Reddit - Reddit reported a significant quarterly performance with sales increasing by 68% year-over-year, reaching $585 million [1][2] - Adjusted profit per share was $0.80, surpassing the expected $0.51, compared to a profit of $29.9 million a year ago, totaling over $162 million [2] - Advertising sales surged by 74%, with broad-based demand across nine out of fifteen industry categories, including retail, finance, and pharmaceuticals [3] Revenue Guidance - For Q4, Reddit is guiding revenue between $655 million and $665 million, indicating strong confidence in continued double-digit growth [3][4] User Engagement - Daily active users increased by 19% year-over-year, aided by a partnership with Alphabet (Google) that enhances visibility in search results [4] Western Digital - Western Digital also reported strong earnings, with adjusted EPS of $1.78, beating the expected $1.59, and revenue of $2.82 billion, exceeding the forecast of $2.72 billion [6] - Growth is driven by demand in AI and cloud services, with strong commitments from top customers extending orders through at least mid-2026 [7] Coinbase - Coinbase had a positive quarter with adjusted EPS of $1.44 and revenue of $1.87 billion, both exceeding expectations [8][9] - Transaction revenue surged by 37% from the previous quarter, indicating a revival in trading activity among both retail and institutional investors [9][10]

Core Viewpoint - Oracle's stock has experienced a significant decline of 7% in a single day, currently priced at $257, following a substantial increase of over 80% in the past six months due to a major cloud computing contract with OpenAI valued at $300 billion over five years [2][3]. Financial Performance - Oracle's revenue has shown strong growth, increasing at an average rate of 10.2% over the past three years, with a 9.7% rise from $54 billion to $59 billion in the last 12 months [5]. - The latest quarterly revenue reached $15 billion, marking a 12.2% increase from $13 billion a year prior [5]. - The company's operating income for the last 12 months was $19 billion, resulting in an operating margin of 31.6% [8]. - Oracle generated nearly $22 billion in operating cash flow, with a cash flow margin of 36.5% [8]. - The net income for the same period was approximately $12 billion, indicating a net margin of around 21.1% [8]. Valuation Concerns - The current valuation of Oracle is considered relatively high, with a target price suggested at $183, indicating potential valuation risk [3][4]. - The company's market capitalization stands at $726 billion, with a debt of $105 billion, leading to a debt-to-equity ratio of 14.3% [8]. Resilience and Recovery - Oracle has demonstrated greater resilience compared to the S&P 500 during various economic downturns, recovering fully from significant drops during the 2008 financial crisis, the COVID-19 pandemic, and the 2022 inflation shock [6][9].

Core Insights - Cloudflare Inc. reported third-quarter earnings of 27 cents per share, exceeding the Street estimate of 23 cents [1] - Quarterly revenue reached $562.02 million, surpassing the analyst estimate of $544.82 million [1] Financial Performance - Revenue growth accelerated for the second consecutive quarter, achieving a year-over-year increase of 31 percent [2] - The company expects fourth-quarter total revenue to be in the range of $588.5 million to $589.5 million [2] Market Reaction - Following the earnings announcement, Cloudflare shares fell by 2.2%, closing at $222.50 [2] Analyst Ratings - Needham analyst Mike Cikos maintained a Buy rating on Cloudflare and raised the price target from $240 to $285 [5] - Citizens analyst Trevor Walsh maintained a Market Outperform rating and increased the price target from $250 to $270 [5]

Core Insights - Cloudflare Inc. reported better-than-expected earnings for Q3, with earnings of 27 cents per share, surpassing the Street estimate of 23 cents [1] - Quarterly revenue reached $562.02 million, exceeding analyst expectations of $544.82 million [1] Financial Performance - Revenue growth accelerated for the second consecutive quarter, achieving a year-over-year increase of 31 percent [2] - The company anticipates fourth-quarter total revenue between $588.5 million and $589.5 million [2] Market Reaction - Following the earnings announcement, Cloudflare shares fell by 2.2%, closing at $222.50 [2] Analyst Ratings - Needham analyst Mike Cikos maintained a Buy rating and raised the price target from $240 to $285 [5] - Citizens analyst Trevor Walsh maintained a Market Outperform rating and increased the price target from $250 to $270 [5]

