RT unusual_whales (@unusual_whales)AI adoption rates are starting to decline for larger firms, per Apollo: https://t.co/K1BMtM149j ...

Group 1 - The market may experience a pullback despite the current bullish trend, as recent jobless claims and inflation data suggest potential volatility ahead [1][2] - The current bull market is expected to reach a target of 7750 by the end of next year, but historical patterns indicate that pullbacks are common during such market phases [2] - Companies are increasingly discussing the use of AI not just for cost control but also for revenue generation, indicating a significant shift in business strategies [4] Group 2 - The market breadth today is stronger compared to the late 1990s, with a majority of stocks participating in the rally rather than being concentrated in a few technology stocks [6] - There has been some rotation into other AI-related stocks recently, although major players like Nvidia continue to dominate the buying activity [5]

Summary of Key Takeaways from the Earnings Call on Tariff Mitigation Strategies Industry Overview - The report focuses on the impact of tariffs on various sectors, particularly **Industrials**, **Healthcare**, and **Consumer Discretionary**. These sectors are identified as being most exposed to tariff risks [2][3][25]. Core Points and Arguments 1. **Mitigation Strategies**: Companies are employing five primary strategies to mitigate tariff impacts: - **Pricing Power**: Companies are increasingly passing costs onto consumers, with pricing power becoming the most frequently mentioned strategy, surpassing supply chain diversification [3][7][27]. - **Supplier Negotiation**: Companies are negotiating with suppliers to share the burden of tariff costs, particularly in the healthcare sector [4][46]. - **Redirecting Products**: Multinational companies are redirecting goods to markets without tariffs, which is a strategy being utilized by companies like Nike and Alcoa [13][61]. - **Stockpiling Inventory**: Companies are stockpiling inventory ahead of potential tariffs, although this is done cautiously due to high storage costs [4][43]. - **Diversifying Supply Chains**: While this strategy has seen a decline in mentions, it remains a long-term solution for many companies [3][33]. 2. **Tariff Rate Expectations**: An effective tariff rate of approximately **16%** is expected by year-end, with global baseline tariffs around **10%**. Tariffs on China and other regions are anticipated to be slightly higher [7][9]. 3. **Sector-Specific Insights**: - **Industrials**: Companies in this sector frequently mention pricing power as a key strategy. They are well-positioned to mitigate tariff risks [4][40]. - **Consumer Discretionary**: There is an increase in mentions of inventory stockpiling, reflecting a lag in tariff collection as companies work through existing inventory [4][43]. - **Healthcare**: Companies are focusing on negotiating with suppliers, indicating a shift towards flexible pricing strategies [4][46]. 4. **AI as a Wildcard Strategy**: The adoption of AI is emerging as a potential strategy for cost efficiency, although it has not yet been explicitly cited as a tariff mitigant. Companies using AI are shedding costs, which could help offset tariff impacts [8][16]. 5. **Trade Policy Uncertainty**: Ongoing trade policy uncertainty is expected to persist, with potential for higher tariff levels due to evolving negotiations and agreements with major trading partners [9][10][28]. Other Important Insights - **Sentiment Analysis**: Industrial management teams exhibit high confidence in their ability to mitigate tariff risks, while sectors like communication services and consumer staples show lower sentiment scores [18]. - **Dynamic Process**: Managing tariff risks is described as an ongoing, dynamic process, with companies continuously adapting their strategies in response to changing tariff landscapes [2][12]. - **Sector Performance**: The consumer discretionary sector is currently underweight in investment views due to the concentrated negative impact of tariffs [28]. This summary encapsulates the key takeaways from the earnings call regarding how companies are navigating the challenges posed by tariffs and the strategies they are implementing to mitigate these impacts.

Financial Performance & Growth - Funds Under Management and Advice (FUMA) reached £19.2 billion[11], driven by acquisitions and strong market/investment performance[10] - Revenue increased by 4.6% to £111.6 million[16], supported by acquired financial planning businesses[35] - Underlying profit before tax was £28.9 million[113] - Total FUM increased by 7% to £16.6 billion[11] from £15.5 billion[11] Strategic Initiatives & Cost Management - The company's strategy to 'Reignite Growth' is delivering results[5, 37, 72] - Underlying costs (pre-acquisitions) were £76.4 million[8], with reported costs at £76.5 million[24], indicating flat BAU costs[23] - A share buyback program of up to £10 million is in place, with £8.1 million already deployed[103] Segment Performance - Platform Managed Portfolio Service (MPS) FUM grew by 29%[20] - Advised assets increased 2.2x due to acquisitions, with AUA yield improving by 10.8bps[22] Future Outlook - Medium-term targets include annualised net inflows of 5% and BAU costs growth of less than 5%[106] - The company is confident in delivering medium-term targets[33]

Dan, you see the headlines, the boom is over. What's the push back this morning. I think the boom just started.I mean, if you look at these numbers, especially when you factor in where China is going to be. I mean, you know, Jensen talked about 50 billion, 50% type growth number. This just shows the next stage of adoption is actually just starting.I think look, I think the stock is green today. By the end of the day, then that's what you're saying. You think that by the end of the day, people will realize c ...

