Company Overview - Nutanix (NTNX) is a networking IT services company with a market cap of $18 billion [2] - GitLab (GTLB) is another tech name with a market cap of $8 billion [11] Financial Performance - Nutanix - Nutanix has a strong buy rating with growth divergence [1] - The company has beaten earnings estimates for the last four quarters, averaging 20% over the past year [4] - Topline growth is expected to be 15% this fiscal year and 14% next fiscal year, reaching $3 billion in sales [5][6] - Operating margins have increased from 4.4% to 6.4% to 8% over the last three quarters [7] Financial Performance - GitLab - GitLab also has a strong buy rating with growth divergence [11] - The company is beating earnings estimates handily, with some seasonality [12][13] - Revenue is expected to grow 23-24% next year, reaching $1.13 billion, with 20% topline growth [14] - Operating margins are moving from negative to positive [15] Valuation - Nutanix has a forward earnings multiple of 36 times [2][6] - GitLab has a high forward earnings multiple of 58 times, but is growing at about 30% [14][15] - GitLab's price to sales is 930% [15] Market Dynamics and Strategy - There is speculative M&A interest around Nutanix [3][11] - GitLab's earnings estimates are moving higher, indicating good margin expansion [18]

Core Insights - Coca-Cola reported a strong third-quarter performance with adjusted earnings rising 30% year over year to $0.82 per share and revenue increasing 5% to $12.5 billion, surpassing analyst expectations [1][2] Group 1: Financial Performance - Adjusted earnings rose 30% year over year to $0.82 per share, while revenue increased 5% to $12.5 billion, exceeding Wall Street's expectations of $0.78 per share and $12.4 billion in revenue [1] - Operating margins improved to 31.9%, up from 30.7% in the same period last year, reaching multi-year highs not seen since before the COVID-19 pandemic [3][4] Group 2: Market Performance - North American revenue grew 4% year over year, outperforming PepsiCo's 2% growth in the same market, indicating resilience in the face of economic concerns [5][6] - Coca-Cola maintained strong operating margins despite increased marketing expenses, demonstrating effective cost control and solid consumer demand [4][6] Group 3: Product Trends - Contrary to expectations, Diet Coke is experiencing a reversal in its decline, as it regains shelf space from Coke Zero, which was anticipated to take over its market position [9][10]

Core Insights - MercadoLibre's lending growth is outpacing profitability, raising concerns about margin stability [1] - The company's credit volume surged 91% year-over-year to $9.3 billion, with credit cards making up 43% of the loan book [2][8] - Net Interest Margin After Losses decreased to 23% from 31.1% a year ago, indicating pressure on profitability [2] - High levels of loans over 90 days past due at 18.5% suggest ongoing credit quality issues [3][8] - Increased competition from Sea Limited and Nu Holdings in the fintech space is likely to intensify pressure on lending margins [5] Lending Growth and Financial Metrics - Total credit volume increased by 91% year-over-year to $9.3 billion, driven by a 118% rise in credit card usage [2][8] - Fintech revenues grew 30% year-over-year to $2.95 billion, reflecting strong lending momentum but also highlighting efficiency challenges [2] - The Zacks Consensus Estimate for third-quarter 2025 fintech revenue is projected at $3.23 billion, indicating a 27% year-over-year increase [2] Credit Quality and Risk Factors - Provisioning and funding costs are expected to rise faster than income, putting operating leverage at risk [3][4] - New credit card cohorts typically take several quarters to reach breakeven, maintaining pressure on returns during rapid issuance [3] - The combination of higher reserves, slower cohort profitability, and elevated funding needs could keep margins under pressure [4] Competitive Landscape - MercadoLibre faces increasing competition from Sea Limited and Nu Holdings in digital lending and credit services across Latin America [5] - Sea Limited is expanding personal loans and payment products in Brazil and Mexico, overlapping with MercadoLibre's offerings [5] - Nu Holdings is leveraging its customer base and data-driven underwriting to accelerate credit card and consumer lending growth [5] Stock Performance and Valuation - MELI shares have increased 26.7% year-to-date, outperforming the Zacks Internet-Commerce industry and the Retail-Wholesale sector [6] - The stock is currently trading at a forward 12-month Price/Sales ratio of 3.27X, compared to the industry's 2.23X [10] - The Zacks Consensus Estimate for MELI's third-quarter 2025 earnings is $9.88 per share, indicating a 26.18% year-over-year growth [13]

