Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's performance was impacted by a preference for application software companies, which faced headwinds due to market sentiment favoring cyclical semiconductors and quantum computing [3] Company Performance - Vertex, Inc. (NASDAQ:VERX) experienced a one-month return of -0.31% and a 52-week decline of 62.60%, closing at $19.56 per share with a market capitalization of $3.12 billion on January 5, 2026 [2] - For Q3 2025, Vertex reported revenue of $192.1 million, reflecting a year-over-year increase of 12.7% [4] - Vertex's earnings were slightly below expectations due to delays in enterprise contracts, pushing some revenues into later periods, although its two-year targets remain intact [3] Investment Sentiment - Vertex, Inc. is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding the stock at the end of Q3 2025, down from 25 in the previous quarter [4] - The company is viewed as having potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - Quantum Computing, Inc. (QUBT) has reported strong quarterly results in 2025, highlighting the increasing real-world adoption of its photonic and quantum computing systems [2] - The quantum computing industry has reached a critical inflection point in 2025, transitioning from theoretical potential to tangible commercial progress driven by advances in hardware, software, and error correction [3] - A robust ecosystem for commercial quantum computing has been fostered by increased investment, government support, workforce development, and technical breakthroughs, with meaningful applications expected in areas like drug discovery and cryptography over the next five to ten years [4] Company Performance - QUBT's stock has declined by 33.9% over the past year, underperforming the broader industry which gained 0.8% and the S&P 500 which rose by 16.9% [6] - The company has secured significant contracts, including a subcontract with NASA to address solar noise in space LIDAR data and a purchase order from a top-five U.S. bank for its quantum security solutions, marking its first commercial sale in this area [7][11] Growth Drivers - QUBT's DIRAC-3 quantum optimization machine is being deployed to develop methods for mitigating solar noise, reinforcing its position as a trusted government partner [8] - The company is pursuing mergers and acquisitions to accelerate quantum commercialization, including a $110 million acquisition of Luminar Semiconductor, which will enhance its photonic technology portfolio [12] Financial Position - QUBT's balance sheet has strengthened significantly, with total assets reaching $898.2 million and cash and investments totaling $813 million, supported by $1.25 billion in private placements [15] - For the full year 2026, QCi is expected to generate revenue growth of 284.3%, although earnings per share are projected to remain negative [16] Strategic Focus - QUBT is prioritizing long-term platform leadership over immediate revenues, investing in manufacturing infrastructure to support future scale [18] - The company plans to focus on small, customized deployments for a limited set of customers, which may limit near-term revenue growth due to low unit volumes and lengthy sales cycles [19] Valuation Concerns - QUBT's stock is currently trading at a high forward price-to-sales ratio of 840.29X, significantly above the industry average of 5.55X, indicating an expensive valuation [20]

Core Insights - ZenaTech, Inc. is strategically positioned to benefit from U.S. government restrictions on foreign-made drone equipment, enhancing demand for its U.S.-based drone subsidiary, ZenaDrone [1][3] - The company is focused on developing NDAA-compliant drone solutions to meet the evolving needs of defense and government customers, including pursuing Blue UAS certification [2][4] Regulatory Environment - The FCC has updated its Covered List to restrict new foreign-made UAS equipment, including DJI, based on national security concerns, which may increase demand for ZenaDrone's American-made products [3][5] - The regulatory shift emphasizes the need for trusted and compliant drone technologies, positioning ZenaDrone favorably for adoption in defense and government applications [3][5] Product Development and Capabilities - ZenaDrone is advancing its multi-function AI drone systems for government and defense, currently in various pilot and certification stages [4] - The ZenaDrone 1000 is a medium-sized VTOL drone capable of lifting approximately 40 kg, designed for ISR applications and critical cargo delivery [5] - The IQ Nano is a compact indoor drone for inventory management in GPS-denied environments, while the IQ Square is engineered for land surveys and infrastructure inspections [5][7] Market Demand and Growth - There is a rising demand for NDAA-compliant U.S. drone platforms as federal users prepare for limited availability of newly authorized foreign-made models [5] - ZenaDrone's manufacturing facilities in Arizona and Taiwan are being expanded to meet this growing demand [5] - The company aims to develop counter-UAS technology to enhance its product offerings and address future market needs [5]

Core Viewpoint - Quantum computing is an emerging technology with significant potential, but current companies in the sector are facing high valuations and substantial cash burn, making them speculative investments [1][7][17]. Company Summaries - IonQ has a market cap of approximately $16 billion, with projected revenues of $106 million to $110 million in 2025, resulting in a price-to-sales ratio of 145. The company expects a loss of $206 million to $216 million for the year [1][3]. - Rigetti Computing and D-Wave Quantum are valued at less than $10 billion each, generating only a few million dollars in revenue per quarter, indicating speculative valuations [1][3]. - IonQ reported a net loss of $1.05 billion in Q3 with revenues just under $40 million, highlighting the cash burn issue faced by these companies [8]. Industry Insights - The quantum computing sector is compared to the AI industry, which has seen companies with market caps exceeding $1 trillion. If quantum computing stocks achieve similar success, they could potentially generate significant returns for investors [2][6]. - Current conditions in the quantum computing sector are reminiscent of the space exploration industry in 2021, where initial optimism led to significant crashes [14][15]. - The commercialization of quantum computing technology is expected to take several years, with optimistic forecasts suggesting viability by 2030 [10][11]. Investment Considerations - Investors are advised to monitor quantum computing stocks carefully, as the current high valuations may not reflect future performance. Many years of optimistic results are already factored into share prices [12][13]. - Investing in a quantum computing ETF could provide exposure to the sector while mitigating risks associated with individual stocks [9]. - The potential for major returns exists, but the speculative nature of these stocks means that investors should be cautious and consider other opportunities in the meantime [17][18].