Summary of Morgan Stanley US Equity Strategy Conference Call Industry Overview - The report focuses on the US equity market, particularly the S&P 500 and its sector performance, with insights into earnings revisions and macroeconomic factors affecting the market. Core Insights and Arguments - **Bullish Sentiment**: The firm has maintained a bullish outlook due to a V-shaped recovery in earnings per share (EPS) revisions breadth, indicating a positive shift in market sentiment following a period of uncertainty marked by "Liberation Day" [6][14][16]. - **Earnings Recession**: The report highlights that the bear market that began in 2024 reached its bottom in April 2025, coinciding with a recovery in earnings revisions [6][16]. - **Market Pullbacks**: While the current bull market is only four months old, modest pullbacks are expected in Q3 2025 due to the delayed impacts of tariffs and inflation concerns affecting Federal Reserve policies [6][6]. - **Drivers of Growth**: Key factors supporting the bullish outlook include positive operating leverage, AI adoption, dollar weakness, tax savings from the OBBBA, favorable growth comparisons, and pent-up demand across various sectors [6][6]. Sector-Specific Insights - **Sector Recommendations**: - **Overweight**: Financials, Industrials, Energy, Consumer Services, Communication Services, Health Care [33][84]. - **Equal Weight**: Materials, Real Estate, Technology, Utilities, Consumer Discretionary Goods [33][84]. - **Underweight**: Staples [33][84]. - **Industrials Sector**: The sector is positioned to benefit from domestic infrastructure investments and bonus depreciation, which is expected to stimulate capital expenditures [92]. - **Financials Sector**: The sector's relative valuation is below historical averages, with expectations for improved earnings revisions and loan growth in 2025/2026 [100][99]. - **Energy Sector**: Energy stocks are trading at low valuations relative to oil prices, indicating potential upside as crude prices recover [101][103]. Earnings and Valuation Metrics - **Earnings Revisions**: The report notes a significant improvement in earnings revisions breadth across sectors, with large caps in the S&P 500 showing a 3% year-to-date change in earnings estimates [48][44]. - **Valuation Trends**: The S&P 500 is trading at a forward P/E of 22.2x, with expectations for EPS growth to continue, although the market is currently experiencing a high valuation relative to historical averages [36][65]. - **Risk Premium**: The equity risk premium remains historically low, suggesting that investors may be underestimating the risks associated with equity investments [53][55]. Additional Important Insights - **Market Dynamics**: The report discusses the dispersion of returns and estimates, indicating that stock-specific risks have decreased post-Liberation Day, while return dispersion has returned to median levels [69][72]. - **AI Adoption**: The report emphasizes the role of AI-related stocks in driving market performance, with these stocks reaching new highs [28]. - **Consensus Earnings Estimates**: There is a strong consensus pricing in robust earnings growth into 2026, reflecting optimism about future corporate performance [44][46]. This summary encapsulates the key points from the Morgan Stanley US Equity Strategy conference call, providing insights into market trends, sector performance, and earnings expectations.

Financial Data and Key Metrics Changes - PCCW reported a revenue increase of 7% to over US$2.4 billion and EBITDA growth of 6% to US$771 million [3] - HKT achieved a 4% revenue growth and a 3% increase in EBITDA, with adjusted fund flow also rising by 3% [3][12] - The overall EBITDA margin for HKT remained stable at 37% [12] Business Line Data and Key Metrics Changes - The OTT regional service recorded a 10% revenue growth and a 51% improvement in EBITDA [3][13] - View TV's revenue retreated in the first half due to event timing, but margins remained stable, with expectations for a rebound in the second half [3][4] - The talent management business saw increased international exposure for artists, contributing to overall business performance [10] Market Data and Key Metrics Changes - The OTT business experienced a 27% growth in subscription and advertising revenue, despite softer syndication and event revenue in the Middle East [13] - Digital membership for View TV grew by over 4% to reach 3,300,000, reflecting a younger audience segment [9] Company Strategy and Development Direction - PCCW is focused on leveraging digital infrastructure and AI to enhance customer service and drive digital transformation for enterprises [3] - The company aims to maintain its market leadership in the OTT space by optimizing content offerings and expanding partnerships [4][5] Management Comments on Operating Environment and Future Outlook - Management acknowledged a challenging macro environment but emphasized a commitment to delivering high-quality services and achieving profitable growth [2] - There are strong expectations for content performance in the second half, particularly with popular shows and concerts scheduled [3][8] Other Important Information - An interim dividend of HKD9.77 per share was declared, reflecting a prudent dividend policy aimed at sustainable growth [4] - HKT's gross debt decreased to US$5.57 billion, indicating successful deleveraging efforts [16] Q&A Session Summary Question: What are the expectations for View TV's performance in the second half? - Management expects View TV's performance to rebound in the second half due to a lineup of popular shows and concerts scheduled [3][4] Question: How is the company addressing the challenges in advertising revenue? - The company is expanding monetization opportunities through AVOD tiers and optimizing content offerings to attract advertisers [6][14] Question: What is the outlook for HKT's digital transformation solutions? - HKT is experiencing strong demand for its digital transformation solutions, which is driving revenue growth [11]

