Core Insights - The investment landscape is not universally attractive or unattractive, as there are opportunities even in overvalued or challenging sectors [1] Group 1 - The analyst has over 10 years of experience generating value ideas in European and North American markets [1] - The analyst contributes to iREIT®+HOYA Capital and Wide Moat Research LLC, covering various European markets including Scandinavia, Germany, France, UK, Italy, Spain, Portugal, and Eastern Europe [1] - The focus is on identifying reasonably valued stock ideas within these markets [1]

Core Insights - The IT Services spending slowdown has significantly impacted Globant S.A.'s share price, which has decreased by 73% since January [1] - There is an expectation for demand to re-accelerate in 2026, which could benefit the entire IT industry, particularly in relation to advancements in AI [1] Company Summary - Globant S.A. has experienced a drastic decline in share price due to the slowdown in IT Services spending [1] - The company is positioned to potentially benefit from a resurgence in demand anticipated in 2026 [1] Industry Summary - The overall IT industry is expected to see a recovery in demand, driven by advancements in artificial intelligence [1]

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Company and Industry Summary - IPO Edge offers a comprehensive database of U.S. IPOs and a guide to IPO investing, covering the entire IPO lifecycle from filing to listing [1] - The platform aims to assist investors in tracking upcoming IPOs and understanding key dates such as quiet period and lockup expiration [1]

Core Insights - The "Game On" Report by Globant highlights significant shifts in the gaming industry for 2026, emphasizing the importance of infrastructure, intelligence, and trust alongside entertainment as AI adoption creates new opportunities and challenges for developers [1][2]. Industry Overview - Global gaming revenues are projected to reach $189 billion in 2025, driven by evolving player expectations and disruptive technologies that transform the creation, delivery, and sustainability of gaming experiences [2]. - The transformation in gaming is characterized by a focus on the systems powering games rather than just graphics or world size, with portable and cloud platforms changing how and where people play [3]. Key Forces Shaping the Industry 1. **Platform Shift**: The rise of portable and cloud-optimized gaming is moving the focus from fixed consoles to seamless, portable access and play-anywhere continuity [7]. 2. **AI Adoption**: 97% of developers are utilizing AI to enhance asset creation, playtesting, and localization, positioning AI as a creative ally that expands innovation capacity [7]. 3. **Deep Engagement**: The industry is shifting focus from acquiring new players to retaining existing ones through live services, expansions, and remasters [7]. 4. **Creator-Driven Discovery**: Platforms like TikTok, YouTube, and Twitch are now primary channels for game discovery, with creators influencing engagement and monetization [7]. 5. **Regulatory Pressure**: Increased accountability is reshaping monetization and design, with governments targeting practices like loot boxes and gacha systems due to their psychological and ethical implications [7]. Future Directions - As the industry progresses into 2026, gaming companies must evolve by integrating AI responsibly, prioritizing player trust, and designing cross-platform experiences to remain competitive [5].

Core Insights - Globant SA reported third-quarter earnings of $1.53 per share, missing the analyst consensus estimate of $1.54 per share, while quarterly sales reached $617.143 million, surpassing the consensus estimate of $615.376 million [1] Group 1: Financial Performance - The company's earnings per share (EPS) for the third quarter was $1.53, which was below the expected $1.54 [1] - Quarterly sales amounted to $617.143 million, exceeding the analyst consensus of $615.376 million [1] Group 2: Strategic Focus - The CEO of Globant emphasized the company's commitment to a long-term growth strategy based on four pillars: AI Pods, subscription model, AI Studios, and Globant Enterprise AI platform [2] - The company announced AI-transformational projects for top clients in various industries, indicating a focus on high-potential accounts [2] - The vision is to be the partner of choice for organizations implementing AI across multiple layers, supported by an entrepreneurial culture [2] Group 3: Market Reaction - Following the earnings announcement, Globant shares fell by 0.7%, trading at $62.41 [3] - Analysts adjusted their price targets for Globant, with Needham maintaining a Buy rating but lowering the target from $85 to $80, and JP Morgan maintaining a Neutral rating with a target reduction from $78 to $75 [8]

