Core Insights - Analysts identify nine S&P 500 stocks that have declined 30% or more this year, including Moderna and Kenvue, which are expected to rally by 30% or more in the next 12 months [1][6]. Group 1: Market Performance - The S&P 500 has increased by 35% since its year-to-date low on April 8, 2025, and has risen over 92% since the bull market began on October 12, 2022, excluding dividends [2]. - Analysts are searching for stocks that have not yet fully participated in the current market rally [2]. Group 2: Company-Specific Analysis - Moderna's stock has dropped nearly 40% this year, with an expected earnings per share (EPS) decline of 4% [3]. - Despite the negative sentiment, analysts project a 59% upside for Moderna, targeting a price of 40.30 in 12 months [4]. - Kenvue's stock is down 32% this year, but analysts anticipate an 8% EPS increase in 2026, with a target price of 20.37, representing a 40.4% gain [4]. Group 3: Promising Stocks - The following "left out" S&P 500 stocks are expected to recover significantly: - Moderna (MRNA): YTD change -39.0%, 12-month upside 59.0% [6] - Alexandria Real Estate Equities (ARE): YTD change -35.5%, 12-month upside 52.6% [6] - GoDaddy (GDDY): YTD change -33.7%, 12-month upside 44.4% [6] - Kenvue (KVUE): YTD change -32.0%, 12-month upside 40.4% [6] - Fiserv (FI): YTD change -38.6%, 12-month upside 34.7% [6] - The Trade Desk (TTD): YTD change -56.0%, 12-month upside 34.6% [6] - Align Technology (ALGN): YTD change -36.1%, 12-month upside 31.5% [6] - Chipotle Mexican Grill (CMG): YTD change -33.2%, 12-month upside 31.4% [6] - Oneok (OKE): YTD change -31.2%, 12-month upside 31.3% [6]

Core Insights - Morgan Stanley warns that AI is disrupting the software industry, introducing the "AI Cliff" assessment framework to analyze the vulnerability of software companies [1][3] - Companies with strong ecosystems and high user visibility, such as Microsoft Windows and Bloomberg, are more defensively positioned, while traditional systems and niche software face greater risks [1][3] AI Cliff Assessment Framework - The framework evaluates software companies' vulnerability to AI disruption across nine dimensions, providing a clear risk landscape for investors [3][5] - Key dimensions include replacement cost, criticality, automation level, user visibility, ecosystem size, data resources, scale and resources, adaptability, and regulatory requirements [5][6][7][8][9][10][11][12][13][14] Key Dimensions Explained - **Replacement Cost**: Evaluates the time, financial investment, and customer disruption involved in replacing software; for example, Microsoft Windows has high replacement costs due to learning curves, while Alteryx is easier to replace [6][15] - **Criticality**: Differentiates between mission-critical software (e.g., CDK) and auxiliary tools (e.g., Alteryx) [7][15] - **Automation Level**: Highly automated systems are less likely to be affected by AI, whereas software reliant on manual processes (e.g., Microsoft Excel) is more vulnerable [8][15] - **User Visibility**: Software that users interact with daily (e.g., Microsoft Windows) has higher stickiness compared to backend middleware (e.g., TIBCO) [9][15] - **Ecosystem Size**: A large user ecosystem and vendor support (e.g., Bloomberg) make replacement more difficult compared to niche market software (e.g., PTC) [10][15] - **Data Resources**: Proprietary data sets (e.g., Experian) are more valuable than non-proprietary data (e.g., CoreLogic) [11][15] - **Scale and Resources**: Larger companies (e.g., Google) can better weather disruptions compared to smaller firms (e.g., ZipRecruiter) [12][15] - **Adaptability**: Modern API-based software (e.g., Elastic) can integrate AI more easily than legacy systems (e.g., Unisys) [13][15] - **Regulatory Requirements**: Industries like finance and healthcare provide additional protection for existing software [14][15] Heatmap Analysis - Morgan Stanley applied the framework to various software companies, creating a defense capability heatmap to visualize their proximity to the "cliff" [17] - Examples include CrowdStrike, which excels in criticality and adaptability but scores low in automation, and GoDaddy, which has moderate data resources but low scale and resources [18][19] Conclusion - The analysis indicates that while AI will likely impact nearly all software companies, the timing and extent of this disruption vary significantly [4][23] - The framework serves as a tool for assessing the relative vulnerability of software companies to AI challenges, highlighting the importance of various factors in determining their risk profiles [23]