Core Insights - Cloudflare (NYSE: NET) reported strong earnings, exceeding expectations, which led to an 8.1% increase in share price to $240.19 in after-hours trading [1] Company Performance - The earnings report was released after market close on Thursday, indicating a positive market reaction to the financial results [1] Market Reaction - Following the earnings announcement, Cloudflare's shares surged significantly, reflecting investor confidence and optimism about the company's future prospects [1]

Financial Data and Key Metrics Changes - The company reported revenue of $180.2 billion for Q3 2025, representing a 12% year-over-year increase, excluding foreign exchange impacts [6][25] - Operating income was $17.4 billion, which would have exceeded $21 billion without two special expenses totaling $4.3 billion [6][26] - Trailing 12-month free cash flow stood at $14.8 billion [6] Business Line Data and Key Metrics Changes - AWS revenue reached $33 billion, growing 20.2% year-over-year, marking the largest growth rate in 11 quarters [6][30] - North America segment revenue was $106.3 billion, an 11% increase year-over-year, while the International segment revenue was $40.9 billion, up 10% year-over-year [26] - Worldwide paid units grew by 11% year-over-year, with third-party seller unit mix increasing to 62% [27] Market Data and Key Metrics Changes - AWS backlog grew to $200 billion by the end of Q3, not including unannounced deals in October [8] - Amazon Ads generated $17.6 billion in revenue, growing 22% year-over-year [19][30] Company Strategy and Development Direction - The company is focused on expanding its AWS capabilities, particularly in AI and core services, with significant investments in infrastructure and custom silicon [15][32] - The grocery business is evolving with a strong emphasis on perishables and same-day delivery, aiming to change consumer habits [56] - The company is committed to enhancing its advertising offerings and leveraging partnerships to expand its reach [21][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AWS's growth trajectory, citing strong demand for AI workloads and infrastructure [6][31] - The company is preparing for the peak holiday season, emphasizing its commitment to customer experience [33] - Management acknowledged the importance of maintaining a lean organizational structure to foster innovation and speed [57] Other Important Information - The company has invested over $4 billion to expand its rural delivery network, increasing access to same-day and next-day delivery [18] - The introduction of AI-powered tools like Rufus and AgentCore is expected to enhance customer engagement and streamline operations [19][74] Q&A Session Summary Question: AWS capacity levels and Trainium demand - Management highlighted significant capacity additions, with 3.8 GW added in the last year and expectations to double capacity by 2027 [37] Question: Trainium positioning versus third-party chips - Management emphasized the importance of multiple chip options and the competitive advantages of Trainium in terms of price performance [43][45] Question: Project Rainier architecture and differentiation - Management described Project Rainier as a large-scale infrastructure feat that leverages Trainium chips for enhanced performance [49] Question: Grocery business and perishable delivery - Management noted that the grocery business has surpassed $100 billion in gross merchandising sales, with a focus on same-day delivery for perishables [52][56] Question: Future headcount and AI efficiencies - Management clarified that recent headcount changes were driven by cultural considerations rather than financial or AI efficiencies [57] Question: Robotics and automation opportunities - Management confirmed ongoing investments in robotics to improve safety, productivity, and customer experience [61][62] Question: Agentic commerce and customer service - Management expressed excitement about the potential of agentic commerce to enhance the online shopping experience [65][68] Question: AWS growth drivers and advertising contributions - Management indicated that both core infrastructure and AI workloads are driving AWS growth, with strong performance across advertising offerings [72][78]

