Market Overview - The benchmark BSE Sensex fell by 558.72 points, or 0.66 percent, closing at 83,674.92, with an intraday low of 83,516.67, down 716.97 points or 0.85 percent [3][6] - The NSE Nifty declined by 146.65 points, or 0.57 percent, ending at 25,807.20 [6] Sector Performance - Technology stocks were the major laggards, with Tech Mahindra, Infosys, and TCS each tumbling nearly 6 percent [6] - The Focussed IT sector slumped by 5.40 percent, while the broader IT sector fell by 5.29 percent [8] Investor Sentiment - Concerns over AI-led disruptions and low expectations of a US Federal Reserve rate cut due to strong US economic data negatively impacted investor sentiment [9][10] - Analysts noted that the IT index's decline was driven by fears of margin compression in service-intensive sectors due to AI advancements [9] Global Context - In global markets, AI is reshaping industries, leading to increased volatility and challenges to traditional outsourcing models [10] - Geopolitical tensions, particularly between the US and Iran, may further influence investor caution in the IT sector [10] Institutional Activity - Foreign institutional investors purchased equities worth Rs 943.81 crore, while domestic institutional investors sold stocks worth Rs 125.36 crore [11]

Group 1: Japan's Economic Context - The yen has strengthened since the election, currently trading at 153, indicating a shift in market sentiment [1] - There is a narrative suggesting a turning point for Japan's economy, with a pro-growth outlook and certainty in policy implementation, leading to a belief that the yen is undervalued [2] - Despite the positive sentiment, fundamental bearish reasons for the yen remain, including slow economic growth and a large debt burden with negative real yields [4] Group 2: Dollar Dynamics - The dollar's reaction to strong payroll numbers was less pronounced than expected, indicating a complex relationship between economic data and currency movements [6] - The market is structurally overexposed to the dollar, which is expected to trend downwards over the coming years, with opportunities to offload during spikes [7] - Weak economic data could justify rate cuts, further weakening the dollar, while strong data may not provide relief due to poor monetary policy [8] Group 3: Market Sentiment and Equity Outlook - There is a sense of anxiety in the market, particularly regarding potential shocks in equity due to ongoing portfolio damage and wealth concerns [10] - The impact of AI on job recovery is viewed as slower than some predictions, suggesting a longer timeline for significant changes in the job market [11]

LONDON — Growth at Unilever’s beauty and well-being division outstripped the consumer giant’s overall performance in 2025, with brands including Nutrafol, Liquid I.V., Vaseline and Dove leading the way. Underlying sales in the division grew 4.3 percent to 12.8 billion euros, driven by a balance of volume and price growth. Wellness products as well as Vaseline and Dove grew in the double digits. By contrast, growth in prestige beauty, core skin care and hair care, was in the low-to-midsingle digits. More f ...

Core Insights - The demand for artificial intelligence (AI) has significantly driven cloud growth, with fierce competition among major providers [2][3] Cloud Market Overview - Cloud infrastructure services revenue reached $119 billion in Q4, growing 30% year over year [2] - The Big Three cloud providers—Amazon Web Services (AWS), Microsoft Azure, and Google Cloud—are the primary beneficiaries of this trend [3] Amazon Web Services (AWS) - AWS controls 28% of the global cloud infrastructure market and reported Q4 cloud revenue of $35.6 billion, growing 24% year over year [5][6] - This growth rate is the fastest in 13 quarters, driven by strong AI demand [6] - Amazon plans to spend $200 billion in capital expenditures for 2026, primarily in AWS [6] Microsoft Azure - Microsoft Azure holds approximately 21% of the global cloud market and reported a 39% year-over-year revenue increase for Q2 of fiscal 2026 [8] - The growth rate slightly decreased from 40% in Q1, but demand continues to exceed supply [9] - Microsoft anticipates a higher capex growth rate for fiscal 2026 compared to fiscal 2025 [9] Google Cloud - Google Cloud, the smallest of the Big Three with about 14% market share, reported a remarkable 48% revenue growth in Q4, up from 34% in Q3 [11] - The growth was attributed to the success of the Gemini 3 AI model, which has sold over 8 million enterprise seats [12] - Alphabet plans to invest between $175 billion and $185 billion in capex for 2026 to support AI and cloud growth [13] Competitive Analysis - Google Cloud's growth rate outpaced its competitors, and it has successfully reduced costs, enhancing profitability [15] - AWS's CEO noted the difference in growth percentages relative to the size of the companies, indicating that Google Cloud's rapid growth could close the gap with AWS if sustained [16] - Alphabet's current valuation at 30 times earnings is considered attractive given its growth potential [17]

