Core Insights - Activist investor Bill Ackman of Pershing Square Capital Management has concentrated his fund into three major companies: Uber Technologies, Alphabet, and Amazon, which together account for over 45% of his invested assets [5][12][17] Group 1: Uber Technologies - Uber Technologies represents 21% of Ackman's invested assets, making it the largest holding in his portfolio [5] - The global ride-sharing market is projected to grow from $87.7 billion in 2025 to over $918 billion by 2033, indicating a compound annual growth rate of 21% [7] - Uber has maintained a dominant market share in the U.S. ride-share market, fluctuating between 68% and 76% from September 2017 to March 2024 [8] - Uber's business model has evolved from unprofitability to generating significant cash flow, aided by its operations in food delivery and freight logistics [9] - Despite its strengths, Uber's valuation is a concern, with a price-to-sales (P/S) ratio of 4.1, suggesting it may need to increase its global market share to justify this premium [10] Group 2: Alphabet - Alphabet accounts for 15.1% of Ackman's invested assets, with significant investments in both Class A and Class C shares [12] - The company relies heavily on advertising, with its Google search engine commanding 89% to 93% of the global internet search market share [13] - Alphabet's Google Cloud is a key growth driver, with sales increasing by 32% year-over-year, achieving an annual revenue run-rate of over $54 billion [14] - The integration of generative AI solutions into Google Cloud is expected to sustain its growth trajectory [15] - Alphabet's shares are currently valued at 22 times forward-year earnings, which is considered reasonable given its growth rate and cash flow [16] Group 3: Amazon - Amazon constitutes 9.3% of Ackman's invested assets and is recognized for its e-commerce platform and AWS [17] - AWS leads the global cloud infrastructure market, accounting for 32% of worldwide spending, significantly outpacing Google Cloud [19] - AWS has an annual sales run-rate exceeding $123 billion and is focusing on generative AI to enhance its offerings [19] - Amazon's subscription services and advertising segments are also experiencing growth, with advertising services growing around 20% year-over-year [20] - Amazon's stock is currently trading at a historically low cash flow multiple of 12.6 times consensus cash flow per share for 2026, attracting investor interest [21]

Core Viewpoint - Lululemon Athletica's stock has significantly declined due to missed earnings estimates and a reduction in full-year guidance, primarily driven by challenges in the U.S. market, leading to a year-to-date drop of 56% [1] Financial Performance - Revenue for the quarter increased by 7% to $2.53 billion, slightly below the consensus estimate of $2.54 billion, with comparable sales up only 1% [2] - Comparable sales in the Americas decreased by 4%, while international sales surged by 15%, driven by a 17% growth in China [2] Market Challenges - The U.S. market, being the largest for Lululemon, is facing multiple challenges, including tariffs and the end of the de minimis exemption on e-commerce, which contributed to the cut in EPS guidance from $14.58-$14.78 to $12.77-$12.97 [3][7] - There are indications that the popularity of yoga pants is waning, with consumers shifting towards baggier garments, posing a longer-term challenge for the company [5] - Weak consumer sentiment and discretionary spending in the U.S. are also impacting performance, exacerbated by fears of tariffs and a potential recession [6] Competitive Landscape - Lululemon is not alone in facing difficulties, as other discretionary brands like Deckers and Nike have reported declines in U.S. sales [8] - The restaurant industry is also experiencing similar challenges, which may provide some context for Lululemon's struggles [9] Management Response - CEO Calvin McDonald acknowledged the disappointing U.S. results and emphasized the need for innovation in product offerings, planning to increase the percentage of new styles from 23% to 35% [10] - The company is accelerating its go-to-market and design processes to better respond to demand trends [10] Investment Consideration - Despite the challenges and guidance cut, Lululemon's stock appears undervalued, trading at a forward P/E of 13, comparable to slow-growth companies [11] - The impact of tariffs is expected to be short-term, while the company's diversified product range and established brand may provide a competitive advantage [12] - For patient investors, current stock valuation may present a buying opportunity, as it trades at half the valuation of the S&P 500 [13]

This category-leading semiconductor specialist is generating strong growth thanks to artificial intelligence (AI).Over the past 20 years, much of what fuels the U.S. economic engine has shifted. For instance, oil and industrial players were the largest publicly traded companies in the country in 2005 (measured by market cap), as ExxonMobil and General Electric were worth $392 billion and $375 billion, respectively. Now, just two decades later, the list of the most valuable companies has five stocks with mar ...

