Core Viewpoint - The Vanguard Information Technology ETF has significantly outperformed the market over the past decade, primarily driven by the AI boom, but it lacks exposure to key companies in the AI sector, making it potentially less attractive for investors seeking broad AI stock exposure [1][2]. Group 1: ETF Performance and Composition - The Vanguard Information Technology ETF (VGT) has increased by approximately 670% over the past decade, compared to a 270% gain for the S&P 500 [1]. - The ETF tracks the MSCI US IMI Information Technology 25/50 index and holds stakes in 320 companies, with nearly 59% of its value concentrated in the top 10 holdings [3]. - The top three holdings—Nvidia, Apple, and Microsoft—account for nearly 45% of the ETF's assets, indicating a high concentration risk [4]. Group 2: Missing Key Companies - The ETF does not include major players in the AI ecosystem such as Alphabet, Amazon, and Meta Platforms, which are classified in different sectors [5][6]. - Alphabet and Meta are categorized under the communication services sector, while Amazon falls under consumer discretionary, thus excluding them from the ETF's holdings [6]. - The absence of these companies is significant as Amazon and Alphabet are two of the largest cloud infrastructure providers, holding market shares of 29% and 13%, respectively, which are crucial for AI model training and operation [7]. Group 3: Implications of Missing Companies - The exclusion of Amazon, Alphabet, and Meta from the ETF limits its exposure to the AI megatrend, as these companies play vital roles in cloud services and AI development [8].

Core Insights - Oracle Corp (NYSE:ORCL) has experienced a significant price movement, breaking through its December low and reaching 2024 highs, while also failing at its one-year volume point of control (VPOC) [1] - The stock closed below the put support at the 180-strike, indicating a potential delta hedge meltdown, with lower strikes at 160 and 152.5 likely to act as magnets [1] Options Activity - ORCL has a front-month gamma-weighted Schaeffer's open interest ratio (SOIR) of 1.15, suggesting a moderate level of options activity [3] - The Schaeffer's Volatility Scorecard (SVS) for ORCL is 99 out of 100, indicating that the stock has frequently exceeded option traders' volatility expectations over the past year [3] - A recommended March put option has a leverage ratio of 4.9, which means it will double in value with a 17.5% drop in the underlying equity [3]

Core Viewpoint - SoundHound AI is experiencing rapid revenue growth but faces challenges with stock volatility and high valuation, leading to a significant stock price decline in 2025 [1][8]. Company Overview - SoundHound is a prominent developer of conversational AI software utilized by major brands across various industries, including hospitality, automotive, and healthcare [2]. - The company offers a range of products, such as a Voice AI platform for car manufacturers and solutions for fast-food restaurants, enhancing customer interaction and operational efficiency [3]. Financial Performance - SoundHound's revenue is projected to reach between $165 million and $180 million for 2025, indicating a growth of approximately 103% compared to 2024 [5]. - Despite revenue growth, the company reported a net loss of $109.2 million for Q3 2025, primarily due to increased marketing and administrative expenses [6][7]. Market Position - SoundHound's stock is currently trading at a price-to-sales (P/S) ratio of 27.9, which, while lower than its peak, is still considered high compared to industry peers like Nvidia, which has a P/S ratio of 24.6 [8][9]. - Wall Street estimates suggest that SoundHound could generate $230.2 million in revenue for 2026, leading to a forward P/S ratio of 18.8 [9]. Future Outlook - There is potential for SoundHound's stock to recover some losses in 2026, especially for long-term investors who can allow the business to mature [11][12].

Core Viewpoint - Popular, Inc. (BPOP) reported better-than-expected quarterly results, with shares rising 6.3% following the announcement of adjusted earnings per share of $3.40, surpassing the Zacks Consensus Estimate of $3.02 and showing an increase from $2.51 in the same quarter last year [1][9]. Financial Performance - The fourth-quarter 2025 adjusted earnings per share of $3.40 exceeded expectations, while net income on a GAAP basis reached $233.9 million, reflecting a 31.5% year-over-year increase [2][9]. - Total quarterly revenues amounted to $823.8 million, a 9.1% increase from the previous year, and also surpassed the Zacks Consensus Estimate of $814.9 million [4]. - For the full year 2025, adjusted earnings per share were $12.18, beating the Zacks Consensus Estimate of $11.81, and net income was $833.2 million, up 35.6% year over year [3]. Revenue and Income Breakdown - Net interest income (NII) for the quarter was $657.6 million, an 11.3% increase year over year, with the net interest margin expanding by 26 basis points to 3.61% [4]. - Non-interest income rose by 1% to $166.3 million, driven by increased service charges and trading account gains [5]. Loan and Deposit Trends - Total loans held in portfolio increased by 1.6% sequentially to $38.5 billion, while total deposits decreased slightly to $66.2 billion [6]. Credit Quality and Provisions - The company recorded a provision for credit losses of $71.4 million, a 3.3% increase from the prior year, with non-performing assets rising 32.5% year over year to $540.8 million [7][9]. - The ratio of non-performing assets to total assets increased to 0.72% from 0.56% a year earlier [7]. Capital Ratios - As of December 31, 2025, the Common Equity Tier 1 capital ratio and Tier 1 capital ratio were 15.72% and 15.77%, respectively, both down from the previous year [10]. Share Repurchase Activity - In the reported quarter, the company repurchased 1.25 million shares of common stock for $147.8 million [11].