Core Insights - The partnership between GoDaddy and authors Laura Brown and Kristina O'Neill aims to empower individuals navigating career transitions through their book "All The Cool Girls Get Fired" and GoDaddy Airo's digital tools [1][4]. Company Overview - GoDaddy provides tools for entrepreneurs to establish their online presence, including domain registration, website design, and online marketing support [5]. - GoDaddy Airo is an AI-powered platform designed to help small businesses quickly get online and enhance their digital marketing efforts [5]. Book Highlights - "All The Cool Girls Get Fired" features personal stories and advice from notable women, including Oprah Winfrey and Katie Couric, emphasizing how unexpected career changes can lead to new opportunities [3][2]. - The book serves as a guide for readers to pivot in their careers with confidence and purpose [2]. Promotional Offer - GoDaddy is offering new U.S. customers a domain for just $4.99 as part of the promotional campaign linked to the book [4].

Group 1: Company Overview - GoDaddy Inc. (NYSE:GDDY) holds a significant position in the portfolio of RIT Capital Partners, with shares valued at $32,392,800, representing 4.06% of the portfolio [1] - The company supports over 21 million customers globally by providing domain registration, web hosting, and digital identity services to small businesses and developers [4] Group 2: Recent Developments - On October 2, 2025, GoDaddy launched a trusted identity naming system for AI agents, addressing a growing security gap as over one billion AI agents are expected to be launched by businesses in the next three years [2] - The new system aims to establish authentication and verification standards to identify legitimate AI agents and prevent rogue activities, leveraging GoDaddy's expertise in domain and DNS [3] Group 3: Market Position and Investment Potential - While GoDaddy is recognized for its potential as an investment, there are opinions suggesting that certain AI stocks may offer greater upside potential and carry less downside risk [5]

Company Overview - GoDaddy Inc. (GDDY) is a leading internet services company based in Arizona, with a market cap of $18.1 billion, specializing in domain registration, web hosting, website building, online marketing, and digital commerce tools for small businesses and entrepreneurs. The company was founded in 1997 and serves over 20 million customers while managing more than 80 million domain names worldwide [1]. Earnings Projections - GoDaddy is expected to release its Q3 2025 earnings on October 30, with analysts projecting earnings of $1.50 per share, representing a 13.6% growth from $1.32 in the same quarter last year. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two occasions [2]. - For fiscal 2025, analysts forecast an EPS of $5.84, marking a 20.4% increase from $4.85 reported in fiscal 2024. In fiscal 2026, earnings are expected to grow 22.1% annually to $7.13 per share [3]. Recent Performance - In the second quarter of fiscal 2025, GoDaddy reported revenue of $1.22 billion, an 8.3% year-over-year increase, exceeding Wall Street's estimate of $1.20 billion. The company's EPS rose 39.6% year-over-year to $1.41, also surpassing analysts' expectations of $1.34 [5]. - However, shares of GoDaddy fell about 3% after the announcement of ceasing operations as the registry service provider for the .CO top-level domain, which is expected to create a 50-basis-point headwind to bookings and revenue, primarily impacting the fourth quarter [6]. Stock Performance - GoDaddy's stock has declined 18.8% over the past 52 weeks, underperforming the Technology Select Sector SPDR Fund's 23.6% surge and the S&P 500 Index's 14.4% uptick during the same time frame [4]. Analyst Ratings - Analysts maintain a moderately optimistic view on GoDaddy, with an overall "Moderate Buy" rating. Out of 18 analysts covering the stock, there are nine "Strong Buys," one "Moderate Buy," and eight "Holds." The mean price target of $191.60 suggests a 44.7% upside potential from current price levels [7].

