Core Viewpoint - The ongoing negotiations regarding TikTok's ownership involve multiple major companies interested in acquiring its US assets from Chinese parent company ByteDance, with a deadline set for December 16 to finalize the sale or face shutdown in the US [1][13]. Group 1: Potential Buyers - A consortium holding 80% of TikTok's US operations would include ByteDance's current shareholders such as Susquehanna International Group (SIG), General Atlantic, and KKR, while ByteDance retains a 19.9% stake [2][13]. - Oracle, valued at over $871 billion, is a key player providing cloud services for TikTok's US operations and is expected to take a stake in the new deal [3][13]. - Amazon, with a market valuation exceeding $2.5 trillion, has made a last-minute offer to acquire TikTok's assets outside of China [4][13]. - A startup led by Tim Stokely, founder of OnlyFans, has partnered with a cryptocurrency foundation to submit a bid for TikTok [5][14]. - AppLovin, a marketing platform valued at $204 billion, has proposed a larger deal that would merge TikTok's global operations outside of China [6][14]. - Perplexity AI has revised its merger proposal to create a new entity combining its operations with TikTok's US segment, suggesting a potential 50% ownership for the US government upon an IPO [8][14]. - Frank McCourt, former owner of the Los Angeles Dodgers, is leading a bid with Reddit co-founder Alexis Ohanian as a strategic adviser [9][10][14]. - A group of investors, including YouTube personality MrBeast, has made an all-cash bid of $30 billion for TikTok's US operations [11][14]. - Microsoft, previously a top bidder in 2020, is also mentioned as a potential acquirer, with a market value of $3.78 trillion [12][14]. Group 2: Strategic Implications - The deal aims to resolve national security concerns raised by the US government regarding TikTok's Chinese ownership, potentially stabilizing the app's operations in the US [1][13]. - The involvement of major tech companies and investment firms indicates a competitive landscape for TikTok's acquisition, highlighting the app's significant user base of approximately 170 million Americans [1][13].

Core Viewpoint - AppLovin has experienced significant stock growth, with a +800% increase since going public in April 2021, driven by strategic moves, financial performance, and market momentum [2][3]. Group 1: Financial Performance - AppLovin's stock has rebounded over +100% in the last six months and is up +80% year to date [1]. - Annual sales are projected to increase by 17% this year to $5.5 billion from $4.71 billion in 2024, with fiscal 2026 sales expected to climb another 26% to $6.93 billion [6]. - The company's top line has grown over 200% since the pandemic, with annual sales reaching $1.45 billion in 2020 [8]. Group 2: Strategic Moves - AppLovin divested its mobile gaming division for $400 million in June, allowing the company to focus on its high-growth ad tech platform [5]. - The AXON 2.0 platform, a machine learning engine for mobile ad delivery, has been a key driver of optimism, optimizing advertisers' reach and engagement [3][4]. Group 3: Market Position and Expansion - AppLovin is now the third-largest ad platform provider in the U.S., following Meta Platforms and Alphabet [5]. - The company is expanding its ad tech globally, targeting markets in Europe and Asia, which has increased its total addressable market and reduced reliance on U.S. gaming revenue [4]. Group 4: Analyst Sentiment and Stock Inclusion - AppLovin's stock will be added to the S&P 500, boosting investor sentiment and institutional credibility [9]. - Analysts have raised their price targets for AppLovin to over $640, reflecting a bullish stance on its AI-powered mobile ad-tech platform [9]. - Earnings estimate revisions for FY25 and FY26 have increased, with FY25 estimates rising 7% and FY26 estimates spiking 12% [10].

Core Insights - A potential Federal Reserve rate cut, strong retail sales, and progress in U.S.-China trade talks may positively impact the broader stock market, but not all stocks are guaranteed to perform well. Investors are advised to use the Driehaus strategy to identify the best momentum stocks [1] Group 1: Driehaus Strategy Overview - The Driehaus strategy emphasizes investing in stocks that are increasing in price rather than those in decline, focusing on strong earnings growth and positive momentum indicators [3][5] - Key criteria for the Driehaus strategy include a positive percentage 50-day moving average and strong earnings growth rates, with a focus on companies that consistently beat earnings estimates [4][5] Group 2: Selected Momentum Stocks - AppLovin Corporation (APP), Build-A-Bear Workshop, Inc. (BBW), and Tenet Healthcare Corporation (THC) have been identified as momentum picks based on the Driehaus strategy [2][8] - AppLovin has a Momentum Score of B and an average trailing four-quarter earnings surprise of 22.4% [10] - Build-A-Bear Workshop also has a Momentum Score of B, with an average trailing four-quarter earnings surprise of 21.3% [11] - Tenet Healthcare, with a Momentum Score of B, boasts an average trailing four-quarter earnings surprise of 31.2% [12]

