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]

Core Insights - Amazon has underperformed the stock market over the last five years, with the S&P 500 up 98% while Amazon's share price increased by only 40% [1] - Despite this, Amazon's underlying business remains strong, raising questions about whether the stock is undervalued and a potential buy for 2026 [2] Cloud Computing Performance - Amazon Web Services (AWS) has seen a recent acceleration in growth, with a year-over-year increase of 20% last quarter, reaching $33 billion in revenue [3] - AWS is highly profitable, generating $44 billion in trailing-12-month operating income, and is considered a durable growth segment for Amazon [4] E-commerce Growth - Amazon's North American retail sales grew 11% year over year last quarter, surpassing $100 billion [7] - Over the past 12 months, Amazon's e-commerce division generated significant revenue from advertising ($64 billion), third-party seller services ($166.8 billion), and subscriptions ($48 billion), totaling nearly $300 billion in annualized sales [7] - The e-commerce segment is expected to contribute to expanding profit margins in the future [7] Overall Assessment - The combination of accelerating cloud growth and steady e-commerce performance suggests that Amazon's stock may be undervalued, particularly if margin improvements are realized [8]

Core Viewpoint - The establishment of a joint venture for TikTok's U.S. operations is politically significant, with implications for data security and control over content, while also presenting mixed messages for investors regarding Oracle's financial health and strategic positioning [1][5][16]. Group 1: Joint Venture Structure - The joint venture is set to conclude by January 22, 2026, to comply with regulations that would otherwise ban TikTok in the U.S. unless its assets are removed from Chinese management [2]. - The joint venture will be predominantly owned by American and international investors, with Oracle and others holding 80.1% and ByteDance retaining 19.9% [3]. - A board primarily composed of Americans will oversee the joint venture, with ByteDance only selecting one member [3]. Group 2: Oracle's Role and Financial Implications - Oracle is positioned as a key player in U.S. digital infrastructure, managing TikTok's U.S. data and security, which could enhance its cloud business [5][9][16]. - The new U.S. company is valued at approximately $14 billion, which, while modest compared to TikTok's global reach, is significant for Oracle's cloud operations [7]. - Oracle's shares experienced a temporary decline due to Blue Owl Capital's withdrawal from a $10 billion AI data center project, raising concerns about its debt burden [5][12]. Group 3: Financial Challenges and Market Reactions - Oracle's total debts, including operational lease liabilities, exceeded $124 billion as of November 30, with an additional $18 billion in debt taken on in September [19]. - Investors are closely monitoring Oracle's capital discipline and financing costs, especially in light of the TikTok announcement and its implications for the company's cloud strategy [20]. - The Michigan AI data center project has faced challenges, highlighting the risks associated with Oracle's aggressive spending and reliance on borrowed funds [15][22].

Core Insights - Alphabet has been one of the top-performing stocks in the market in 2025, with its stock rising over 60%, placing it among the top 30 performers of the S&P 500 [1] - The company experienced several tailwinds in 2025, including a positive ruling in its monopoly court case and leadership in the generative AI sector, but these catalysts may not carry into 2026 [2] Group 1: Business Performance - Alphabet's core business, Google Search, is excelling, with Q3 revenue rising 15% year over year, which is strong for a mature business unit expected to grow in the high single digits to low double digits [6][7] - The integration of AI search overviews has allowed Google to maintain its market position and thrive in a booming ad market, alleviating initial investor concerns about generative AI replacing Google Search [6][7] Group 2: Cloud Computing Growth - Google Cloud is thriving due to the migration of traditional workloads to the cloud and the rapid increase in AI workloads, as companies prefer renting computing capacity from providers like Google Cloud rather than building their own data centers [10]

Group 1 - Alphabet Inc. is collaborating with Meta to enhance its AI chips for better compatibility with PyTorch, aiming to compete with Nvidia's market dominance [2][3] - The initiative, named TorchTPU, seeks to position Google's Tensor Processing Units (TPUs) as a viable alternative to Nvidia's Graphics Processing Units (GPUs) [2] - Historically, Alphabet reserved a significant portion of its TPUs for internal use but is now considering increasing availability for Meta [3] Group 2 - Waymo, a self-driving car subsidiary of Alphabet, is in discussions to raise $15 billion in capital, potentially valuing the business at around $110 billion [4] - Alphabet owns several major platforms, including Google Search, Google Maps, Gmail, and YouTube, and is recognized for its advancements in cloud computing, quantum computing, and artificial intelligence [5]

