Core Insights - Globant has entered into a multi-year strategic collaboration agreement with Amazon Web Services (AWS) to enhance global support for cloud migrations and generative AI adoption [1][2][3] - The collaboration focuses on various industries including Media and Entertainment, Banking and Financial Services, and Automotive, aiming to modernize operations and improve customer experiences [2][3] Group 1: Strategic Collaboration - The agreement builds on over a decade of partnership between Globant and AWS, enhancing their capabilities in cloud innovation and AI adoption [3] - Globant will utilize AWS services to support digital transformation initiatives across multiple sectors, leveraging its global presence and industry expertise [2][3] Group 2: Industry-Specific Solutions - The collaboration aims to deliver tailored solutions that address unique industry challenges, such as real-time analytics for Formula 1 and customer experience reimagination for financial institutions [3][4] - Globant's AWS Studio, launched in August 2023, serves as a center of excellence for AWS solutions, further strengthening their partnership [3][4] Group 3: Competencies and Recognition - Globant has achieved AWS Premier Tier Services Partner status and various competencies, including Managed Security Services Provider and Media and Entertainment Competency, highlighting its expertise in cloud security and service delivery [3][4] - The partnership emphasizes the importance of cybersecurity, providing clients with 24/7 monitoring and protection to innovate confidently [4] Group 4: Broader Strategy - The collaboration aligns with Globant's strategy to transform traditional IT services through AI-driven models, such as AI Pods, which offer speed, flexibility, and cost efficiency [5][6] - Globant's focus on digital reinvention and AI capabilities aims to turn challenges into measurable business results for clients [6]

Core Thesis - Globant S.A. has faced significant challenges leading to a slowdown in growth, but retains capabilities and a diversified client base that may support recovery in the medium term [2][3][4] Company Overview - Founded in 2003 during Argentina's economic crisis, Globant has evolved from a small startup to a global leader in digital services, achieving an NYSE IPO in 2014 [2] - The company has served high-profile clients such as Google, Electronic Arts, and Santander, and has developed an innovative operating model centered around "Studios" and "Pods" for agile project delivery [2] Financial Performance - As of September 22, 2023, Globant's share price was $57.49, with trailing and forward P/E ratios of 23.47 and 9.16, respectively [1] - In Q2 2023, revenues grew only 4.5% year-on-year, indicating a significant slowdown compared to previous growth rates [3] Industry Challenges - The company faces industry-wide pressures including economic uncertainty and post-pandemic normalization, which have impacted growth [3] - Generative AI presents both opportunities for efficiency and challenges by potentially reducing demand for human coders and compressing profit margins [3] - Increased competition from firms like EPAM, Endava, Accenture, and TCS, which are investing heavily in AI capabilities, has eroded Globant's competitive differentiation [3] Strategic Considerations - Despite current challenges, Globant's reputation for delivering high-value digital transformation projects and its diversified client base may support a recovery [4] - Long-term differentiation and adaptation to AI-driven changes are critical for the company's future success and investor confidence [4]

Core Viewpoint - The Alger Spectra Fund's second-quarter 2025 investor letter indicates a significant rebound in equities after a challenging first quarter, with the fund's Class A shares outperforming the Russell 3000 Growth Index [1]. Group 1: Fund Performance - The Alger Spectra Fund's Class A shares outperformed the Russell 3000 Growth Index in Q2 2025 [1]. - The equities market showed a significant rebound in Q2 2025 following a difficult first quarter [1]. Group 2: Company Focus - Globant S.A. - Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company that focuses on digital transformation through software solutions, AI, and cloud services [3]. - In Q2 2025, Globant S.A. reported revenues of $614.2 million, reflecting a 4.5% year-over-year growth [5]. - The stock of Globant S.A. experienced a one-month return of -14.30% and a 52-week loss of 70.76%, closing at $57.49 per share with a market capitalization of $2.53 billion on September 22, 2025 [2][5]. Group 3: Performance Challenges - Globant S.A.'s performance was negatively impacted by weaker-than-expected fiscal first-quarter results, with revenue growth missing analyst estimates [3]. - The revenue shortfall was attributed to clients delaying discretionary IT and digital transformation projects due to macroeconomic uncertainty, particularly in North America [3]. - Management noted that the slowdown in non-essential corporate spending was a primary factor affecting new bookings and revenue growth [3]. Group 4: Hedge Fund Interest - Globant S.A. was held by 26 hedge fund portfolios at the end of Q2 2025, a decrease from 31 in the previous quarter [5].