Market Overview - The broader equity markets have reached all-time highs, driven by optimism regarding a potential interest rate cut by the Federal Reserve despite concerns about the economy and a slowdown in the labor market [1] - The consumer price index increased by 0.4% for the month, surpassing expectations of a 0.3% rise, while only 22,000 jobs were added in August, indicating soft labor market conditions [1] Investment Strategy - Investors are adopting a wait-and-see approach regarding the central bank's monetary policy and its outlook on economic growth and inflation, which may influence future rate cuts [2] - Identifying "cash cow" stocks with high returns is essential, but it must be supported by attractive efficiency ratios like return on equity (ROE) [2][3] Importance of ROE - ROE, calculated as Net Income divided by Shareholders' Equity, helps investors differentiate between profit-generating companies and those that are not, indicating financial health [3] - A higher ROE signifies effective management in generating profits without new equity capital, thus rewarding shareholders with attractive risk-adjusted returns [4] Stock Screening Parameters - Stocks were shortlisted based on criteria including Cash Flow greater than $1 billion and ROE exceeding the industry average [5] - Additional metrics include Price/Cash Flow lower than the industry average, Return on Assets (ROA) greater than the industry average, and 5-Year EPS Historical Growth exceeding the industry average [6][7] Featured Stocks - **Arista Networks Inc. (ANET)**: Engaged in cloud networking solutions with a long-term earnings growth expectation of 18.7% and a trailing four-quarter earnings surprise of 12.8%, holding a Zacks Rank 1 [8][9] - **TE Connectivity plc (TEL)**: A global technology company with a long-term earnings growth expectation of 9.8% and a trailing four-quarter earnings surprise of 4.9%, holding a Zacks Rank 2 [10][11] - **Corning Incorporated (GLW)**: Focused on glass technologies with a long-term earnings growth expectation of 18.2% and a trailing four-quarter earnings surprise of 4.7%, also holding a Zacks Rank 2 [12] - **Banco Bilbao Vizcaya Argentaria, S.A. (BBVA)**: Provides banking services with a long-term earnings growth expectation of 10% and a trailing four-quarter earnings surprise of 7.4%, holding a Zacks Rank 2 [13] - **AppLovin Corporation (APP)**: Offers software solutions for advertisers with a long-term earnings growth expectation of 20% and a trailing four-quarter earnings surprise of 22.4%, holding a Zacks Rank 1 [14]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of a small city, indicating a significant strain on global power grids [2] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is debt-free and has a substantial cash reserve, equating to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] Market Position - The company also holds a significant equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth engines in the AI sector [9] - It is trading at a low valuation of less than 7 times earnings, making it an attractive option for investors looking for undervalued stocks in the AI and energy space [10][11] - The company is recognized for its ability to deliver real cash flows and maintain critical infrastructure, which is essential for future growth in the AI sector [11][12] Future Outlook - The ongoing influx of talent into the AI field is expected to drive rapid advancements and innovation, reinforcing the importance of investing in AI-related companies [12][13] - The combination of AI infrastructure development, the onshoring boom, and a surge in U.S. LNG exports presents a unique investment landscape that the company is well-positioned to capitalize on [14]

ToplinePresident Donald Trump extended the deadline for a TikTok sale to Dec. 16 on Tuesday, delaying a potential shutdown of the app, hours after he told reporters he had reached a “deal” with Chinese officials on the app’s future. TikTok logo displayed on a phone screen and photo of Donald Trump taken on June 25 in The Hague displayed on a laptop screen in the background are seen in this illustration photo taken in Poland on July 21, 2025. (Photo by Jakub Porzycki/NurPhoto via Getty Images)NurPhoto via Ge ...

Core Insights - Founder-run companies, while representing less than 5% of the S&P 500 index, contribute nearly 15% of the total index's market capitalization, particularly in the technology sector [2] - Founder-led companies tend to outperform others, with a market-adjusted return of 12% over three years compared to a negative 26% for companies with professional CEOs [5] Company Highlights - **AppLovin**: - Market capitalization of $129.7 billion, leading in mobile advertising with its AI engine, Axon 2 [7] - Transitioned to a software-centric model, improving margins and financial performance [9] - Positioned to capture market share through scalable, AI-enabled technologies [8] - **Palantir Technologies**: - Market capitalization of $406.2 billion, focusing on software platforms for the intelligence community [11] - Strong AI strategy with a revenue guidance midpoint of $4.146 billion for 2025, indicating 45% year-over-year growth [14] - Modular sales approach expanding its U.S. commercial customer base [13] - **Blackstone**: - Largest alternative asset manager with a market capitalization of $225.7 billion and over $1.1 trillion in total assets under management [15] - Strong inflows and a capital base of $181.2 billion, positioning it to capitalize on market dislocations [17] - Focus on areas like digital infrastructure and life sciences for long-term growth [17] - **CrowdStrike**: - Market capitalization of $111.6 billion, transforming cybersecurity with its AI-native Falcon platform [18] - Expected revenues for fiscal 2026 between $4.749 billion and $4.805 billion, with adjusted operating income projected at $1-$1.04 billion for fiscal 2025 [21][22] - Leveraging AI to enhance security outcomes and operational efficiency [20]

