Episode summary
GE’s Super-Vernova. Plus, Disney and A.I. Moviemaking | Barron's Streetwise
Barron's Streetwise
· · Hosts: Jack Bary
Summary
GE Vernova’s surge is the main story: the company has gone from the overlooked energy piece of the old General Electric breakup to a business the analyst calls “Super Vernova,” with demand for heavy-duty gas turbines running far ahead of supply. The host argues that the market initially treated Vernova like a low-growth, eventually obsolete power company, but the combination of rising U.S. electricity demand, AI data centers, and broader electrification has dramatically improved its earnings power. The analyst says the real driver is not just data centers, but a larger rebound in U.S. power demand and grid spending, with servicing the installed turbine fleet now a high-margin profit engine.
Key takeaways
- The analyst says only about 10% of Vernova’s backlog is tied to data centers, while electrification and grid demand are the bigger growth drivers.
- GE Vernova’s heavy-duty gas turbines are sold out through 2029, and the analyst says they can cost hundreds of millions of dollars each.
- The analyst says Vernova’s EBITDA margin guidance has reset from below 10% expectations to a 20% target for 2028.
- The host says the stock jumped 16% in a day after blowout guidance, underscoring how fast investor expectations are rising.
- On Disney and OpenAI, the host says the licensing deal lets Disney “play offense” while investors and creators debate AI’s impact on media.
Notable quotes
“there are only three companies in the world doing what they do, right? It's a rational industry”
“The guide that they gave yesterday is for 20% margin for 28”
“So right now you would have to wait probably they sold out through 2029 effectively”
“It's not cheap, but we think they continue material upward earning revisions”
How the episode opens
I just want folks to understand what makes Verova special is that there are only three companies in the world doing what they do, right? It's a rational industry. We have power growth in this country for the first time in a decade and the company is laser focused on execution.
It's a very good combination. Hello and welcome to the Baron Street Wise podcast. I'm Jack How and the voice you just heard is Andrew Oen.
He's an industrials analyst with BA Securities and he's talking about GE Vernova. Today we're going to answer all your Verova questions like what's a Vernova and why is it up more than 400% since it hit the stock market last year. I'll also say a few words about my plans to take over Hollywood.
Listening in is our audio producer, Alexis. Hi, Alexis.
Hey, Jack. — How's my timber? Can I get a timber check? Like I'm a little I get a little bit of a tickle. A little bit of a — Yeah, you sound a little stuffy. What's going on?
It's just a little uh little pre Christmas uh sniffles in my snorler. So, uh it's all right. I'll be okay.
We have not talked yet. I'm sure we will at some point about Netflix's deal to buy Warner, the studio and streaming business. For now, I'll just say it's a little weird because Netflix is the company that spent so many years beating Hollywood into submission.
Now, it's buying part of what it's beaten. Also, the deal isn't cheap. Netflix can certainly afford it, but the price reminds me of when Disney bought those entertainment assets from Fox back in 2019.
Bob Iger had done in the past these bite-siz deals for Marvel and Lucasfilm and Pixar, and those had paid off wonderfully well.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- industrial turbines
- ge vernova
- ai moviemaking
- hollywood
- disney
Companies and tickers mentioned
- GEV
- DIS
- GE Vernova
- The Walt Disney Company
Watch the episode
Watch “GE’s Super-Vernova. Plus, Disney and A.I. Moviemaking | Barron's Streetwise” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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