Core Insights - Okta (OKTA) is experiencing strong demand for its new identity solutions, which are contributing to market share gains and revenue growth [1][2] Financial Performance - In Q2 2025, Okta's total revenues increased by 12.7% year over year to $728 million, exceeding consensus estimates by 2.37% [2][9] - The number of customers with over $100K in Annual Contract Value (ACV) rose by more than 7% year over year to 4,945, indicating strong subscription momentum [2][9] - For fiscal 2026, Okta anticipates revenue growth of 10% to 11% compared to fiscal 2025, with the Zacks Consensus Estimate for fiscal 2026 revenues at $2.87 billion, reflecting a 10.1% increase from fiscal 2025 [4][9] Product and Market Position - Okta is providing a comprehensive secure identity fabric for non-human identities (NHIs), offering visibility, access control, governance, and monitoring similar to human identities [3] - The introduction of Cross App Access, a new open standard, is expected to further enhance subscription revenues in the long term [2] Competitive Landscape - Okta faces significant competition in the security domain from companies like SentinelOne and Palo Alto Networks, which are focusing on endpoint security and next-generation security solutions, respectively [5][6] - Palo Alto Networks reported a 32% year-over-year growth in its Next-Generation Security annual recurring revenue (ARR), reaching $5.58 billion, highlighting the competitive pressures in the market [6] Stock Performance - Okta's shares have appreciated by 17.7% year to date, outperforming the broader Zacks Computer and Technology sector's return of 12.9% and the Zacks Security industry's appreciation of 10.2% [7]

Core Insights - Adobe's subscription revenues increased by 11.5% year over year to $5.64 billion, representing 96% of total revenues for Q2 fiscal 2025 [1][10] - The company is experiencing significant growth in its Acrobat and Express product lines, with combined monthly active users surpassing 700 million, reflecting over 25% year-over-year growth [2][10] - Adobe's investments in AI and conversational experiences are enhancing user engagement and productivity, particularly through the Acrobat AI Assistant and Express capabilities [3][4] Subscription Revenue Breakdown - Subscription revenues from business professionals and consumers grew by 15% year over year to $1.6 billion [1] - Subscription revenues from the creative and marketing professionals group increased by 10% year over year to $4.02 billion, with an 11% increase in constant currency [1] Product Development and User Engagement - The integration of Acrobat and Express, along with AI features, is expected to expand Adobe's market presence among business and creative professionals [4] - Acrobat AI Assistant is increasingly utilized for content consumption, while Express is being adopted for creating customized presentations and designs [3] Future Revenue Expectations - Adobe anticipates Digital Experience subscription revenues between $1.35 billion and $1.36 billion for Q3 fiscal 2025, indicating a year-over-year growth of 10.3% [5] - The consensus estimate for Digital Media subscription revenues is projected at $4.27 billion, suggesting a 9% year-over-year growth [5] Competitive Landscape - Adobe's AI business is relatively small compared to competitors like Microsoft and Alphabet, which are seeing significant growth in their AI services [6][7] - Microsoft reported 100 million monthly active users for its AI assistants, highlighting the competitive pressure Adobe faces in the AI domain [6] Stock Performance and Valuation - Adobe shares have declined by 19.9% year to date, underperforming the broader Zacks Computer and Technology sector, which has returned 12.9% [8] - The stock is trading at a trailing price/book multiple of 13.22X, higher than the sector average of 10.27X, indicating a premium valuation [12]

Industry Overview - The Medical Instruments industry is experiencing a significant transformation due to the integration of generative AI (genAI), which is reshaping diagnostics, patient monitoring, and intervention workflows [1][4] - The FDA is implementing a Total Product Lifecycle (TPLC) oversight framework to enhance safety, transparency, and data integrity in the industry [1] Market Trends - The global AI in healthcare market is projected to grow at a CAGR of 38.5% from 2024 to 2030, despite facing geopolitical challenges such as tariffs and supply chain issues [2] - The generative AI market in healthcare was valued at $1.8 billion in 2023 and is expected to grow at a CAGR of 33.2% from 2024 to 2032 [4] - The diagnostics market is anticipated to grow at a CAGR of 24.6% by 2034, driven by advancements in AI applications [4] M&A Activity - The medical instruments sector is witnessing a surge in merger and acquisition (M&A) activity, with 305 transactions announced in 2024, totaling over $63.1 billion, a significant increase from 134 deals in 2023 [5] - Notable M&A transactions include UnitedHealth Group's $3.3 billion acquisition of Amedisys and Stryker's $4.9 billion purchase of Inari Medical [5] Financial Performance - The Zacks Medical Instruments industry has underperformed the S&P 500, declining 15.4% compared to the broader sector's decline of 17.4% [10] - The industry is currently trading at a forward P/E of 28.46X, higher than the broader industry's 19.32X and the S&P 500's 22.80X [12] Company Highlights - **Teleflex**: Expected 2025 sales of $3.33 billion, a 9.3% increase from 2024, with EPS projected at $14.06, indicating a 0.4% rise [18] - **Integer Holdings**: Anticipated 2025 sales of $1.87 billion, a 7.8% increase from 2024, with EPS expected to rise by 20.4% to $6.38 [22] - **Inogen**: Projected 2025 sales of $355.2 million, a 5.8% increase from 2024, with EPS expected to improve by 37.5% to a loss of 95 cents [26]

