Core Insights - Seagate Technology Holdings plc (STX) has opened fiscal 2026 with strong momentum, achieving a record non-GAAP gross margin of 40.1%, which is an increase of approximately 220 basis points quarter over quarter and about 680 basis points year over year, driven by the adoption of high-capacity nearline products and pricing initiatives [1][8]. Company Performance - The data center business, which includes cloud, enterprise, and VIA customers, accounted for 80% of Seagate's total revenue, indicating a structural shift towards large-scale storage driven by AI and cloud infrastructure [2]. - Cloud exabyte demand has increased for nine consecutive quarters, with nearly 80% of nearline shipments being for capacities of 24TB or higher [2]. - Seagate has ramped up production of its 24–28 terabyte drives, which have become the best-selling product family by revenue and exabyte volume, shipping over 1 million Mozaic drives in the September quarter [3]. Product Development - Seagate is working to qualify its high-capacity Mozaic HAMR drives with five global cloud service providers (CSPs) and aims to qualify three more by the first half of 2026 [4]. - The company is on track to reach a 50% exabyte crossover on nearline HAMR drives in the second half of 2026 and is advancing towards a 5TB per disk technology launch in early 2028 [4]. Financial Outlook - Management expects solid demand from global cloud data centers, projecting revenues of $2.7 billion (+/- $100 million) for the fiscal second quarter, indicating a 16% year-over-year improvement [5]. - The non-GAAP operating margin is projected to increase to approximately 30% at the midpoint of revenue guidance, up from 23.1% in the second quarter of fiscal 2025 [5]. Competitive Landscape - Seagate faces challenges such as exchange rate volatility, high debt burden, and competition from Western Digital Corporation (WDC) and Pure Storage, Inc. (PSTG) [6]. - Western Digital reported a 31% increase in cloud end market revenues, driven by demand for higher-capacity nearline products, and anticipates non-GAAP revenues of $2.9 billion (+/- $100 million) for the second quarter of fiscal 2026, up 20% year over year [7][8]. Market Performance - Over the past year, Seagate's shares have gained 166.2%, outperforming the Zacks Computer Integrated Systems industry's growth of 77.4% [11]. - Seagate's shares are trading at a forward price/earnings ratio of 22.74X, lower than the industry's 25.68X [12].

Core Viewpoint - Seagate Technology is experiencing significant growth driven by the increasing demand for high-capacity storage solutions, particularly due to the rise of AI and cloud computing, positioning the company as a key player in the data storage market [1][6][25] Company Overview - Seagate, founded in 1978 and headquartered in Fremont, California, has been a leader in data storage technology, offering products such as HDDs, SSDs, and the Lyve edge-to-cloud platform [3] - The company has shipped over four zettabytes of storage capacity and continues to innovate with its Mozaic technology, which enhances data density and reduces energy costs [2] Financial Performance - In fiscal Q1 2026, Seagate reported non-GAAP revenue of $2.63 billion, a 21% year-over-year increase, and non-GAAP EPS of $2.61, up 65% annually, exceeding both market expectations and management guidance [13][12] - The data center segment, which accounted for 80% of total revenue, saw a 34% annual growth, reaching $2.1 billion [14] - Seagate shipped 182 exabytes of HDD storage in the quarter, marking a 32% year-over-year increase [16] Market Position and Analyst Sentiment - Analysts have become increasingly bullish on Seagate, with Loop Capital raising its price target to a Street-high of $465, citing strong demand for storage solutions [4][22] - The consensus rating for STX stock has improved to a "Strong Buy," with 17 out of 23 analysts recommending this rating [23] Future Outlook - Management anticipates Q2 revenue of approximately $2.7 billion and non-GAAP EPS around $2.75, with expectations for continued growth in fiscal 2026 and 2027 [19] - Seagate's Mozaic HAMR drives are expected to be a significant growth driver, having already been qualified by major cloud providers [17] Shareholder Returns - Seagate has consistently paid dividends for 13 years, recently increasing its dividend by 3%, with a current yield of 1.04% [10] - In fiscal Q1 2026, the company returned $182 million to shareholders through dividends and buybacks, indicating a balanced approach to growth and shareholder returns [11]

