11-3-26: Expect a Fractured G-20 Meeting in Florida Next Month

by Louis Navellier

November 3, 2026

The upcoming G-20 meeting in Doral, Florida is shaping up to be very tense. At a preliminary meeting in Atlanta, top diplomats and envoys from China and Russia were not able to agree on much of anything. For instance, a variety of national rifts has apparently scrapped plans for a group photo session, since European diplomats objected to being photographed with Sergey Lavrov, Russia’s top diplomat.

Secretary of State Marco Rubio chaired the Atlanta meetings over last weekend. Obviously, Rubio is a skilled negotiator, but the European funding to Ukraine to bomb Russian energy facilities is a rift with the Trump administration that may not be resolved in time. The Trump administration has made it clear it no longer supports Europe’s proxy war of Russia via Ukraine. As a result, expectations for the upcoming G-20 meeting are dismal. The only good news is that the U.S. is an oasis from much of the world’s problems.

The biggest central bank news last week was the fact European Central Bank (ECB) President Christine Lagarde decided to resign as of February, nine-months before her term expires. In doing so, she played down the danger that inflation will spread beyond energy. Lagarde said the ECB does not see “material risk of second-round effects at the moment.” Despite that word of assurance, she apparently does not want to stick around for the consequences from the French election – and other elections in the EU – which will make the ECB harder to govern if more anti-EU parties take control of France, Germany and Spain.

As protests in France and Spain persist, right wing anti-EU leaders are expected to be elected in the EU’s two-largest economies, France and Germany, with elections scheduled for April 18. Germany is expected to elect the Afd Party, even though Chancellor Merz is holding on to a fragile coalition, as is French President Macron. Spain’s election is also scheduled in the spring, on May 23. Essentially, the ruling elites in France, Germany and Spain are expected to be overthrown, so the main question is, will the ruling elite in Brussels – which ruined many of these countries with open immigration policies and political meddling – also be defeated (or defunded?)  And now, the EU is using Ukraine to lead a proxy war with Russia – a dangerous escalation the Trump administration opposes, because the U.S. prefers a peace deal.

Turning to other key elections, last week was a big week for the elections in Brazil and Israel. In Israel, the two-top candidates were too close to call, so there will likely be a run-off, but in Brazil, President Lulu da Silva was re-elected to his fourth term, with 51.76% of the vote over his opponent Jair Bolsonaro, who was expected to win. Voting hours were extended by two-hours to help ensure a Lulu victory, so there could be challenges due to election meddling. In the meantime, since the business community expected a Bolsonaro victory, the Brazilian stock market is in the process of erasing its previous gains. The Brazilian real is also plunging due to the Lulu da Silva victory, so Brazil’s fiscal woes are expected to escalate.

Earnings Are Up Over 30% – But Good Stocks Often Get Punished Anyway

Memory stocks rebounded early last week and most AI and data-center stocks were rebounding from the previous week’s attack because fundamentally superior stocks tend to “bounce like fresh tennis balls.”

Anthropic’s IPO is generating a lot of excitement, since the company announced in its pre-IPO filing that it lost $81 billion in the first six-months of 2026 due largely to an extraordinary $72 billion convertible note charge. Despite these losses, Anthropic’s revenue growth is stunning, so this IPO could be grossly oversubscribed. The excitement about the Anthropic IPO is now lifting the AI and data center stocks.

Interestingly, Nvidia’s largest customer, Super Micro Computer, recently pre-announced its fiscal first-quarter sales to be in the range of $18.5 billion to $19.5 billion, up from its previous guidance of $14.5 billion to $15.5 billion due to increased demand for the company’s AI platforms. I should add that $19 trillion in sales translates to a 280% annual revenue growth rate!  Super Micro Computer also said its gross margins are expected to increase to 12%-12.5%, up from its previous guidance of 10.4%-10.8%.

Google missed the analysts’ third-quarter estimate, since it is spending more money on AI development. Although Google still dominates Internet search activity, the company admitted its “AI mode” tended to curtail its search activity. In the third-quarter, Google’s search business is still growing at a 12% annual pace and the company’s cloud business continues to boom, at a 103% annual pace. Google free cash flow declined by $9.1 billion due to its heavy AI investment. I do not anticipate Google to do a secondary stock offering, like Meta, to raise more money for AI development. If Google needs more capital for AI development it can always raise money in the bond market, which it has occasionally tapped in the past.

