Core Insights - Both Skillsoft (SKIL) and Duolingo (DUOL) are positioned in the digital education sector, focusing on online learning platforms that generate revenue through subscriptions and enterprise solutions. The shift towards remote work and app-based learning is driving demand for digital education [1] Skillsoft (SKIL) - Skillsoft aims to evolve into an AI-first skill-management organization, focusing on its Percipio platform to enhance the connection between learning and business performance [2] - The company is leveraging AI technologies to create tailored content more efficiently, resulting in a 74% year-over-year increase in AI learner bases and a 158% growth in AI learning hours [3] - Despite a 2.4% decrease in content and software development expenses and a 7.1% decline in selling and marketing expenses, SKIL experienced a 6% year-over-year drop in revenue due to challenges in the global knowledge segment [4] - Management is conducting a strategic review to address inefficiencies in the GK segment, which has negatively impacted the adjusted EBITDA margin by 130 basis points year-over-year [5] - Skillsoft is trading at a forward price-to-earnings ratio of 0.96, significantly lower than its median of 2.82, indicating a more attractive valuation for investors [13] Duolingo (DUOL) - Duolingo integrates AI into its core business model, which has driven a 30% year-over-year increase in daily active users and a 28% rise in paid subscribers [6] - However, the outlook for 2026 shows a concerning decline in growth, with management projecting an 11% year-over-year increase in bookings, down from 33% in 2025 [7] - The company anticipates a decrease in adjusted EBITDA margin to 25% for 2026 from 29.5% in 2025, raising concerns about margin compression [9] - Duolingo is facing challenges in achieving virality, which could hinder its growth trajectory [10] - The Zacks Consensus Estimate for Duolingo's fiscal 2026 sales is $512.2 million, reflecting a 3.6% decline from the previous year, with EPS expected to drop by 3.7% [11] Comparative Analysis - Skillsoft presents a deep-value proposition with its AI-first model and strategic pivot, while Duolingo's premium valuation of 28.06X raises concerns given its declining growth prospects for 2026 [16][17] - Skillsoft is currently rated as a Zacks Rank 3 (Hold), while Duolingo holds a Zacks Rank 4 (Sell) [17]

Core Points - Coreweave reported a 110% revenue growth but saw its stock decline nearly 20%, indicating market skepticism about AI companies' sustainability despite rapid growth [2][6] - The company plans to spend $30 to $35 billion in capital expenditures while carrying a $21 billion debt load, raising concerns about profitability [3] - Coreweave has secured approximately $67 billion in take-or-pay contracts for the upcoming year, which could provide a more stable revenue pipeline [3][9] - However, the company has faced challenges in delivering capacity on time, leading to multiple lawsuits and raising doubts about its ability to meet contractual obligations [9] - The current market environment is punishing AI-related stocks, with Coreweave's stock price down about 50% from its all-time highs in June of the previous year [6][10] - Investors are looking for proof of performance, as the market has high expectations for AI companies, akin to a Michelin star restaurant's standards [7][12] - The broader AI trade is experiencing a cooling off, contributing to Coreweave's stock decline alongside its specific guidance miss [14][21] - The race for leadership in cloud infrastructure is intense, with companies needing to translate aggressive spending into actual revenue [17][19] - The ultimate question remains who will capture the economic benefits in the AI infrastructure space, with a focus on translating AI into real-world impacts [20]

Core Viewpoint - Jack Dorsey, CEO of Block, emphasizes that artificial intelligence (AI) is already transforming the workforce and company operations, leading to significant job cuts as the company plans to reduce its workforce by over 4,000 employees, nearly half of its total [2][3][4]. Group 1: Company Actions and Market Reactions - Block is set to cut over 4,000 jobs to integrate AI into its operations, marking a significant shift in its workforce strategy [3][6]. - Following Dorsey's announcement, Block's shares experienced a sharp increase, indicating that the market is rewarding companies that view AI as a fundamental driver of change rather than a mere experiment [3][6]. - The company is among the most prominent to explicitly cite AI as the primary reason for job reductions, contrasting with other firms that may view it as a secondary efficiency gain [6]. Group 2: Industry Trends and Economic Implications - AI-related layoffs have surpassed 61,000 globally since November, with major companies like Amazon and Pinterest also announcing cuts linked to AI [6]. - A report from Citrini Research predicts that unemployment could rise to 10.2% by 2028 due to rapid displacement in sectors such as software and logistics, raising concerns about the broader economic impact of AI [9]. - Morgan Stanley's analysis shows a growing number of companies reporting measurable benefits from AI adoption, with 21% of S&P 500 companies noting at least one quantifiable advantage, up from 15% in the previous quarter [10][11]. Group 3: Perspectives on AI's Role in the Workforce - Dorsey warns that most companies are lagging in their AI adoption and will soon face similar challenges, advocating for proactive rather than reactive approaches to AI integration [4][5]. - There is a growing debate among executives and economists about whether AI serves primarily to enhance worker productivity or to enable companies to operate with fewer employees [5][9]. - ECB President Christine Lagarde noted that while AI is currently increasing productivity, the anticipated waves of job redundancies have not yet materialized, suggesting a cautious approach to the implications of AI on the labor market [12].