Core Viewpoint - Erste Group downgraded Advanced Micro Devices (AMD) from Buy to Hold, resulting in a 2% decline in shares during Thursday's session [1] Group 1: Company Performance - AMD is expected to see growth in 2025 due to increasing demand for high-performance CPUs and GPUs in data centers [1] - Operating margins for AMD remain below sector averages, with EBIT margin reported as slightly negative in the most recent quarter [1] - AMD's return on equity is weaker than its peers, leading to a perception that the current valuation is elevated [1]

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q3 2025 was $3.09, exceeding guidance and higher than the previous year, excluding LNG business sales impact [2][6] - Sales volume decreased by 4% year-over-year, primarily due to the sale of the LNG business and lower helium demand [6][7] - Total company price increased by 1%, with a 2% improvement in the merchant business [6][7] - Adjusted operating income remained unchanged, with operating margin flat but improved by approximately 300 basis points sequentially due to favorable volume and productivity improvements [7][8] Business Line Data and Key Metrics Changes - The core industrial gas business showed resilience, with strong performance in non-helium products across all regions [2][7] - Helium EPS contributions were down about 4% versus the prior year, with an anticipated headwind of around 55 to 60 cents for the full year [23] Market Data and Key Metrics Changes - The Americas experienced a 6% decline in volume, primarily due to project exits and lower helium demand, although strong on-site volumes were noted [34][35] - The company expects to see improvements in overall merchant business outside of helium demand [35] Company Strategy and Development Direction - The company aims for high single-digit adjusted EPS growth starting in fiscal year 2026, with a target of achieving operating margins of 30% and return on capital employed (ROCE) in the mid to high teens by 2030 [5][6] - A global cost reduction plan is expected to generate annual savings of $185 to $195 million, with a focus on digital transformation and AI tools to enhance productivity [3][4][30] Management's Comments on Operating Environment and Future Outlook - Management remains cautious about the economic outlook, recognizing significant global uncertainties [10] - The company is optimistic about the competitiveness of its projects, particularly in the blue ammonia market, and is actively seeking partnerships for future projects [15][49] Other Important Information - The fiscal full-year adjusted EPS guidance is maintained at $11.90 to $12.10, with capital expenditures expected to be approximately $5 billion [10] - The company is committed to maintaining capital discipline while pursuing growth opportunities in its core industrial gas business [4][6] Q&A Session Summary Question: Update on the plan to use third parties at Darrow for ammonia and carbon capturing - Management is optimistic about finalizing partnerships by the end of the current year, with competitive CapEx numbers for their projects [14][15] Question: Average prices year-over-year and helium impact - Management indicated that they typically do not disclose specific numbers but acknowledged helium's impact on pricing [18][20] Question: Volume performance in the Americas - The decline was largely due to project exits and helium demand, with strong on-site volumes noted [34][35] Question: Update on larger project announcements in the Gulf Coast - Management believes there is still demand for clean ammonia, particularly in the Far East, and expects competitive positioning for their projects [48][49] Question: Trajectory to achieve long-term ROCE goals - Current ROCE is around 11.1%, with expectations to improve as capital expenditures are reduced and cash balances increase [70][72] Question: Inflation impact on costs - Management continues to see inflation as a concern, with ongoing efforts to manage pricing effectively [76][77] Question: Update on underperforming projects - Projects in Edmonton, Rotterdam, and Arizona are on schedule, with no significant changes expected [80][81]