Core Insights - Alphabet's first-quarter 2025 earnings per share (EPS) of $2.81 exceeded the Zacks Consensus Estimate by 39.11% and grew 48.7% year over year [1] - Total revenues reached $90.234 billion, marking a 12% increase year over year (14% at constant currency) [1] Revenue Breakdown - Net revenues, excluding traffic acquisition costs (TAC), were $76.486 billion, surpassing the consensus mark by 1.27% and rising 13.2% year over year [2] - TAC amounted to $13.784 billion, reflecting a 6.2% year-over-year increase [2] - Google Cloud revenues surged 28.1% year over year to $12.260 billion, accounting for 13.6% of total revenues and beating the Zacks Consensus Estimate by 0.85% [3] - Google Services revenues increased 9.8% year over year to $77.264 billion, representing 85.6% of total revenues and exceeding the consensus estimate by 1.56% [4] - Google advertising revenues rose 8.5% year over year to $66.885 billion, making up 74.1% of total revenues and surpassing the consensus mark by 0.9% [4] - Search and other revenues grew 9.8% year over year to $50.702 billion, exceeding the Zacks Consensus Estimate by 0.83% [5] - YouTube's advertising revenues improved 10.3% year over year to $8.972 billion, beating the consensus mark by 0.31% [5] - Google subscriptions, platforms, and devices revenues were $10.396 billion, up 18.8% year over year, surpassing the consensus mark by 4.12% [7] - Other Bets' revenues were $450 million, down 9.1% year over year, missing the consensus mark by 6.75% [7] Profitability Metrics - Operating expenses were $59.628 billion, up 8.3% year over year, but as a percentage of revenues, this figure declined 230 basis points to 66.1% [8] - Total cost of revenues increased 16.76% year over year to $36.361 billion [8] - The operating margin expanded 230 basis points year over year to 20.2% [8] - Google Cloud's operating income was $2.177 billion, compared to $900 million in the year-ago quarter [9] Balance Sheet and Cash Flow - As of March 31, 2025, cash, cash equivalents, and marketable securities totaled $95.328 billion, slightly down from $95.657 billion as of December 31, 2024 [11] - Long-term debt remained stable at $10.886 billion as of March 31, 2025 [11] - Alphabet generated $36.15 billion of cash from operations in the first quarter of 2025, down from $39.113 billion in the previous quarter [12] - Capital expenditure was $17.197 billion, resulting in a free cash flow of $18.953 billion [12] - The board declared a quarterly dividend of 21 cents per share, a 5% increase from the previous quarter [12] Share Repurchase Authorization - On April 23, 2025, Alphabet's board authorized the repurchase of up to an additional $70.0 billion of its Class A and Class C shares [13]

Core Viewpoint - Fair Isaac Corporation (FICO) is expected to report strong revenue and earnings growth for the second quarter of fiscal 2025, driven by innovations in its scoring business and increased adoption of its FICO Score 10T product. Financial Performance - The Zacks Consensus Estimate for second-quarter fiscal 2025 revenues is $496.22 million, indicating a 14.39% increase from the previous year [1] - The consensus estimate for earnings is $7.39 per share, reflecting a 20.36% year-over-year growth [1] Recent Performance Trends - FICO's earnings have missed the Zacks Consensus Estimate in three of the last four quarters, with an average negative surprise of 0.92% [2] - The company has seen sustained growth in Scores revenues, supported by continuous innovation and the incorporation of Buy Now, Pay Later loan data into its scoring models [3] Product Development and Market Position - The expansion of FICO Score 10T for non-GSE mortgages is likely to have driven revenue growth, supported by customer adoption and expansion among existing clients [4] - FICO's land-and-expand strategy and increased recurring revenues have strengthened its market position, contributing to sustained growth [5] Industry Leadership - FICO reported strong adoption momentum for FICO Score 10T in mortgage origination, with loans utilizing this score beginning to trade on the MCT Marketplace, indicating broader market acceptance [6] Earnings Expectations - According to the Zacks model, FICO has an Earnings ESP of -1.71% and a Zacks Rank of 3, suggesting a moderate likelihood of an earnings beat [7]

