Core Insights - Verizon Communications, Inc. has launched a new 5G Network Slice - Enhanced Internet, providing high-performance fixed wireless internet with no data caps [1][4][9] Network Slicing Technology - Network slicing allows the creation of multiple virtual networks on a shared physical network, enabling tailored services for different customer use cases [2] - Each network slice is configured with specific security measures and latency settings to meet diverse application requirements [2][3] Product Features - The new 5G network slicing product offers 200 Mbps downlink and 45 Mbps uplink, ensuring reliable data transmission for AI, computer vision, and machine learning applications [4][9] - The solution supports cloud-based applications and real-time large file transfers, enhancing connectivity for various sectors [5][9] Market Context - As enterprises increasingly integrate AI and cloud technologies, there is growing pressure on service providers' network infrastructure [5] - Verizon's solution aims to optimize network utilization for different use cases, with applications in media, logistics, construction, and public safety [5][9] Competitive Landscape - Verizon faces competition from AT&T and T-Mobile, with T-Mobile being the first U.S. carrier to offer network slicing capabilities [6] - AT&T has completed the deployment of a 5G standalone network, which is essential for expanding its network slicing capabilities [7] Financial Performance - Verizon's stock has gained 0.5% over the past year, contrasting with a 5.2% decline in the industry [8] - The company's shares currently trade at a price/earnings ratio of 6.18, lower than the industry average of 8.7 [10] - Earnings estimates for 2025 and 2026 have declined over the past 60 days [11]

Core Insights - Investors can leverage exchange-traded funds (ETFs) to benefit from market compounding without selecting individual stocks [1] - The Invesco QQQ Trust (NASDAQ: QQQ) has shown strong performance over the past decade and warrants closer examination for portfolio inclusion [2] ETF Characteristics - The S&P 500 index represents about 80% of the U.S. stock market capitalization, containing around 500 of the largest domestic companies, providing diversified exposure [3] - The Invesco QQQ Trust tracks the performance of the 100 largest non-financial stocks on the Nasdaq, offering a more concentrated investment with only 20% of the number of businesses compared to the S&P 500 [4] Sector Focus - The Invesco QQQ Trust emphasizes innovative and disruptive companies, heavily skewed towards technology, with the "Magnificent Seven" comprising 45% of its assets; other sectors like energy and real estate account for less than 1% [5] Investment Outlook - Investors in the QQQ Trust are betting on the continued dominance of technology companies and the impact of trends such as artificial intelligence, cloud computing, and digital advertising on the economy [6] - The ETF features a low fee structure, with a hypothetical $10,000 investment incurring only $20 annually, resulting in a 0.2% expense ratio [7] Performance Metrics - The Invesco QQQ Trust has achieved an impressive 19% annualized gain over the last decade, indicating strong potential for returns [8]

Group 1 - Goodman Group's share price increased by 9% following the announcement of a European data centre partnership [1] - The partnership with Canada Pension Plan (CPP Investments) involves a total investment of A$14 billion, with an initial capital commitment of A$3.9 billion [2] - The partnership aims to develop data centre projects in key European cities: Frankfurt, Amsterdam, and Paris [2][5] Group 2 - The European project will consist of four data centres, with a combined primary power of 435 MW and an IT load of 282 MW [5] - Construction is expected to begin by June 30, 2026, with secured power connections and planning permits already in place [5][7] - Goodman has a significant pipeline of projects, with 57% of its development work in progress focused on data centres, aligning with the growing demand for cloud computing and AI [8] Group 3 - Goodman and CPP Investments have a long-standing partnership since 2009, with this being their first data centre collaboration in Europe [4] - CEO Greg Goodman highlighted the rarity and quality of the portfolio in Europe's FLAP markets, emphasizing the importance of speed to market and delivery certainty [6] - The share price has seen a decline of over 11% in the past year, indicating reliance on capital growth rather than distribution payments [9]

