Core Viewpoint - Meta Platforms is expected to report strong fourth-quarter 2025 results driven by advertising revenue growth, despite challenges from rising expenses and losses in its Reality Labs division [2][5][10]. Financial Performance Expectations - Meta anticipates total revenues between $56 billion and $59 billion for Q4 2025, with a Zacks Consensus Estimate of $58.40 billion, reflecting a 20.7% increase year-over-year [2][3]. - The consensus estimate for earnings per share is $8.15, indicating a 1.6% growth from the previous year [3]. Advertising Revenue Growth - The advertising revenue for Q4 2025 is projected at $56.85 billion, suggesting a 21.5% year-over-year growth, driven by increased advertiser spending and improved AI capabilities [5]. - Meta's platforms, including Facebook, WhatsApp, Instagram, Messenger, and Threads, reach over three billion users daily, contributing to its significant share of the digital ad market [6]. AI and User Engagement - Meta is leveraging AI to enhance user experience and engagement, with over one billion users currently utilizing Meta AI [7][8]. - The company’s AI-powered ad tools have an annual run rate exceeding $60 billion, indicating strong demand and effectiveness in ad targeting [5]. Financial Challenges - Rising expenses related to AI development and Reality Labs are expected to pressure profit margins, with the operating income for the Family of Apps estimated at $29.78 billion, a 5.1% year-over-year increase [9]. - Reality Labs is projected to incur a loss of $6.31 billion in Q4 2025, wider than the previous year's loss of $4.97 billion [10]. Stock Performance and Valuation - Meta shares have decreased by 0.2% over the past year, underperforming the Zacks Computer & Technology sector, which has appreciated by 28.4% [11]. - The current valuation of Meta is considered stretched, with a forward price/sales ratio of 6.98X, higher than the industry average of 4.58X [12]. Capital Expenditure and Future Outlook - Meta's capital spending for 2025 is expected to be between $70 billion and $72 billion, reflecting increased investment in AI and infrastructure [14]. - Despite the potential long-term benefits of these investments, the company faces challenges from a competitive ad market and regulatory issues [15][16].

Key Takeaways Snowflake posted 29% product revenue growth to $1.16B in Q3 FY26, with RPO climbing 37% to $7.88B. SNOW topped $2B in AWS Marketplace sales and expanded AI offerings through a deeper Google Cloud partnership. Snowflake reached a $100M AI run rate early, with AI tied to 50% of Q3 bookings and 28% of use cases. Snowflake (SNOW) is benefiting from its expansion of cloud infrastructure reach, which positions the company for significant growth and increased market share in the data and AI space. In ...

Key Takeaways QBTS shifted from research to revenues in 2025, with Q1 revenues up 509% from an Advantage2 system sale.Later quarters' revenues kept rising, as Q3 revenues grew 100% YoY and gross profit expanded despite high R&D.QBTS entered 2026 with euro 10M Italy bookings, strong cash and a growing services pipeline.Over the course of 2025, D-Wave Quantum (QBTS) moved noticeably from purely research-oriented results toward measurable revenue traction as its quantum systems began generating meaningful top- ...

Key Takeaways CRWV's revenue backlog hit $55.6B by Q3 2025, nearly doubling sequentially on major AI cloud contracts.CRWV added over $25B of backlog in Q3 as supply woes pushed customers into long-term, take-or-pay deals.CRWV diversified its backlog, lifted capacity to 590 MW active and preserved contract value.CoreWeave, Inc. (CRWV) reported exceptional momentum in building its revenue backlog, underscoring the strength of demand for its AI-focused cloud platform. The rapid expansion of backlog is occurrin ...

