Don’t miss this timely episode about the unraveling of tech. AI was supposed to supercharge software. Instead, it’s threatening to disrupt it. Ivana Delevska, Founder & CIO of Spear Advisors, joins In the Money with Amber Kanwar to break down whether the brutal software sell-off is justified — or overdone. She’s a tech investor who has been outperforming the markets against the backdrop of a brutal correction in software stocks.
It’s a shortened trading week, but there are plenty of big things happening! Read about the week ahead in my Globe and Mail column.
Here are five things to know today:
Broken code: Futures are in the red this morning as nothing seems to be getting in the way of bearish sentiment around tech. The NASDAQ negative for 2026 while the TSX is up 4.3%. Tech exposure in the portfolio has gone from a boom to a bust as investors separate the winners and losers in the AI revolution. It’s a shoot first, ask questions later type of market. Ivana Delevska says now is not the time to be a hero and step in front of the software stocks getting run over. She says there are better ways to play AI through capital equipment makers. There are nine companies reporting on the TSX today, all after hours, including TFI International, RioCan, and IAMGOLD. This morning we got a read of inflation in Canada that came in below expectations on a headline basis. Core measures were also lower. The Bank of Canada is thought to be on the sidelines to wait to see how things like trade risks play out.
Leaky pipes: TD is turning sour on Canadian pipelines in a sweeping downgrade that includes Enbridge, TC Energy, and Pembina Pipeline. The downgrades are largely about valuation. The analyst, Aaron MacNeil, believes the long-term growth prospects are in tact but fully priced in. “TC now trades at a 2026E EV/EBITDA multiple of 13.9x, a 16% premium to its 10-year historical mean of 12.0x,” wrote MacNeil in the downgrade. But he acknowledges there is a risk they could be wrong because of fund flows. “We continue to observe anecdotal evidence of elevated funds flow into both Canadian energy as well as defensive names with strong secular growth tailwinds. Canadian midstream checks both of these boxes,” says MacNeil. Keyera is his top pick saying there is plenty of growth that is not fully priced in.
Grounded: Air Canada is being downgraded this morning at Raymond James and Veritas. Air Canada’s capacity growth could be higher than expected, warns Savanthi Syth of Raymond James in her downgrade. “Unless there is a significant strengthening in the economic outlook/Transborder recovery or capitulation by a weaker competitor, we believe this level of growth will start to weigh on investor sentiment,” says Syth. Veritas has concerns about capital intensity. “The company is simultaneously absorbing labour contract resets across its remaining unionized workforce and taking delivery of 51 new aircraft over 2026-2027 (35 this year), resulting in peak capital intensity,” wrote Dan Fong of Veritas, “This comes amid USMCA renegotiation risk and softening Canadian real estate and construction activity, sectors that represent a meaningful share of Canadian GDP, and could weigh on second-half travel demand if conditions deteriorates.”
General disappointment: Shares of General Mills are down 3.5% after warning that profit will be lower than previously expected. Adjusted EPS will now fall 16-20% compared to the previous outlook calling for 10-15% declines. Organic sales are now expected to be negative. “Weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and impacted consumer purchase patterns, resulting in a slower pace and higher cost of volume recovery than initially expected,” said the company in a statement. This comes ahead of the Consumer Analyst Group of New York conference (CAGNY). I own this one unfortunately.
Bathroom words: Japanese toilet maker Toto surged to a 4.5 year high after an activist fund said it can play a key role in the AI boom. You read that right. But if you’ve ever had the privilege of using a Toto toilet, you’d believe there are no limits to what this company can achieve. Anyway, in this case the activist is Palliser Capital. They sent a letter to the board calling for more disclosure around its little known chip-parts business according to reports from Bloomberg. Despite the rally in the shares, Palliser says the company can unlock 55% more in value by increasing awareness of its chip materials business.
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