Group 1: Oracle's Investment in TikTok - Oracle is set to be part of a group of investors acquiring the U.S. operations of TikTok for approximately $14 billion, partnering with Silver Lake and MGX [1][2] - Each investor, including Oracle, is expected to hold a 15% stake in TikTok, while ByteDance will retain a 20% minority ownership [2] - Oracle will be responsible for data security, U.S. user data hosting, and algorithm oversight to comply with U.S. national security requirements, pending approval from Chinese regulators [2] Group 2: Financial Performance - Oracle reported fiscal Q2 revenue of $16.1 billion, reflecting a 14% year-over-year increase, although it fell short of the $16.21 billion consensus estimate [5] - The cloud business generated nearly $8 billion in revenue, marking a 34% growth compared to the previous year [5] - Earnings per share (EPS) reached $2.26, a significant 54% increase year-over-year, surpassing the expected $1.64 [6] - Remaining performance obligations surged by 438% to $523 billion, indicating strong demand and revenue visibility for Oracle's services [7]

Core Insights - Celestica Inc. is experiencing strong demand for its high-bandwidth switches, driven by the rapid growth of generative AI and hyperscale cloud infrastructure [1][3] Group 1: Product Offerings - Celestica's 800G Ethernet provides extremely high data speeds, low latency, and better power efficiency, facilitating faster communication in large AI and cloud data centers [2] - The next-generation 1.6T Ethernet includes DS6000 and DS6001 switches, delivering up to 102.4 Tbps switching capacity, designed for high-bandwidth AI and machine-learning clusters [2] - The company has launched the Enterprise Campus Access Switch, ES1500, which offers up to 48× 2.5 GbE ports and 220 Gbps switching capacity, enhancing AI-ready enterprise edge connectivity [2][7] Group 2: Market Position and Competition - Celestica partners with major cloud providers and tech companies to deliver custom, energy-efficient hardware for AI applications, indicating a strong market position [3][7] - Competitors include Jabil, which has launched J 422G servers for heavy AI tasks, and Flex, which offers liquid-cooled servers and advanced power products for high-density AI data centers [4][5] Group 3: Financial Performance - Celestica's shares have increased by 199.7% over the past year, outperforming the industry growth of 93.7% [6] - The company trades at a forward price-to-earnings ratio of 35.89, higher than the industry average of 24.13 [8] - Earnings estimates for 2025 have risen by 6.3% to $5.90, while estimates for 2026 have increased by 20.9% to $8.20 [9]

Core Insights - Hewlett Packard Enterprise Company (HPE) is a technology company recognized for its servers and computer hardware, and it has diversified into cloud and AI computing [1] Group 1: Company Overview - HPE has expanded its business model beyond traditional hardware to include cloud and AI solutions, reflecting a broader trend in the technology sector [1] Group 2: Analyst Background - The author has a background in history/political science and holds an MBA with a specialization in Finance and Economics, indicating a strong analytical foundation for investment insights [1]

Core Insights - Hewlett Packard Enterprise Company (HPE) is a technology firm recognized for its servers and computer hardware, and it has diversified into cloud and AI computing [1] Group 1: Company Overview - HPE has expanded its business model beyond traditional hardware to include cloud and AI solutions, reflecting a broader trend in the technology sector [1] Group 2: Investment Focus - The article emphasizes a focus on income investing through various financial instruments, including common shares, preferred shares, and bonds, indicating a strategic approach to investment [1]

Core Insights - Akamai Technologies, Inc. has launched ISV Catalyst, a new partner program aimed at independent software vendors (ISVs) to accelerate growth through collaboration [2][10] - The program is designed to address the current demands in the cloud computing industry, particularly the integration of artificial intelligence and the need for scalable, cost-efficient cloud-native architectures [3][8] Group 1: ISV Catalyst Program Features - ISV Catalyst adopts an ISV-first approach, eliminating referral fees for the first year, which lowers the entry barrier for both startups and established vendors [5][10] - Participating ISVs will benefit from co-marketing opportunities, featured placement in Akamai's Technical Partner Directory, and increased exposure to Akamai's global sales organization [6][10] - The program integrates with Akamai's existing partner ecosystem, including Partner Connect and the Qualified Compute Program, providing a streamlined pathway for growth [7] Group 2: Market Position and Growth Drivers - Akamai is experiencing strong momentum in the security and compute verticals, driven by demand for its Guardicore platform and API security solutions [9] - The company is well-positioned to benefit from the growth of mobile data traffic, supported by recent acquisitions aimed at enhancing its AI-powered API security solutions [9] - For 2025, Akamai projects revenues between $4.178 billion and $4.198 billion, with a non-GAAP operating margin of 29-30% and earnings per share expected to be in the range of $6.93-$7.13 [11]