Group 1 - Datadog, Inc. (DDOG) has experienced a decline in stock price over the last few months, attributed to market fears surrounding AI, but the company faces a more significant issue regarding its valuation [1] - The AI-based SaaS monitoring platform is currently priced for perfection despite the recent dip in stock price [1] - Stone Fox Capital, an RIA from Oklahoma, is led by Mark Holder, who has extensive experience in investing and portfolio management [1] Group 2 - The investing group Out Fox The Street provides stock picks and deep research aimed at uncovering potential multibaggers while managing portfolio risk through diversification [1] - Features of Out Fox The Street include model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and community chat access [1]

Group 1 - Datadog, Inc. (DDOG) has experienced a decline in recent months, attributed to market fears surrounding AI, but the company faces a more significant issue regarding its valuation [1] - The AI-based SaaS monitoring platform is currently priced for perfection despite the recent dip in stock price [1] - Stone Fox Capital, an RIA from Oklahoma, is led by Mark Holder, who has extensive experience in investing and portfolio management [1] Group 2 - Mark Holder leads the investing group Out Fox The Street, which provides stock picks and in-depth research to help investors identify potential multibaggers while managing portfolio risk through diversification [1] - The features of Out Fox The Street include various model portfolios, stock picks with identifiable catalysts, daily updates, real-time alerts, and access to community chat [1]

Core Insights - Unibail-Rodamco-Westfield (URW) reported strong retail performance in FY-2025, driven by increased footfall, tenant sales, and dynamic leasing activity, resulting in record low vacancy rates [1][4] - The company achieved a significant improvement in its loan-to-value (LTV) ratio, aided by €2.2 billion in completed or secured disposals and a portfolio revaluation increase of +1.7% [1][6] - URW launched capital-light growth initiatives, including a franchising contract in Saudi Arabia and a 25% stake acquisition in St James Quarter, Edinburgh [1][5] Financial Performance - The 2025 Adjusted Recurring Earnings Per Share (AREPS) was reported at €9.58, with a proposed distribution of €4.50 per share, reflecting a +30% increase compared to FY-2024 [2][7] - Forecasts for 2026 AREPS are projected to be between €9.15 and €9.30, with a targeted distribution of €5.50 per share [2] - EBITDA for 2025 reached €2,284 million, marking a +3.6% increase on a like-for-like basis, while Shopping Centres Net Rental Income (NRI) was €2,081 million, up +3.8% [6] Operational Highlights - Tenant sales increased by +3.9%, supported by a +1.9% rise in footfall compared to 2024, with shopping centre vacancy reduced to 4.6%, down -20 basis points [6] - Minimum Guaranteed Rent (MGR) signed amounted to €423 million, with a +6.7% uplift on indexed passing rents, including +11.3% on long-term deals [6] - The company’s balance sheet was strengthened, with IFRS Net Debt reduced from €21.9 billion to €20.3 billion, and LTV improved to 42.8%, a -270 basis point change from FY-2024 [6] Strategic Initiatives - URW's 'A Platform for Growth' business plan aims to generate organic growth and leverage the Westfield brand while unlocking capital-light growth opportunities [12] - The company is committed to sustainability through its 'Better Places' roadmap, which has positioned URW as one of the top 100 sustainable companies globally [8][12] - Future priorities include enhancing leasing activities, simplifying operations, and utilizing proprietary data and AI capabilities to drive growth and innovation [9]

Core Insights - The company is leveraging AI tools across various business functions, including coding, sales, and marketing, to enhance efficiency and reduce costs [1][2] - AI-generated content is significantly lowering production costs, with an example showing a video that would have cost $75,000 and taken six weeks to produce now being created in under a day for just $500 [3][5] - The company aims to democratize television advertising, making it accessible for small and mid-sized businesses by improving the quality and affordability of creative content [6][8] AI Utilization - The introduction of QuickFrame AI allows customers to create commercials faster and at a lower cost, demonstrating the transformative impact of AI on the advertising industry [2][5] - The production cost for AI-generated content has decreased dramatically, while the volume of content being produced has increased, leading to more opportunities for creators [5][6] Market Dynamics - The media industry is witnessing growth driven by small and mid-sized businesses, which are increasingly embracing high-quality creative content produced by AI tools [8] - There is a growing demand for transparency regarding AI-generated content, with suggestions for identifying such content in marketing materials [9] Competitive Landscape - Netflix is seen as a potential acquirer of Warner Brothers, with its ad business presenting a significant backlog of revenue opportunities as more subscribers opt for ad-supported tiers [11] - The cost of airing ads on platforms like Netflix is becoming more attractive for small businesses, comparable to costs on social media platforms like Instagram and TikTok [12][13]

