Category: 3. Business

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Here’s a number to conjure with: $1.3tn. That’s the amount of market capitalisation Google parent Alphabet has added since September 2 — and it is equivalent to nearly double the combined gain in the rest of the so-called Magnificent 7.

Why that date in particular? Because it’s when a US antitrust judge decided Google’s monopoly was no longer a potent threat in the age of AI. That decision left the company free to flex its muscles. With Alphabet’s market capitalisation edging closer to a colossal $4tn, the rest may soon be history.

Google’s monopoly in online search — the judge did at least call it what it is — did indeed seem at risk for a while. The launch of ChatGPT in late 2022 threatened to drain the moat Google had created around itself. Analysts at Wells Fargo estimated in 2023 that the shift to “conversational” search, with inherently lower margins, could wipe 14 per cent off Alphabet’s operating profit.

The reality has proved different. Users are searching more on Google, not less, and monetisation seems to be intact. It’s something like the principle of “induced demand” that explains why building more roads generates more traffic. Meanwhile, ChatGPT has, in recent months, handed back some of its market share gains to its larger rival.

Last week, Google slew another foe: the belief that it’s an AI also-ran. The launch of its Gemini 3 model last Tuesday showed a clean pair of heels to OpenAI’s offerings on a range of so-called benchmarking tests, including reading what’s on a user’s screen, a key competency for creating AI “agents”. Salesforce chief Marc Benioff, a ChatGPT user, says he tried Google’s new offering and is “not going back”.

There are three reasons Google has been able to make this leap. One is that it houses some of the world’s most sophisticated research capabilities, thanks mostly to UK-based DeepMind, which it bought over a decade ago. A second reason is that Google is training its models on chips of its own making. Rivals still depend on whatever allocation of they can get from Nvidia, which dominates AI chips as Google dominates search.

The third, and biggest reason? It’s a monopolist, and with that comes monopoly profit. Alphabet has made around $330bn in free cash flow over the past five years, according to LSEG. That gives it enormous leeway to invest for years in things that don’t obviously — and may never — produce revenue. Few companies can so easily accommodate massive spending on things peripheral to their core business. Certainly not OpenAI, which may make $20bn of revenue this year, if it is lucky.

The bigger Google gets, the stronger. As its cloud business grows, now making up nearly a fifth of revenue, it becomes less vulnerable to hiccups in global advertising spend. Future revenue streams could come from selling its chips to other AI combatants like Meta Platforms. Some features of Gemini 3 suggest the company will become a stronger contender in the enterprise software market too.

Of course, being huge on its own isn’t enough to sustain Google’s supremacy. It wouldn’t be where it is without smart ideas and products that people actually want to use. But the company’s impending $4tn valuation sends a strong message that anyone who thought AI would speed the end of tech’s most famous monopoly got it dead wrong.

john.foley@ft.com

In the past decade, drones have become integral to many sectors of the economy. Now, they are rapidly transforming agriculture too, helping farmers grow their crops and changing the way farming is done.

In a study published in Science, researchers at Michigan State University documented how agricultural drones have spread at extraordinary speed, first introduced in Asia then expanding to Latin America, North America and Europe.

Ben Belton is a professor in the Department of Agricultural, Food and Resource Economics at the College of Agriculture and Natural Resources, and Leo Baldiga is a doctoral student in the Department of Geography, Environment and Spatial Sciences at the College of Social Science.

Here, they explain how farms are putting drones to work, why drone use has accelerated so quickly, and what this development means for farmers and stakeholders.

How have drones moved from hobby gadgets to major tools in global agriculture?

Drones have become integrated into everyday life over the past decade — in sectors as diverse as entertainment, health care and construction. They also have begun to transform the way people grow food.

Just a few years ago, agricultural drones were expensive, small and difficult to use, limiting their appeal to farmers. In contrast, today’s models can be flown immediately after purchase and carry loads weighing up to 220 pounds — the weight of two sacks of fertilizer.

