From @WSJopinion: While applying AI to finance is important, less appreciated is how finance can, in turn, help advance AI, write @ericschmidt and Dimitris Tsementzishttps://t.co/GLLedd8L6T ...

Core Viewpoint - The article discusses the current market outlook, emphasizing that earnings are driving the market, with expectations for the S&P 500 to end the year around 7,000, supported by strong earnings growth [1][2]. Earnings Performance - Analysts are raising their 2026 earnings expectations, with Q1 and Q2 of 2025 showing better-than-expected results, moving from low to mid single-digit growth to low double-digit increases year-over-year [3]. - The Q3 earnings reporting season for the S&P 500 is projected to show a 14% increase, significantly higher than the initial expectation of 6.5%, indicating strong performance despite market volatility [4]. Investment Opportunities - The article presents a list of 13 cheap stocks under $10, selected based on a forward P/E ratio below 15 and the number of hedge fund holders, indicating strong hedge fund interest [6][7]. Company Highlights - **Melco Resorts & Entertainment Limited (NASDAQ:MLCO)**: - Stock Price: $9.07, Forward P/E: 15, Hedge Fund Holders: 18 - Reported Q3 2025 revenues of $1.31 billion, up 11% from $1.18 billion year-over-year, attributed to improved gaming and non-gaming operations [9][10]. - EBITDA for Macau properties increased by 21% year-over-year, with strong growth in the Philippines and Cyprus [11][12][13]. - **Lloyds Banking Group plc (NYSE:LYG)**: - Stock Price: $5.03, Forward P/E: 11.57, Hedge Fund Holders: 19 - Announced the launch of the UK's first agentic AI financial assistant, aimed at providing personalized financial guidance to 21 million mobile app customers [14][15]. - Analysts have raised the price target for Lloyds, with RBC Capital increasing it to 110 GBP and Kepler Capital setting it at 97 GBP, both maintaining positive ratings [16][17].

Financial Data and Key Metrics Changes - Total revenue grew to over $178 million, up 7.5% year-over-year [38] - Subscription revenue increased by 7%, while services revenue grew by 13% due to accelerated project delivery [38] - Annual recurring revenue (ARR) reached $685 million, up 7.3% [39] - Non-GAAP operating margin was 21.4%, reflecting improved productivity [43] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 21% margin [44] Business Line Data and Key Metrics Changes - New customer bookings increased by 45%, with the average new deal size more than doubling by 111% [7] - Strategic products accounted for 36% of sales, up from 32% last year [42] - SOLEX revenue accounted for 26% of total revenue, remaining steady [42] Market Data and Key Metrics Changes - Customer count reached 4,424, reflecting a strategic resegmentation away from lower-end customers [41] - Revenue renewal rate was 93%, up from the previous year, driven by strong enterprise performance [41] - Net retention rate for the quarter was 103%, despite a headwind from foreign exchange [41] Company Strategy and Development Direction - The company is focused on accelerating revenue growth and margin expansion as it transitions to a platform-based pricing model [6][12] - Emphasis on winning larger, more strategic platform deals against major competitors [7] - Continued progress in the public sector, with expectations for FedRAMP approval in early 2026 [11] - The company is modernizing its technology stack to support scalable, efficient, and AI-powered innovation [18][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering sustained profitable growth, supported by a strong pipeline and operational improvements [36][48] - The macro environment is currently stable, with potential tailwinds from corporate job layoffs creating opportunities for efficiency discussions with customers [100] - The strategic transition to platform pricing is expected to take time but is viewed positively for long-term customer commitment [13][72] Other Important Information - The company returned approximately $113 million to shareholders through share repurchases, reflecting confidence in long-term value [44] - The planned churn from the strategic de-emphasis of lower-end market customers is nearing completion [14] Q&A Session Summary Question: Impact of large customers pausing user ads - Management acknowledged that some deals slipped into Q4, costing a couple of million dollars, but noted an increase in larger enterprise deals [53][54] Question: Automation and customer attrition - Management explained that success-based attrition is occurring as customers achieve higher efficiency with fewer licenses, which is a positive long-term trade-off [72] Question: Factors driving expected bookings growth - Management highlighted the importance of changing conversations to focus on digital finance transformation and deepening relationships with partners [85][86] Question: Competitive takeaways - Management noted an uptick in competitive wins, attributing it to the company's proven track record and improved implementation quality [88][89] Question: SAP relationship and pipeline building - Management confirmed a solid relationship with SAP, focusing on joint customer success and reducing attrition [96][97] Question: Macro environment characterization - Management indicated that the current macro environment is stable, with no significant impacts from tariffs, and noted potential tailwinds from job layoffs [100]