Financial Data and Key Metrics Changes - The company reported revenue of $180.2 billion for Q3 2025, representing a 12% year-over-year increase, excluding foreign exchange impacts [6][25] - Operating income was $17.4 billion, which would have exceeded $21 billion without two special expenses totaling $4.3 billion [6][26] - Trailing 12-month free cash flow stood at $14.8 billion [6] Business Line Data and Key Metrics Changes - AWS revenue reached $33 billion, up 20.2% year-over-year, marking the largest growth rate in 11 quarters [6][31] - North America segment revenue was $106.3 billion, an 11% increase year-over-year, while international segment revenue was $40.9 billion, a 10% increase year-over-year [26] - Worldwide paid units grew by 11% year-over-year, with third-party seller unit mix increasing to 62% [27][28] Market Data and Key Metrics Changes - AWS backlog grew to $200 billion by the end of Q3, not including several unannounced deals in October [8] - The advertising segment generated $17.6 billion in revenue, growing 22% year-over-year [19][31] Company Strategy and Development Direction - The company is focused on expanding AWS capabilities, particularly in AI and core services, with significant investments in infrastructure and custom silicon [15][33] - The grocery business is evolving with a strong emphasis on perishables and same-day delivery, aiming to change consumer habits [16][55] - The company is committed to enhancing its advertising offerings and leveraging partnerships to expand its reach [20][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in AWS's growth trajectory, citing strong demand for AI workloads and infrastructure [6][31] - The company is preparing for a busy Q4, anticipating high demand for AWS and innovations in AI-powered experiences [24][34] - Management emphasized the importance of maintaining a lean organizational structure to foster agility and innovation [57][58] Other Important Information - The company has committed over $4 billion to expand its rural delivery network, increasing access to same-day and next-day delivery [18] - The introduction of AI-powered tools like Rufus and AgentCore is expected to enhance customer experience and operational efficiency [18][74] Q&A Session Summary Question: AWS capacity levels and Trainium demand - Management highlighted significant capacity additions, with 3.8 gigawatts added in the last year and expectations to double capacity by 2027 [39] - Trainium 2 is fully subscribed, with strong demand from both large and medium-sized customers [40][41] Question: Trainium positioning versus third-party chips - Management confirmed the intention to maintain multiple chip options, emphasizing the advantages of Trainium in price performance [45][46] Question: Project Rainier architecture and differentiation - Project Rainier is designed for large-scale AI workloads, showcasing AWS's infrastructure capabilities and performance advantages [50] Question: Grocery business and perishable delivery - The grocery business has surpassed $100 billion in gross merchandising sales, with a focus on expanding same-day delivery for perishables [53][56] Question: Robotics and automation in operations - The company has over a million robots in its fulfillment network, with ongoing investments to enhance safety, productivity, and speed [61][62] Question: Agentic commerce future - Management expressed excitement about the potential of agentic commerce to enhance customer experiences and drive online shopping growth [65][68]

Financial Data and Key Metrics Changes - The company achieved revenue of $562 million, representing a year-over-year increase of 30.7% [5][21] - Gross margin was reported at 75.3%, within the long-term target range of 75% to 77% [5][23] - Operating profit reached $85.9 million, with an operating margin of 15.3%, an increase of 50 basis points year over year [5][25] - Free cash flow for the quarter was $75 million, or 13% of revenue, compared to $45.3 million, or 11% of revenue in the same period last year [26] Business Line Data and Key Metrics Changes - The number of large customers (those paying more than $100,000 per year) increased by 23% year over year, totaling 4,009 [5][22] - Revenue contribution from large customers grew to 73% of total revenue, up from 67% in the same quarter last year [5][22] - Dollar-based net retention rate improved to 119%, up 5 percentage points quarter over quarter [5][23] Market Data and Key Metrics Changes - U.S. revenue represented 50% of total revenue, increasing by 31% year over year [21][22] - EMEA accounted for 27% of revenue with a 26% year-over-year increase, while APAC represented 15% of revenue with a 43% year-over-year increase [21][22] Company Strategy and Development Direction - The company is transitioning from a product-led growth model to a true enterprise sales approach, which is driving larger deal sizes and increased sales productivity [6][33] - The focus on innovation and operational excellence is evident in the strong financial results and growth in customer metrics [20][28] - The company aims to achieve $5 billion in annualized revenue by Q4 2028, with a projected $3 billion annualized revenue run rate by Q4 2026 [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the transformative potential of AI and the company's role in shaping the future of the internet [19][60] - The company is focused on ensuring that all businesses, regardless of size, can participate in the evolving digital landscape [63] Other Important Information - The company announced participation in upcoming technology conferences, indicating ongoing engagement with the industry [4] - A key executive, CJ Desai, is leaving the company to pursue a CEO role at another technology firm, which management views as a testament to the company's ability to develop leaders [6][9] Q&A Session Summary Question: What drove the acceleration in RPO growth this quarter? - Management attributed the acceleration to a transformation towards enterprise sales, increased average deal sizes, and strong performance from large customer cohorts [32][34] Question: Are sales productivity gains flattening out? - Management believes that sales productivity will continue to improve due to the caliber of new team members and the ramping up of sales capacity [39] Question: What advantages does the integration with Oracle OCI provide? - The integration allows Oracle customers to access Cloudflare's tools within OCI, facilitating a multi-cloud future with consistent security and network performance [40][41] Question: How is the company addressing capacity constraints in Workers? - Management stated that they are not capacity constrained due to their network architecture, which allows for efficient workload management across global resources [44][46] Question: What is the company's approach to quantum-safe security? - The company is proactively working on quantum-safe cryptography in partnership with Google, ensuring that security measures are in place ahead of potential future threats [73][75]