Core Insights - AppLovin Corporation (APP) is expanding its AXON advertising technology platform internationally, aiming for significant revenue growth beyond the U.S. market, with a gradual rollout starting October 1, 2025, and full platform availability planned for 2026 [1][8] Group 1: International Expansion - The strategic expansion targets markets in Europe and Asia, leveraging existing global infrastructure with offices in cities like Dublin, Berlin, Tokyo, Seoul, and Beijing, thus enlarging its total addressable market [2] - International growth is expected to enhance revenue and reduce reliance on the cyclical U.S. mobile gaming market, appealing to institutional investors seeking stable, long-term returns [3] Group 2: Growth Projections - AppLovin anticipates a year-over-year growth rate of 20% to 30%, primarily driven by its gaming segment and AI-driven ad monetization, positioning international expansion as a critical growth catalyst [4] - The stock has gained 83% year-to-date, significantly outperforming the industry average growth of 32% [7][8] Group 3: Competitive Landscape - AppLovin's peers, The Trade Desk (TTD) and Magnite (MGNI), operate in adjacent digital advertising spaces, with TTD focusing on programmatic advertising and connected TV, while Magnite emphasizes scale and inventory diversification [5] - The growth trajectory of AppLovin is viewed as robust and sustainable if it successfully scales the AXON platform and leverages evolving AI ad technologies, making it a compelling choice in digital advertising alongside its peers [6] Group 4: Valuation Metrics - AppLovin currently trades at a forward price-to-earnings ratio of 48.72, which is above the industry average of 28.59, indicating a higher valuation compared to its peers [12]

Group 1 - AppLovin Corporation (NASDAQ:APP) has been included in the S&P 500 index, which is expected to enhance its market visibility and investor interest [2][4] - For Q2 2025, AppLovin reported a revenue of $1.26 billion, reflecting a year-on-year growth of 16.5%, although it slightly missed analyst estimates by 1.2% [2] - The company's earnings per share (EPS) of $2.39 exceeded analyst expectations by 20.4%, contributing to a positive outlook for the stock [2] Group 2 - Jim Cramer has highlighted AppLovin as one of the stocks with strong growth momentum, indicating confidence in its future performance [3][4] - The company has garnered attention from hedge funds, with 109 hedge funds reported to have ownership stakes in AppLovin, suggesting significant confidence in its growth prospects [4] - AppLovin, founded in 2012 and based in Palo Alto, California, specializes in providing a software platform and AI-powered solutions for mobile app developers [5]

Core Viewpoint - AppLovin Corporation is successfully expanding beyond gaming, with significant growth in non-gaming revenue driven by international expansion, referral program adoption, and seasonal advertising spend [1] Group 1: Revenue Forecasts - BTIG analysts raised their price forecast for AppLovin to $664 from $547, maintaining a Buy rating [1] - The brokerage forecasts fourth-quarter 2025 non-gaming revenue of $531 million, up from a prior estimate of $369 million [2] - For the full year 2026, non-gaming spending is projected to reach $2.58 billion, an increase from $2.13 billion previously, lifting total revenue and EBITDA forecasts to $8.19 billion and $6.84 billion, respectively [3] Group 2: Advertising and Market Position - Late August channel checks indicated about a 50% intra-quarter improvement in return on ad spend, with marketers scaling campaigns based on total returns [4] - AppLovin is positioned to expand into new verticals such as commerce, financial services, healthcare, and automotive, creating an incremental advertising opportunity of $245–$285 billion [5] Group 3: Market Share and Valuation - AppLovin accounts for about 4% of client spend, ranking behind only Meta and Alphabet, indicating strong performance and incrementality [6] - BTIG's valuation is based on a 32.5x multiple of the 2026 estimated software EBITDA, adjusted for -$1.6 billion in net cash, with bull and bear cases implying outcomes of $819 and $201, respectively [6] Group 4: Strategic Initiatives - AppLovin is recognized as a top pick due to improvements in Axon 2.0, deeper penetration into non-gaming categories, and the upcoming rollout of a self-serve dashboard [7]