Three Things (12/11)

Google’s quantum leap

Willow wows … In a groundbreaking announcement, Google (GOOG) unveiled its latest quantum computing chip, Willow, promising to revolutionize the field. The chip completed a calculation in under five minutes that would take a supercomputer 10 septillion years—a time span vastly exceeding the age of the universe.

At the heart of Willow’s achievement is its ability to exponentially reduce errors as qubits, the building blocks of quantum computing, scale up. This advance addresses one of quantum computing’s oldest challenges: error correction. Hartmut Neven, Founder of Google Quantum AI, told CNBC that this milestone paves the way toward practical, large-scale quantum machines capable of solving real-world problems in science, medicine, and beyond.

Despite Willow’s promise, some experts caution that its small scale and reliance on extreme cooling limit immediate practicality. Quantum computing systems are cooled using cryogenic technologies like dilution refrigerators, which achieve near-absolute-zero temperatures to stabilize qubits. 

Markets responded enthusiastically, with Alphabet’s stock climbing over 6%, its highest since July. Analysts view Willow as a promising catalyst for long-term technological leadership, even though practical use cases remain distant. Quantum stocks like Rigetti Computing (RGTI) and IonQ (IONQ) also surged following the announcement. Public companies developing cooling solutions, like Linde (LIN) and Oxford Instruments (LSEG: OXIG) did not see a lift in stock price on the news.

Succession plan thwarted

(For now) … Rupert Murdoch’s plans to solidify his media empire’s conservative slant has hit a major roadblock. A Nevada court rejected his effort to alter the family trust that governs the control of News Corp (NWS) and Fox Corp (FOX). Murdoch, 93, sought to ensure his son Lachlan maintained control, locking in Fox’s ideological direction. The court ruled Murdoch acted in “bad faith.”

The decision preserves equal power among Murdoch’s four children—James, Elisabeth, Prudence, and Lachlan—after his death. This balance introduces a potential ideological shift, as James and Elisabeth lean more liberal. The court dismissed Murdoch’s changes as a “carefully crafted charade,” thwarting his succession plans. Both Rupert and Lachlan intend to appeal.

The implications for Murdoch’s empire are vast. Fox News, a juggernaut of right-wing media with $14 billion in annual revenue, may face leadership discord. Analysts speculate shared control could destabilize editorial direction, affecting both operations and audience trust.

This ruling comes amid broader turmoil for cable news. MSNBC’s post-election ratings plummeted by 52%, part of a cyclical trend observed after major elections, per the Hollywood Reporter. According to a Gallup poll conducted in September, only 31% of Americans expressed “a great deal” or “a fair amount” of trust in the mass media to report the news fully, accurately, and fairly—a new record low.

FastCo names top brands

See the standouts … Fast Company just released its 2024 Brands That Matter list, spotlighting 130+ companies that are making their mark at the intersection of business and culture. The list was determined by a panel of expert judges who assessed the companies’ cultural relevance.

Here’s a rundown of all of the publicly-traded companies appearing on this year’s list, ranked in order of YTD stock performance. View the full list.

One more thing: Ashtead Group, a construction equipment rental company, plans to move its main stock listing from London to the U.S., saying it better matches its North American business. More UK companies are switching to New York for better valuations and bigger markets, adding to London’s struggles as its stock market shrinks and faces stiff competition.

Disclosures:

As of writing, GOOG, TMUS, and MA are holdings in Titan's Flagship strategy, and LVMUY is a holding in Titan's Offshore strategy.

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