Core Insights - Vertiv Holdings (VRT) reported strong first-quarter 2025 results, with non-GAAP earnings of 64 cents per share, exceeding estimates by 3.23% and showing a year-over-year increase of 48.8% [1] - Net sales reached $2.04 billion, a 24.2% increase year over year, surpassing estimates by 6.26% [1] Financial Performance - VRT has consistently beaten earnings estimates over the past four quarters, with an average surprise of 10.42% [2] - Organic orders rose 20% year over year, with a book-to-bill ratio of approximately 1.4x, and a backlog of $7.9 billion, up 10% from the end of 2024 and 25% from the previous year [2] Revenue Breakdown - Product revenues, which accounted for 81% of total revenues, increased by 29.9% year over year to $1.65 billion [3] - Service revenues grew 4.7% year over year to $386.3 million [3] - Revenues from the Americas increased 28.1% year over year to $1.19 billion, while APAC revenues surged 34.6% to $447.2 million, and EMEA revenues rose 5.7% to $403.5 million [3][4][5] Operating Details - SG&A expenses rose 10.3% year over year to $346.3 million, but as a percentage of sales, they decreased by 210 basis points to 17% [6] - Adjusted operating profit increased 35.4% year over year to $336.7 million, with a non-GAAP operating margin of 16.5%, up 140 basis points [6] Regional Performance - Adjusted operating profit in the Americas surged 38.3% to $259.7 million, while EMEA's profit increased 11.9% to $78.7 million, and APAC's profit jumped 50.3% to $45.7 million [7] Balance Sheet and Cash Flow - As of March 31, 2025, cash and cash equivalents totaled $1.47 billion, up from $1.23 billion at the end of 2024, while long-term debt slightly decreased to $2.904 billion [8] - Cash flow from operating activities was $303.3 million, down from $425.2 million in the prior quarter, with free cash flow at $265 million [9] 2025 Guidance - For 2025, VRT expects revenues between $9.325 billion and $9.575 billion, with organic net sales growth projected between 16.5% and 19.5% [10] - Adjusted operating profit is anticipated to be between $1.885 billion and $1.985 billion, with an operating margin of 19.75-21.25% [10] - Non-GAAP earnings per share are expected to range from $3.45 to $3.65, indicating a year-over-year growth of 21.75% [10] Second Quarter Outlook - For Q2 2025, revenues are expected between $2.325 billion and $2.375 billion, with organic net sales growth projected between 19% and 23% [11] - Adjusted operating profit is anticipated to be between $420 million and $450 million, with an operating margin in the 18-19% range [11] - Non-GAAP earnings per share for Q2 are expected to be between 77 cents and 85 cents, suggesting year-over-year growth of 29.85% [12]

Core Insights - Opera Limited (OPRA) is expected to report first-quarter 2025 earnings on April 28, with anticipated revenues between $130 million and $133 million, reflecting a 29% year-over-year growth [1] - The consensus estimate for earnings is set at 26 cents per share, indicating a significant year-over-year increase of 52.94% [2] Revenue Growth Factors - The advertising business is projected to have continued its strong performance, growing 38% year-over-year in Q4 2024, driven by e-commerce segments and performance-based advertising models [3] - Solid growth in Western markets, particularly in Europe and the U.S., is attributed to increased iOS downloads and favorable regulatory shifts [4] User Engagement and Technology - Investments in AI technologies and the integration of AI features into new browser versions like Opera R2 and Opera One have enhanced user experience and engagement [5] - Opera GX, the gaming browser, has seen a 22% year-over-year increase in its user base, reaching 33.9 million monthly active users, contributing to revenue growth [6] Operational Considerations - Rising operational expenses, which increased from 27.1% in Q4 2024, may impact overall profitability in the upcoming quarter [7] Earnings Expectations - Opera Limited currently has an Earnings ESP of 0.00% and a Zacks Rank 1 (Strong Buy), indicating mixed signals regarding the likelihood of an earnings beat [8]

