute (FLI). That exchange is being shared in The Intersection (edited for brevity) in the same spirit that inspired it in […]
Breakwater Strategy is proud to present our inaugural “Framing the Quarter” earnings guide, crafted to support C-Suite executives and Investor Relations Officers as they navigate the Q1 2023 earnings season. “Framing the Quarter” covers 10 areas of interest to today’s investors, providing a foundation for effective communications before, during, and after Q1 earnings calls. By preparing for these topics –– […]
Society’s expectations of business have evolved a great deal in recent years. But one constant has been the demand that companies obey the law. That has always been bedrock. But what happens when law and regulation becomes fluid, sometimes even unmoored from plain written statute? Consider just a few examples of the past weeks. In Switzerland this […]
When a publicly-traded company makes the decision to buy back a large number of its own shares, it is by default saying to the world: “We are prioritizing the use of some of our current capital to reduce the number of shares we have outstanding, which will increase the value of each remaining share for […]
As so often happens in the wake of a high-profile corporate crisis, a great many commentators have faulted the rail carrier Norfolk Southern Corporation for its failure to “control the narrative” around its derailment in East Palestine, Ohio. The premise of these critiques is that by failing to communicate more assertively –– including clearer and louder expressions […]
Is it possible for businesses to lead a rational conversation about… emotion? In 2023, it’s not terribly controversial to suggest that the political discourse has become emotional to the point of being nearly detached from rational argument or analysis. Our economy, too, often seems driven by fears that don’t seem grounded in facts; for example, […]