Alphabet shares jumped after the search giant won a big court battle that will allow it to keep Chrome, Android, and search distribution deals.In this podcast, Motley Fool contributors Travis Hoium, Lou Whiteman, and Rachel Warren discuss:Google keeps Chrome.Kraft Heinz to split.An IPO frenzy.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.A full transcript is below. This podcast was record ...

Story stocks are fun, but at the end of the day every business eventually needs to be able to produce sustainable profit growth.There's certainly no shortage of hype surrounding relatively new stock Figma (FIG -4.22%) these days. And understandably so. This seemingly simple company is growing like crazy, recently reporting a year-over-year quarterly top line of improvement of 41%, with more of the same on the horizon.Unfortunately, hype alone doesn't guarantee bullishness. This stock's down by more than hal ...

Core Insights - Anthropic's valuation has tripled to $183 billion in just six months, indicating strong investor interest in AI technology [6] - Amazon's strategic investment of $8 billion in Anthropic positions it favorably in the AI landscape, especially as Anthropic is expected to utilize AWS for its AI infrastructure [4][7] - The partnership with Anthropic could significantly benefit Amazon, as Anthropic's projected spending on AWS could reach $5 billion next year, driven by its rapid revenue growth [9] Group 1: Amazon's AI Positioning - Amazon has been perceived as lagging in AI compared to competitors like Microsoft and Alphabet, but it has launched services like Amazon Bedrock and its own LLM, Nova [2][3] - Despite a slow start, Amazon remains the largest cloud infrastructure provider globally, with potential to leverage AI across its various business segments [12] - The partnership with Anthropic not only enhances Amazon's AI capabilities but also provides a pathway to capture more AI-related spending through AWS [11][13] Group 2: Anthropic's Growth and Impact - Anthropic's recent funding round raised $13 billion, solidifying its position as a key competitor to OpenAI, which is valued at up to $500 billion [6] - The company's revenue run-rate is projected to grow from $1 billion to $5 billion by August 2025, reflecting an annual growth rate of approximately 700% [9] - Anthropic's commitment to using Amazon's AI chips, Trainium and Inferentia, could create additional market opportunities for Amazon [10]

Alibaba is quietly rebuilding its long-term growth engine.Alibaba Group (BABA 4.08%) has tested investors' patience over the past few years. From regulatory crackdowns to slowing consumer spending and intensifying competition from Pinduoduo and Meituan, the company went from China's undisputed tech champion to a stock many investors gave up on.But the latest results suggest there are reasons to turn more optimistic. While risks remain, Alibaba is showing early signs of strategic progress in areas that matte ...

A powerful ads engine and heavy AI spending bolster the five-year growth story.Shares of Meta Platforms (META -0.02%) have surged since late July's earnings update, fueled by the social media specialist's stronger-than-expected quarter and upbeat revenue guidance. No wonder Wall Street is piling into the stock. There's a lot to like. The Facebook, Instagram, and WhatsApp parent is leaning hard into artificial intelligence (AI) across products and ads, while returning significant sums of cash to shareholders ...

A record June quarter, swelling installed base, and fast-growing services business keep the iPhone maker's long-term story intact.Apple (AAPL -0.79%) heads into Tuesday's product launch event with fresh momentum in both the underlying business and the stock. Shares have climbed recently, prompting a fair question for investors: Did the investment window already close?I don't think so. The Cupertino-based tech company that makes the iPhone, Mac, iPad, and Apple Watch -- and runs services like the App Store, ...

You could have done worse -- or much better.Quick -- what were you doing back in September of 2022? Were you buying $10,000 of stock in Amgen (AMGN -1.17%)? If so, you might be wondering what that's worth today. Even if you didn't buy Amgen stock then, you might wonder how it has performed -- and if you should buy some shares now.Here's the answer to the question: Over the past three years, a $10,000 investment in Amgen would have become a stake worth ... $12,661. That may seem OK, as your money did grow. A ...