Market Overview - U.S. stock futures declined following a significant sell-off on Thursday, with major indices showing lower futures despite the government reopening [1][2] - The Nasdaq 100 index, typically strong in November, was down 3.34% month-to-date, contrasting with its historical average gain of 2.64% since 1985 [1] Treasury Yields and Market Projections - The 10-year Treasury bond yielded 4.13%, while the two-year bond was at 3.58%, with a 49.6% likelihood of the Federal Reserve cutting interest rates in December [2] Stocks in Focus - Warner Bros Discovery Inc. rose 3.34% amid acquisition interest from Comcast, Netflix, and Paramount, maintaining a strong price trend [5] - Nu Holdings Ltd. gained 2.98% after exceeding earnings expectations and adding 4.3 million new customers in Q3 [5] - Globant SA fell 3.31% after reporting earnings of $1.53 per share, missing estimates, although sales of $617.143 million exceeded expectations [5] - Applied Materials Inc. declined 4.82% despite better-than-expected Q4 results, impacted by a drop in China revenue [5] - Fluent Inc. dropped 6.93% after reporting disappointing Q3 results [5] Sector Performance - Consumer discretionary, information technology, and communication services sectors recorded the largest losses, while energy stocks closed higher [6] Analyst Insights - The current economic environment is described as a "K-shaped economy," with high-income consumers benefiting while low-income households face challenges [8] - Optimism for a potential economic reversal by 2026 is noted, driven by tax cuts, deregulation, and lower interest rates [9] - Investment opportunities are highlighted in technology-related trends, particularly in artificial intelligence [9] - The Financials sector is rated as most favorable, along with Industrials and Utilities [10]

Core Insights - U.S. stock futures are trading lower, indicating a cautious market sentiment ahead of earnings reports from several companies [1] Company Summaries - **Spire Inc (NYSE:SR)**: Expected to report a quarterly loss of 42 cents per share on revenue of $422.09 million. Shares fell 1.5% to close at $89.16 [2] - **Fluent Inc (NASDAQ:FLNT)**: Reported worse-than-expected third-quarter results, leading to a 6.9% decline in shares to $1.88 in after-hours trading [2] - **Legence Corp (NASDAQ:LGN)**: Analysts anticipate quarterly earnings of 6 cents per share on revenue of $639.78 million. Shares rose 3.7% to $34.56 in after-hours trading [2] - **Globant SA (NYSE:GLOB)**: Reported quarterly earnings of $1.53 per share, missing the consensus estimate of $1.54. However, sales of $617.143 million exceeded the estimate of $615.376 million. Shares fell 4.5% to $60.02 in after-hours trading [2] - **Applied Materials Inc (NASDAQ:AMAT)**: Reported better-than-expected fourth-quarter results, with expected first-quarter revenue of $6.85 billion, surpassing estimates of $6.76 billion. Shares declined 4.5% to $213.10 in after-hours trading [2]

Core Insights - Globant reported quarterly earnings of $1.53 per share, slightly missing the Zacks Consensus Estimate of $1.54 per share, and down from $1.63 per share a year ago, indicating an earnings surprise of -0.65% [1] - The company posted revenues of $617.14 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.31% and showing a year-over-year increase from $614.67 million [2] - Globant's stock has underperformed significantly, losing about 71.2% since the beginning of the year compared to the S&P 500's gain of 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.55 on revenues of $605.12 million, while for the current fiscal year, the estimate is $6.12 on revenues of $2.45 billion [7] - The estimate revisions trend for Globant was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software and Services industry, to which Globant belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Financial Data and Key Metrics Changes - The company reported revenues of $617.1 million for Q3 2025, which is a 0.4% year-over-year increase and a 0.5% sequential increase, exceeding previous guidance by $2 million [20][24] - Adjusted gross profit margin remained stable at 38.1%, while adjusted operating margin increased by 50 basis points sequentially to 15.5% [20][22] - Adjusted net income for the quarter was $69.7 million, maintaining an adjusted net profit margin of 11.3% [22] - Free cash flow generated during the quarter was $67.5 million, achieving a free cash flow-to-adjusted net income ratio exceeding 96% [22][23] Business Line Data and Key Metrics Changes - The company’s AI bots and subscription model are gaining traction, with over 1,000 engagements related to GenAI and CoreAI currently running, representing a third of overall projects [8][19] - The share of clients identified as having "hundred square" potential increased to 56.7%, up from 50% last year [7] - The pipeline reached an all-time high of $3.7 billion, reflecting a 30% year-over-year growth [5][20] Market Data and Key Metrics Changes - The AI market is projected to reach $4.8 trillion by 2033, indicating a 25x increase over the past decade [5] - The company has seen a shift in the AI space from hype to tangible adoption, with a significant number of clients moving towards AI transformation projects [5][31] Company Strategy and Development Direction - The company is focused on sustainable growth and delivering exceptional value through innovation, particularly in AI solutions tailored for various industries [3][4] - The introduction of AI bots represents a significant evolution in how organizations leverage technology, moving towards a subscription revenue model [6][9] - The company aims to redefine consulting by eliminating traditional barriers and focusing on outcome-driven transformations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, noting that demand trends across the client base have started to stabilize despite a fluid macro environment [23][24] - The company anticipates revenue for Q4 2025 to be at least $605 million, reaffirming previous guidance, and expects a non-IFRS adjusted operating margin of at least 15% [23][24] - Management highlighted that the pipeline has grown significantly, with a clear evolution towards more transformational projects [31][40] Other Important Information - The company authorized a $125 million share repurchase program, reflecting confidence in long-term prospects [23] - The effective tax rate for the quarter was 29.4%, influenced by the depreciation of the Argentine peso [21][22] Q&A Session Summary Question: Are clients looking for AI use cases in retailing or banking? - Management noted that consumer experience is being transformed with active projects changing interfaces from navigational to conversational [27][28] Question: Will AI projects move into mainstream production? - Management indicated that there is a clear evolution from exploratory projects to transformational efforts, with many clients now integrating AI into their operations [30][31] Question: What is the outlook for client budgeting in 2026? - Management expressed optimism for 2026, noting that conversations with customers are ongoing and initial numbers indicate more growth than in 2025 [39][40] Question: How is the pricing environment affected by GenAI? - Management stated that there is no major pressure on pricing, as the value added by their offerings allows them to maintain pricing effectively [45][48] Question: What factors could raise conversion rates for the pipeline? - Management highlighted that improving global economic conditions and a deeper understanding of AI benefits will help accelerate conversion rates [80][81]