Agricultural drones are now akin to flying tractors — multifunctional machines that can perform numerous tasks using different hardware attachments. Common uses for drones on farms include spraying crops, spreading fertilizer, sowing seeds, transporting produce, dispensing fish feeds, painting greenhouses, monitoring livestock locations and well-being, mapping field topography and drainage, and measuring crop health. This versatility makes drones valuable for growing numerous crops and on farms of all sizes.

Where are agricultural drones used, and why has their use increased so quickly?

In a new study published in the journal Science, we show that use of agricultural drones has spread extremely rapidly around the world. In our research as social scientists studying agriculture and rural development, we set out to document where agricultural drones have taken off around the world, what they are doing and why they have traveled so far so fast. We also explored what these changes mean for farmers, the environment, the public and governments.

Historically, most agricultural technology — tractors, for example — has spread from high-income countries to middle- and then lower-income ones over the course of many decades. Drones partially reversed and dramatically accelerated this pattern, diffusing first from East Asia to Southeast Asia, then to Latin America, and finally to North America and Europe. Their use in higher-income regions is more limited but is accelerating rapidly in the U.S.

China leads the world in agricultural drone manufacturing and adoption. In 2016, a Chinese company introduced the first agriculture-specific quadcopter model. There are now more than 250,000 agricultural drones reported to be in use there. Other middle-income countries have also been enthusiastic adopters. For instance, drones were used on 30% of Thailand’s farmland in 2023, up from almost none in 2019, mainly for spraying pesticides and spreading fertilizers.

In the U.S., the number of agricultural drones registered with the Federal Aviation Administration leaped from about 1,000 in January 2024 to around 5,500 in mid-2025. Industry reports suggest those numbers substantially underreport U.S. drone use because some owners avoid the complex registration process. Agricultural drones in the U.S. are used mainly for spraying crops such as corn and soybeans, especially in areas that are difficult to reach with tractors or crop-dusting aircraft.

What risks and benefits do drones bring for farmers and the environment?

Shifting from applying chemicals with backpack sprayers to drones substantially reduces the risk of direct exposure to toxins for farmers and farmworkers. However, because drones usually spray from a height of at least 6 feet, if used improperly, they can spread droplets containing pesticides or herbicides to neighboring farms, waterways or bystanders. That can damage crops and endanger people and nature.

Drones spray and spread fertilizers and seeds evenly and efficiently so that less is wasted. They may also reduce damage to crops in the field and consume less energy than large farm machines such as tractors.

Are drones saving labor or displacing it?

Drones save farmers time and money. They reduce the need for smallholders — people who farm less than 5 acres, who account for 85% of farms globally — to do dangerous and tiring manual spraying and spreading work on their own farms. They also remove the need to hire workers to do the same. By eliminating some of the last remaining physically demanding work in farming, drones also may help make agriculture more attractive to rural youth, who are often disillusioned with the drudgery of traditional farming. In addition, drones create new skilled employment opportunities in rural areas for pilots, many of whom are young people.

On the downside, using drones could displace workers who currently earn a living from crop spraying. For instance, according to one estimate from China, drones can cover between 10 and 25 acres of farmland per hour when spraying pesticides. That is equivalent to the effort of between 30 and 100 workers spraying manually. Governments may need to find ways to help displaced workers find new jobs.

What could agricultural drones mean for future food production?

Drones may increase the amount of food that can be produced on each acre of land, while reducing the amount of resources needed to do so. This outcome is a holy grail for agricultural scientists, who refer to it as “sustainable intensification.”

However, much of the evidence so far on yield gains from drone-assisted farming is anecdotal, or based on small studies or industry reports.

The drone revolution is reshaping farming faster than almost any technology before it. In just five years, millions of farmers around the world have embraced drones. Early signs point to big benefits: greater efficiency, safer working conditions and improved rural livelihoods. But the full picture isn’t clear yet.

This article first appeared on GuruFocus.