Core Insights - U.S. companies are on track to achieve a record $1.1 trillion in share buybacks by the end of 2025, with $1 trillion already announced as of August 20, 2025 [1][4] - Despite the high dollar value of buybacks, the number of companies announcing buybacks has reached an all-time low, with only 34 announcements in Q3 2025 [1][4] - Buybacks among S&P 500 companies fell by 20% in Q2 2025, totaling $235 billion compared to $293 billion in Q1 2025 [2][3] Buyback Trends - The top 20 S&P 500 companies accounted for 51.3% of total buyback authorizations in Q2 2025, significantly above the historical average of 44.5% [3][4] - Major contributors to buybacks include technology giants like Apple and Alphabet, as well as banks such as JPMorgan Chase, Bank of America, and Morgan Stanley [3] Economic Context - Companies are utilizing buybacks as a strategic method to deploy excess capital amidst trade policy uncertainty, which has affected business planning and spending [6] - Robust earnings growth and tax cuts have contributed to increased corporate cash reserves, supporting the stock market rally [5][6] Future Outlook - The Q3 earnings season beginning October 14, 2025, will be crucial for monitoring buyback announcements, which may indicate corporate confidence and willingness to invest in shareholder value [7]

Fund Performance - Artisan Global Discovery Fund's Investor Class APFDX returned 10.84%, Advisor Class APDDX returned 10.83%, and Institutional Class APHDX returned 10.93% in Q2 2025, compared to an 11.84% return for the MSCI All Country World Small Mid Index [1] - Global markets experienced volatility in Q2 2025, with a shift from double-digit declines to gains following President Trump's tariff announcements and subsequent suspension [1] Company Focus: GoDaddy Inc. - GoDaddy Inc. (NYSE:GDDY) is a leader in domain registration, generating 70% of its revenue from core domain services and 30% from higher-margin applications and commerce tools [3] - GoDaddy's stock closed at $141.40 per share on September 26, 2025, with a market capitalization of $19.577 billion [2] - The company faced a one-month return of -4.66% and a 52-week loss of 9.81% [2] Investment Strategy and Concerns - Artisan Global Discovery Fund ended its investment in GoDaddy due to increased competition from Wix and AI-based business models, as well as concerns over incremental marketing investments in its AI-powered suite, Airo [3] - GoDaddy's strategy focuses on cross-selling higher-margin products through domain services, but risks from competition and macro challenges for small and medium-sized businesses remain [3]

Industry Overview - The Zacks Internet - Delivery Services industry includes companies providing services through Internet-based platforms, such as food delivery, online travel booking, and web hosting [2] - The industry is characterized by growth-stage companies investing heavily in R&D and sales & marketing, which may hinder short-term profitability [2] Growth Drivers - Increased smartphone usage and improved Internet access are driving growth in the delivery services sector, with 4G and emerging 5G technology enhancing user experiences [3] - Shifting consumer preferences towards convenience and online services are expected to benefit the industry, particularly in food ordering and travel booking [4] - Technological advancements, such as smart routing algorithms and real-time GPS tracking, are improving delivery efficiency and customer experience [5] Challenges - Persistent macroeconomic uncertainties, inflation, and high interest rates pose significant challenges to the industry [1] - Higher upfront costs associated with market expansion may negatively impact profitability, especially as competition intensifies from major tech companies like Amazon and Alphabet [7] - The potential fallout from tariff wars could indirectly affect revenue growth and margins due to reduced spending from small businesses and startups [6] Industry Performance - The Zacks Internet - Delivery Services industry has underperformed compared to the S&P 500 and the broader Computer and Technology sector over the past year, gaining only 0.2% [11] - The industry currently holds a Zacks Industry Rank of 103, placing it in the top 42% of approximately 250 Zacks industries, indicating solid near-term prospects [9][10] Valuation Metrics - The industry is trading at a forward 12-month price-to-sales (P/S) ratio of 1.64X, significantly lower than the S&P 500's 5.44X and the sector's 7.1X [14] Company Highlights - **GoDaddy (GDDY)**: Focused on cloud-based technology products, benefiting from strong momentum in its Applications & Commerce business, with a Zacks Consensus Estimate for 2025 earnings revised upward by 2.2% to $6.05 per share [17][18][19] - **Vipshop Holdings (VIPS)**: An online discount retailer in China, improving its financial performance through enhanced product offerings and a focus on high-margin apparel businesses, with a current-year earnings estimate revised upward by $0.05 to $2.44 per share [23][24] - **QuinStreet (QNST)**: A provider of online marketing services, positioned to benefit from the shift to online business models, with a fiscal 2026 earnings estimate remaining unchanged at $1.05 per share [27][28] - **Asure Software (ASUR)**: A cloud computing firm focusing on human capital management solutions, with a 2025 earnings estimate revised upward by $0.02 to $0.79 per share [31][32]