Funding Overview - OpenAI has raised $110 billion in new funding from Amazon, Nvidia, and SoftBank, marking one of the largest private capital raises in technology history [1][2] - The funding round includes $50 billion from Amazon, $30 billion from Nvidia, and $30 billion from SoftBank Group [2] User Base and Market Position - OpenAI now serves over 900 million weekly active users, including more than 50 million paying consumer subscribers and over 9 million business users [2] Strategic Focus - The funding is part of OpenAI's broader effort to industrialize artificial intelligence, emphasizing the need to expand compute capacity, lower inference costs, and build durable global infrastructure [3] - OpenAI is entering a phase where scaling laws, data center investment, and chip supply chains will significantly influence competitive advantage [3] Infrastructure Commitments - Amazon Web Services will become the exclusive third-party cloud provider for OpenAI's Frontier program, with potential infrastructure agreements totaling $100 billion over eight years [7] - OpenAI will utilize dedicated inference and training capacity on Nvidia's next-generation systems, increasing its reliance on specialized AI hardware [7] Future Projections - OpenAI's compute spending could approach $600 billion by 2030 as models grow larger and usage expands across consumer and enterprise markets [8] - Access to capital and long-term infrastructure agreements are becoming increasingly strategic assets in the AI race [8] Competitive Landscape - OpenAI's consumer momentum remains strong, with ChatGPT leading global consumer AI usage and higher-priced subscription tiers being rolled out to convert usage into recurring revenue streams [9] - Competition is intensifying, with Anthropic's valuation climbing to $380 billion amid increasing enterprise demand for AI systems, indicating that large language model providers are competing on research, distribution, pricing, and ecosystem partnerships [10]

Group 1 - Costco Wholesale Corp shares have increased as investors consider its position in a K-shaped economy, leveraging value pricing and loyal membership to attract diverse income groups [1] - BofA Securities analyst Christopher Nardone reinstated coverage with a price target of $1,185, indicating Costco's strong positioning in the current economic landscape [2] - Nardone emphasized that Costco's strategy of reinvesting in price and wages supports long-term share gains, reflecting confidence in steady comparable sales and durable margins [3] Group 2 - Costco is recognized as a pricing leader, consistently attracting significant traffic, and typically lowers prices when food inflation decreases, which enhances store visits [3] - The focused assortment of products supports quality, innovation, and pricing discipline, with the Kirkland brand accounting for approximately one-third of sales, enhancing supplier leverage and protecting merchandise margins [4] - The growth in executive membership tiers indicates customers are opting for added benefits, with executive members representing about half of total members and contributing significantly to revenue [4] Group 3 - A modest renewal slowdown has been acknowledged, but shifting demographics are seen as a positive factor, with younger, digitally engaged members expanding Costco's long-term opportunities [5] - Key medium-term risks identified include e-commerce execution and investments in AI [5] - As of the publication date, Costco shares were trading higher by 1.37% at $1,001.26 [5]

