David Steinberg: Thank you, Matt. Good afternoon, everyone, and thank you for joining us today. For the seventeenth quarter in a row, we once again delivered a beat and raise quarter driven by our leadership in AI-powered marketing. In Q3, revenue was $337 million, up 28% year over year, excluding political and live intent. This is an acceleration in growth from Q2. Adjusted EBITDA was $78 million, up 46% year over year. And free cash flow was $47 million, up 83% year over year, representing a margin of 14% ...

Core Insights - Meta Platforms plans to invest $600 billion in American infrastructure and jobs over the next three years, including AI data centers [1] - Blue All Capital has announced a joint venture with Meta to develop a $27 billion data center in Louisiana [1] Investment and Infrastructure - The partnership between Blue Owl and Meta focuses on the infrastructure layer of AI transformation, providing structured capital for data center development [4][5] - Blue Owl's investment strategy includes long-term leases with Meta, ensuring predictable income streams for investors [5] Market Dynamics - Major tech companies, including Alphabet, Meta, Microsoft, and Amazon, have collectively increased their capital expenditure guidance to $380 billion, indicating a strong demand for infrastructure [6] - Concerns about frothy valuations in the market are affecting stock performance, highlighting the need for careful investment structuring [2][4] Power and Capacity Constraints - Power constraints are identified as a critical factor in the development of AI capacity, with electricity production costs being a determinant of AI output [8][9] - The construction of data centers is expensive, and power is essential for their operation, making it a key consideration in infrastructure planning [9][10] Private Credit Market - Blue Owl has reported low default and loss rates in its private credit solutions, with a loss rate of only 13 basis points over the last decade [13] - The private credit market is seen as a safer investment option for individual investors, as it sits at the top of the capital structure [16] Future Investment Opportunities - There is a projected need for a trillion dollars in new capital expenditures for data centers, indicating significant investment opportunities in the sector [17]

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Group 1: Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1]. Group 2: Market Focus - The investment strategy encompasses markets in the US, Canada, and Europe, indicating a broad geographical focus for potential investment opportunities [1].

Core Viewpoint - The MoonLake class action lawsuit alleges that the company and its executives made false statements regarding the efficacy of its drug candidate, sonelokimab, leading to significant financial losses for investors [1][3][5]. Company Overview - MoonLake Immunotherapeutics is a clinical stage biotechnology company focused on developing therapies for inflammatory skin and joint diseases [3]. - The company's sole drug candidate, sonelokimab (SLK), is primarily aimed at treating hidradenitis suppurativa (HS) [3]. Allegations of the Lawsuit - The lawsuit claims that MoonLake and its executives failed to disclose critical information about SLK, including its molecular targets and clinical efficacy compared to Union Chimique Belge's BIMZELX [4]. - It is alleged that SLK and BIMZELX share the same molecular targets, and SLK's unique Nanobody structure does not provide a superior clinical benefit [4]. - The lawsuit highlights that SLK's supposed increased tissue penetration did not translate to improved clinical efficacy [4]. Impact of the Allegations - Following the announcement of disappointing Phase 3 trial results on September 28, 2025, which showed SLK's failure to demonstrate competitive efficacy against BIMZELX, MoonLake's stock price plummeted nearly 90% [5]. Legal Process - Investors who purchased MoonLake common stock during the class period can seek to become lead plaintiffs in the lawsuit, which allows them to represent the interests of all affected investors [6]. - The deadline for filing lead plaintiff motions is December 15, 2025 [2]. Law Firm Background - Robbins Geller Rudman & Dowd LLP is a prominent law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [7]. - The firm has a strong track record in obtaining significant recoveries in securities class action cases [7].

Core Insights - The article emphasizes the investment philosophy focused on small cap companies, highlighting the importance of identifying mispriced securities through understanding financial drivers and utilizing DCF model valuation [1]. Investment Philosophy - The investment approach is not confined to traditional categories such as value, dividend, or growth investing, but rather considers all prospects of a stock to assess risk-to-reward [1].

