Core Viewpoint - The current stock market cycle is significant, and companies like SAP and its software peers may face challenges during this period [1] Group 1 - The investment strategy focuses on identifying companies with strong qualitative attributes and purchasing them at favorable prices based on their fundamentals [2] - The portfolio management approach aims to minimize losses while maximizing exposure to high-potential winners, often resulting in a 'Hold' rating for companies that do not meet growth or risk thresholds [2] Group 2 - There is no current investment position in any of the companies mentioned, and there are no plans to initiate such positions in the near future [3] - The article reflects the author's personal opinions and is not influenced by any compensation from the companies discussed [3]

Market Overview - The global Cognitive Analytics Market was valued at USD 7.90 billion in 2025 and is projected to reach USD 81.46 billion by 2033, with a CAGR of 33.99% from 2026 to 2033 [1] - The U.S. Cognitive Analytics Market was valued at USD 2.17 billion in 2025 and is expected to grow to USD 22.03 billion by 2033, with a CAGR of 33.61% from 2026 to 2033 [3] Growth Drivers - The market is expanding due to increasing demand for data-driven decision-making, real-time insights, and the growing acceptance of AI and machine learning across various industries [1][3] - Factors contributing to the U.S. market growth include high AI adoption, advanced digital infrastructure, robust business expenditures, and cloud integration [3] Segmentation Analysis By Enterprise Type - Large Enterprises held a 61% market share in 2025, driven by large data volumes and complex business processes, while small and medium enterprises are expected to grow the fastest from 2026 to 2033 due to lower entry barriers from cloud-based solutions [4] By Application - Customer Management accounted for 31% of the market share in 2025, focusing on enhancing customer experience and retention, while Fraud Detection and Security is anticipated to grow the fastest from 2026 to 2033 due to increasing cyber threats [5] By End-User - The BFSI sector dominated with a 28% share in 2025, relying heavily on advanced analytics for fraud prevention and risk assessment, while Retail is expected to experience the fastest growth from 2026 to 2033 as companies leverage cognitive analytics for demand forecasting and personalized promotions [6][7] By Deployment - Cloud deployment led with a 64% market share in 2025 and is projected to grow at the fastest rate from 2026 to 2033, attributed to its scalability and cost efficiency [8] Regional Insights - North America held the largest revenue share of approximately 38% in 2025, benefiting from early AI adoption and a strong presence of major technology providers [9] - The Asia Pacific region is expected to grow at the fastest CAGR of about 15.22% from 2026 to 2033, driven by rapid digital transformation and increasing AI investments [10] Market Trends - There is a rising enterprise focus on data-driven decision-making using AI-powered insights, which enhances operational efficiency and competitive advantage through real-time analysis of consumer behavior and market trends [11] Key Players - Major companies in the cognitive analytics market include Google LLC, Oracle Corporation, IBM Corporation, Microsoft Corporation, and Amazon Web Services, among others [13]

Core Viewpoint - Saputo is set to release its fiscal 2026 third quarter results on February 5, 2026, with a conference call scheduled for February 6, 2026, to discuss the results [1]. Company Overview - Saputo is one of the top ten dairy processors globally, producing a wide range of high-quality dairy products, including cheese, fluid milk, extended shelf-life milk, cream products, cultured products, and dairy ingredients [4]. - The company is a leading cheese manufacturer and fluid milk and cream processor in Canada, a major dairy processor in Australia, and the top dairy processor in Argentina [4]. - In the USA, Saputo ranks among the top three cheese producers and is a significant producer of extended shelf-life and cultured dairy products [4]. - In the United Kingdom, Saputo is the leading manufacturer of branded cheese and dairy spreads [4]. - The company also produces and distributes a variety of dairy alternative products and operates under market-leading brands as well as private label brands [4]. - Saputo Inc. is publicly traded on the Toronto Stock Exchange under the symbol "SAP" [4].