Last Thursday, Amazon announced third-quarter revenue rising 12% to $201.9 billion and their operating earnings surged 61% to $28.1 billion ($1.89 per share). The analyst community was expecting operating earnings of $1.96 per share, so Amazon posted a 3.5% earnings disappointment. The company’s Amazon Web Services (AWS) revenue rose 39.3% to $46 billion and was disappointing, since Google reported 103% growth in its cloud business. Finally, due to heavy AI investment, Amazon’s cash flow declined by $42.4 billion.

In conclusion, Amazon, Google and Meta all reported declining cash flow due to higher AI spending. While many on Wall Street see this as a negative development, I think heavy AI spending is incredible news for AMD, Nvidia, Micron and all the memory companies, plus all the data-center related companies!

As further evidence of the AI boom, GE Vernova reported on Wednesday that its third-quarter revenue rose 26.8% to $12.64 billion, 5.2% higher than the analysts’ consensus estimate. The company’s earnings surged to $1.94 billion, or $4.81 per share, and were 15.3% higher than the analyst consensus estimate. GE Vernova’s operating margins continue to expand, which has allowed the company’s earning to compound at an astounding 189% annual pace in the past two years. Naturally GE Vernova also raised its guidance. However, the most exciting news was that its new orders in the third quarter rose 96% to $29 billion, which far exceeded analyst estimates. As a result, GE Vernova’s order backlog continues to grow!

And finally, Vertiv announced third-quarter sales rising 60.8% to $4.31 million compared to $2.68 million in the same quarter last year. During the same period, the company’s earnings rose 91.2% to $764.5 million or $1.95 per share vs. $398.5 million ($1.02 per share). Excluding extraordinary items, Vertiv’s operating earnings were $2.21 per share. The analyst community expected $3.68 billion sales and $1.82 a share in operating earnings, so the company posted a 14.6% sales surprise and a 21.4% earnings surprise!

I regret seeing some fundamentally superior AI and data-center related stocks maligned by a negative financial news media. However, it is my experience that fundamentally superior stocks bounce back quickly in the upcoming weeks, as our best defense remains a strong offense of fundamentally superior stocks.

Prepare for a Rising Market During This Holiday Season

Not many economic indicators were released last week, but the Conference Board on Tuesday announced its October consumer confidence index surged to 91.7, up from 84.2 in September. The present situation poll rose to 72.6 in October (up from 65.7), while the short-term outlook component soared to 120.4 (from 111.8 in September). Consumers are usually in a better mood as we head into the holiday season.

As we prepare to celebrate the holidays, I recommend you do not listen to the negative naysayers, like CNBC’s Andrew Ross Sorkin, who clearly loves to his share anti-American views. In fairness to Andrew, he is affiliated with the New York Times, so he is more anti-Trump than anti-American, but he has been a bear for several months by throwing cold water on the stock market and record earnings being announced. I would recommend you watch Bloomberg instead of CNBC—unless you want to be clinically depressed.

In conclusion, I believe the end of the midterm elections maybe a growth trigger, since the fake news and naysayers are expected to finally shut up, for a while. It is impossible to ignore the earnings stampede that is now unfolding.

Navellier & Associates; own Nvidia (NVDA), Super Micro Computer, Inc. (SMCI), Vertiv Holdings Co. Class A (VRT), GE Vernova Inc. (GEV), Meta Platforms Inc Class A (META), Amazon (AMZN) and Alphabet Inc. Class A (GOOGL) in managed accounts. Louis Navellier and his family own Nvidia (NVDA), Super Micro Computer, Inc. (SMCI), Vertiv Holdings Co. Class A (VRT), GE Vernova Inc. (GEV) and Alphabet Inc. Class A (GOOGL) via a Navellier managed account and Nvidia (NVDA) and Amazon (AMZN) in a personal account. They do not own Meta Platforms Inc Class A (META).