Core Viewpoint - Warren Buffett has stepped down from making final investment decisions for Berkshire Hathaway, with Greg Abel now in charge, although Abel is expected to maintain a similar investment strategy to Buffett's [1][2]. Group 1: Potential Investments - Greg Abel is predicted to increase Berkshire Hathaway's stake in Alphabet, as Buffett had previously regretted not investing sooner, and Abel may appreciate the company's strong cash flow and business moats [4][5][6]. - Dominion Energy is seen as a strong candidate for investment due to its regulated monopoly status and attractive dividend yield of over 4.5%, aligning with Buffett's preference for dividend-paying companies [8][11][12]. - Mitsui is likely to see an increase in Berkshire's ownership, as it currently holds a smaller stake compared to other Japanese companies, and both Buffett and Abel have expressed positive sentiments about their investments in Japan [13][15][16].

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Core Insights - The rapid advancements in artificial intelligence (AI) are currently dominating the technology news landscape, while quantum computing is emerging as the next significant technological leap [1][9] - The quantum computing sector is still in its early development stages, making individual stock investments appear risky; however, investing in quantum exchange-traded funds (ETFs) is a viable alternative [2] Group 1: Quantum Computing ETFs - Investing in quantum ETFs allows for a diversified portfolio, minimizing idiosyncratic risk associated with individual stocks [6] - The Defiance Quantum ETF (NASDAQ: QTUM) and WisdomTree Quantum Computing ETF (NYSEMKT: WQTM) are highlighted as potential long-term winners if quantum computing gains traction [7] - The Defiance Quantum ETF tracks the BlueStar Machine Learning and Quantum Computing Index, which includes companies involved in quantum computing and machine learning [10] Group 2: Risks of Individual Stocks - Predicting long-term winners in the technology sector is challenging, as demonstrated by the example of Google surpassing Yahoo! in web search technology [4] - Individual stock investments carry idiosyncratic risks, as seen with Tesla (NASDAQ: TSLA) and the unpredictable influence of CEO Elon Musk on stock performance [5]

Core Insights - NVIDIA Corporation (NVDA) reported strong quarterly results in 2025, driven by the AI boom, with a stock surge of 38.8% last year despite U.S.-China trade challenges [2] - D-Wave Quantum Inc. (QBTS) and Palantir Technologies Inc. (PLTR) outperformed NVIDIA in 2025, with share increases of 181.2% and 135% respectively, indicating strong momentum [3] D-Wave Quantum Inc. (QBTS) - D-Wave's revenues reached $3.7 million in Q3 2025, nearly doubling year over year and increasing by 20.8% sequentially, with total revenues for the first nine months at $21.8 million, a 235% increase from the previous year [4] - The rollout of the Advantage2 platform and expansion of its customer base contributed to revenue growth, with bookings of $2.4 million in Q3 2025, up 3% year over year and 80% quarter over quarter [4] - D-Wave is projected to achieve earnings growth of 73.3% this year, with brokers predicting an average short-term price target of $38.71, indicating a 47.5% increase from the last closing price of $26.25 [5] Palantir Technologies Inc. (PLTR) - Palantir's Q3 revenues were $1.18 billion, reflecting a 63% year-over-year increase and an 18% sequential rise, driven by demand for its AI platform among government and commercial clients [9] - The company expects full-year 2025 sales to be between $4.396 billion and $4.400 billion, alongside a positive GAAP net income [9] - Palantir's anticipated earnings growth rate for the current year is 78.1%, with brokers raising the average short-term price target to $192.67, a 6.5% increase from $180.84, and a highest target of $255, suggesting a potential 41% upside [10]

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Core Insights - CES 2026 is set to showcase advancements in physical AI and robotics, emphasizing real-world applications of AI technology [1][2] Group 1: AI Trends - The focus at CES 2026 has shifted from cloud-based solutions to on-device and agentic AI, with devices now capable of proactively completing tasks [2] - The concept of the "Zero Labor Home" is gaining traction, with companies like LG and Samsung leading the way in robotics that perform household chores [3] Group 2: Quantum Technology - CES 2026 marks a significant emphasis on quantum technology, with the CES Foundry highlighting practical applications in fields such as cryptography and material science [4] Group 3: Automotive Innovations - The automotive section at CES 2026 is centered around software-defined mobility, featuring the pre-production reveal of the Sony-Honda Afeela 1 and advancements in air taxis [5] Group 4: Notable Speakers - Keynote addresses will be delivered by industry leaders, including NVIDIA's CEO Jensen Huang, who is expected to discuss next-generation GPUs and AI applications [7] - AMD's CEO Lisa Su will focus on hardware developments for AI PCs, while Caterpillar's CEO Joe Creed will address AI and autonomy in sustainable construction [7]