Alphabet’s (GOOGL) first-quarter 2025 results, scheduled to be released on April 24, are expected to benefit from solid momentum in search and cloud businesses. Alphabet’s initiatives to deploy artificial intelligence (AI) and infuse AI in search are noteworthy. Circle to Search is driving additional search and is gaining popularity among young users. This is expected to have driven advertising growth in the to-be-reported quarter.The Zacks Consensus Estimate for advertising revenues is currently pegged at ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about StoneCo Ltd. (STNE) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.StoneCo currently has an aver ...

Industry Overview - The Zacks Internet-Software Industry ranks in the top 33% of nearly 240 Zacks industries, indicating strong performance and potential investment opportunities [1] Company Summaries Olo Inc (OLO) - Olo is trading at $6 per share with a forward earnings multiple of 19.1X [2] - The company anticipates high-double-digit EPS growth in fiscal years 2025 and 2026 [2] - Total sales are projected to increase by 17% this year and by another 18% in FY26, reaching $396.86 million [2] - Earnings estimates show a year-over-year growth of 20% for the current quarter and 40% for the next quarter [3] StoneCo (STNE) - StoneCo is trading at $13 per share, with a sales multiple of under 2X [4] - The stock has a forward earnings multiple of 9.5X and a PEG ratio of 0.36, indicating it is undervalued relative to its growth rate [5] - StoneCo has experienced a remarkable 65% increase year-to-date, outperforming broader market indexes [5] UiPath (PATH) - UiPath is currently trading around $10, significantly down from its IPO price of $65, presenting a potential buying opportunity [8] - The company generates over $1 billion in annual sales and offers a comprehensive automation platform [8] Investment Thesis - The positive trend of earnings estimate revisions for Olo, StoneCo, and UiPath supports the notion that these stocks are undervalued, contributing to favorable P/E valuations [10]

Core Viewpoint - Docusign, Inc. (DOCU) has shown strong performance over the past year, with a 31.6% increase in share price, significantly outperforming its industry and the Zacks S&P 500 Composite [1][4]. Group 1: Performance Analysis - DOCU shares have gained 5.7% in the last six months, while the industry and Thryv Holdings have seen declines of 5.4% and 33.3%, respectively [4]. - The stock closed at $76.39, down 41.2% from its 52-week high of $107.86 [4]. - DOCU's trailing 12-month return on equity (ROE) is 42.2%, surpassing the industry average of 31.7% [10]. Group 2: Product Development - Docusign launched Intelligent Agreement Management (IAM), an AI-powered platform aimed at enhancing agreement management, which has shown a high adoption rate [6][7]. - IAM contributed over 20% of direct sales in Q4 of fiscal 2025 and is expected to generate a low-double-digit percentage of recurring subscription revenue by Q4 of fiscal 2026 [7][8]. - The company added 56 customers with annual contract value (ACV) exceeding $300,000 in Q4 of fiscal 2025, indicating a rebound in enterprise expansion [9]. Group 3: Financial Outlook - The Zacks Consensus Estimate for Docusign's fiscal 2026 revenues is $3.1 billion, reflecting a 5.3% year-over-year growth [12]. - Despite strong top-line prospects, the bottom-line outlook appears weak, with potential challenges in IAM monetization and a concerning liquidity position [16]. Group 4: Liquidity Concerns - Docusign's current ratio is 0.81, below the industry average of 2.54, indicating a troubling liquidity position [14]. - The current ratio has declined from 0.83 in the previous quarter and 0.94 in the year-ago quarter, primarily due to increased short-term debt [14].

