Financial Data and Key Metrics Changes - The company reported core income of $2.5 billion for Q4 2025, or $11.13 per diluted share, with a core return on equity of 29.6% [4] - Full-year core income increased by 26% to $6.3 billion, with a core return on equity of 19.4% [13] - Underwriting income for Q4 was $2.2 billion pre-tax, a 21% increase compared to the prior year quarter, with an underlying combined ratio improving to 82.2% [4][15] Business Line Data and Key Metrics Changes - Business Insurance net written premiums reached $5.5 billion, with a renewal premium change of 6.1% [5][25] - Bond and Specialty Insurance grew net written premiums to $1.1 billion, with retention at 87% [6][32] - Personal Insurance net written premiums were $4.2 billion, reflecting strong renewal premium change in homeowners and higher new business in auto [7][36] Market Data and Key Metrics Changes - The company grew net written premiums to $10.9 billion in Q4 2025, driven by disciplined execution across all segments [5] - The underlying combined ratio for Business Insurance was 87%, with a strong retention rate of 85% [24][27] - The overall market environment remains competitive, with pricing dynamics reflecting profitability in the property line [51] Company Strategy and Development Direction - The company is transitioning to Innovation 2.0, leveraging AI and advanced technology to enhance underwriting and operational efficiency [9][10] - Strategic investments in technology exceeded $1.5 billion, focusing on automation and data analytics to improve risk assessment and customer service [13][34] - The company aims to maintain a balance between auto and property lines while optimizing risk return profiles [41][42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of strong underlying business performance, expecting continued substantial shareholder value generation [14] - The company anticipates a stable expense ratio of around 28.5% for 2026, reflecting ongoing efficiency gains [15][22] - Management acknowledged regulatory scrutiny on profitability but emphasized the importance of fair pricing and risk management over time [49] Other Important Information - The company returned $1.9 billion of capital to shareholders in Q4, including $1.7 billion in share repurchases [5][22] - The investment portfolio grew to $106 billion, with after-tax net investment income of $867 million for the quarter, up 10% [5][17] - Catastrophe losses for Q4 were $95 million pre-tax, with favorable prior year reserve development contributing positively [16][17] Q&A Session Summary Question: Inquiry about technology investments and expense ratio - Management indicated that the expense ratio is managed and that efficiency gains from technology investments provide flexibility in operations [45][46] Question: Concerns about regulatory pushback on profitability - Management acknowledged the importance of affordability and clarified that recent profitability levels are not indicative of over-earning [49] Question: Clarification on renewal premium change in Business Insurance - Management noted that the deceleration in renewal premium change is due to both rate and exposure factors [50][51] Question: Discussion on capital return strategy - Management confirmed no change in capital management strategy and emphasized responsible capital distribution based on profitability and growth environment [54] Question: Expectations for catastrophe losses in 2026 - Management explained that the attachment point of the treaty provides tail protection and that the year-over-year impact of ceded premium is not expected to be significant [57]

Core Insights - Honeywell International is experiencing significant momentum as it enters 2026, driven by a strategic reset and the upcoming IPO of its majority-owned quantum computing arm, Quantinuum [1] - The company plans to split its Automation and Aerospace businesses into two standalone public companies by the second half of 2026, aimed at enhancing focus and unlocking value [2] - Honeywell's market capitalization is approximately $139.3 billion, indicating a strong start to 2026 [3] Financial Performance - In Q3 of fiscal 2025, Honeywell reported total sales of $10.4 billion, reflecting a 7% year-over-year increase, with organic growth of 6%, surpassing analysts' expectations [5] - The strong performance was primarily driven by the Aerospace Technologies and Building Automation segments [5] Stock Performance - Honeywell's stock surged over 11% in the first few trading days of 2026, significantly outperforming the S&P 500 Index, which gained only 1.4% during the same period [4] - The stock reached a year-to-date high of $220.63 on January 16, indicating strong early momentum [4]

Market Overview - US stocks experienced a sharp decline amid rising market speculation and geopolitical tensions related to President Trump's plans for Greenland [1][2] - A 10% tariff on eight NATO members was announced, potentially increasing to 25% if no agreement is reached regarding Greenland [2] Investment Strategy - Investors are advised to consider taking profits from significant stock gains, particularly those that have surged this year, to safeguard against potential market volatility [3][6] - Cramer emphasized that profits are only realized when gains are locked in, suggesting a strategic move to convert a portion of stock holdings into cash [3][6] Stock Performance Insights - Cramer identified 30 US stocks with market caps over $1 billion that have gained at least 50% year-to-date, but many lack earnings and have minimal sales, indicating a speculative market environment [4] - Cramer previously warned about overheated markets and recommended selling stocks with weak earnings, noting that many have since declined significantly [5] Current Stock Recommendations - Cramer highlighted a cautious investment approach, raising cash in anticipation of buying opportunities due to market volatility [7] - Shares of Alphabet were purchased during market fluctuations, and Meta Platforms is viewed as no longer expensive despite recent losses [8] - Cramer expressed a bullish outlook on TJX Companies, predicting it will benefit from potential market changes due to the expected bankruptcy of Saks Global [9]