Group 1 - Quantum computing technology is in its early stages, with many companies going public but facing high risks due to limited revenue and lack of diversified business lines [1][2] - Funding for research and development in quantum computing often comes from research institutions, debt sales, or issuing new shares, which can dilute existing shareholders [2] - High-risk investments in quantum computing may yield significant returns if successful, but this investment style may not suit all investors [2] Group 2 - Established tech companies, such as Alphabet, are preferred for investment as they are also developing quantum computing technology while having robust existing businesses [3] - Alphabet's primary revenue source is its advertising business, which continues to grow, with Google Search and YouTube ad revenues increasing by 15% year over year [5][6] - Google Cloud is a significant profit center for Alphabet, with a revenue increase of 34% and an improvement in operating margin from 17% to 23%, indicating strong demand for cloud computing [6] Group 3 - Quantum computing is crucial for Alphabet's cloud computing ambitions, as it seeks to enhance its capabilities beyond relying solely on third-party hardware like Nvidia's GPUs [7] - Alphabet has developed its own tensor processing units (TPUs) for AI workloads, which are more efficient and cost-effective compared to general-purpose GPUs [7] - The profits from Alphabet's established businesses can support its quantum computing initiatives, with its Willow quantum computing chip showing a verifiable advantage over classical computers [8]

Core Insights - Focusing on technology giants with durable competitive advantages is a strategic investment approach in the current market environment [1] - Amazon's recent $38 billion partnership with OpenAI positions it prominently in the AI cloud sector [1] Cloud Infrastructure Leadership - AWS holds a 29% share of the global cloud infrastructure market, surpassing Azure's 20% and Google Cloud's 13% [4] - In Q3 2025, AWS generated $33 billion in revenue, reflecting a 20.2% year-over-year growth, the fastest since 2022 [6] - AWS's operating income increased by 9.6% year-over-year to $11.4 billion, resulting in an operating margin of over 34% [6] - AWS has an annualized run rate of $132 billion and a backlog of $200 billion, indicating strong revenue visibility [7] AI Capacity - Amazon has added over 3.8 gigawatts of data center power capacity in the past year, with plans to double this by 2027 [9] - The company expects to add at least one additional gigawatt of power capacity in Q4 2025 [9] Custom Silicon Advantage - Amazon's custom chips, Trainium and Inferentia, provide superior price-performance compared to other AI chips [11] - Trainium2 has become a multibillion-dollar business, with a 150% quarter-over-quarter revenue growth in Q3 [11] - The company plans to expand its AI compute cluster to 1 million Trainium2 chips by the end of 2025 [11] - Trainium2 is positioned as 30% to 40% better in price-performance than many GPU options, with Trainium3 expected to deliver 40% better performance than Trainium2 [12] Complete AI Stack - AWS offers platform services like SageMaker and Bedrock, enabling clients to build and deploy custom AI models [14] - The introduction of open-source capabilities like Strands and infrastructure building blocks like AgentCore supports the development of agentic AI [15] Competitive Position - AWS's rapid capacity expansion, custom silicon development, and focus on AI platform services indicate its growing momentum in the AI cloud race [16] - Despite competitors like Microsoft and Alphabet growing faster, AWS is well-positioned to be a significant player in the AI cloud boom [16]

Core Insights - Akamai has experienced stock fluctuations, peaking at $101 in early 2025 before declining to approximately $84, driven by consistent business performance and changing investor sentiment [2][3] Business Performance - Akamai reported quarterly revenue of around $1.05 billion, a 5% increase year-over-year, with GAAP net income rising 142% to $140 million and non-GAAP net income increasing about 10% to $269 million [4] - The non-GAAP operating margin improved to approximately 31%, up two percentage points from the previous year, indicating strong profitability despite modest overall growth [4][5] Growth Trends - Revenue growth has been mild, with a 4.8% annual increase over the past three years and a 4.2% increase in the last twelve months, suggesting a deceleration in top-line growth [6][7] - The price-to-sales ratio stands at 2.9 and the P/E ratio at 23.8, indicating that the stock is moderately valued [6][7] Competitive Landscape - Akamai faces significant competition from major players like Amazon AWS, Microsoft Azure, Cloudflare, and Fastly, which could pressure its market share and pricing [9][12] - The company is transitioning from traditional content delivery services to cloud, security, and edge computing, which presents execution risks [9][12] Historical Context - Akamai's stock previously fell 42% from $122 in April 2022 to $70.75 by March 2023, highlighting vulnerability to market corrections despite strong fundamentals [11][13] - Current downside risk for AKAM stock could see it drop to the $60–$65 range, indicating a potential 25–30% decline based on historical performance [13]