Core Themes of CFO Leadership Council Conference - The CFO Leadership Council's Q4 conference will focus on leadership, transformation, benefits strategy, and the intersection of finance and technology [2] Key Insights from the Conference - Insight into leading through transformation will be provided by speakers from outside traditional finance, emphasizing trust-building, strategic clarity, and personal accountability [3] - Proactive approaches to combat rising health care costs will be discussed, highlighting the importance of transparency in financial planning and aligning cost management with employee well-being [4] - Implementation of AI tools with financial discipline will be a key topic, focusing on realistic applications in forecasting, operations, and investor communications [5] - Guidance on driving business-wide digital strategy will be shared, showcasing how CFOs can align financial insights with technology strategy to foster innovation [6]

Core Insights - Siebert Financial Corp. and Next Securities have entered into a strategic agreement to combine AI technology with financial infrastructure, aiming to enhance trading ease and market insights for investors [1][2][3] Company Overview - Siebert Financial Corp. is a diversified financial services company with a history dating back to 1967, known for its brokerage and financial advisory services [7][9] - Next Securities is a Korean fintech and broker-dealer focused on AI-driven user experience in brokerage services, aiming to transform investment engagement [10] Strategic Agreement Details - The agreement leverages Next Securities' AI expertise and Siebert's financial infrastructure to create a platform that integrates trading convenience with high-quality financial information [3][4] - Both companies plan to explore further opportunities for collaboration, including technology integration and global expansion efforts [4][5] Leadership Perspectives - John J. Gebbia, CEO of Siebert, emphasized the importance of integrating technology and insights for investors, highlighting the potential for richer, AI-enabled experiences [4] - Seungyeon Kim, CEO of Next Securities, noted that the partnership will empower investors with innovative tools and reshape engagement with financial markets [5]

Core Viewpoint - Robinhood Markets (HOOD) stock has experienced a significant increase of +215% in 2025, reaching an all-time high of $123, driven by strategic initiatives and improved financial performance since its public listing in 2021, where it has gained +237% [1] Strategic Moves and Product Innovation - Robinhood has introduced new features on its trading platform, including short-selling tools, overnight index options, and an AI-powered stock screener named Cortex AI, along with a social media network called Robinhood Social to enhance trader engagement [2] - The company has expanded its offerings in crypto and options trading, resulting in a 97% increase in crypto revenue during Q2, rising to $160 million from $81 million in the same quarter last year [3] Financial Performance - In Q2, Robinhood's revenue and net income surged by 45% and 105%, respectively, achieving a net income of $386 million on sales of $989 million. Projections indicate that Robinhood may reach its second billion-dollar quarter in Q3, following its first in Q4 2024, with annual sales expected to grow by 36% this year and 19% in fiscal 2026, reaching $4.78 billion [4] Sales Estimates - Zacks Consensus Estimates for Robinhood's sales are as follows: Current Quarter (9/2025) at $1.04 billion, Next Quarter (12/2025) at $1.10 billion, Current Year (12/2025) at $4.01 billion, and Next Year (12/2026) at $4.70 billion, with year-over-year growth estimates of 63.99% for the current quarter and 35.83% for the current year [6] S&P 500 Inclusion and Analyst Upgrades - Robinhood is set to be included in the S&P 500, replacing Caesars Entertainment, which is expected to enhance its institutional credibility and attract investment from index funds and ETFs [7] - Recent analyst upgrades from firms such as Piper Sandlar, KeyBank, Barclays, and Goldman Sachs have raised the price target for Robinhood, with some forecasts reaching $145 per share [8] Earnings Estimate Revisions - Earnings estimate revisions for Robinhood have increased significantly over the past 60 days, with FY25 estimates rising by 23% from $1.26 to $1.55 and FY26 estimates increasing by 21% from $1.54 to $1.87, indicating strong expected growth in earnings per share [9][10]