Core Viewpoint - The current decade presents a once-in-a-decade investment opportunity in generative AI and quantum computing, with specific stocks in quantum computing being highlighted as potential long-term investments [2]. Group 1: Alphabet - Alphabet has significantly benefited from the rise of mobile phones and social media, with its Google Cloud division experiencing substantial growth due to the shift to cloud computing and the rise of generative AI [3]. - The Google Quantum AI unit achieved quantum supremacy in October 2019, marking a significant milestone in quantum computing [4]. - In 2023, Google Quantum AI demonstrated the first logical qubit prototype, indicating progress in reducing quantum computing errors and increasing qubit numbers [5]. - Predictions suggest that Google Quantum AI will build a large, error-corrected quantum computer with at least 1 million qubits in the coming years [6]. Group 2: Microsoft - Microsoft shares similarities with Alphabet, being a technology giant and a top-tier cloud service provider, benefiting from generative AI [7]. - The company has developed a unique approach to quantum processing, distinguishing it from competitors [7]. - In February 2025, Microsoft introduced the Majorana 1 quantum chip, utilizing a topological superconductor, which could potentially allow for over 1 million qubits on a single chip [9]. - If successful, Microsoft's topoconductor technology could position the company as a leading player in the quantum computing industry for the next decade [10]. Group 3: IonQ - IonQ currently has a market cap of approximately $18 billion, making it a smaller player compared to Alphabet and Microsoft [11]. - The company employs a trapped-ion architecture for quantum computing, which aims to reduce quantum errors and enhance qubit coherence [12]. - IonQ is also developing quantum networking, sensing, and security solutions, positioning itself as a unique quantum platform company [14]. - Despite being riskier and currently unprofitable, IonQ could offer greater long-term returns if its R&D efforts succeed [15].

Company Overview - D-Wave Quantum's shares dropped by 6.2% amid a broader market decline, with the S&P 500 and Nasdaq Composite falling by 2.1% and 2.4% respectively [1][2] - The company has a significant presence in Europe, which may expose it to risks from potential trade tensions between the U.S. and the EU [2][3] Market Context - The decline in D-Wave's stock is attributed to escalating geopolitical tensions, particularly President Trump's renewed push to acquire Greenland and threats of tariffs against allies [2] - The overall market experienced its worst day in months, impacting stocks across various sectors, including those with European ties [2][3] Financial Performance - D-Wave Quantum is currently valued at $10 billion, despite generating only $24.14 million in sales over the past 12 months, indicating a potential overvaluation in the eyes of analysts [3] - The long road to commercialization for quantum technology raises concerns about the sustainability of current valuations for companies like D-Wave [3]

Core Viewpoint - D-Wave Quantum's stock experienced a significant sell-off, dropping 6.2% in one trading session, influenced by broader market trends and geopolitical events [1][2][3]. Group 1: Stock Performance - D-Wave's share price fell to $27.04, with a market capitalization of approximately $10 billion [4]. - The stock's trading range for the day was between $25.94 and $28.48, while its 52-week range was from $4.45 to $46.75 [5]. - The volume of shares traded was 1.5 million, compared to an average volume of 40 million [5]. Group 2: Market Context - The S&P 500 and Nasdaq Composite indices fell by 2.1% and 2.4%, respectively, indicating a bearish trend in the broader market [2]. - The sell-off was partly driven by geopolitical tensions related to the U.S. attempts to acquire Greenland, leading to potential tariff responses from the EU [3]. Group 3: Valuation Insights - D-Wave's valuation is highly dependent on growth, with a current valuation of approximately 238 times this year's expected sales [6]. - Despite the stock's decline, its pullback appears relatively modest compared to the overall market, suggesting some resilience [5]. Group 4: Investment Considerations - The current geopolitical and macroeconomic uncertainties make D-Wave stock a risky investment, suitable only for investors with a high risk tolerance [7].