Core Insights - Dell Technologies (DELL) reported non-GAAP earnings of $3.89 per share for Q4 fiscal 2026, exceeding the Zacks Consensus Estimate by 9.92% and reflecting a 45% year-over-year increase [1] - Revenues rose 39% year over year to $33.4 billion, surpassing the consensus mark by 4.61%, primarily driven by record AI server shipments [1] - Following the results announcement, DELL shares increased by 11.98% in pre-market trading [1] Revenue Breakdown - Product revenues increased by 53% year over year to $27.6 billion, beating the Zacks Consensus Estimate by 10.41% [2] - Services revenues decreased by 2% year over year to $5.76 billion, missing the Zacks Consensus Estimate by 11.88% [2] - Infrastructure Solutions Group (ISG) revenues surged 73% year over year to $19.60 billion, marking eight consecutive quarters of double-digit growth [2] AI Server Performance - Servers and networking revenues reached $5.85 billion, growing 27% year over year, driven by strong demand for both AI and traditional servers [3] - AI-optimized server revenue skyrocketed by 342% year over year to $9 billion [3] - In Q4, Dell Technologies saw an increase of $34.1 billion in AI-optimized server orders, totaling over $64 billion in AI orders for fiscal 2026, with $25.2 billion in shipments [4][5] Financial Metrics - Non-GAAP gross profit for Q4 increased by 18% year over year to $6.84 billion, with a gross margin contraction of 380 basis points to 20.5% [7] - Operating expenses rose by 5% year over year to $3.30 billion, with operating expenses as a percentage of revenues contracting by 320 basis points to 9.9% [8] - Non-GAAP operating income was $3.53 million, up 32% year over year, with an operating margin contraction of 60 basis points to 10.6% [9] Cash Flow and Capital Return - As of January 30, 2026, DELL had $11.52 billion in cash and cash equivalents, up from $9.56 billion as of October 31, 2025 [10] - The company generated cash flow from operations of $4.67 billion, with adjusted free cash flow of $5.08 billion in Q4 [10] - Dell Technologies returned $2.2 billion of capital to shareholders in Q4 [11] Guidance for Future Performance - For Q1 fiscal 2027, revenues are expected to be between $34.7 billion and $35.7 billion, suggesting 51% year-over-year growth [12] - Non-GAAP earnings are anticipated to be $2.90 per share, indicating 87% growth year over year [13] - For fiscal 2027, revenues are projected to be between $138 billion and $142 billion, reflecting 23% year-over-year growth, with AI server shipments expected to reach approximately $50 billion, up 103% year over year [13]

Core Viewpoint - Block is reducing its workforce from over 10,000 to just below 6,000, indicating a significant restructuring effort aimed at improving efficiency and productivity [1] Group 1: Workforce Changes - The company is shrinking its workforce by approximately 40%, with some employees entering consultation [1] - This reduction is part of a strategy to leverage "intelligence tools" to enhance operational effectiveness [1] Group 2: Company Overview - Block owns several fintech brands, including the Square point-of-sale system, Cash App, Afterpay, and the music streaming service Tidal [1]

One basis point is equal to 0.01%, and yields and prices move in opposite directions.The benchmark 10-year Treasury yield fell more than 4 basis points to 3.972%, while the 30-year Treasury bond yield dropped more than 3 basis points to 4.636%. The 2-year Treasury note yield was lower by more than 4 basis points at 3.399%.U.S. Treasury yields fell Friday as investors reacted to a stronger-than-expected January wholesale inflation report, and a tumbling stock market amid rising fears of artificial intelligen ...

(Bloomberg) -- Goldman Sachs Group Inc.’s asset management arm has sought to reassure clients that redemption rates and software exposure are both relatively low in one of its biggest retail-oriented private credit funds. As the $1.8 trillion industry grapples with heightened risk of investor withdrawals from retail funds and scrutiny over borrowers — especially the companies under pressure from the rise of artificial intelligence — the Wall Street firm distanced itself from its peers in a detailed letter T ...

Core Insights - OpenAI was founded to create competition against Google in the AI sector, which Google has dominated for over 25 years [1] - OpenAI raised a record $110 billion, with significant investments from major competitors of Google [2] Investment Landscape - Amazon is investing $50 billion in OpenAI, positioning itself as a major competitor to Google in cloud computing and product search [2][3] - Nvidia has committed $30 billion to OpenAI, enhancing its competitive stance against Google in the AI chip market [6] - Microsoft remains a significant stakeholder in OpenAI, owning over 20% despite not participating in the latest funding round [8] Competitive Dynamics - Amazon's investment allows it to leverage OpenAI's technology and develop custom AI models, enhancing its cloud services [4][5] - Nvidia's partnership with OpenAI focuses on utilizing advanced computing capacity to improve AI model training and inference [7] - Microsoft continues to compete with Google across various sectors, including cloud computing and business software, with OpenAI being a strategic asset [9][10]