Core Insights - SAP SE and Syngenta have entered into a multi-year strategic technology partnership aimed at enhancing AI-assisted innovation within Syngenta's global operations [1] - The partnership will integrate artificial intelligence into the core of Syngenta's enterprise, focusing on modernizing operations and fostering accelerated innovation through advanced data analytics [1] Company Overview - Syngenta is recognized as a global leader in agricultural innovation, indicating its significant role in the agricultural sector [1] - The collaboration with SAP SE highlights Syngenta's commitment to leveraging technology for operational improvements and innovation [1] Technology Focus - The partnership emphasizes the embedding of artificial intelligence across various business functions, including manufacturing and supply chain operations [1] - Advanced data analytics will be a key component of this initiative, suggesting a shift towards data-driven decision-making within Syngenta [1]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **AI-native software industry**, particularly in the **core finance** and **Customer Relationship Management (CRM)** sectors, which are poised for disruption by new entrants targeting a **$30 trillion** global wage pool [1][4][12][14]. Core Insights - **AI Agents** are expected to automate significant portions of white-collar work, leading to a shift in spending from traditional software and human labor to companies that provide AI solutions [1][14]. - **C.H. Robinson**, a logistics company with **$18 billion** in revenue, has successfully implemented over **30 AI agents**, resulting in productivity improvements of over **40%** and significant operational efficiencies [5][15]. - **SAP** is identified as well-positioned to capitalize on the AI agent trend due to its established customer base and comprehensive application portfolio [1][16]. New Entrants in Core Finance - Several **AI-native startups** are emerging in the core finance space, including: - **Rillet**: Raised over **$100 million** and valued at approximately **$500 million**. It aims to modernize finance operations by automating key workflows and reducing reliance on traditional ERP systems [4][59][60]. - **Campfire**: Also raised over **$100 million** since its founding in 2023, focusing on enabling CFOs to achieve a zero-day close [4]. - **Digits**: Another notable entrant in the finance sector, emphasizing automation and efficiency [4]. CRM Sector Developments - In the CRM space, new entrants like **Sierra** and **Decagon** are gaining traction, with Sierra achieving a valuation of **$10 billion** and significant annual recurring revenue (ARR) growth [4]. Competitive Landscape - The core finance software market is currently dominated by incumbents such as **SAP**, **Oracle**, **Microsoft**, and **Salesforce**, which maintain strong competitive advantages through established customer relationships and comprehensive solutions [12][43]. - Despite the strong position of incumbents, the emergence of agile, AI-native startups presents a potential competitive threat, particularly in niche areas of financial management [51][55]. Financial Performance and ROI - C.H. Robinson's implementation of AI agents has led to a rise in operating income guidance from **$220 million** to **$336 million**, showcasing the tangible benefits of AI integration [5][15]. - The report highlights that AI agents can significantly reduce manual tasks, with C.H. Robinson saving over **600 hours per day** through automation [5][15]. Evolving Pricing Models - The industry is transitioning from traditional subscription models to more usage- and outcome-based pricing structures, reflecting the value delivered by AI-driven automation [17]. Conclusion - The rise of AI-native entrants in the core finance and CRM sectors indicates a significant shift in the software landscape, with established players needing to adapt to maintain their market positions. The potential for increased productivity and efficiency through AI agents presents both opportunities and challenges for companies across various industries [12][14][51].

Group 1 - SAP SE is recognized as one of the best stocks to buy according to analysts, particularly due to its strong position in the software sector as AI adoption increases [1][2] - Wells Fargo highlights that software vendors managing critical business data systems, like SAP, are well-positioned to attract additional AI spending as companies consolidate vendors and move AI tools into production [2] - The appointment of David Robinson as president of SAP North America is aimed at improving customer outcomes and supporting business transformation, leveraging his extensive experience within the company [3] Group 2 - SAP SE is a leading German multinational software company, recognized as one of the largest providers of enterprise resource planning software and business AI solutions [4]

Core Viewpoint - Analysts are favoring SAP over Palantir for investment opportunities in the AI sector, citing valuation concerns as a primary reason for the differing outlooks on these companies [4][10]. Group 1: Palantir Technologies - Palantir's stock experienced a significant increase of 135% last year, but analysts predict a slowdown in growth by 2026 [2][12]. - The current market capitalization of Palantir is $423 billion, with a forward price-to-earnings ratio slightly below 182, one of the highest in the S&P 500 [3][6]. - Palantir's Rule of 40 score stands at 114%, indicating strong performance in customer acquisition across both government and private sectors [5]. Group 2: SAP - SAP is projected to have a 40% upside in its stock price over the next 12 months, with 12 out of 15 analysts rating it as a "buy" or "strong buy" [7][9]. - The current market capitalization of SAP is $281 billion, with a forward price-to-earnings ratio of 28.5, which is considered more attractive compared to Palantir's valuation [8][9]. - SAP's price-to-earnings-to-growth (PEG) ratio is 1.0, indicating a reasonable valuation for a growth stock, while Palantir's PEG ratio is nearly 2.9, suggesting less attractiveness [10].

Group 1: SGA Global Growth Strategy Overview - SGA's Global Growth Strategy portfolio returned -2.3% (Gross) and -2.5% (Net) in Q3 2025, underperforming the MSCI ACWI's 7.6% and MSCI ACWI Growth's 9.0% returns, primarily due to enthusiasm for AI overshadowing factors like quality and sales stability [1] - The investment objective of SGA is to invest in high-quality growth businesses expected to achieve consistent mid-teens earnings growth, along with stable revenue and cash flow [1] Group 2: SAP SE Analysis - SAP SE is a leading provider of enterprise application and business solutions, with a one-month return of 2.49% and a 52-week loss of 4.10%, closing at $236.92 per share on January 2, 2026, with a market capitalization of $276.437 billion [2] - SAP is recognized as the global leader in ERP application software, serving over 100,000 customers across more than 120 countries, and generates significant free cash flow from recurring, high-margin software maintenance and cloud subscription fees [3] - The enterprise application software market is projected to grow at mid-to-high single-digit rates annually, with SAP's transition from license to subscription expected to yield more predictable and substantial recurring cash flows over time, evidenced by over 25% organic order growth in cloud subscription products [3]

Core Viewpoint - Tesla is expected to see a decline in deliveries in the fourth quarter due to the loss of U.S. tax credits and increasing global competition, despite the introduction of cheaper versions of its best-selling models [1] Group 1 - The loss of U.S. tax credits is anticipated to negatively impact demand for Tesla vehicles [1] - Rising global competition is contributing to the expected decrease in Tesla's deliveries [1] - The company is attempting to mitigate this by rolling out more affordable versions of its popular models [1]

Core Insights - Payactiv is now officially listed on the SAP® Store, enhancing its visibility and accessibility for SAP SuccessFactors HCM customers [1] Company Summary - The listing on the SAP® Store signifies a strategic partnership that could lead to increased adoption of Payactiv's services among enterprise clients using SAP SuccessFactors [1]