Global electricity demand is growing more than twice as fast as overall energy demand, according to the International Energy Agency—so how should investors be positioned to capitalize on this explosive shift? On this episode of In the Money with Amber Kanwar, Robert Thummel, Managing Director & Senior Portfolio Manager at Tortoise Capital, explains why “electricity is the new oil” and how the rise of AI, data centres, and electrification is driving a once-in-a-generation opportunity across energy infrastructure, natural gas, and power generation.
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Sorry to leave you hanging yesterday on Nvidia and SpaceX day. I was hosting an all-day conference for National Bank Independent Network. Nvidia turned out to be a nothing burger (market yawned at explosive growth). I read the SpaceX prospectus and tried to imagine anyone else but Elon Musk raising billions to “make life multiplanetary, understand the true nature of the universe, and extend the light of consciousness to the stars.”
Here are five things to know today:
Moonshots: Stocks are higher this morning after recovering yesterday amidst signs that peace was upon the US and Iran. The markets recovered mid-day yesterday on reports that Iran was mulling the latest peace offering by the US. Oil slipped, though it is higher again this morning. Bonds are rallying. The Dow Jones Industrial Average hit a record high. The TSX hasn’t seen an all-time high since the beginning of March, but we are close. Interestingly, while tech is the best performing sector in the US for the month of May, it is the worst performing sector on the TSX because of weakness in Celestica and Shopify. Today’s session will be quiet ahead of a long weekend in the US.
Buckle up: CAE is falling 2.5% after profit plunged on weakness in its civil business and volatility in the Middle East. The flight simulation software company is trading where it was when activist investor Browning West showed up at the end of 2024, despite a more stabilized business. A gloom over the airline sector thanks to higher jet fuel prices is partly to blame, but is not the full story. While the defense business has stabilized and cash flows have increased, there are now challenges in the civil side. This quarter defense was strong, civil fell short and the 2027 forecast was weaker than expected. “This was a messy update,” wrote Stifel’s Daryl Young, “2027 guidance is weaker-than-expected on margins (granted FCF conversion stronger) which could pressure the shares given recent unforgiving market dynamics.” Having said that, the company is taking ownership of the challenges on the call this morning. “Over the last decade we have fallen short of investor expectations too often,” said CEO Matthew Bromberg on the conference call. “We are going to become a company that meets their commitments,” Bromberg said in a response to a question from an analyst later on in the call. They have announced a transformation plan that includes changing executive incentives to better align with shareholders by basing it on metrics like cash flow and margins. Stifel’s Young says 2027 is something of a “throw-away” year with 2030 targets looking “highly achievable.”
Workin’ 9-5: Shares of Workday are surging 8% after results calmed AI fears. The cloud HR and finance management software company has struggled with the stock is down 43% in 2026 on AI fears. The quarter didn’t really shoot the lights out, with sales only 1% higher than expected and the backlog coming in slightly lower than expected. The forecast was okay, basically in line with expectations. With 12% of shares short, I think the rally is more about the damage being done and shorts covering. The founder of the company, Aneel Bhusri, came back as CEO in February amidst the company’s challenges. “The quarter and guidance were solid and hence, should get credit, but we also think expectations were very low, which should help shares,” wrote Raimo Lenschow of Barclays.
Merger mania: IMAX is surging 13% on reports they are exploring a sale. IMAX has approached entertainment companies, according to the Wall Street Journal. IMAX is doing so from a position of strength, more moviegoers are looking for premium experiences and IMAX now makes up 5.2% of domestic box office sales in the US compared to 3.2% in 2019. IMAX’s long-time CEO Richard Gelfond hinted that IMAX could be a great asset in the hands of a larger company at the AGM in December. Slate Grocery REIT says it will form a committee to consider strategic alternatives after receiving an unsolicited takeover offer from its external manager, Slate Asset Management. The US grocery-anchored real estate company plunged last week after disappointing quarterly results. ATB Cormark downgraded the stock because elevated debt levels and high interest payments were overwhelming positive growth. Estee Lauder is surging 11.5% after deal talks with Puig (-14%) breakdown. The talks fell apart over Charlotte Tilbury’s demands about her compensation, according to reports. Tilbury’s namesake brand was purchased by Spain’s Puig in 2020 but had some change of control provisions as a minority shareholder.
Unmute: Zoom is surging 8% after results came in better than expected and it raised its forecast. The virtual conference call company has been working to expand beyond just that by including things like office collaboration products. Some of these features include AI and revenue for that tripled from last year. Total sales increased 5.5%, which was the best since Q1 2023. Zoom has been trying to find its footing after the pandemic trade unwound. The stock is down 75% from the pandemic peak.
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