Group 1 - The core viewpoint highlights that global tech giants, including Alibaba Group Holding Ltd, are enhancing their cloud services and expanding e-commerce capabilities to capitalize on the shift towards digital ecosystems [1] - Alibaba's fundamentals are strengthening in both cloud and e-commerce segments, indicating a positive outlook for the company [1] - Analyst Fawne Jiang reiterated a Buy rating for Alibaba, raising the price target to $195, despite the company missing fiscal first-quarter consensus due to asset divestitures and margin pressure from Quick Commerce investments [2][3] Group 2 - Alibaba's Cloud segment achieved a 26% year-on-year growth, surpassing expectations, and is expected to accelerate further, solidifying its position as a leading provider in China's GenAI and cloud infrastructure [3] - The Quick Commerce segment, while pressuring margins, is viewed as having strategic potential to enhance long-term gross merchandise volume (GMV) total addressable market (TAM), drive user traffic, and support long-term advertising revenue growth [3] - Alibaba is positioned for market share gains and multiple expansion, with shares trading at $137.00, reflecting a 1.48% increase at the time of publication [4]

Core Viewpoint - Alphabet is experiencing significant growth and is currently undervalued in the stock market, making it an attractive investment opportunity for the future [1][11]. Business Growth - Alphabet, the parent company of Google, has multiple business units contributing to its strong growth, despite concerns about Google Search losing market share to generative AI [3]. - Google Search has integrated generative AI features, maintaining its relevance and showing a year-over-year revenue increase of 12% to $54.2 billion in Q2 [4][8]. Google Cloud - Google Cloud is witnessing a surge in demand due to AI-related workloads, as many companies prefer outsourcing their computing needs [5]. - Major companies like OpenAI and Meta Platforms have chosen Google Cloud for their computing needs, indicating its growing reputation in the market [6]. - Google Cloud's revenue grew by 32% year over year to $13.6 billion in Q2, with operating margins improving from 11% to 21% [7]. Overall Financial Performance - Alphabet's overall revenue increased by 14% in Q2, with diluted earnings per share (EPS) rising by 22%, showcasing strong financial health [8]. - Despite the growth, Alphabet's stock trades at a significant discount compared to its peers, with a forward price-to-earnings ratio of less than 21, while many tech giants trade in the high 20s to low 30s [9][11].

CAPITAL MARKETS DAY LONDON | SEPTEMBER 2, 2025 TODAY'S SPEAKERS Jalin Ketter CEO Dr. Peter Czurratis Vice President Metrology Dr. Jan Pfeiffer Vice President Research & Development 2 Carl Markus Groß CFO Dr. Udo Broich Vice President Material Solutions 12.45-14.00 | GET TOGETHER & LUNCH 09.00-09.15 | INTRODUCTION & OVERVIEW 09.15-10.00 | Strategy 11.30-12.00 | FINANCIALS 12.00-12.45 | Q&A 10.00-10.30 | COFFEE BREAK 10.30-11.30 | MARKETS AGENDA 3 COMPANY OVERVIEW 4 INTRODUCING: PVA TODAY A GLOBAL PROVIDER OF ...

Group 1 - The ProShares Ether ETF (NYSEARCA: EETH) has gained over 100% since early April, trading around $76.8, but remains below its March 2024 levels [1] - The analyst has a background in IT and investment, focusing on themes such as automated supply chains, Generative AI, and telcos Capex, with a contrarian approach [1] - The analyst emphasizes a moderate investment strategy aimed at capital preservation, influenced by past losses during the Global Financial Crisis [1] Group 2 - The analyst has extensive experience in virtualization, cloud, and telecommunications, having transitioned from an implementer to a team leader and project lead [1] - The investment journey began with mutual and indexed funds, later shifting to individual stocks, with significant learning from the 2008/2009 financial crash [1] - The analyst values unique perspectives and insights from platforms like Seeking Alpha for informed investment decisions [1]

