Core Insights - Salesforce, Inc. (CRM) is expected to report its fourth-quarter fiscal 2026 earnings on February 25, with a focus on the impact of its investments in artificial intelligence (AI) and cloud products on financial performance [1] Group 1: Financial Performance Expectations - For the fiscal fourth quarter, Salesforce anticipates total revenues between $11.13 billion and $11.23 billion, with a midpoint of $11.18 billion, reflecting an 11.7% increase from the previous year's quarter [6][11] - The company projects non-GAAP earnings per share in the range of $3.02 to $3.04, indicating a 9% increase from the year-ago quarter [9][11] Group 2: Market Position and Growth Drivers - Despite a challenging macro environment, demand for digital tools remains strong, positioning Salesforce well with its subscription-based software and AI features [2] - Salesforce's cloud-based model aligns with the current work environment, making it a strong player in enterprise software [3] - AI is identified as a key growth lever, with analytics and generative AI tools helping clients automate workflows and improve customer targeting [4][5] Group 3: Cost Management and Profitability - Salesforce has focused on improving profitability through cost-cutting measures and operational improvements, allowing for increased earnings despite slower revenue growth [7] - The company's ability to control costs positions it favorably for profit growth, even with potential reductions in deal sizes [8]

Industry Overview - The artificial intelligence (AI) sector, bolstered by the rapid growth of cloud computing and data centers, is experiencing a robust demand scenario, particularly for AI-powered data center capacity to manage and store vast amounts of data [1] - The "magnificent 7" stocks are set to invest $650 billion in 2026 for AI infrastructure development, representing a significant 71.1% year-over-year increase in capital spending on the AI ecosystem [2] Company Insights Amphenol Corp. (APH) - Amphenol holds a Zacks Rank 2 and benefits from a diversified business model, commanding an estimated 33% market share in AI-powered data center interconnects [7] - The company is experiencing triple-digit organic growth in its IT datacom segment, driven by high-speed and power interconnect products [8] - Amphenol's expected revenue and earnings growth rates for the current year are 34.9% and 29.3%, respectively, with a 1.9% improvement in the earnings consensus estimate over the last 30 days [12] Western Digital Corp. (WDC) - Western Digital, with a Zacks Rank 1, is witnessing strong demand for high-capacity hard disk drives (HDD) amid intensified cloud and AI demand [13] - The company is collaborating closely with hyperscale customers to deliver reliable, high-capacity storage solutions, with an expected revenue growth rate of -6.3% and earnings growth rate of 81.7% for the current year [16] Vertiv Holdings Co. (VRT) - Vertiv, holding a Zacks Rank 2, benefits from a diverse product portfolio and is strategically expanding capacity to support AI-enabled pipelines [17] - The company has a partnership with NVIDIA to co-develop an 800-volt DC power architecture, ensuring its infrastructure solutions remain relevant as power requirements scale [19] - Vertiv's expected revenue and earnings growth rates for the current year are 34% and 46.9%, respectively, with a 15.3% improvement in the earnings consensus estimate over the last 30 days [20] Lumentum Holdings Inc. (LITE) - Lumentum, with a Zacks Rank 1, designs and manufactures optical technologies essential for AI and cloud computing, experiencing significant revenue growth driven by demand for AI infrastructure connectivity solutions [21][22] - The company has a strong collaboration with NVIDIA for developing silicon photonics, positioning it as a key supplier to hyperscale customers [23] - Lumentum's expected revenue and earnings growth rates for the current year are 76.7% and over 100%, respectively, with a 34.6% improvement in the earnings consensus estimate over the last 30 days [24] EMCOR Group Inc. (EME) - EMCOR, holding a Zacks Rank 2, is a leading provider of critical infrastructure to AI-powered data centers, focusing on electrical infrastructure and cooling systems [25] - The company is gaining traction in the data center construction market, which is contributing to its expanding remaining performance obligations (RPOs) [26] - EMCOR's expected revenue and earnings growth rates for the current year are 5.4% and 8.6%, respectively, with a slight improvement in the earnings consensus estimate over the last 30 days [28]

Artisan Partners, an investment management company, released its fourth-quarter 2025 investor letter for “Artisan Mid Cap Fund”.  A copy of the letter can be downloaded here. The Fund seeks to invest in companies that possess franchise characteristics, with strong earnings trajectories, and are trading at a discount to the estimated private market value. US equities ended a record year with robust fourth-quarter gains. The Fund’s Investor Class, ARTMX, delivered -0.44%, the Advisor Class, APDMX, delivered - ...

A tenant representing roughly 2% of annual revenue — approximately $200 million — has defaulted on payments. Consensus estimates still project 6.5% AFFO per share growth.That $2.47 estimate follows a quarter in which American Tower reported continued operating expansion across both its tower and data center segments.In the third quarter of 2025, attributable AFFO per share reached $2.78, representing approximately 10% year-over-year growth. Consolidated revenue increased approximately 8% year over year to $ ...

Wells Fargo (NYSE: WFC) analyst Ken Gawrelski apparently took Google’s (NASDAQ: GOOGL) Friday, February 20 rally as a sign it was time to alter the previously-neutral rating for the technology giant’s equity.Specifically, the Wall Street expert elected to raise his recommendation for GOOGL shares from ‘Neutral’ to ‘Buy’ on Monday, February 23, while simultaneously raising his 12-month price target from $353 to $387.With Google stock trading at $315 following a 0.05% decline year-to-date (YTD) and a 5-day ra ...