Core Insights - Quantum computing is emerging as a significant technological advancement, potentially surpassing traditional computing capabilities by utilizing qubits instead of bits [2][4] - The Defiance Quantum ETF offers a diversified investment approach in the quantum computing sector, mitigating risks associated with stock picking in a volatile market [3][6] Group 1: Quantum Computing Potential - Quantum computing significantly enhances traditional computing power, with applications intersecting with AI and cloud computing [2] - The industry is still in its early stages, and while some companies have shown impressive returns, many lack products and revenue, leading to cash burn [5][7] Group 2: Investment Strategy - The Defiance Quantum ETF simplifies investment in quantum computing, providing exposure to both emerging quantum companies and established tech leaders like Advanced Micro Devices and Nvidia [6][7] - The ETF has returned over 387% since its inception, indicating strong performance despite the inherent risks of the sector [7] - The fund employs an equal-weighting strategy across nearly 80 holdings, reducing the risk of overexposure to any single stock [9][10]

Core Insights - NICE reported adjusted earnings of $3.18 per share for Q3 2025, exceeding the Zacks Consensus Estimate by 0.32% and reflecting a 10% year-over-year increase [1] - Non-GAAP revenues reached $732 million, surpassing the consensus mark by 0.56% and increasing 6% year over year, primarily driven by the strength of its cloud business and customer base expansion [1][8] Revenue Breakdown - Revenues in the Americas were $618 million, up 5% year over year; EMEA revenues were $74 million, up 7% year over year; APAC revenues increased 19% year over year to $40 million [2] - Cloud revenues constituted 76.9% of total revenues at $562.9 million, beating the Zacks Consensus Estimate by 0.64% and rising 13% year over year [3] - Service revenues accounted for 18.9% of total revenues at $138.7 million, missing the consensus mark by 0.40% and declining 7.4% year over year [3] - Product revenues made up 4.1% of total revenues at $30.4 million, exceeding the consensus mark by 3.55% but decreasing 24.1% year over year [4] Operating Performance - Non-GAAP gross margin contracted 120 basis points to 69.9% in the reported quarter [5] - Research and development expenses as a percentage of revenues decreased 90 basis points year over year to 12.4% [5] - Non-GAAP operating margin contracted 50 basis points year over year to 31.5% [6] - Non-GAAP EBITDA margin contracted 40 basis points to 34.7% [6] Cash Flow and Balance Sheet - As of September 30, 2025, NICE had cash and cash equivalents of $455.9 million, down from $1.63 billion as of June 30, 2025 [9] - Cash flow from operations in Q3 was $190.5 million compared to $61.32 million in the prior quarter [9] - $40.6 million was allocated for share repurchase in Q3 2025 [9] Future Guidance - NICE projects non-GAAP revenues between $2.93 billion and $2.94 billion for the full year 2025, implying 7% year-over-year growth at the midpoint [10] - Non-GAAP earnings are estimated to be between $12.18 and $12.32 per share, suggesting 10% year-over-year growth at the midpoint [10]

Core Viewpoint - Defiance ETFs has launched the Defiance Daily Target 2X Short AMD ETF (DAMD), which aims to provide investors with a tool to express short-term bearish views on Advanced Micro Devices, Inc. (AMD) by delivering -200% of the daily percentage change in AMD's share price [1][2]. Group 1: Investment Objective - The DAMD ETF seeks daily inverse investment results of -200% of the daily percentage change in AMD's share price, focusing solely on single trading days [2]. - The fund is designed for sophisticated traders who understand the risks associated with leveraged investments and are willing to actively manage their portfolios [5]. Group 2: Underlying Stock - Advanced Micro Devices, Inc. (AMD) is a leading global semiconductor company that develops high-performance computing and visualization products for various markets, including data centers, gaming, and embedded systems [3]. - AMD plays a significant role in the artificial intelligence and cloud computing sectors, with its products powering a wide range of devices globally [3]. Group 3: Fund Characteristics - An investment in DAMD does not equate to an investment in AMD itself, and investors will not have any rights related to AMD shares [4][9]. - The fund's performance is subject to risks associated with leverage, including the potential for significant losses if AMD's share price increases [5][10].