Summary of Conference Call Notes Industry Overview - The focus is on the **China/Southeast Asia Data Center** industry, particularly companies **GDS Holdings** and **VNET Group**. - The data center market is experiencing a divergence between operators capturing AI/cloud demand and those reliant on traditional retail demand. Key Points on GDS Holdings - GDS reported **40MW** hyperscale orders in 2Q25, down from **152MW** in 1Q25, indicating a supply bottleneck in AI demand [1] - GDS delivered above-expected revenue and EBITDA, attributed to solid customer move-in pace and resilient pricing [1] - Management's tone has shifted from deleveraging to growth-oriented, with plans for more active capex spending [3] - GDS aims to reduce net debt/adj. EBITDA to **5.7x** after the C-REIT listing [3] - The target price for GDS has been raised to **US$42/HK$41**, reflecting a **25.5%** upside potential [10] Key Points on VNET Group - VNET reported **20MW** wholesale orders in 2Q25, down from **123MW** in 1Q25, also indicating a supply bottleneck [1] - VNET's management remains optimistic about order intake in 2H25, especially from September onward [60] - The target price for VNET has been raised to **US$13**, indicating a **52.4%** upside potential [59] DayOne Performance - DayOne, partially owned by GDS, reported a **144%** year-over-year revenue increase and a **156%** increase in adjusted EBITDA [4] - DayOne has become the largest data center operator in the SIJORI region with **224MW** live capacity [4] - DayOne's total committed capacity reached **783MW**, approaching AirTrunk's **800MW+** level [8] - DayOne's profitability is improving, but it still lags behind peers like NEXTDC in terms of EBITDA margins [44] Market Dynamics and Risks - There are policy uncertainties, such as new power tariffs in Malaysia, and rising competition in the APAC region [9] - The potential approval of Nvidia's Blackwell-based products for sale in China could lead to increased order volumes by late 2025 or early 2026 [2] - Risks include below-expected move-in demand, slower overseas revenue ramp-up, and customer churn [56] Financial Metrics - GDS's revenue forecast for 2025 is **Rmb11,545.4 million**, with an EBITDA of **Rmb5,135 million** [15] - VNET's revenue forecast for 2025 is **Rmb9,745.1 million**, with an EBITDA of **Rmb2,921.8 million** [59] Conclusion - The data center industry in China and Southeast Asia is poised for growth, particularly for companies like GDS and VNET, driven by AI demand and strategic expansions. However, challenges such as supply bottlenecks and competitive pressures remain significant.

Core Insights - Bill Ackman has made significant moves in his Pershing Square Capital Management portfolio, with approximately 58% of the portfolio concentrated in three companies [2][4][9]. Company Summaries Uber Technologies (20.6%) - Ackman invested heavily in Uber, acquiring 30.3 million shares, making it the largest position in the portfolio [4]. - Uber's user base reached 180 million, a 15% year-over-year increase, with a 2% rise in trips per user [5]. - The company reported a 35% year-over-year growth in adjusted EBITDA, driven by a 20% increase in delivery gross bookings [5]. - Uber's stock is currently valued at about 1.2 times its gross bookings, with expectations for high teen growth, indicating it is fairly valued [8]. - The company is strategically positioned in the autonomous vehicle industry, having partnered with 20 companies, including Waymo [6][7]. Brookfield Corporation (19.7%) - Ackman has gradually built a position in Brookfield Corporation over the last five quarters, making it the second-largest holding [9]. - The company reported a 13% increase in distributable earnings per share last quarter and anticipates 21% annual growth from 2024 to 2029 [10]. - Brookfield's Wealth Solutions segment has seen rapid growth, with insurance assets increasing from $45 billion to $135 billion in two years, projected to exceed $300 billion by 2029 [10][11]. - The company is utilizing free cash flow for share buybacks and new investments, enhancing its earnings potential [12]. Alphabet Inc. (17.9%) - Ackman initially purchased shares of Alphabet in early 2023, viewing the market's reaction to generative AI as an overreaction [13]. - Alphabet's core advertising business grew by 10% year-over-year, with Google Search increasing by 12% [14]. - The Google Cloud segment experienced a 32% year-over-year sales increase, contributing significantly to overall operating earnings [15]. - Alphabet faces regulatory challenges, with the Department of Justice ruling it operates an illegal monopoly, which could impact its business model [16]. - The stock trades at less than 21 times forward earnings expectations, the lowest among the "Magnificent Seven" stocks, presenting a compelling investment opportunity [17].

Job Market Impact of AI - AI is impacting the job market, particularly affecting young people and those in AI-exposed occupations [1][2] - Early career workers in AI-exposed occupations experienced a 13% relative decline in employment since the widespread adoption of generative AI [2] - High exposure jobs include software developers, customer service and support, clerical roles, writing and media, and business analysts [1] Economic Perspective - The economywide employment continues to grow despite the decline in specific sectors [2] - AI presents a K-shaped hypothesis, suggesting it can both create and destroy jobs [3] Opportunities and Recommendations - AI lowers the barriers to starting a company, building a product, or selling a service [3] - Individuals should become proficient with the latest AI tools to adapt to the changing job market [4]