SUSTAINED WORK, AND THAT WILL AGAIN HAVE IMPLICATIONS FOR THE TRADE THAT WE KNOW CHANGES QUICKLY IN YEAR FOUR. >> YES, THAT IS SO TRUE. D THANK YOU.DEIRDRE BOSA. LET'S BRING IN CNBC CONTRIBUTOR NOW BIG TECHNOLOGY FOUNDER ALEX KANTROWITZ OKAY. GOOD TO SEE YOU. I HOPE YOU HAD A GOOD HOLIDAY.IT'S GOOD TO HAVE YOU BACK. IS IT OVERSTATING IT TO SAY THAT CHATGPT NOT ONLY CHANGED THE WORLD IN SOME RESPECTS, BUT IT CERTAINLY SEEMS TO HAVE CHANGED THE WAY THAT WE WERE INTERESTED IN BUYING CERTAIN STOCKS IN THIS MARK ...

Core Insights - The U.S. stock market has shown broad gains in 2025, with real estate being the only sector to record negative returns year-to-date, declining approximately 0.17% [1][3][4] Real Estate Sector - Real estate's underperformance is attributed to high interest rates, which inflate borrowing costs and negatively impact property valuations [3] - Companies in both commercial and residential real estate are facing tighter financing conditions, reduced demand in key sub-segments, and lower transaction volumes [3][4] Top Performing Sectors - Communication services lead the market with over 25% gains, driven by strong advertising revenues and the performance of major companies like Alphabet and Meta [5] - Basic materials follow with returns exceeding 22%, fueled by rising demand for industrial metals and chemicals, with companies like Freeport-McMoRan and Linde contributing to this growth [6] - Utilities have gained nearly 19%, benefiting from increased electricity demand due to data-center expansion and AI-related needs, with major players like NextEra Energy and Duke Energy seeing significant advantages [7] - The technology sector continues to thrive, supported by semiconductor and cloud-infrastructure companies such as Nvidia and Microsoft, amidst a recovery following a notable market crash in early April [8][9]

Core Viewpoint - SoundHound AI reported better-than-expected third-quarter results but experienced a decline in stock price despite raising its full-year sales guidance [1][4]. Financial Performance - In the September quarter, SoundHound AI lost an adjusted 3 cents per share on sales of $42 million, surpassing analyst expectations of a 9 cents loss on $40.5 million in sales [2]. - The company improved from a loss of 6 cents per share on sales of $25.2 million in the same period last year [2]. - SoundHound raised its full-year revenue outlook to a range of $165 million to $180 million, with a midpoint of $172.5 million, exceeding the consensus estimate of $166 million [2]. Business Operations - SoundHound's technology is utilized by various companies for customer interactions in sectors such as call centers and restaurant drive-thrus, and is also integrated into select automobile brands like Jeep [3]. - The CEO highlighted the global boom in enterprise AI adoption and the company's strategy to leverage its leading position across diverse industries [4]. Stock Market Reaction - Following the earnings report, SoundHound's stock fell more than 3% in after-hours trading to $13.75, after a 9.5% decline during the regular session, closing at $14.23 [4].

Core Thesis - Zscaler, Inc. is positioned as a foundational security infrastructure provider, similar to Salesforce's role in enterprise software during the 2008 financial crisis, with unique advantages that competitors cannot replicate [2][6] Financial Performance - As of October 10th, Zscaler's share price was $309.88, with a forward P/E of 84.03 [1] - In Q4 FY25, Zscaler reported a 21% year-over-year revenue growth to $719 million, with operating margins reaching a record 22.1% and free cash flow exceeding estimates by 29% [3] Growth Dynamics - The company’s Z-Flex pricing model allows for flexible, consumption-based adoption, which helps mitigate the threat from Microsoft bundling and accelerates platform expansion [3] - High single-digit net new ARR growth and 22-23% total ARR growth indicate that two-thirds of expansion is driven by existing customer adoption, showcasing effective cross-selling across its Zero Trust, Data Security, and Agentic Operations modules [4] Future Outlook - Enterprise AI adoption is a significant catalyst, leading to a 3,500% increase in AI/ML transactions, positioning Zscaler as a control plane for agent-to-agent and agent-to-application communication [5] - Over the next three years, Zscaler could see ARR growth of 20-25%, with potential margin expansion depending on Z-Flex adoption, AI Security momentum, and cross-sell execution [5] Competitive Position - Zscaler is viewed as a rare investment opportunity in transformative infrastructure, with durable competitive advantages and accelerating platform adoption, which could lead to substantial long-term upside as the market recognizes its security infrastructure model [6]

Core Thesis - TaskUs, Inc. is currently involved in a contentious take-private transaction led by its co-founders and Blackstone, with a proposed buyout price of $16.50 per share, which is viewed as undervaluing the company by activist investors [2][3] Financial Performance - For Q1 2025, TaskUs reported revenue of $277.8 million, reflecting a 22% year-over-year growth, with AI Services growing over 50% year-over-year and Trust & Safety maintaining over 30% growth for five consecutive quarters [2] - Year-to-date 2025 net income has reached 90% of the total net income for 2024, indicating strong financial performance [2] Shareholder Dynamics - The Buyer Group controls approximately 51% of Class A shares and 100% of Class B shares, initially planning to fund the transaction through TaskUs' $372 million liquidity position [3] - Activist investors, including Think Investments and Murchinson Ltd., have publicly opposed the deal, raising concerns about valuation, process fairness, and potential conflicts of interest [3][4] Market Reactions - ISS has recommended rejection of the proposed transaction, increasing pressure on Blackstone to improve its offer [4] - Recent share repurchases may have reduced minority voting power, but the transaction remains uncertain, with the Special Committee engaging stockholders and multiple adjournments of the merger approval meeting [4] Investment Sentiment - The bullish thesis on TaskUs emphasizes the potential upside driven by activist involvement and the growth of AI Services, despite the stock price being perceived as undervalued [5]