Core Insights - VeriSign, Inc. (VRSN) is a leading provider of domain name registry services and internet infrastructure, with a market capitalization of $26.7 billion, emphasizing its significant role in internet navigation and security [1][2] Company Overview - VRSN is categorized as a large-cap stock, managing .com and .net domains, and operates two root servers, reinforcing its dominance in the domain name registry market [2] - The company plays a crucial role in maintaining the security, stability, and resiliency of key internet infrastructure [1] Stock Performance - VRSN shares have experienced an 8% decline from their 52-week high of $310.60, reached on July 28, while the stock has gained 1.7% over the past three months, underperforming the Technology Select Sector SPDR Fund's (XLK) 14.3% gains [3] - Year-to-date, VRSN shares have risen by 38.1% and increased by 59.5% over the past 52 weeks, outperforming XLK's YTD gains of 18.8% and 27.1% returns [4] Financial Performance - In Q2, VRSN reported revenue of $409.9 million, reflecting a year-over-year increase of 5.9%, and an EPS of $2.21, which is a 10% increase from the previous year [5] - Competitor GoDaddy Inc. (GDDY) has underperformed VRSN, with a YTD decline of 25.8% and a 5.1% drop over the past 52 weeks [5] Analyst Sentiment - Wall Street analysts maintain a bullish outlook on VRSN, with a consensus "Strong Buy" rating and a mean price target of $338.50, indicating a potential upside of 18.4% from current levels [6]

Core Insights - The upcoming third Friday of the month marks the expiration week for equity options, particularly significant due to the simultaneous expiration of equity options, stock index options, and stock index futures, known as "triple witching days" [2][3] Performance Analysis - Historically, the S&P 500 Index (SPX) has underperformed during triple witching weeks, averaging a loss of 0.47% with only 53% of returns being positive since 2017 [3][5] - In comparison, other expiration weeks have shown slightly better performance with an average return of 0.11% and less than half of the returns positive, while non-expiration weeks have averaged a return of 0.37% with 61% of returns positive [4][5] - More recent data from 2021 indicates that triple witching weeks have averaged a loss of 0.29% with only 39% of returns positive, while non-expiration weeks maintained an average return of 0.38% with 61% of returns positive [7][8] Daily Performance Trends - During triple witching weeks, Mondays have shown a positive trend with the SPX being positive 72% of the time, averaging a gain of 0.14%, while Fridays, the expiration day, have been particularly poor with an average loss of 0.36% and only 22% of returns positive [11][12] Individual Stock Performance - Certain stocks have historically outperformed during triple witching weeks, particularly software companies like Palantir Technologies (PLTR) and Autodesk (ADSK), which have shown positive returns [15][16] - Conversely, stocks that have underperformed during these weeks include many in the real estate and construction sectors, such as Martin Marietta Materials (MLM) and Federal Realty Investment Trust (FRT), with average returns significantly below zero [18][19]