Core Points - A shareholder proposal for Tesla to invest in xAI was not approved despite receiving 1.06 billion votes in favor, as abstentions are counted as votes against [1][2] - Elon Musk has shown support for the investment, previously suggesting a $5 billion infusion, and xAI has already spent nearly $200 million on Tesla's Megapack batteries [3][4] - Tesla's board has not taken a definitive stance on the proposal, with Chair Robyn Denholm expressing uncertainty about the alignment of xAI's technology with Tesla's mission [5] Investment Context - Musk's ventures, including SpaceX, have financial ties to xAI, which is also integrated with his social networking platform X [6] - xAI is actively raising $20 billion in debt and equity to fund its infrastructure, including data centers and advanced computer chips [7]

Group 1 - U.S. Defense Secretary Pete Hegseth emphasized the need for major defense contractors, including Lockheed Martin, RTX, Northrop Grumman, Boeing, and General Dynamics, to accelerate weapons development and production to avoid obsolescence [1][3] - A new "deal team" has been established within the Wartime Production Unit to transform production capacity through innovative business agreements [2] - The Pentagon plans to ease contract requirements, reporting standards, testing rules, and oversight regulations to boost competition and speed up production [3][4] Group 2 - Hegseth highlighted the importance of foreign military sales, stating they are critical to the U.S. strategic vision and pledged to expedite arms sales to allies [5] - The number of major defense contractors in the U.S. has decreased from 51 in 1990 to only five currently, largely due to post-Cold War budget cuts [6] - The reforms aim to attract private capital investment and new competitors to challenge established aerospace firms [6]

Core Insights - Tesla's investors approved Elon Musk's $1 trillion compensation package, which is tied to ambitious operational and market value targets for the company [3][9] - Musk made extravagant predictions about Tesla's future capabilities, including advancements in its humanoid robot, Optimus, and plans for production increases [1][2] Company Performance and Future Projections - Tesla's car business is facing a second consecutive year of declining sales, but aims to increase production by approximately 50% by the end of 2026 [2] - Musk anticipates that Tesla's robot and vehicles will contribute significantly to future lunar and Martian bases [2] Compensation Package Details - Over 75% of votes were in favor of Musk's compensation package, which could allow him to become the world's first trillionaire if he meets the outlined targets [3][9] - The package is designed to increase Musk's stake in Tesla to 25% or more over the next decade [4] Production and Supply Chain Challenges - Musk acknowledged potential supply chain constraints affecting Tesla's production capabilities, indicating the need for a chip factory to support semiconductor production [5][6] - Three new products are expected to begin production next year: Optimus, the Semi truck, and the Cybercab [6] Shareholder Sentiment and Reactions - The compensation package faced opposition from some investors and proxy advisers, who expressed concerns about its size and potential dilution of shareholder value [7][12] - Tesla's board actively sought support for the package, emphasizing the necessity of Musk's leadership for the company's future [8] Market Context and Stock Performance - Following the approval of the compensation package, Tesla shares experienced a decline of up to 4.8% amid a broader market selloff, although the stock had risen 10% year-to-date prior to this [4][10] - Musk's net worth fluctuated significantly throughout the year, influenced by Tesla's stock performance and other business valuations [11][12] Additional Ventures - Shareholders showed mixed feelings regarding a proposed investment in Musk's AI venture, xAI, with a notable number of abstentions during the vote [13] - The investment proposal was non-binding, allowing the board to consider future steps based on shareholder support [14]

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified approach to investing, suggesting that a solid base of dividend growth stocks can be complemented by other investment vehicles to create a balanced portfolio [1]. - The strategy aims to boost investment income while still capturing total returns that align with the performance of the S&P 500 index [1]. Performance Insights - The article highlights that the hybrid investment system can yield a total return that is competitive with traditional index funds, indicating a potential for long-term growth and income generation [1].

Core Viewpoint - The article emphasizes the importance of a hybrid investment strategy that combines classic dividend growth stocks with other asset classes like Business Development Companies, REITs, and Closed End Funds to enhance investment income while achieving total returns comparable to traditional index funds [1]. Investment Strategy - The company advocates for a diversified approach to investing, suggesting that a solid base of dividend growth stocks can be effectively supplemented with alternative investments to boost overall returns [1]. - The strategy aims to achieve a total return that aligns with the performance of the S&P index, indicating a balanced focus on both income generation and capital appreciation [1].