Summary of Key Points from the Conference Call Industry Overview - **Industry Focus**: North America Internet sector, with emphasis on trends and projections for 2026 [1][3] Core Insights and Arguments 1. **Evolution of Internet Usage**: The way users interact with the internet is changing, with search evolving into a more answer-oriented approach. This is driven by the adoption of AI technologies, particularly agentic browsers that provide a personalized and interactive experience [6][14] 2. **AI Agent Adoption**: The integration of AI agents is expected to transform online shopping (Agentic Commerce), travel booking (Agentic Travel), and website development. However, this transition is still in its early stages, with varying impacts across different sectors [6][14] 3. **Resilience in Online Marketplace Demand**: The demand for online marketplaces remains strong, particularly in mobility and delivery sectors. The adoption of grocery and retail services is anticipated to be a key focus area in 2026 [6][14] 4. **Cloud Infrastructure Growth**: Revenue growth for cloud services, particularly AWS and Google Cloud, is accelerating. Projected infrastructure capital expenditures for 2026 across major players (GOOGL, AMZN, META) are expected to reach approximately $350 billion [6][14] 5. **Online Advertising and eCommerce Trends**: The U.S. online advertising market is projected to grow by 14% year-over-year, while eCommerce is expected to increase by 7% in 2026, driven by AI and end-to-end automation tools [6][14] 6. **Margin Expansion Trends**: A pause in margin expansion is noted across multiple companies in 2026, following years of consistent growth post-2022 downturn. Future product developments from current investments are anticipated to drive the next growth phase [6][14] Company-Specific Insights - **Amazon (AMZN)**: Added to Citi's Focus List due to accelerating AWS revenue growth and strong margin expansion trends. Target Price (TP): $320 [6] - **Alphabet (GOOGL)**: Query growth is accelerating, supported by advancements in AI technologies. TP: $343 [6] - **Reddit (RDDT)**: Focus on daily active user growth with a revamped app expected to enhance monetization. TP: $265 [6] - **DoorDash (DASH)**: Anticipated margin expansion reversion in 2027 as core order growth accelerates. TP: $283 [6] - **Carvana (CVNA)**: Expected growth in used vehicle sales driven by improved awareness and inventory. TP: $550 [6] Additional Important Insights 1. **Market Performance**: The average year-to-date return for the internet sector in 2025 was +5%, compared to +15% for the S&P 500 and +19% for the NASDAQ. Larger cap companies outperformed, with GOOGL leading at +60% [11] 2. **Valuation Metrics**: Most sub-sectors are trading below their 10-year EV/Revenue and EV/EBITDA averages, with GOOGL, EBAY, and KSPI trading at a premium [12][13] 3. **Key Trends for 2026**: - Search is evolving into a more answer-focused model - The rise of agentic browsers for a personalized web experience - Robust demand for online advertising and cloud services - Growth in autonomous vehicles and food delivery services [14] This summary encapsulates the critical insights and projections for the North American internet sector as discussed in the conference call, highlighting both macro trends and specific company performances.

Core Insights - Amazon's e-commerce business is widely recognized, but its recent investment success is largely attributed to Amazon Web Services (AWS) [1][2] - CoreWeave is positioned as a potential leader in the cloud computing sector, specifically targeting artificial intelligence workloads [4][5] - CoreWeave's revenue growth is significant, with a 134% year-over-year increase to $1.4 billion in Q3, and a $55.6 billion revenue backlog, 40% of which is expected to be realized in the next 24 months [5][6] Financial Performance - CoreWeave's total revenue over the past 12 months is $4.3 billion, with projections indicating potential revenue of $22.2 billion if 40% of its backlog is realized in the next two years [6] - Revenue forecasts suggest CoreWeave could approach $8 billion in 2026 and $16 billion in 2027, indicating nearly a doubling of revenue each year [6] Capital Expenditure - CoreWeave's capital expenditures are substantial, amounting to nearly $10 billion despite generating $4.3 billion in revenue over the past year [7]