• Revenue: $9.7 billion, a 2.4% increase year-over-year.

• Adjusted Operating Income Rate: 4%, 30 basis points better than expected.

• Adjusted Earnings Per Share: Increased 11% year-over-year to $1.40.

• Comparable Sales Growth: 2.7%, exceeding expectations.

• Domestic Revenue: $8.9 billion, a 2.1% increase driven by 2.4% comparable sales growth.

• Online Revenue: $2.8 billion, a 3.5% increase on a comparable basis, representing 31.8% of domestic revenue.

• International Revenue: $794 million, a 6.1% increase driven by 6.3% comparable sales growth.

• Domestic Gross Profit Rate: Decreased by 30 basis points to 23.3%.

• International Gross Profit Rate: Increased by 30 basis points to 22.8%.

• SG&A Expenses: Domestic adjusted SG&A decreased by $4 million.

• Shareholder Returns: $802 million returned through dividends and share repurchases year-to-date.

• Fourth Quarter Comparable Sales Guidance: Expected range of down 1% to up 1%.

• Full Year Revenue Guidance: $41.65 billion to $41.95 billion.

• Full Year Comparable Sales Growth Guidance: 0.5% to 1.2%.

• Full Year Adjusted Operating Income Rate Guidance: Approximately 4.2%.

• Full Year Adjusted Diluted EPS Guidance: $6.25 to $6.35.

Release Date: November 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Best Buy Co Inc (NYSE:BBY) reported strong third-quarter results with revenue of $9.7 billion, an adjusted operating income rate of 4%, and an 11% year-over-year increase in adjusted earnings per share to $1.40.

• The company achieved better-than-expected comparable sales growth of 2.7%, driven by strong sales in computing, gaming, and mobile phones.

• Online sales increased for the fourth consecutive quarter, supported by higher traffic and increased customer adoption of the Best Buy app.

• The launch of the Best Buy marketplace has been successful, with over 1,000 sellers and 11 times more SKUs available online, contributing positively to gross profit rates.

• Best Buy Co Inc (NYSE:BBY) continues to innovate with new in-store experiences and partnerships, such as immersive showcase areas for AI glasses and collaborations with IKEA, enhancing customer engagement and satisfaction.

• The company experienced declines in the home theater, appliance, and drone categories, which partially offset growth in other areas.

• Best Buy Co Inc (NYSE:BBY) anticipates a decline in fourth-quarter gross profit rate due to increased promotional investments and lower product margin rates.

• The appliance market remains challenging, with a high percentage of single-unit purchases and a focus on duress customers, impacting promotional effectiveness.

• Despite positive momentum, the fourth-quarter comparable sales outlook is expected to be in the range of down 1% to up 1%, reflecting potential challenges in maintaining growth.

• The company recorded pretax noncash asset impairments of $192 million related to Best Buy Health, indicating pressures in the Medicaid and Medicare Advantage markets.

Q: Can you discuss the puts and takes on Q4 guidance, especially in terms of sales and profit expectations? A: Matthew Bilunas, CFO, explained that the high end of Q4 sales guidance is similar to previous expectations, with a slight adjustment on the low end. The EBIT expectations were slightly lowered due to rate pressure and adjusted revenue expectations, but overall, the guidance remains consistent with prior discussions.

Q: How is the adoption of products like the Nintendo Switch 2 and iPhone affecting future momentum? A: Matthew Bilunas noted that computing and mobile phones are expected to continue growing due to replacement needs and innovation. The Nintendo Switch 2 will support growth in Q4, but other consoles may slow due to their lifecycle stages. Improvements in TV trends and marketplace initiatives are also expected to contribute positively.

Q: What is driving the deceleration in Q4 outlook despite momentum from Q3? A: Matthew Bilunas highlighted that Q3 benefited from strong back-to-school and October sales, but Q4 faces tougher comparisons. Categories like gaming and wearables may not grow at the same pace as in Q3, and the holiday season’s unpredictability requires a range of scenarios for planning.