Core Insights - Rigetti Computing (RGTI) is confident in achieving a 1,000-plus qubit system by 2027, primarily due to its chiplet-based architecture, which is now delivering measurable results rather than being a theoretical concept [1][8] Company Progress - The company is advancing from 9-qubit chiplets to 36-qubit chiplets, which serve as the foundational building block for larger systems, allowing for scaling qubit counts while mitigating yield and complexity risks associated with monolithic chips [2][8] - Current 36-qubit chiplet systems exhibit nearly 99.5% two-qubit gate fidelity, which bolsters management's confidence in expanding to 150 qubits by 2026 and beyond [2][8] Modularity and Execution Risk - Rigetti is utilizing repeatable, modular units that can be manufactured, tested, and improved independently, which lowers execution risk and maintains flexibility as the company aims to enhance fidelity [3] - The approach to reaching 1,000 qubits is characterized as a series of controlled steps rather than a speculative leap, making the timeline appear increasingly achievable [3] Industry Peers Updates - IonQ (IONQ) has expanded its collaboration with the Korea Institute of Science and Technology Information to deploy a next-generation 100-qubit IonQ Tempo quantum system, integrating it into South Korea's National Quantum Computing Center of Excellence [4][5] - D-Wave Quantum (QBTS) has achieved a significant milestone with scalable on-chip cryogenic control for gate-model quantum computers, addressing major barriers to large-scale quantum systems and enhancing the practicality of gate-model architectures [6] Price Performance and Valuation - Rigetti's shares have increased by 59.3% over the last six months, contrasting with a 13.8% decline in the industry [7] - The company has a price-to-book ratio of 22.74, which is above the industry average, and carries a Value Score of F [10] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a significant 88.9% decline from the previous year [11]

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Core Viewpoint - D-Wave Quantum Inc. is positioning itself as a leading player in the quantum computing sector, with significant advancements in technology and a notable increase in share price over the past year [3][7]. Group 1: Company Developments - D-Wave has seen its share price increase by over 358% in the last 12 months, indicating strong market interest and potential [3]. - The company is expanding its focus beyond quantum annealing technology to include gate-model technology, addressing previous criticisms regarding its narrow technological scope [4][5]. - A major technological milestone was achieved with the first scalable on-chip cryogenic control of qubits, enhancing D-Wave's competitiveness in the gate-model arena [5][7]. Group 2: Competitive Landscape - D-Wave is now positioned to dominate both quantum annealing and gate-model approaches, a unique advantage not yet matched by other pure-play quantum firms [6]. - The acquisition of Quantum Circuits further solidifies D-Wave's status as a dual provider of both technologies, especially as competitors like Rigetti face setbacks [7].

Industry Overview - The quantum computing market is projected to grow from $3.52 billion in 2025 to $20.20 billion by 2030, reflecting a CAGR of 41.8% [1] - Key drivers of this growth include advancements in hardware, increased cloud-based accessibility, and rising investments from both private and public sectors [1][2] Government Initiatives - Government agencies are crucial in driving R&D funding and industry collaboration through initiatives like the US National Quantum Initiative Act and the EU Quantum Flagship Program [2] Key Players - Quantum Computing Inc. (QUBT) and Rigetti Computing (RGTI) are identified as significant players in the quantum computing market [2] Technological Challenges - The quantum computing market faces technological hurdles such as qubit interconnection, decoherence, and external noise, which limit applications and scalability [3] Company Performance: QUBT - QUBT reported third-quarter revenues of $384,000, driven by R&D contracts and initial cloud access revenues [8] - The company raised $500 million in gross proceeds during the third quarter and an additional $750 million post-quarter, ending with $352 million in cash and cash equivalents [10] - QUBT's manufacturing strategy involves phased production through Fab 1 and Fab 2, aimed at scaling operations and improving margins [7] Company Performance: RGTI - Rigetti reported total revenues of $1.9 million in the third quarter, supported by government contracts and cloud-based services [12] - The company ended the quarter with $446.9 million in cash and no debt, indicating a strong financial position [13] - Rigetti's Fab-1 facility allows for end-to-end control over manufacturing, enhancing its ability to innovate and capture market opportunities [11] Financial Projections - For 2025, QUBT's loss per share is projected to be 15 cents, an improvement from a loss of 73 cents per share the previous year [14] - RGTI's loss per share is projected to be 68 cents, compared to a loss of 36 cents the prior year [17] Price Targets - The average price target for QUBT is $17.00, indicating a potential upside of 39.6% from the last closing price [20] - Rigetti's average price target is $37.56, suggesting a 52.1% upside from the last close [22] Conclusion - QUBT's integrated manufacturing strategy and early commercial traction position it well for growth in the quantum computing market [24] - Rigetti's full-stack approach and strong government contracts highlight its potential for innovation and long-term value [24][25]