Industry Overview - Financial technology (fintech) is a transformative investment space merging finance and technology, offering services like online banking, peer-to-peer payments, insurance, cryptocurrency, and cybersecurity [1] - The fintech space is expected to benefit from expanding transaction volumes due to the widespread adoption of digital means, accelerated by the pandemic [2] - The innovative nature of fintech positions it for significant growth, driven by consumer behavior shifting towards digital platforms for convenience and cost-effectiveness [4] Catalysts for Growth - The performance of the fintech sector is inversely related to interest rates; a recent reduction in the Federal Reserve's benchmark interest rates is expected to benefit fintech companies [3] - The rise of artificial intelligence (AI) and machine learning is revolutionizing banking, payments, and investments, providing efficient and secure financial solutions [5] Recommended Stocks - Five fintech stocks are recommended for long-term investment: Affirm Holdings Inc. (AFRM), StoneCo Ltd. (STNE), ACI Worldwide Inc. (ACIW), Coinbase Global Inc. (COIN), and OppFi Inc. (OPFI) [2][6] Company-Specific Insights Affirm Holdings Inc. (AFRM) - Affirm has strong revenue growth from diverse income streams, expecting revenues of $3.13-$3.19 billion in fiscal 2025, driven by growing active merchant numbers and improving gross merchandise value [7] - Key partnerships, including those with Apple Pay and Hotels.com, are crucial for Affirm's expansion, including a recent entry into the UK market [8] - Affirm's expected revenue and earnings growth rates are 36.9% and 96.4%, respectively, with a 60% improvement in earnings estimates over the last 30 days [9] - The average short-term price target indicates a potential increase of 70.6% from the last closing price of $40.76, suggesting a maximum upside of 111% [10] StoneCo Ltd. (STNE) - StoneCo is a leading provider of point-of-sale payment processing services, enabling businesses to accept various payment methods [11] - The company offers a full suite of products for e-commerce transactions and client management, utilizing transaction data for credit assessment [12] - StoneCo's expected revenue and earnings growth rates are 4.1% and -6.7%, respectively, with a 9.6% improvement in earnings estimates over the last 30 days [13] - The average short-term price target suggests a potential increase of 12.2% from the last closing price of $11.83, indicating a maximum upside of 86% [13] ACI Worldwide Inc. (ACIW) - ACI Worldwide provides software solutions for digital payments, powering electronic payments for over 5,000 organizations globally, including major financial institutions [15][16] - The company offers real-time payment capabilities and a comprehensive omni-channel payments experience [17] - ACIW's expected revenue and earnings growth rates are 6.8% and 6.1%, respectively, with a 2.6% improvement in earnings estimates over the last 30 days [18] - The average short-term price target indicates a potential increase of 22.9% from the last closing price of $51.31, suggesting a maximum upside of 38.4% [18] Coinbase Global Inc. (COIN) - Coinbase provides financial infrastructure for the crypto economy, offering a user-friendly platform for consumers and sophisticated trading features for experienced users [19][20] - The expected revenue and earnings growth rates for Coinbase are 26.2% and 0.7%, respectively, with a 2.7% improvement in earnings estimates over the last 30 days [21] - The average short-term price target indicates a potential increase of 62.7% from the last closing price of $172.21, suggesting a maximum upside of 179.1% [22] OppFi Inc. (OPFI) - OppFi operates a financial technology platform that helps banks provide credit access to consumers, focusing on those turned away by mainstream options [23] - The expected revenue and earnings growth rates for OppFi are 9.7% and 12.6%, respectively, with a 10.3% improvement in earnings estimates over the last 60 days [25] - The average short-term price target indicates a potential increase of 38.4% from the last closing price of $8.35, suggesting a maximum upside of 55.7% [25]

Workiva (WK) is set to play a key role in the U.S. federal government’s financial modernization efforts. The company is the only financial reporting and Governance, Risk, and Compliance platform sanctioned by the United States.Under a new executive order, all federal agencies are required to consolidate their core financial systems within 180 days of March 25, 2025. The directive aims to boost transparency, reduce fraud and enhance reporting efficiency using solutions approved by the FM QSMO. To comply with ...