Market Overview - The recent jobs report exceeded expectations, leading to increased yields and a shift in Fed rate cut expectations [1][2] - The market is experiencing high volatility, with the S&P moving from overbought to oversold and back to overbought within a week [3] AI Impact on the Market - There is confusion regarding AI's impact on the job market, with initial fears of job losses now being countered by a strong jobs report [2] - AI's rapid advancements are causing disruptions in various sectors, leading to concerns about its effects on technology stocks and data centers [4][5] - Despite disruptions, AI is also seen as a driver of productivity, potentially leading to cost savings for companies [6] Gold Market Dynamics - Gold has become a significant investment, now valued at $40 trillion, surpassing the stock market, which raises questions about its role as a store of value compared to stocks [4] - The current price-to-sales ratio for gold is over 50 times, indicating a high valuation [10] Earnings and Market Valuation - The market is perceived as expensive, but earnings growth is accelerating, with the ISM index returning above 50 after a prolonged period below that threshold [7][8] - The new Fed leadership is viewed as dovish, which may support higher price-to-earnings (PE) ratios for equities [9]

Financial Data and Key Metrics Changes - In Q4 2025, the company achieved total revenue of $208.2 million, a 14% year-over-year increase and a 3% sequential increase, primarily driven by subscription-based revenues [24] - Full year revenue reached $794.8 million, also up 14% from the previous year, marking the highest annual growth rate since 2021 [25] - Subscription revenue for the full year grew by 17%, accounting for 82% of total revenue, while total annualized recurring revenue (ARR) increased to $921 million, up 12% year-over-year [25][26] - Adjusted EBITDA for Q4 was a record $51.2 million, up 36% from the prior year, with full year adjusted EBITDA at $186.5 million, a 49% increase [31] Business Line Data and Key Metrics Changes - The Digital Banking Platform was a significant contributor to bookings success, with strong performance across banks and credit unions [10] - The risk and fraud solutions emerged as one of the fastest-growing product lines, highlighted by the largest fraud deal in company history with a $200 billion bank [11] - The company processed over $4 trillion in transaction volume in 2025, representing a 21% year-over-year growth [13] Market Data and Key Metrics Changes - The company reported a trailing 12-month total net revenue retention rate of 113%, up from 109% in 2024, indicating strong customer retention [27] - The revenue churn rate for 2025 was 5.2%, an increase from 4.4% in 2024, attributed to higher M&A activity [27][28] Company Strategy and Development Direction - The company aims to leverage its single-platform approach to enhance deposit growth and retention, positioning itself as a key player in the digital banking space [12] - The focus on AI is seen as a critical enabler for long-term strategy, with plans to integrate AI capabilities into existing products and develop new ones [20][22] - The company is targeting annual subscription revenue growth of approximately 12.5%-13% for 2027, with long-term profitability targets set for gross margins of at least 65% and adjusted EBITDA margins of at least 35% by 2030 [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment, citing improving credit quality and stable margins as supportive factors for growth entering 2026 [23] - The company anticipates that Tier One and enterprise activity will be weighted toward the back half of 2026, with a healthy pipeline of both net new and expansion opportunities [23][39] Other Important Information - The company ended 2025 with a cash balance of $433 million, down from $569 million, due to the retirement of convertible notes and stock repurchases [31] - The company generated free cash flow of $173 million for the year, representing a 93% conversion rate of adjusted EBITDA [32] Q&A Session Summary Question: Demand for solutions during core modernization - Management indicated that any decision by a financial institution to change technology, particularly core systems, opens up opportunities for the company, although quantifying this is challenging [41][42] Question: Visibility into subscription growth - Management expressed confidence in the subscription growth outlook, attributing it to strong bookings in the first half of 2026, which could drive upside for 2027 [44][45] Question: Cross-sell opportunities for fraud products - Management noted that only 10% of Tier One customers utilize all three product lines, indicating significant room for expansion, particularly in fraud solutions [51][52] Question: Balancing cash for share repurchases versus M&A - Management emphasized the flexibility provided by strong free cash flow, allowing for thoughtful capital allocation between share repurchases and potential M&A opportunities [53][54] Question: Digital banking market dynamics - Management described the demand for digital banking solutions as strong, with significant opportunities for growth as many banks still rely on legacy systems [60][61] Question: Time-to-revenue for risk and fraud products - Management indicated that standalone fraud solutions typically have faster implementation timelines compared to traditional digital banking solutions [62][63] Question: Demand trends for commercial solutions - Management highlighted that demand for commercial banking solutions has increased due to the importance of deposits, with expectations for continued strong demand [70][71] Question: Long-term margin targets - Management explained that the long-term margin targets are based on a combination of subscription revenue mix, cost efficiencies, and operational leverage [75][76]