Core Insights - NowVertical Group Inc. is expanding its geographic reach through significant engagements with major clients, demonstrating the effectiveness of its integrated operating framework [1][4] - The company has deepened its collaboration with a leading global insurer, transitioning from a single-country project to a comprehensive Latin-American data modernization and AI initiative [2] - A similar growth pattern is observed with a global media and telecommunications group, where NowVertical's solutions are being adopted as the enterprise standard for managing legacy data assets [3] Group 1: Client Engagements - The engagement with the global insurer has already generated revenue in the first half of 2025 that exceeds the client's total spending for the entire year of 2024, indicating rapid growth potential [2] - NowVertical's solution for the media and telecommunications group has expanded from the UK & Ireland to eight projects, including new implementations in Italy and Germany, with more planned for the second half of 2025 [3] Group 2: Strategic Approach - The company's strategy of providing a unified architecture and governance model is proving effective, as clients are opting to scale their operations with NowVertical [4] - The integration of legacy and modern data through standardized processes not only results in cost savings but also enhances strategic value, supporting compliance and innovation objectives [3] Group 3: Company Overview - NowVertical is positioned as a global data and analytics company that helps clients leverage AI to transform data into business value, focusing on rapid implementation and measurable outcomes [5] - The company is pursuing growth both organically and through strategic acquisitions, reinforcing its role as a trusted partner in the data and AI sectors [5]

Core Insights - NowVertical Group Inc. is expanding its geographic reach through significant engagements with major clients, demonstrating the effectiveness of its integrated operating framework [1][4] - The company has deepened its collaboration with a leading global insurer, transitioning from a single-country project to a comprehensive Latin-American data modernization and AI initiative [2] - A similar growth pattern is observed with a global media and telecommunications group, where NowVertical's solutions are being standardized across multiple projects to modernize legacy data assets [3] Group 1: Client Engagements - The engagement with the global insurer has already generated revenue in the first half of 2025 that exceeds the client's total spending for the entire year of 2024, indicating rapid growth potential [2] - NowVertical's solution for the media and telecommunications group has expanded from the UK & Ireland to eight projects, including new implementations in Italy and Germany, with more planned for the second half of 2025 [3] Group 2: Strategic Approach - The company's strategy of providing a unified architecture and governance model is proving effective, as clients are opting to scale their operations with NowVertical [4] - The repeatability of NowVertical's delivery model allows for effective scaling across complex enterprise environments, aligning with clients' data modernization and AI readiness goals [3][4] Group 3: Company Overview - NowVertical is positioned as a global data and analytics company that transforms data into business value through AI, enabling clients to optimize decision-making and improve operational efficiency [5] - The company is pursuing growth both organically and through strategic acquisitions, enhancing its capabilities in the data and AI sectors [5]

AI Race & Adoption - The US AI action plan aims to compete with China, focusing on both innovation and adoption of AI [1] - Winning the AI race depends on which countries can best utilize AI for economic benefit [2] - The US has an advantage in AI adoption, but the race is still open [3] - AI adoption requires focus on talent, infrastructure, data, and governance frameworks [5][6] US AI Exportation - The US aims to be a net exporter of AI technology, including hardware and software [7] - AI adoption relies on cutting-edge cloud services and software, much of which originates in the US [9] Copyright & Training Data - Access to training data is crucial for the US to stay ahead in the AI race [11][12] - The US government acknowledges the importance of training data for AI development [11] EU Competitiveness - The EU has significant potential to benefit from AI if it focuses on adoption [13] - Addressing digital sovereignty barriers and streamlining regulations are important for the EU to effectively adopt and use AI [13][14]