Core Viewpoint - Shares in Popular, a bank focused on Puerto Rico, have started 2026 strongly, driven by robust Q4 2025 financial results, including a notable 40.6% year-over-year increase in quarterly EPS [1] Financial Performance - The bank reported a quarterly EPS increase of 40.6% year-over-year, indicating strong financial health and operational performance [1]

Core Insights - Popular (BPOP) reported revenue of $823.84 million for Q4 2025, marking a year-over-year increase of 9.1% and exceeding the Zacks Consensus Estimate by 1.1% [1] - The earnings per share (EPS) for the same quarter was $3.38, up from $2.51 a year ago, representing an EPS surprise of 11.8% compared to the consensus estimate of $3.02 [1] Financial Performance Metrics - Mortgage banking activities generated $3.62 million, below the average estimate of $4.95 million from two analysts [4] - Net Interest Income was reported at $657.55 million, slightly above the average estimate of $653.47 million from two analysts [4] - Service charges on deposit accounts totaled $38.91 million, exceeding the average estimate of $38.49 million from two analysts [4] - Total non-interest income reached $166.29 million, surpassing the average estimate of $163.38 million from two analysts [4] - Other operating income was $19.35 million, compared to the average estimate of $19 million from two analysts [4] - Other service fees amounted to $106.51 million, exceeding the average estimate of $100.84 million from two analysts [4] Stock Performance - Over the past month, shares of Popular have returned -2.3%, contrasting with a +0.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Popular (NasdaqGS:BPOP) Q4 2025 Earnings call January 27, 2026 10:00 AM ET Company ParticipantsBen Gerlinger - Director of Equity ResearchBrandon Berman - VP of Equity ResearchBrett Rabatin - Director of ResearchGerard Cassidy - Managing Director and Head of U.S. Bank Equity StrategyJavier Ferrer - President and CEOJorge García - EVP and CFOKelly Motta - Director of Equity ResearchLidio Soriano - EVP and CROPaul Cardillo - SVP and Investor Relations OfficerTimur Braziler - Director of Mid-Cap Bank Equity Re ...

Financial Data and Key Metrics Changes - The company reported an annual net income of $833 million, an increase of $219 million or 36% compared to 2024 [5] - The Common Equity Tier 1 (CET1) ratio ended the year at 15.7%, with tangible book value per share increasing by 21% year-over-year to $82.65 [6] - Quarterly net income was $234 million, with earnings per share (EPS) of $3.53, reflecting an increase of $23 million and $0.38 per share respectively [8][13] - Net interest income (NII) for the quarter was $658 million, up $11 million, and for the year, NII increased by $259 million or 11% [15][16] Business Line Data and Key Metrics Changes - Loan growth for the year reached $2.2 billion, a 6% increase, with commercial loans leading the growth [5] - In the fourth quarter, loan growth was strong at $641 million, with $497 million from BBPR and $144 million from Popular Bank [16] - Non-interest income was $166 million, a decrease of $5 million compared to Q3, but aligned with guidance [19] Market Data and Key Metrics Changes - The unemployment rate in Puerto Rico remained stable at 5.7%, with consumer spending healthy and credit/debit card sales increasing by approximately 5% [9] - Airport passenger traffic reached a record of 13.6 million in 2025, a 3% increase from 2024, indicating strong tourism activity [10] Company Strategy and Development Direction - The company aims to be the number one bank for customers by enhancing relationships and providing exceptional service [10] - Focus on delivering solutions faster and improving productivity while reducing costs is a key strategic initiative [10] - The company is executing a series of sustainable efficiency initiatives, including exiting the U.S. mortgage business and optimizing its mortgage servicing business in Puerto Rico [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the stability of the Puerto Rican economy and the potential for continued loan growth driven by commercial lending [9][27] - The company anticipates a consolidated loan growth of 3%-4% for 2026, with a focus on maintaining a sustainable return on capital (ROC) above 14% [15][16] - Concerns about affordability and the PREPA situation were highlighted as potential risks to the economic outlook [89][90] Other Important Information - The company repurchased approximately $500 million in common stock during 2025, with a total of $720 million repurchased since resuming buybacks [6][21] - The effective tax rate for 2025 was 17%, down from 23% the previous year, with expectations for 2026 to be in the range of 15%-17% [20] Q&A Session Summary Question: Guidance on NII and ROC - Management indicated that NII growth is expected to slow slightly in 2026, with a target of 5%-7% growth and continued margin expansion [33][34] Question: Loan Growth Expectations - Loan growth is expected to moderate in 2026, particularly in consumer lending, while commercial lending remains strong [36][37] Question: Fee Growth Outlook - Management noted that unusual items in 2025 would impact fee growth guidance for the upcoming year [46] Question: M&A Opportunities - The company remains open to evaluating M&A opportunities that align with its strategic goals, focusing on enhancing shareholder value [47][49] Question: Deposit Competition - Management acknowledged competition in the deposit market but emphasized a steady pricing environment [78] Question: Economic Risks - Concerns about affordability and the PREPA situation were highlighted as key risks to monitor [89][90]

Popular (NasdaqGS:BPOP) Q4 2025 Earnings call January 27, 2026 10:00 AM ET Speaker3I'd like to hand over to Paul Cardillo. Please go ahead.Speaker4Good morning, and thank you for joining us. With me on the call today is our President and CEO, Javier Ferrer, our CFO, Jorge García, and our CRO, Lidio Soriano. They will review our results for the full year and fourth quarter and then answer your questions. Other members of our management team will also be available during the Q&A session. Before we begin, I wo ...

Investor Presentation Fourth Quarter 2025 BE THE #1 BANK FOR OUR CUSTOMERS Meet customers where they are. We are their first choice, always one step ahead, fostering loyalty and deepening relationships at every stage of their lives, to drive growth BE SIMPLE AND EFFICIENT Deliver solutions faster, improve productivity, and reduce costs Cautionary Note Regarding Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Refo ...