Financial Data and Key Metrics Changes - The company generated $617.1 million in revenue for Q3 2025, which is up 0.4% year-over-year and 0.5% sequentially, exceeding previous guidance by $2 million [4][20] - Adjusted gross profit margin remained flat at 38.1%, while adjusted operating margin increased by 50 basis points sequentially to 15.5% [20][22] - Adjusted net income for the quarter was $69.7 million, maintaining an adjusted net profit margin of 11.3% [22] - Free cash flow generated during the quarter was $67.5 million, achieving a free cash flow-to-adjusted net income ratio exceeding 96% [22][23] Business Line Data and Key Metrics Changes - The AI bots and subscription model have nearly doubled their share in the pipeline, indicating strong demand for AI-based solutions [8][9] - The top five clients grew sequentially by 2.1%, which is above the company's average growth [6] - The share of clients identified as Hundred Square potential increased to 56.7%, up from 50% last year [7] Market Data and Key Metrics Changes - The pipeline reached an all-time high of $3.7 billion, representing a 30% year-over-year growth [5] - The AI market is expected to grow to $4.8 trillion by 2033, indicating a significant opportunity for the company [5] Company Strategy and Development Direction - The company is focusing on sustainable growth and delivering exceptional value through innovation, particularly in AI solutions [3][4] - The shift to a subscription revenue model is being embedded with 17 of the top 20 customers, reflecting a strong acceptance of this new approach [9][84] - The company aims to redefine consulting by eliminating traditional barriers and focusing on outcome-driven models [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong pipeline and increased client engagement in AI transformation projects [34][41] - The company anticipates better growth rates in 2026 based on the current pipeline and client conversations [41][75] - Management acknowledged the challenges posed by the macro environment but remains confident in the company's ability to adapt and grow [24][25] Other Important Information - The company authorized a $125 million share repurchase program, reflecting confidence in long-term prospects [5][23] - The effective tax rate for the quarter was 29.4%, significantly impacted by the depreciation of the Argentine peso [21][22] Q&A Session Summary Question: Are clients looking for AI use cases in retailing or banking? - Management noted that consumer experience is being transformed with many active projects focusing on conversational interfaces across various industries [28][30] Question: Will AI projects move into mainstream production? - Management indicated that there is a clear evolution from exploratory projects to transformational efforts, with many clients now integrating AI into their core operations [33][34] Question: What is the outlook for headcount and growth in 2026? - Management stated that a combination of higher utilization and new hires will be necessary to support growth, with optimism for better numbers in professional services [78][79] Question: How is the pricing environment affected by GenAI? - Management does not foresee major pricing pressure, emphasizing the value added in their offerings and maintaining revenue per head [48][49] Question: What factors could raise conversion rates for the pipeline? - Management highlighted that improving global economic conditions and a deeper understanding of AI benefits will help accelerate conversion rates [88][90]