🤯 This past week was one of the most important in tech investing history.

🤖 Five of the Magnificent 7 reported earnings — and the numbers were stunning. AI is not just a promise anymore. It is showing up in real revenue, real profits, and real cash flows. Right now.

🍁 Meanwhile, Canada just launched something brand new that every investor should know about: the country's first-ever sovereign wealth fund.

☕ There is a lot to unpack — and we will keep it short, clear, and useful.

🚀 Let's go!

What's Happening: 🚀 This past week, five of the seven "Magnificent 7" companies — Amazon, Alphabet, Microsoft, Meta, and Apple — all reported quarterly results, and the headlines all looked great.

Here is the quick scoreboard — all figures verified from official earnings releases:

Why it matters: 💡 The big theme connecting all five reports is AI actually working as a business. Google Cloud revenue shot up 63% to $20 billion — its fastest growth rate and outpacing both AWS and Azure. AWS revenue grew 28%, its fastest rate in 15 quarters. Meta's revenue jumped 33%, and Apple posted its best-ever March quarter with iPhone revenue up 22% and Services hitting yet another all-time record.

⚠️ There is one important caveat: all four hyperscalers raised their AI spending forecasts. The four companies are now expected to collectively spend $725 billion on AI infrastructure in 2026 alone. That is extraordinary — and it is not without risk. If AI revenue growth slows before that spending pays off, margins could compress fast.

The Takeaway: 🧠 For anyone new to investing, this week confirmed one thing clearly: AI is no longer a bet on the future. It is the present. The companies that own the AI infrastructure — the cloud platforms, the chips, the models — are generating real, accelerating profits. Whether you own any of these stocks directly or through an ETF like QQQ or VFV.TO, you likely already have exposure to this wave. That is a good thing.

What's Happening: 🍁 On April 27, 2026, Prime Minister Carney announced something Canada has never had before — a national sovereign wealth fund. Called the "Canada Strong Fund," it will serve as an investment vehicle to finance major projects of national interest in partnership with the private sector.

Here is how it works:

Why it matters: 🎯 Carney described it as "a national savings and investment account" — and compared it to Norway's sovereign wealth fund, widely regarded as the world's best-managed. The big idea: Canada builds major infrastructure projects (pipelines, LNG terminals, clean energy, housing), and instead of the profits all going to private companies, Canadians themselves get a share of the returns.

⚠️ The honest debate: Traditional sovereign wealth funds are usually funded with extra money a government has — like Norway's oil revenue surplus. Canada, however, carries significant national debt. The $25 billion will need to be borrowed, raising legitimate questions about whether the investment returns will exceed the cost of borrowing. This is an important thing to watch as details emerge.

The Move: 💡 For anyone new to investing in Canada, this is a story worth following — not because you need to do anything right now, but because the retail investment product coming later could become a new, government-backed option alongside your TFSA, RRSP, and FHSA. Think of it as a potential future investment tool for your toolkit.

Alphabet Inc. (NASDAQ: GOOGL / GOOG)

Google's Best Quarter in Years

The Update 📈

🏆 After years of investors worrying that AI chatbots like ChatGPT would destroy Google Search, Alphabet just answered back — loudly. Q1 2026 revenue hit $109.9 billion, up 22% year-over-year — its 11th consecutive quarter of double-digit growth and the fastest pace in two years. Net income surged 81% to $62.6 billion. CEO Sundar Pichai said: "2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business."

Why I'm Interested 🤔

⚡ Here is what makes Alphabet uniquely compelling right now — it is winning in AI in three completely different ways at once:

🤔 One honest risk: Alphabet raised its 2026 AI capex guidance to $180–$190 billion — an enormous bet. If cloud revenue growth slows before that spending generates returns, margins will compress. This is the key number to watch every quarter.

Morningstar Rating: ★ ★ ★ (fairly valued)

52-Week Low/High (GOOGL): $147.84 — $387.38

Current Price: $385 | Analyst consensus: Strong Buy | 12-month avg. price target: $406

Recent Catalyst: 🔥 Q1 2026 revenue +22%, Google Cloud +63%, Search +19%, net income +81%, $460B cloud backlog, dividend raised 5%, and $100B buyback authorized. Alphabet gained 34% in April alone — its best month since 2004, the year the company went public.

Disclaimer: This is for informational purposes only and not investment advice. Always do your own research or consult a professional before making investment decisions.

😮 You just read about five companies reporting earnings this week. But what does "earnings" actually mean? And how do you know if a report is good or bad without a finance degree?

Here is your plain-English guide. 🎓

The 4 numbers that actually matter 📊

1. Revenue — The total money the company brought in. Think of it as the company's paycheque. Growing revenue = growing business.

2. EPS (Earnings Per Share) — The company's profit, divided by the number of shares. This is how much the company kept after paying all its bills. Higher EPS = more profit per share you own.

3. Beat or Miss — Every quarter, Wall Street analysts predict what they think a company will earn. If the company does better than predicted → it "beat." If worse → it "missed." Beats usually push the stock up; misses push it down.

4. Guidance — What the company expects for next quarter. This often matters more than the current results. A company can beat this quarter but tank its stock if its future guidance disappoints.

A simple way to read any earnings headline ✅

Next time you see an earnings headline, just ask four questions:

That's it. You now know how to read an earnings report. 🎉

Why this matters for your investments 💡

If you own ETFs like VFV.TO, XEQT.TO, or QQQ, you indirectly own all five companies we covered this week. Every time they beat earnings and raise guidance, the value of your ETF goes up. You don't have to pick individual stocks to benefit — the diversification does the work for you.

📱 You can buy any of these ETFs inside your TFSA or RRSP at Questrade (use my referral Key 426019605447668 to get a $50 bonus) or Wealthsimple. (code, OFZZHW to receive $25 bonus) commission-free. Start with as little as $50/month on a pre-authorized contribution plan and let it grow automatically. You don't need to watch the market. You don't need to pick stocks. You just need to start.

😤 After a 34% jump in a single month, it feels like the boat has already left the dock. But here is the nuanced answer.

🧠 The honest framework:

💡 The newcomer investor take: If you have zero exposure to Google/Alphabet, starting a small position now and adding over time (a strategy called dollar-cost averaging) is more sensible than trying to time the perfect entry. If you already hold it through an ETF — you are already participating. The smartest move is rarely "buy everything at once right after a big run."

🤝 The Wealth Compass community is for everyone new to money and investing — whether you arrived in Canada last year or just started your financial journey for the first time. Come as you are. Ask anything.

💬 Need Personalized Guidance? For those deeper, one-on-one questions about your specific situation (Setting up TFSAs, RRSPs, FHSA, RESP, credit cards, stocks/ETFs picking or anything else!), I offer personalized coaching sessions. Learn more and book your spot! 💬

See you next week!

Warmly,
Yudara Bernard
Founder, Newcomer Wealth