Q: How is the new marketplace performing, and what challenges have you encountered? A: Corie Barry, CEO, expressed satisfaction with the marketplace launch, noting over 1,000 sellers and 11x more SKUs. Early indicators are positive, with high unit sales in accessories and small appliances, lower return rates, and strong customer experience metrics. However, the ramp is still early, and the focus is on scaling through Q4.

Q: Can you provide more details on the loyalty program’s performance and future plans? A: Corie Barry stated that the membership program is crucial, with nearly 8 million paid members. The focus is on driving value through personalized promotions and unique offers, such as discounts on NFL Sunday tickets. The goal is to increase engagement, share of wallet, and support the ads business.

Q: How are you planning store investments for the coming year? A: Corie Barry emphasized the importance of stores as crucial assets for experiences and fulfillment. Investments focus on store look and feel, vendor partnerships, and exploring smaller format stores. The goal is to ensure stores reflect immersive experiences and meet customer expectations.

Q: How are tariffs affecting pricing and average unit retail (AUR)? A: Matthew Bilunas explained that tariffs are included in pricing, but the promotional nature of the industry and product mix changes can mute their impact on AUR. The focus remains on offering products at every price point to meet customer budgets.

Q: How does vendor-supported labor in stores impact customer engagement? A: Corie Barry described the flexible labor model, which includes vendor-supported labor, as enhancing customer engagement. The model allows for specialized expertise while maintaining Best Buy’s service culture, improving customer interactions and satisfaction.

Q: What are the prospects for Agentic Commerce and instant checkout? A: Corie Barry indicated a fast timeline for integration, focusing on customer experience and ensuring seamless transactions, especially for scheduled deliveries and services. The goal is to enhance brand presence and customer engagement through Agentic tools.

Q: How are you managing SG&A expenses amid sales growth? A: Matthew Bilunas noted that SG&A favorability in Q3 was due to higher sales leverage, lower technology and labor spend, and smaller settlements. The focus remains on operational efficiencies and cost reductions to offset pressures and drive profitability.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Getty Images

‘Utter disregard’

WASHINGTON — Commodity Futures Trading Commission Acting Chairman Caroline D. Pham is seeking nominations for the CFTC CEO Innovation Council. The deadline for submissions is December 8. Under Acting Chairman Pham’s leadership, the CFTC has led rapid advancements on innovation and market structure, including the Crypto CEO Forum, prediction markets, perpetual contracts, and 24/7 trading. The CFTC’s Crypto Sprint to implement the President’s Working Group on Digital Asset Markets report recommendations is targeted to continue through August 2026 and includes listed spot crypto trading, tokenized collateral and stablecoins, and rulemaking to enable the use of blockchain technology and market infrastructure. 

“The U.S. is leading a new era in market structure, and the CFTC is at the forefront of this renaissance accelerated by innovation and technology,” said Acting Chairman Pham. “The CFTC stands ready to carry out our mission over expanded markets and products, including crypto and digital assets, and ensure our markets remain vibrant and resilient while protecting all participants. In order to hit the ground running, it is critical that the CFTC drives public engagement with the support of expert industry leaders and visionaries who are building the future. That is why today I am calling upon CEOs to join us in shaping responsible regulations that will lay the foundation for America’s Golden Age of Innovation.”

Acting Chairman Pham invites members of the public to nominate individuals for the CEO Innovation Council and propose potential topics to prioritize. Each nomination submission should include relevant information about the nominee, such as the individual’s name, title, and organizational affiliation as well as information that supports the individual’s qualifications for the CEO Innovation Council. The submission should also include suggestions for potential topics to prioritize as well as the name and email or mailing address of the person nominating the individual. Submission of a nomination is not a guarantee of selection for the CEO Innovation Council.

CEO Innovation Council nominations and potential topics should be emailed to [email protected]. Please use the subject ‘‘CEO Innovation Council Nomination’’ for submissions.