Core Insights - Box (BOX) shares have declined 18.9% over the past 12 months, underperforming the Zacks Internet Software industry's decline of 2.3% and the broader Zacks Computer and Technology sector's return of 24.7% [1] - The decline is attributed to a challenging macroeconomic environment and increased expenses related to cloud infrastructure, sales and marketing, and administration, negatively impacting profitability [1] Financial Performance - For the nine-month period ending October 31, 2025, Box's gross margin remained flat year over year at 81.2% [2] - Operating expenses rose by 9.7% year over year to $635.6 million, driven by a 11.2% increase in research and development, a 7.4% increase in sales and marketing, and a 13% rise in general and administrative expenses [2] - Operating margin contracted by 50 basis points year over year, with expectations of a gross margin of 81% for fiscal 2026, indicating a 20-bps contraction from fiscal 2025 [2] Customer and Partner Dynamics - Box has a strong portfolio and a rich partner base, including OpenAI, Amazon Web Services (AWS), Google, Anthropic, and IBM, which helps maintain its clientele [3] - The company has over 2,000 customers paying at least $100K annually, reflecting a 7% year-over-year increase [3] - The net retention rate for the third quarter of fiscal 2026 was 104%, exceeding management's expectation of 103% [3] Product Innovations - Box is expected to benefit from strong customer demand for Box AI and the growing adoption of its Enterprise Advanced suite [4] - The Box AI platform connects AI models and agents, ensuring data governance and compliance while preventing content sprawl and security risks [4] - Box Extract, a new data extraction solution powered by generative AI, allows enterprises to automate workflows and make quicker decisions using analytical information [5] Strategic Partnerships - Box has entered a multi-year strategic collaboration agreement with AWS to enhance AI capabilities for customers [6] - The partnership focuses on creating new Box AI agents using AWS's advanced AI services [6] - Box has also partnered with Tata Consultancy Services to deliver AI-powered content management solutions [6] Revenue and Earnings Guidance - Box expects fourth-quarter revenues to be approximately $304 million, indicating a 9% year-over-year growth [7] - Fiscal 2026 revenue is projected to be around $1.175 billion, reflecting an 8% year-over-year growth [10] - Non-GAAP earnings for fiscal 2026 are expected to be $1.28 per share, indicating a decrease of 25.2% from fiscal 2025 [11]

Key Takeaways Guidewire shares are down 12% year over year and recently touched a fresh 52-week low amid bearish sentiment.GWRE's cloud shift is gaining traction, with ARR rising 22% year over year and eight new cloud deals signed.Higher operating costs, long sales cycles and premium valuation remain key headwinds for GWRE.Guidewire Software (GWRE) stock has lost 12.4% in the past year compared with the Zacks Internet Software industry's decline of 2.3%. The broader Zacks Computer and Technology sector and ...

Core Insights - Snowflake (SNOW) is enhancing its portfolio through strategic acquisitions, positioning itself as a leader in the data and AI sectors [1] Acquisitions and Innovations - The acquisition of Datometry is significant for expanding Snowflake's capabilities, allowing customers to migrate from older data warehouses to Snowflake with lower costs and less disruption [2] - Snowflake's agreement to acquire Observe aims to provide AI-powered observability, enhancing operational resilience and analytics within the Snowflake AI Data Cloud [3] - The company is focused on innovation and expansion through acquisitions to maintain its central role in enterprise AI [4] Financial Performance and Projections - In fiscal Q3 2026, AI influenced 50% of bookings, with 28% of deployed use cases incorporating AI, indicating strong demand for AI-driven data solutions [4] - For Q4 of fiscal 2026, Snowflake expects product revenues between $1.195 billion and $1.2 billion, reflecting a year-over-year growth of 27% [4] Competitive Landscape - Snowflake faces significant competition from major players like Amazon and Oracle, both of which are expanding their AI capabilities [5] - Amazon's collaboration with Infosys aims to accelerate enterprise adoption of generative AI, enhancing software development and operations [6] - Oracle has launched the Autonomous AI Lakehouse and introduced new AI-powered capabilities to improve business data analysis [7] Stock Performance and Valuation - Snowflake shares have decreased by 1.9% over the past six months, underperforming the Zacks Computer & Technology sector's return of 20.1% but outperforming the Zacks Internet Software industry's decline of 9.2% [8] - The stock is trading at a premium with a forward 12-month Price/Sales ratio of 12.64X compared to the industry's 7.46X, and it has a Value Score of F [11] - The Zacks Consensus Estimate for fiscal 2026 earnings is $1.20 per share, indicating a 44.58% year-over-year increase [13]