Core Insights - Meta Platforms, Inc. (NASDAQ:META) has seen its shares decline by 4% over the past year and remain flat year-to-date, indicating a challenging market environment [2] - The company recently announced a partnership with NVIDIA to utilize its GPUs for enhancing core business operations and AI training, which may signal a strategic shift towards developing its own web services [2][5] - Meta's fourth quarter earnings reported $59.9 billion in revenue and $8.88 in earnings per share, surpassing analyst expectations of $58.35 billion and $8.19, driven by Christmas traffic and AI-led efficiency improvements [2] Company Developments - The partnership with NVIDIA is aimed at boosting Meta's AI capabilities and overall business operations, suggesting a focus on technological advancement [2] - There are indications that Meta is diversifying its product offerings, including the development of a new application for sending one-time photos [2] - Jim Cramer has expressed that Meta's capital expenditure concerns may be alleviated by this partnership, hinting at a potential move towards establishing a cloud computing business [2][5]

AMJ Financial Wealth Management reduced its stake in International Business Machines Corporation (NYSE:IBM – Free Report) by 72.5% in the third quarter, according to its most recent filing with the Securities and Exchange Commission. The fund owned 943 shares of the technology company’s stock after selling 2,489 shares during the quarter. AMJ Financial Wealth Management’s holdings in International Business Machines were worth $266,000 as of its most recent SEC filing. Get International Business Machines al ...

Group 1: Investment Strategy and Performance - Stanley Druckenmiller, a seasoned investor, emphasizes making significant bets on exciting opportunities, reflecting a high-risk, high-reward investment philosophy [1] - After closing Duquesne Capital to outside investors, Druckenmiller's Duquesne Family Office achieved a return of 37% over the past year and 123.25% over the past five years [2][8] Group 2: Recent Investment Moves - In Q4 2025, Druckenmiller invested $152 million in Amazon and Google, significantly increasing his positions in both companies [3] - Druckenmiller added 300,870 shares of Amazon, worth approximately $63 million, raising his stake by 68.8%, making it the fund's seventh-largest holding [3] - He also increased his Alphabet (GOOGL) position by 276.7%, adding 282,800 shares valued at roughly $89 million [5] Group 3: Market Reactions and Company Performance - Amazon's shares gained 5% during Q4, while Alphabet's shares surged approximately 30% in the same period, driven by increased spending on AI infrastructure and cloud services [5] - Druckenmiller fully exited his position in Meta, selling all 76,100 shares after a 10% decline in the stock price [6] - Additionally, he reduced his stake in Taiwan Semiconductor (TSM) by 29%, moving it from the fourth-largest to the eighth-largest holding [6]

Core Insights - Alphabet's financial performance has shown a consistent upward trajectory, contrasting with negative investor narratives about its position in cloud computing and artificial intelligence [3][5]. Financial Performance - Over the past decade, Alphabet's revenue has increased from $75 billion to over $400 billion, achieving a compound annual growth rate (CAGR) of over 18% [7]. - Operating income has risen from $19.4 billion to $129.2 billion, reflecting a 566% increase and a CAGR of close to 21% [7]. - Net income has increased to more than eight times its initial value, with net margins improving by 11 percentage points to 32.8% [7]. - Earnings per share have grown from $1.14 in 2015 to $10.81 last year, indicating a significant improvement in earnings on a per-share basis [7]. Research and Development - Alphabet has increased its research and development spending five-fold over the past decade, while also improving its operating margin by more than six percentage points to 32% [7]. Market Position - As of the latest data, Alphabet's market capitalization stands at $3.8 trillion, with a current stock price of $314.67 [8]. - The company has executed substantial share buybacks, reducing its outstanding share count from approximately 13.7 billion shares to about 12.1 billion [7]. Recent Developments - In 2025, Alphabet reported a 15% increase in revenue and a 32% rise in net income, indicating strong upward momentum [8].

Core Viewpoint - The market is experiencing a rotation where value stocks, cyclicals, and international markets are gaining traction while mega-cap technology stocks have pulled back, a common occurrence during bull markets [1][12]. Group 1: Market Dynamics - The Magnificent 7 stocks have traded sideways to modestly lower since last November due to concerns over AI overinvestment and valuation multiples, yet their fundamental positioning remains strong [2][12]. - AI is not the sole growth driver for these companies; they are also central to long-term trends in cloud computing, digital advertising, e-commerce, and more, with AI acting as an accelerator rather than a primary driver [3][12]. Group 2: Cloud Computing Strength - Companies like Amazon, Alphabet, and Microsoft are seeing a re-acceleration in cloud computing growth, driven by strong demand for AI-related compute capacity, with hyperscalers reporting sold-out capacity [5][6]. - Valuations for these companies have become more reasonable following recent market consolidation, making them attractive for investors seeking exposure to AI infrastructure [7][12]. Group 3: Individual Company Insights - Meta Platforms is highlighted for its compelling valuation, trading at less than 22x earnings with projected long-term earnings growth of around 20%, while also benefiting from AI-driven improvements [9]. - Nvidia remains a key player in the AI infrastructure space, trading at mid-20s on forward earnings with a PEG ratio near 0.5, indicating strong growth relative to valuation [10]. - Apple has maintained a stable position without aggressive AI infrastructure spending, showing renewed strength in iPhone demand and a rapidly expanding services segment, indicating resilience in its ecosystem [11]. Group 4: Future Outlook - The recent trading pattern of the Magnificent 7 suggests a healthy consolidation rather than a breakdown, with expectations that mega-cap technology may reassert leadership as cloud demand and AI adoption continue to grow [12][13]. - The long-term competitive positioning of these dominant companies remains intact, suggesting they are well-positioned to lead future market advances if the broader bull market persists [14].