Core Viewpoint - DLocal's strong Q2 performance led to a significant stock price increase and an upgrade in rating by HSBC, reflecting positive market sentiment and growth potential [1][2]. Financial Performance - DLocal reported Q2 revenue of $256 million, exceeding market expectations by 11% and up from $171 million in the same period last year [1]. - The company's Q2 earnings per share (EPS) were $0.14, surpassing the market average estimate of $0.13, although slightly down from $0.15 in the previous year [1]. - HSBC raised its target price for DLocal to $15, indicating a potential upside of 28.31% from the closing price [1]. Analyst Insights - Analyst Neha Agarwal highlighted DLocal's significant long-term growth potential and recent growth momentum, suggesting the company is on the right track [2]. - HSBC increased its EPS forecasts for DLocal for 2025 to 2027 by 6% to 9%, with a projected gross profit of $396 million for 2025 [2]. - Morgan Stanley maintained a "neutral" rating on DLocal but raised its target price to $15, noting a year-to-date stock price increase of over 25% compared to a 10% rise in the S&P 500 [2].

Core Viewpoint - Microsoft has achieved a historic milestone by surpassing a market capitalization of $4 trillion, becoming the second company to do so after Nvidia, following strong financial results for Q4 FY2025 [1] Financial Performance - Microsoft reported Q4 FY2025 revenue of $76.44 billion, exceeding market expectations of $73.83 billion, with a year-over-year growth of 18%, marking the fastest growth rate in nearly three years [1] - Earnings per share (EPS) reached $3.65, surpassing the expected $3.38, while net profit increased from $22.04 billion in the same quarter last year to $27.23 billion [1] Future Outlook - For Q1 FY2026, Microsoft projects revenue between $74.7 billion and $75.8 billion, with a midpoint of $75.25 billion, which exceeds the expected $74.09 billion [1] - The company anticipates an operating profit margin of 46.6% for Q1, higher than the 45.7% predicted by analysts [1] Business Growth Drivers - The significant revenue growth of 18% is primarily attributed to a 39% increase in Azure business revenue [1] - Operational leverage has contributed to an increase in profit margins, which is a key reason for the more than 20% year-over-year growth in EPS [1] - Despite capital expenditures reaching $17 billion in the last quarter, the company maintains an attractive free cash flow [1]