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]

Core Insights - Khaveen Investments is a global investment advisory firm that serves high-net-worth individuals, corporations, associations, and institutions [1] - The firm is a registered investment adviser with the SEC and offers services including market and security research, business valuation, and wealth management [1] - The flagship Macroquantamental Hedge Fund has a diversified portfolio with exposure to hundreds of investments across various asset classes, geographies, sectors, and industries [1] Investment Strategy - Khaveen Investments employs a multifaceted investment approach that integrates top-down and bottom-up analysis [1] - The firm blends three core strategies: global macro, fundamental, and quantitative [1] - The core expertise of the firm 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]

Summary of Oracle's Earnings Call Company Overview - **Company**: Oracle Corporation - **Industry**: Technology, specifically focusing on cloud computing and AI infrastructure Key Points and Arguments Earnings Report Highlights - Oracle's F2Q results were complex, broadly in line with expectations but lacking investor reassurances, leading to a share price decline of approximately 11% on Thursday and another 5% on Friday [3][8] - Total revenue increased by 13% year-over-year to $16.06 billion, driven by a 33% increase in cloud revenue, which now constitutes half of total sales [8] - Remaining Performance Obligations (RPO) surged by 433% year-over-year to $523 billion, indicating strong backlog momentum [8] - Free Cash Flow (FCF) fell sharply to -$10 billion due to higher-than-expected capital expenditures (capex) of $12 billion related to data center expansion [8] Capital Expenditure and Funding Concerns - Oracle's FY26 capex is now projected at $50 billion, an increase of $15 billion from previous estimates, raising concerns about cash generation timing and durability [8][9] - Management indicated that they expect to require less funding for AI buildout than previously anticipated, despite earlier expectations of needing over $100 billion [4][8] - The company is exploring various debt financing options, but there is frustration among investors regarding the reliance on debt without clear equity risk-sharing strategies [4][9] Market Reactions and Credit Ratings - Following the earnings report, Oracle's credit spreads widened by approximately 30 basis points, with 5-year CDS reaching levels not seen in nearly two decades [3][4] - Credit ratings from Moody's (Baa2, Negative outlook) and S&P (BBB, Negative outlook) reflect concerns about the company's rising commitments and execution risks [2][4] Management's Strategy and Guidance - Oracle's guidance for F3Q includes a projected 39% year-over-year growth in cloud revenue and a total revenue increase of 17% [8] - Management emphasized a rigorous process for accepting customer contracts to ensure acceptable margins, but skepticism remains regarding the sustainability of unit economics as the platform scales [10] - The company plans to utilize customer/supplier structures to manage capex burdens, indicating a focus on synchronizing cash inflows and outflows [10] Balance Sheet and Lease Liabilities - Oracle's total debt reached $108 billion, with cash and equivalents at $20 billion, resulting in a net leverage ratio of approximately 3.32x [10] - A significant increase in off-balance-sheet lease commitments, totaling $248 billion, has raised questions about how these will impact future financial statements and credit ratings [10] Risks and Future Outlook - The primary risks include execution challenges in AI and cloud growth, potential loss of confidence in OpenAI's commitments, and the overall volatility of the AI investment cycle [3][4] - The outlook remains cautious, with the need for Oracle to demonstrate a return on investment from AI capex to alleviate investor concerns [3][4] Additional Important Information - Management's focus on high-quality customers like Meta and NVIDIA, while downplaying reliance on OpenAI, reflects a strategic shift to mitigate risks associated with speculative entities [10] - The overall tone of the earnings call was underwhelming, reinforcing investor fears about rising capital expenditures and demand quality [3][4]

Group 1: CoreWeave - CoreWeave is a leader in the cloud services industry, specifically designed for artificial intelligence workloads, and is recognized as the most capable provider of cloud AI services, surpassing major tech companies like Amazon and Microsoft [4][5] - The company reported a 134% increase in revenue to $1.3 billion, with a narrower GAAP loss of $0.22 per diluted share compared to $1.82 in the previous year, and cash from operations increased over 100% to $1.7 billion [5] - Despite a 36% decline in stock price due to lowered full-year guidance, concerns are considered overblown as the guidance reflects postponed revenue from construction delays, and cloud AI spending is projected to grow at 40% annually through 2030 [6] - CoreWeave's stock trades at 6.5 times sales, which is seen as reasonable given a projected revenue growth rate of 95% annually through 2027, supported by strong customer relationships with AI giants [7] Group 2: Circle Internet Group - Circle is a fintech company that issues stablecoins, with its primary product being USDC, the second-largest stablecoin by market value, known for its regulatory compliance [10] - The company reported a 66% increase in revenue to $740 million, driven by a 108% increase in circulating volume of USDC, and adjusted EBITDA rose 78% to $166 million [12] - Circle is expanding its services with the Circle Payments Network, which includes 29 financial institutions and aims to facilitate faster and cheaper transactions [13] - Stablecoin revenue is projected to grow at 54% annually through 2030, with USDC being favored among financial institutions for its regulatory compliance, making Circle an attractive long-term investment [14]