Core Insights - Meta Platforms (META) is significantly investing in AI infrastructure, including nuclear energy agreements to secure up to 6.6 gigawatts (GWs) of power by 2035, enhancing its ESG profile and addressing energy needs for AI systems [1][2][8] Group 1: Energy Strategy - META has signed long-term nuclear power agreements with Vistra, TerraPower, and Oklo, making it a major corporate buyer of clean energy [2] - The nuclear energy deals are expected to provide reliable electricity, reducing risks associated with energy price volatility and shortages [2][8] - META is backing the development of advanced nuclear technology, including Natrium units capable of generating up to 690 MW, with delivery expected as early as 2032 [3] Group 2: Financial Outlook - META's capital expenditure is projected to be between $70 billion and $72 billion in 2025, with a combined expected spending of $380 billion on AI infrastructure by major tech companies [4] - The Zacks Consensus Estimate for 2025 earnings is $23.04 per share, reflecting a 4.3% decline from previous estimates, while revenues are expected to grow by 21.3% [13] - For 2026, earnings are estimated at $30.17 per share, indicating a 30.94% growth from 2025, with revenues projected to reach $235.17 billion [14] Group 3: Market Performance - META shares have underperformed, returning only 2.3% over the past 12 months compared to a 27.6% increase in the broader sector [5] - The stock is considered overvalued, trading at a forward price/sales ratio of 6.72X, higher than the industry average of 4.66X [10] - Despite challenges, META's growing popularity among young adults and improved AI recommendations are expected to drive top-line growth [10]

Core Insights - CoreWeave, Inc. (CRWV) has seen its shares rise 119% over the past year, significantly outperforming the Zacks Internet-Software Market and other tech peers [2][8] - The company has secured multi-billion-dollar contracts with major players like OpenAI and Meta, pushing its revenue backlog to over $55 billion [5][10] - Despite strong growth, CRWV faces challenges such as supply chain constraints and rising debt, which could impact future performance [12][13] Company Performance - CRWV's stock has outperformed Microsoft (MSFT) and rival Nebius Group N.V. (NBIS), which rose 13.3% and 185.8% respectively during the same period [3][8] - The company has expanded its partnerships, including a new deal with OpenAI valued at up to $6.5 billion, bringing the total contract value with OpenAI to approximately $22.4 billion [5][8] - CRWV's revenue backlog has increased significantly, with strong ties to key players like NVIDIA, enhancing its AI cloud capabilities [6][10] Growth Strategy - CoreWeave is aggressively expanding its data centers, deploying hundreds of thousands of GPUs and adding significant power infrastructure to meet AI workload demands [10] - The company is pursuing vertical and horizontal growth through strategic acquisitions, including the recent agreement to acquire Monolith AI Limited [11] - CRWV's focus on high-performance AI cloud services is reinforced by its expansion of Mission Control, a unified operational standard for enterprise tech teams [9] Financial Outlook - The company has revised its 2025 revenue guidance down to $5.05–$5.15 billion due to supply delays, impacting its near-term performance [12] - Interest expenses are projected to rise to $1.21–$1.25 billion in 2025, reflecting the company's increasing debt levels to fund capital expenditures [13] - Despite these challenges, the Zacks Consensus Estimate for CRWV's earnings for 2025 has been revised upward by 1.4% over the past 60 days [17]

Core Company Insights - CoreWeave, Inc. (CRWV) is experiencing rapid expansion and significantly increasing capital expenditures to meet AI demand, with 2026 capex expected to exceed double that of 2025 [1][10] - For 2025, CoreWeave's capex is estimated to be between $12 billion and $14 billion, a reduction from earlier projections of $20 billion to $23 billion, with a large portion of this spending being recognized in early 2026 due to delays [2][10] - The company has a substantial revenue backlog of $55.6 billion and 2.9 gigawatts of contracted power capacity, with over 1 gigawatt expected to come online in the next 12-24 months, positioning CoreWeave to capture future demand [3][10] Financial Performance and Challenges - CoreWeave's aggressive scaling may pressure near-term adjusted operating margins due to the timing of data center costs versus revenue recognition [4] - Interest expenses have surged to $311 million from $104 million a year ago, with expectations for 2025 interest expenses between $1.21 billion and $1.25 billion, which could impact adjusted net income and free cash flow generation [5] - The company's ability to manage these financial strains while competing against rivals like Nebius, Microsoft, and Amazon will be crucial for its growth trajectory [6] Industry Comparisons - Amazon is projected to have a cash capex of $125 billion for 2025, with significant investments in AWS growth and technology infrastructure [7][8] - Nebius has increased its 2025 capex plan to $5 billion from $2 billion, focusing on securing critical resources for data center and GPU deployment [9][11] Market Performance - CoreWeave's shares have increased by 20.9% over the past month, contrasting with a 1.1% decline in the Internet Software industry [12] - The company's shares are trading at a Price/Book ratio of 8.72X, significantly higher than the industry average of 5.8X [14] - The Zacks Consensus Estimate for CoreWeave's earnings for 2025 has been revised upwards over the past 60 days, indicating positive market sentiment [15]