Core Viewpoint - Defiance ETFs has launched the Defiance Daily Target 2X Short AMD ETF (Ticker: DAMD), which aims to provide investors with a tool to express short-term bearish views on Advanced Micro Devices, Inc. (AMD) by seeking to deliver -200% of the daily percentage change in AMD's share price [1][2]. Group 1: Investment Objective - The DAMD ETF seeks daily inverse investment results of -200% of the daily percentage change in AMD's share price, focusing solely on single trading days [2]. - The fund is designed for sophisticated traders who understand the risks associated with leveraged investments and are willing to actively monitor their portfolios [5]. Group 2: Underlying Stock - Advanced Micro Devices, Inc. (AMD) is a prominent global semiconductor company that develops high-performance computing and visualization products for various markets, including data centers, gaming, and embedded systems [3]. - AMD plays a significant role in the artificial intelligence and cloud computing sectors, with its products powering a wide range of devices globally [3]. Group 3: Fund Characteristics - An investment in DAMD does not equate to an investment in AMD itself, as the fund operates independently and does not provide shareholders with rights associated with AMD shares [4][9]. - The fund's performance is subject to risks associated with leverage, including the potential for significant losses if AMD's share price increases [5][10].

SAP Conference Call Summary - November 14, 2025 Company Overview - **Company**: SAP (NYSE: SAP) - **Industry**: Software and Cloud Services Key Points and Arguments Financial Performance and Growth - SAP experienced a strong start in Q1 2025, but faced tariff disruptions impacting Q2 and Q3, leading to a cautious outlook in September [3][4] - CCB (Cloud and Cloud-Based) growth is projected to be slightly down by year-end, influenced by the WalkMe acquisition and deal slippage [4][6] - Q3 showed strong CCB growth, with underlying performance remaining robust despite M&A impacts [7][9] - Large transactions in the pipeline could significantly affect Q4 CCB growth if closed within the year [8][12] - The institutional business in the U.S. has shown signs of recovery, with a significant deal signed with IDIQ for up to $1 billion [9][10] Cloud Revenue Insights - Cloud revenue growth is expected to be at the low end of guidance, with a 0.7% variance from initial projections [6][22] - The company emphasizes the importance of CCB growth as a more meaningful metric than cloud revenue alone [25][22] - Approximately 40% of SAP's ERP maintenance base is on the RISE journey, indicating significant potential for future cloud revenue growth [27][28] Market Position and Competitive Landscape - SAP is growing at approximately 29% in the PaaS and SaaS segments, outperforming competitors like Workday and Oracle [48] - The company is focused on maintaining a competitive edge through AI integration and enhancing customer experiences [62][67] AI and Transformation Initiatives - SAP views AI as an opportunity to enhance its offerings, with a focus on data management and integration [62][64] - The company is investing in tools to facilitate customer transitions to S/4HANA, aiming to reduce risks and costs associated with migration [36][38] - New AI-driven functionalities are being developed to improve operational efficiency and customer satisfaction [72][74] Future Outlook - SAP aims to achieve Rule of 40 status, balancing growth and profitability, with expectations for revenue growth to accelerate in 2026 and 2027 [52][51] - The company is optimistic about its long-term growth trajectory, driven by cloud conversion and new business opportunities [50][51] Challenges and Risks - The company acknowledges potential challenges in sustaining high growth rates as market conditions evolve [48][50] - There is a recognition of the need for continuous adaptation and innovation to maintain competitive advantages in a rapidly changing market [68][70] Additional Important Insights - SAP's transformation initiatives are seen as essential for long-term success, with a focus on leveraging AI and data analytics to enhance product offerings [15][36] - The company is actively recruiting talent to support its growth strategy, particularly in AI and cloud services [69][70] - SAP's historical expertise in various verticals provides a competitive advantage in developing tailored solutions for customers [67][68]