Core Viewpoint - Globant has formed a global partnership with Unity to deliver advanced interactive technologies across various industries, including automotive, healthcare, and manufacturing [1][2]. Group 1: Partnership Details - As a Unity Service Partner, Globant will leverage Unity's real-time 3D technology and digital asset management solutions to enhance product development, optimize operations, and improve customer engagement [2][3]. - The collaboration will focus on creating digital twins for manufacturing, immersive training tools for healthcare, and advanced visualization platforms for automotive and industrial clients [2][4]. Group 2: Training and Development - A key aspect of the partnership includes a comprehensive training initiative where Globant will certify its engineers and designers on Unity's platform, ensuring access to a large pool of Unity-trained technologists [3][4]. - Ongoing investment in talent development and annual recertification will keep Globant's teams at the forefront of innovation using the Unity platform [3]. Group 3: Market Expansion - The partnership will extend across North America, EMEA, and APAC, utilizing Globant's delivery centers and market expertise to scale Unity-powered solutions globally [5]. - This collaboration aims to support Unity's expansion into new commercial markets by integrating Unity products into enterprise technology stacks and co-developing tailored solutions for clients [2][5]. Group 4: Company Background - Globant is a digitally native company with over 31,200 employees across 35 countries, recognized as a leader in AI services and media consultation [6][11]. - Unity provides a suite of tools for creating interactive experiences across various platforms, including mobile, PC, and extended reality [9].

Core Viewpoint - Globant is currently experiencing a prolonged period of weakness in its stock performance, as indicated by its position in the Adhishthana cycle, particularly in Phase 16 of 18 phases [1][10]. Monthly Chart Analysis - On the monthly chart, Globant is in Phase 3, characterized by the Adhishthana Yajña formation, which has seen the stock decline approximately 72% from its peak of $238 to $66 [2]. - The decline can be traced back to Phase 2, which consists of two distinct parts, where the stock initially showed significant bullish sentiment, rising by 425% during the Sankhya period, only to be punished in the Buddhi period [5][3]. Weekly Chart Analysis - The weekly chart indicates that Globant is in Phase 16, progressing through the Guna Triads, which are critical for determining the potential for achieving Nirvana in Phase 18 [7][10]. - There has been no indication of bullish sentiment (Satoguna) in Phases 14, 15, or 16, suggesting a low likelihood of reaching Nirvana in Phase 18, which begins in June next year [10][11]. Investor Outlook - The stock is under pressure in both monthly and weekly cycles, with expectations of retesting the Phase 2 low near $46 before any potential rebound [11]. - The absence of Satoguna across the triads implies that any future movements are likely to be characterized by slump and consolidation rather than a sustained recovery [11].

Core Insights - Globant S.A. (GLOB) reported Q2 2025 non-GAAP EPS of $1.53, exceeding the Zacks Consensus Estimate of $1.52, and up from $1.51 in the prior-year quarter [1] - Revenues for the quarter reached $614.2 million, surpassing the Zacks Consensus Estimate of $613 million, marking a 4.5% year-over-year increase [1] Financial Performance - The company had a record pipeline of $3.7 billion, a 25% increase from the previous year, indicating strong growth potential in AI-driven opportunities [3][9] - Adjusted net income for the period was $69.7 million, reflecting a 4.2% year-over-year increase [11] - Non-IFRS adjusted gross margin remained flat at 38.1%, while the adjusted profit from operations margin slightly decreased to 15% from 15.1% [11] Revenue Breakdown - Revenue from Media and Entertainment decreased by 8.3% year over year to $122 million [6] - Technology & Telecommunications revenues fell by 9.8% year over year to $56.2 million [6] - Travel & Hospitality revenues increased by 24.6% year over year to $79.8 million [6] - Banks, Financial Services, and Insurance revenues rose by 21% year over year to $126.6 million [7] - Healthcare revenues increased by 3.5% year over year to $43.8 million [10] Customer Base - As of June 30, 2025, GLOB served 981 customers, with 339 clients generating over $1 million in annual revenues, up from 329 the previous year [5] - The top five customers accounted for 20.3% of total revenues, while the top ten customers contributed 29.3% [5] Guidance and Outlook - For Q3 2025, GLOB expects revenues of at least $615 million, reflecting a 0.1% year-over-year growth [13] - For the full year 2025, the company anticipates revenues of at least $2.445 billion, representing a 1.2% year-over-year growth, revised down from an earlier projection of $2.464 billion [14]