Core Viewpoint - Microsoft Corporation (NASDAQ:MSFT) is recognized as one of the best stocks to buy in the S&P 500, with a consensus Strong Buy rating from Wall Street analysts and a one-year average price target indicating a potential upside of 33% [1]. Analyst Ratings - Morgan Stanley analyst Keith Weiss reiterated a Buy rating on December 17, setting a price target of $650 for the stock [2]. - Phillip Securities adjusted its price target on December 14, lowering it to $540 from $550 while maintaining an Accumulate rating, highlighting Microsoft's aggressive investments in cloud and AI infrastructure [3]. - DA Davidson maintained a Buy rating on December 4, with a target price of $650, emphasizing the strategic partnership with OpenAI as a key factor in maintaining Microsoft's status as the fastest-growing hyperscaler [4]. Investment in AI and Cloud - Microsoft announced up to $23 billion in new AI investments, with $17.5 billion allocated for establishing a significant cloud computing presence in India over the next four years, and $5.42 billion for AI partnerships and cloud capacity in Canada [5].

Company Overview - OneStream is a Michigan-based enterprise software firm focused on the financial services sector, offering a cloud-based AI platform that helps users reconcile data and manage workflows, enhancing efficiency in business functions [1][6] - The company claims its platform provides significant advantages, including a 54% reduction in closing books time, a 72% reduction in data management cycles, and a 75% improvement in reporting cycles [6] Financial Performance - OneStream reported revenue of $154.3 million for Q3 2025, marking a 19% year-over-year increase and exceeding expectations by nearly $6 million [9] - The non-GAAP EPS for the same quarter was 8 cents, beating forecasts by 6 cents per share, while free cash flow increased from $1.3 million to $4.8 million year-over-year [9] Market Position and Growth Potential - Despite a 36% decline in stock price year-to-date, OneStream is projected to grow over 20% in FY25E, supported by a large under-digitized total addressable market (TAM) of approximately $50 billion [10] - The company has over 1,700 customers and operates in more than 45 countries, indicating a broad market presence [7] Analyst Insights - Analyst Nick Altmann from BTIG sees potential for OneStream to capture market share, particularly with its new CPM Express product aimed at addressing down-market pain points [11] - Altmann maintains a Buy rating on OneStream with a price target of $25, suggesting a potential one-year gain of 37.5% [11] GitLab Overview - GitLab is recognized for its open-source DevSecOps platform, which integrates software development, security, and operations, and has over 50 million registered users [12][14] - The platform's AI capabilities enhance user experience by providing automation tools and in-platform software assistants [13] Financial Performance of GitLab - GitLab reported $244.4 million in revenue for Q3 2026, a 25% year-over-year increase, and exceeded forecasts by over $5 million [15] - The non-GAAP EPS was 25 cents, surpassing expectations by 2 cents, with adjusted free cash flow of $27.2 million for the quarter [15] Analyst Insights on GitLab - Altmann notes that GitLab's cohesive approach to AI and its new Duo Agent Platform offering are promising, despite mixed results in Q3 2026 [16] - He rates GitLab as a Buy with a price target of $52, indicating a potential upside of 37% [16] monday.com Overview - monday.com provides cloud-based work management software that is customizable and widely used by enterprise customers, including 60% of Fortune 500 companies [18][20] - The platform incorporates AI to automate various workflow management tasks, enhancing efficiency [19] Financial Performance of monday.com - The company reported Q3 revenue of $316.9 million, a 26% year-over-year increase, and exceeded expectations by $4.59 million [22] - The non-GAAP diluted net income per share was $1.16, beating forecasts by 28 cents, with strong growth in annual recurring revenue (ARR) [22] Analyst Insights on monday.com - Analyst Allan Verkhovski rates monday.com as a Buy with a price target of $210, suggesting a potential upside of 44% by the end of 2026 [23] - The stock has a Strong Buy consensus rating based on 20 analyst ratings, with 18 Buys and 2 Holds [23]

Core Insights - Khaveen Investments is a global investment advisory firm focused on serving high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the SEC and offers a range of services including market and security research, business valuation, and wealth management [1] - The flagship Macroquantamental Hedge Fund maintains a diversified portfolio across various asset classes, geographies, sectors, and industries [1] - The investment approach integrates top-down and bottom-up analysis, utilizing global macro, fundamental, and quantitative strategies [1] - Core expertise lies in disruptive technologies such as Artificial Intelligence, Cloud Computing, 5G, Autonomous and Electric Vehicles, FinTech, Augmented and Virtual Reality, and the Internet of Things (IoT) [1]