Core Insights - Penguin Solutions Inc (NASDAQ:PENG) has guided for a 6% revenue growth for fiscal 2026, which is below the market expectations of 10% [1] - The company's revenue for the last quarter grew by 17% to $1.37 billion, aligning with its guidance, although it fell slightly short of consensus estimates [2] - The revenue guidance for fiscal 2026 is based solely on software and services revenue from Meta Platforms Inc (NASDAQ:META), with expectations that hardware deployments will resume during fiscal 2026 [3] Revenue and Growth - The revenue growth of 17% to $1.37 billion is consistent with the company's guidance [2] - The anticipated revenue growth for fiscal 2026 is lower than expected, indicating potential challenges in hardware deployments from Meta [1] Market Position and Strategy - Penguin Solutions has been successful in adding more enterprise customers, which is seen as a positive indicator for future growth [4] - The company is viewed as having significant value in its HPC/AI software and services, particularly as enterprise AI adoption increases [4]

Core Viewpoint - CoreWeave, Inc. (CRWV) is experiencing a unique market situation where insiders are selling shares following the IPO lockup expiration, while analysts and institutional investors remain optimistic about the stock's future [1][4]. Insider Activity - A significant number of insider sales occurred around the August 14 lock-up expiration, with the chief development officer selling shares worth over $57 million and a director unloading one million shares at approximately $100 each [2]. - Magnetar Financial reduced its position by nearly 70%, selling shares above $100, contributing to short-term selling pressure on the stock [2][3]. Stock Performance - Following the insider sales, CoreWeave's stock has declined by more than 25% over the past month [3]. Analyst and Institutional Investor Sentiment - Despite insider selling, Wall Street analysts and new institutional investors are bullish on CoreWeave. Jane Street acquired 19.95 million shares, representing a 5.4% stake in the company [4]. - H.C. Wainwright & Co. analyst Kevin Dede upgraded CoreWeave from Neutral to Buy, setting a price target of $180 for the stock [4][5]. Company Outlook - The analyst emphasized CoreWeave's increased revenue guidance for fiscal year 2025 and its strong relationship with NVIDIA Corp. Dede believes that widespread enterprise AI adoption is inevitable, positioning CoreWeave to benefit significantly [5].

Core Viewpoint - Microsoft Corporation has shown strong performance in 2025, with a stock increase of over 23% in the three months ending June 10, supported by positive earnings reports and full-year guidance [1][2]. Financial Performance - Microsoft reported better-than-expected revenue and earnings in its April earnings report, confirming its full-year guidance [1]. - Year-over-year earnings per share (EPS) growth is expected to decline from a range of 14% to 17% in 2025 to around 11% to 14% in 2026, indicating that the stock may be priced for stronger growth than it will deliver [2]. Valuation Metrics - As of June 10, Microsoft stock is trading at approximately 37 times earnings and about 36 times forward earnings, which is a 5% premium to its historical norms [3]. - Compared to competitors, Amazon.com Inc. trades around 39 times earnings, while Apple Inc. trades around 31 times earnings, with Microsoft's growth prospects considered stronger [4]. Technical Analysis - A golden cross pattern was formed in Microsoft stock, indicating a potential bullish trend, as the 50-day simple moving average crossed above the 200-day simple moving average [5][6]. - The golden cross pattern is based on the stock's six-month chart, suggesting a longer-term bullish outlook [7]. Market Sentiment - The 12-month stock price forecast for Microsoft is $511.57, representing an 8.63% upside based on 33 analyst ratings [9]. - Institutional buying has decreased by nearly 50% in the last quarter, which may indicate a pause in activity as the stock approaches all-time highs [9][10]. - Despite the decrease in institutional volume, the long-term outlook for Microsoft remains bullish, particularly due to its partnership with OpenAI [10][11].

Group 1 - The article reiterates a "buy" rating for Amazon (NASDAQ: AMZN) with a price target of $288, driven by expected strong growth in Amazon Web Services (AWS) due to enterprise AI adoption and innovations like Trainium [1] - The author emphasizes the importance of sustainable, growth-driven companies that maximize shareholder equity, aligning with the investment strategy of a family office fund led by Amrita [1] - Amrita's background includes five years in high-growth supply-chain start-ups and collaboration with venture capital firms, focusing on user acquisition and maximizing returns during the pandemic [1] Group 2 - The newsletter "The Pragmatic Optimist," co-founded by Amrita, focuses on portfolio strategy, valuation, and macroeconomics, aiming to democratize financial literacy [1] - The newsletter has been recognized as the Top Newsletter in Finance on popular platforms, indicating its influence and reach in the financial community [1]