Financial Data and Key Metrics Changes - Sales for Q3 2025 increased by $890 million year-over-year to $7.7 billion, representing a 13% increase compared to the prior year, or an 11% increase on a constant currency basis [16] - Non-GAAP gross margin for Q3 was 10.8%, down approximately 70 basis points year-over-year, primarily due to regional and customer mix in Global Components and a $21 million charge in ECS [16] - Non-GAAP diluted EPS for Q3 was $2.41, exceeding the guided range, with the charge lowering EPS by $0.31 [16] Business Line Data and Key Metrics Changes - Global Components sales increased by $610 million year-over-year to $5.6 billion, up 5% sequentially [20] - Global ECS sales rose by $300 million year-over-year to $2.2 billion, reflecting a 15% increase compared to the prior year [21] - ECS billings were $5.2 billion, up 14% year-over-year, with a healthy backlog growth exceeding 70% year-over-year [21] Market Data and Key Metrics Changes - Sales in the Americas were flat sequentially at $1.7 billion, driven by strength in industrial and transportation markets [19] - EMEA sales reached $1.4 billion, with resilience in industrial and aerospace markets despite macroeconomic challenges [19] - Asia sales grew sequentially by 12% to $2.4 billion, supported by strength in industrial, compute, and consumer markets [19] Company Strategy and Development Direction - The company is focused on delivering high-quality, innovative technology solutions and is positioned to emerge with improved momentum as the market gradually recovers [5][6] - The strategy includes a deliberate shift towards higher-margin value-added offerings and expanding the addressable market through strategic outsourcing arrangements [12][13] - The company aims to leverage strong trends in cloud and AI to drive growth in both supply chain services and ECS segments [27] Management's Comments on Operating Environment and Future Outlook - Management believes the current cyclical recovery is gradual, with leading indicators remaining robust across all markets [26] - The company anticipates that the West will catch up to the East in terms of recovery, with mass market customers expected to improve over time [26] - Future guidance for Q4 expects sales between $7.8 billion and $8.4 billion, indicating an 11% year-over-year increase at the midpoint [25] Other Important Information - The company has returned approximately $3.5 billion to shareholders via share repurchase since 2020 [14] - A $21 million charge was taken in Q3 due to lower profit expectations on multi-year contracts, which are part of the strategic outsourcing model [23][35] Q&A Session Summary Question: Clarification on the interim CEO role - The interim CEO confirmed he is not a candidate for the permanent position and a search committee is in place to find a successor [30] Question: Details on the $21 million charge - The charge relates to underperformance in strategic outsourcing contracts, which are expected to be margin-accretive in the long term despite current challenges [31][35] Question: ECS margins and growth expectations - The company expects strong performance in the ECS business for Q4, with margins anticipated to improve despite the recent charge [38] Question: Slower growth in specific verticals - Management indicated that while recovery is underway, some mass market customers are not recovering as quickly as larger OEMs, impacting profit margins [40] Question: Impact of new contracts on working capital - The company noted that while new contracts may require more working capital, they are expected to be margin-accretive, justifying the investment [46]

Demand isn’t speculative anymore; it’s contractual. Microsoft’s commercial remaining performance obligation reached $392 billion, up 51% from a year earlier. And that figure doesn’t include OpenAI’s $250 billion Azure commitment, a multiyear deal that functions like an energy forecast disguised as a tech partnership. Together they represent hundreds of billions in future workloads — booked, not built.The physics are inescapable. Each AI deployment now drags behind it a convoy of equipment, cooling, and grid ...