Core Viewpoint - Globant's recent financial report indicates that while the company is optimistic about future growth driven by AI, current performance metrics show only modest improvements, leading to investor disappointment [1][3][6]. Financial Performance - Total revenue for Q2 2025 was $614.2 million, a 5% increase from $587.5 million in Q2 2024, exceeding expectations [2]. - Adjusted earnings per share rose to $1.53, a 1% increase from $1.51 in the previous year, also beating expectations [2]. - Adjusted gross profit margin remained unchanged at 38.1%, while adjusted operating margin slightly decreased to 15% from 15.1% [2]. AI and Future Prospects - The company is focusing on generative AI adoption, with initiatives like AI Pods and AI Studios, but acknowledges that significant work remains to realize the full potential of these technologies [4]. - Globant's sales pipeline reached an all-time high of $3.7 billion, indicating strong future sales potential as more clients seek AI-driven solutions [5]. Market Reaction - Following the quarterly report, Globant's stock fell by 7%, reflecting investor dissatisfaction with the sales and earnings results, which did not meet high expectations for growth [6]. - Guidance for Q3 projects sales of $615 million, representing only a 0.1% year-over-year growth, and fiscal 2025 expectations of at least $2.445 billion, a mere 1.2% increase from 2024 [7]. Investor Sentiment - Investors remain skeptical about Globant's ability to return to a growth trajectory similar to its performance in 2021, with 2025 proving challenging for shareholders [8]. - There is still potential for Globant to capitalize on the generative AI boom, but shareholder patience is waning, necessitating a stronger performance from the company [9].

Group 1 - U.S. stock futures showed mixed results, with Dow futures gaining approximately 300 points on Friday [1] - Applied Materials reported third-quarter revenue of $7.3 billion, exceeding analyst estimates of $7.22 billion, and adjusted earnings of $2.48 per share, surpassing estimates of $2.36 per share [1] - Applied Materials anticipates fourth-quarter revenue of $6.7 billion, with a variance of $500 million, compared to estimates of $7.33 billion, and adjusted earnings expected between $1.91 and $2.31 per share, against estimates of $2.39 per share [2] Group 2 - Applied Materials shares fell 14.7% to $160.51 in pre-market trading following the weak fourth-quarter guidance [2] - Other companies experiencing declines in pre-market trading include Gambling.com Group Limited, which dropped 13.4% to $8.98, and Globant S.A., which fell 11.8% to $68.75 due to lower FY25 sales guidance [4] - Sandisk Corporation reported strong fourth-quarter earnings but still saw a decline of 11.1% to $41.50 in pre-market trading, despite expecting first-quarter revenue between $2.1 billion and $2.2 billion, above estimates of $1.99 billion [4]

Core Insights - Soros Fund Management reported a total market value of $7.97 billion for Q2 2025, up from $6.70 billion in the previous quarter, reflecting a 19% increase [1][2] - The fund added 80 new stocks and increased holdings in 60 stocks, while reducing positions in 45 stocks and completely selling out of 87 stocks [1][2] Holdings Overview - The top ten holdings account for 28.11% of the total market value [1][2] - The largest position is in SPDR S&P 500 ETF put options (SPY.US, PUT) with approximately 537,500 shares valued at about $332 million, representing 4.17% of the portfolio, a significant increase of 168.75% from the previous quarter [3][4] - Other notable holdings include Smurfit WestRock (SW.US) with 7.48 million shares valued at approximately $323 million (4.05% of the portfolio) and First Solar call options (FSLR.US, CALL) with 1.64 million shares valued at about $271 million (3.40% of the portfolio) [3][4] Buying and Selling Activity - The top five purchases by percentage change in portfolio include Invesco QQQ Trust call options (QQQ.US, CALL), SPDR S&P 500 ETF put options (SPY.US, PUT), and Globant (GLOB.US) notes [4][6] - The top five sales by largest value include AstraZeneca (AZN.US), iShares 20+ Year Treasury ETF call options (TLT.US, CALL), and SPDR S&P 500 ETF (SPY.US) [5][6]

Core Viewpoint - Globant reported quarterly earnings of $1.53 per share, exceeding the Zacks Consensus Estimate of $1.52 per share, and showing a slight increase from $1.51 per share a year ago, indicating a positive earnings surprise of +0.66% [1] Financial Performance - The company achieved revenues of $614.18 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.19% and reflecting a year-over-year increase from $587.46 million [2] - Over the last four quarters, Globant has exceeded consensus EPS estimates two times and topped consensus revenue estimates twice [2] Stock Performance - Globant shares have declined approximately 62.8% since the beginning of the year, contrasting with a 10% gain in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.55, with expected revenues of $621.53 million, while the estimate for the current fiscal year is $6.14 on $2.47 billion in revenues [7] - The estimate revisions trend for Globant was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The Internet - Software and Services industry, to which Globant belongs, is currently ranked in the top 33% of over 250 Zacks industries, indicating a favorable outlook for stocks within this sector [8]