Amazon, Alphabet, Viva Gold Corporation - Is data really the new gold?

Amazon: Course direction to medical care with M&A of One Medical

Amazon made it into the German Tagesschau with this news: the group is raising prices for Amazon Prime members. Where subscribers previously paid EUR 7.99 per month, they will now pay EUR 8.99, which results in a revenue increase of EUR 20.90 per consumer. The group cited current inflation and increased energy costs for the price increase. Earlier this year, US customers already felt the increase in the service, which includes access to streaming offerings from music to movies and series and free, often same-day delivery.

"In our experience in the United States, there is no opt-out phenomenon as more and more services are offered through Prime and the service still offers consumers significant savings," an Amazon spokesperson said by phone. It may well be that the group thus continues to maintain a stable user base in Europe as well. The stock price was largely unaffected by the storm in a teacup.

Looking at the group's growth ambitions, one acquisition in particular catches the eye. Amazon is snapping up One Medical. One Medical is a healthcare-focused tech company that makes face-2-face and digital medical offerings available specifically to workers at large companies. Instead of company health insurance funds like in Germany, US employers work with so-called health plans and use that as an employee benefit to retain talent for the long term.

Amazon will acquire One Medical for USD 18 per share. The transaction is valued at about USD 3.9 billion, including One Medical's net debt. The closing of the transaction is subject to customary conditions, including approval by One Medical's shareholders and regulatory approvals. Upon completion of the transaction, Amir Dan Rubin will remain CEO of One Medical.

"We think healthcare is top of the list of experiences that need to be reinvented. From booking an appointment, waiting weeks or even months for the appointment, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room, and then going into the exam room to spend a few minutes with the doctor to then going to the pharmacy - we see a lot of opportunities to improve the quality of the experience and give people back valuable time," said Neil Lindsay, SVP of Amazon Health Services.

So it is a matter of time before Prime customers could also enjoy medical benefits. For more, check out the latest earnings call on July 28 2022, at 2:30 p.m. PT, which is 10:30 p.m. CET here.

Viva Gold Corporation - Gold explorer as a portfolio mix in volatile times

Since former US President Richard Nixon decoupled the gold rate from the US dollar on August 15, 1971, both the FED and ECB have continued to blithely print notes in the Fiat currency. Due to this decision, the dollar lost its function as an anchor for other currencies. Until that fateful moment, currencies traded at fixed exchange rates to the dollar. The entire Western financial system was pegged to gold through the dollar. Economists like Milton Friedman exulted. They said the end of fixed exchange rates would lead to greater stability and lower inflation because the value of currencies would be determined by financial markets, which would introduce a discipline that would make governments honest.

Investors are getting a sense of how far this prediction has strayed from reality in highly dynamic and volatile markets. As a strategic asset, gold has improved portfolio risk mitigation. Returns can be regularly relied upon, and it also provides its own form of liquidity that can help reduce stress in troubled times.

In the gold asset environment, Viva Gold Corporation stands out. The Company is both a gold exploration and development company. Located in western Nevada in the United States, Viva Gold Corporation operates the Tonopah project. The Tonopah property consists of 513 unpatented mineral claims totaling 41480,278 sqm, approximately 30 km northeast of the town of Tonopah and 70 km south of Round Mountain. Viva is committed to environmental, social and responsible corporate governance ("ESG") in its business, which is a particular focus for sustainability-minded investors. The attraction of exploration companies like Viva Gold Corporation lies in the commodity values on the one hand and the growth potential on the other. On May 10 of this year, the Company started its core drilling. So far, 6 HQ core drillings (63 mm) with a total length of more than 1,300 meters have been completed. Currently, the Company has over 91 million common shares outstanding.

Alphabet - Latest quarterly figures highlight slowing growth

At the Google parent company, the slight decline of the Corona pandemic is making itself felt. While many people were tied to the home office in recent years, Alphabet saw an increase in the areas of search and cloud.

The Company reported second-quarter revenue of USD 69.69 billion, up 13% YOY. Net income was USD 16 billion, or USD 1.21 per share. According to FactSet, Wall Street analysts had expected earnings per share of USD 1.27 on revenue of USD 69.87 billion. Operating income of USD 19.4 billion was below expectations of USD 20.14 billion.

The group suffered revenue declines primarily in the advertising environment. CFO Ruth Porat indicated that uncertain supply chains threatened many companies due to the dynamics. Therefore, advertising was the first to be cut, and with it, advertising on Alphabet platforms.

CEO Sundar Pichai explained, "The investments we have made in AI and computing technology in recent years make our services particularly valuable to consumers and highly efficient for businesses of all sizes."
Thanks to its size, Alphabet has some play money. Google's self-driving unit Waymo made a loss of USD 1.7 billion USS, up from a loss of USD 1.4 billion the previous year.

Google's cloud division saw a 36% increase in revenue to USD 6.3 billion. But on the loss side, the Company posted USD 858 million in the quarter. Google Search revenue rose 13% to USD 40.7 billion, slightly ahead of estimates. Pichai estimates the potential impact of artificial intelligence (AI) will be as transformative as the impact of electricity. Google Cloud can therefore be expected to increase its focus on AI.

Alphabet is fully committed to artificial intelligence and cloud technology. The US is also not affected by an energy crisis like European and German companies. Digital and electronic systems can be further developed and expanded. Amazon is stepping up its plans to gain a foothold in the healthcare market. One Medical, with all its business intelligence, will soon be part of the Seattle-based group. Will this soon develop into Amazon Insurance for Prime customers? The latter will accept the price increase because a diverse range of products is made available via Prime. At least the price increase made it into the German Tagesschau and not the acquisition of the healthcare company One Medical. Data is the new gold. For those who are well served by the conventional, Viva Gold Corporation is worth considering or adding to your portfolio. The Company has promising drillings for gold on a large property in western Nevada in the USA.