Financial Data and Key Metrics Changes - Total revenue grew to $172 million, reflecting a 7% increase year over year [38] - Subscription revenue increased by 7%, while service revenue grew by 3% [38] - Annual recurring revenue (ARR) reached $677 million, up over 9% [38] - Non-GAAP operating margin was 22%, driven by gross margin performance and improved productivity [41] - Non-GAAP net income attributable to BlackLine was $38 million, representing a 22% margin [42] Business Line Data and Key Metrics Changes - The average new deal size grew by 35% year over year, driven by increased adoption of full Record to Report capabilities [9] - Strategic products represented 30% of sales, up from 28% last year, indicating improved cross-sell opportunities [40] - Intercompany, invoice to cash, and transaction matching showed particular strength this quarter [40] Market Data and Key Metrics Changes - The customer count at the end of the quarter was 4,451, reflecting a slight increase from the previous year [39] - The company secured significant wins in various sectors, including media, oil and gas, and life sciences, demonstrating strong market demand [10][11][12] - The pipeline grew by 70% year over year, indicating robust market interest and demand [13] Company Strategy and Development Direction - The strategic shift to a platform company serving the Office of the CFO is driving accelerated success [7] - The company is focusing on larger and mid-market customers while deprioritizing smaller accounts [20] - The introduction of the new pricing model has proven successful, with about half of eligible new logos adopting it [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's trajectory and highlighted the importance of customer success [5][6] - The company anticipates that the momentum from the new pricing model and strategic initiatives will translate into bookings and revenue growth in the coming quarters [19] - Management acknowledged the challenges in the operating environment but remains optimistic about future growth opportunities [86] Other Important Information - The company is making significant progress on its FedRAMP journey to expand its position in the public sector [36] - The GCP migration is nearing completion, enhancing performance and reducing costs [35] - Over 40% of renewals in the first half of the year were multiyear, indicating strong customer commitment [21] Q&A Session Summary Question: Can you break down the large deal momentum and its drivers? - Management noted that the pipeline began to grow significantly in September, with a combination of slipped deals and new opportunities contributing to the strength [49] Question: What is the impact of the new unlimited user pricing model? - Management indicated that there is early evidence of customer proliferation across organizations, with ongoing monitoring of its impact on net retention and upsell [54] Question: What feedback have you received regarding the attractiveness of the new pricing model? - Management reported that the new pricing model has generated transformative conversations with enterprise customers, focusing on overall solutions rather than just license counts [60] Question: Can you elaborate on the role of Studio three sixty and its integration with Snowflake? - Management explained that Studio three sixty serves as the foundational platform for all products, with Snowflake enabling the handling of large data volumes effectively [104]

Course Offerings - Wind continues to provide high-quality online courses globally, with a focus on investment opportunities and financial insights [2][3] - Upcoming courses in August 2025 include topics such as "Investment Opportunities in the 'Cross-border Craze'" and "Pure Benzene Futures: A New Chemical Chain Variable" [3][4] - The courses are designed to cater to various interests, including AI-enhanced index strategies and credit bond research [3][5] Training Series - Wind offers a series of essential training sessions, including insights on how U.S. Treasuries shape global assets and the role of AI in financial data analytics [5][6] - The training series aims to equip participants with practical knowledge and strategies for navigating the financial landscape [5][8] Regional Economic Insights - Courses also cover regional economic features, such as Portugal's economy and France's economic context in globalization [4][5] - These insights are derived from Wind's data analytics, providing a comprehensive perspective on economic trends [4][5]

Core Insights - Wind continues to provide high-quality online courses globally, with a focus on financial education and data processing [1][2][3] Course Offerings - Upcoming courses in June 2025 include topics such as AI in asset allocation, risk management, and corporate ESG strategies [2][5] - Specific courses include "Alice Smart Data Extraction" on June 5, "AI Empowerment in Practice" on June 12, and "How can enterprises win the favor of capital by leveraging ESG ratings?" on June 26 [2][3] Regional Economic Features - Special topics on regional economic data analysis will be offered, including an analysis of the Indian market and economic data in Hindi on June 4, and a multidimensional analysis of economic data in Korean on June 25 [3][5] Highlights from Previous Month - A recap of May's highlights is available, showcasing the key themes and insights from the previous month's courses [4] Engagement and Participation - Participants are encouraged to scan a QR code to register for courses and access live broadcasts and replays, emphasizing the interactive nature of the training [1][6][7]