Core Viewpoint - Meta Platforms is expected to report strong advertising revenue growth in Q1 2025, with a consensus estimate of $40.44 billion, reflecting a year-over-year increase of 13.5% [1][2]. Advertising Revenue Growth - The advertising revenue estimates for different regions are as follows: Asia-Pacific at $8.32 billion (13.4% growth), Europe at $9.51 billion (14.2% growth), United States and Canada at $17.93 billion (16% growth), and Rest of the World at $5.15 billion (14% growth) [4]. User Engagement and AI Utilization - Meta has been leveraging AI and machine learning to enhance user engagement across its platforms, including WhatsApp, Instagram, Facebook, and Threads, with AI-driven feed recommendations being a significant factor [5]. - The Family Daily Active People (DAP) is expected to reach 3.38 billion for Q1 2025, indicating strong user engagement [6]. Earnings Performance - Meta has consistently beaten earnings estimates in the past four quarters, with an average surprise of 13.77% [2]. - The company currently has an Earnings ESP of +3.00% and a Zacks Rank of 3, indicating a favorable outlook for the upcoming earnings report [7].

Core Viewpoint - AppLovin Corporation is facing a class action lawsuit due to allegations of misleading investors regarding its digital advertising platform and manipulative practices that inflated financial metrics [3][4]. Group 1: Class Action Details - The class action lawsuit represents investors who purchased AppLovin securities between May 10, 2023, and February 25, 2025, with a deadline of May 5, 2025, for filing a lead plaintiff motion [1]. - The lawsuit claims that AppLovin misled investors by promoting its AXON 2.0 platform and AI technologies as beneficial for advertising efficiency, while allegedly engaging in deceptive practices [3]. Group 2: Allegations Against AppLovin - Allegations include the exploitation of advertising data from Meta Platforms and the use of a "backdoor installation scheme" to force unwanted apps onto users' devices, leading to inflated installation metrics [3]. - Reports on February 26, 2025, indicated that AppLovin was reverse engineering Meta's advertising data and employing deceptive methods to artificially boost ad performance, resulting in a share price decline of over 12% [4].

Market Overview - The current market is not favoring artificial intelligence (AI) stocks, leading to a sell-off of high-growth names that require favorable economic conditions to thrive [1] - This situation presents an opportunity to acquire top-performing AI stocks at significant discounts, with potential for strong market performance in the coming years [1] Company Analysis: SoundHound AI - SoundHound AI experienced remarkable growth in 2024, with stock prices increasing over 800% during the year, peaking at over 1,000% [3] - The company focuses on audio inputs for AI applications, particularly in digital assistants for cars and drive-thru automation, as well as healthcare, insurance, and finance products [3] - For Q4 2024, SoundHound AI reported a 101% revenue growth, reaching $34.5 million, and provided a 2025 revenue guidance of $157 million to $177 million, indicating a projected growth of 97% [4] - The company has a revenue backlog of $1.2 billion, which, if converted to revenue, suggests continued growth beyond the current projections [5] - Although SoundHound AI has not yet returned to its all-time highs, its growth trajectory indicates potential for recovery [6] Company Analysis: The Trade Desk - The Trade Desk faced challenges, including a missed revenue guidance for the first time in its history, resulting in a stock sell-off of over 30% [7] - Currently, the stock is trading 65% below its all-time high, presenting a potential buying opportunity [8] - The Trade Desk operates in the digital advertising marketplace, helping clients place ads in emerging areas such as podcast audio and connected TV, which are critical for future growth [9] - Analysts project revenue growth of 17% in 2025 and 20% in 2026, indicating strong future performance [10] - The stock trades at a forward price-to-earnings (P/E) ratio of 27, which, while not the cheapest, is the lowest level recorded for the company, suggesting a bargain for investors [12]

Even though the market has slightly recovered from the lows it experienced not long ago, it's still well off its all-time highs. Despite this, there are plenty of bargains to be found in the market.Two that I'm most excited about are Taiwan Semiconductor (TSM 0.57%) and The Trade Desk (TTD 1.33%). Although they operate in completely different industries, they will be OK over the long term.Taiwan SemiconductorTaiwan Semi is the leading contract chip manufacturer and has contracts with many of the largest tec ...

Core Insights - Amazon is positioned to potentially surpass Nvidia, Microsoft, and Apple in market valuation over the next five years, with its stock currently seen as undervalued [2][15][16] Company Overview - Amazon holds a dominant position in multiple industries, including e-commerce, cloud computing, and digital advertising, which presents significant growth opportunities [4][5] - The company has demonstrated a willingness to sacrifice short-term gains for long-term growth, resulting in substantial free cash flow growth and an expanding operating margin [6] Financial Performance - In 2024, Amazon generated $32.9 billion in free cash flow with a 10.75% operating margin, showing improvements in profitability across all business segments [6][7] - North American retail's operating margin increased to 6.4% from 4.2%, while the international segment turned positive with a 2.7% margin compared to -2% in 2023 [7] - Amazon Web Services (AWS) achieved a 37% operating margin in 2024, up from 27% in 2023, indicating strong profitability in its cloud segment [7] Growth Strategies - Amazon has revamped its logistics network to reduce costs and improve delivery times, which is expected to enhance profitability moving forward [8] - The company plans to invest heavily in AWS to meet the growing demand for AI services, anticipating significant revenue growth as it expands its data center capacity [9] Emerging Opportunities - Amazon is leveraging its infrastructure to capitalize on the growth of artificial intelligence, introducing services like Amazon Bedrock to assist enterprises in developing AI applications [11][12] - The company has the potential to launch logistics services for third parties, utilizing its extensive fulfillment network to create additional revenue streams [13][14] Market Position and Valuation - With its leading positions in fast-growing markets and new opportunities, Amazon is on a trajectory to potentially become one of the most valuable companies globally [15] - The stock's forward PE ratio is around 29.5, which, while higher than its competitors, is relatively low for Amazon compared to its historical PE ratio [16] - Projections suggest that by 2030, Amazon could surpass $100 billion in annual free cash flow, with a valuation of $5 trillion at a 2% free cash flow yield [17][18]

Group 1: Economic Outlook and AI Investment - The economy faces uncertainty, but investing in top AI companies remains promising due to productivity gains expected over the next decade [1] - Leading companies are likely to continue attracting investment, driving returns for investors [1] Group 2: Amazon's Position and Performance - Amazon's shares have decreased by 31% from recent highs, with potential consumer demand impacts due to tariffs [3] - In the previous year, Amazon's revenue grew by 11% to $638 billion, with net income nearly doubling to $59 billion [4] - AI is enhancing Amazon's operations by optimizing inventory and delivery routes, leading to cost reductions and profit growth [4] - The company is advancing same-day delivery and exploring drone deliveries, which could increase purchase frequency and cash flow [5] - Despite recession fears, Amazon's stock is considered attractively valued, with expected earnings growth of 20% annually [6] Group 3: Meta Platforms' Market Position - Meta Platforms has seen a 15% decline in share price this year, influenced by recession fears affecting advertising companies [7] - The digital advertising market, where Meta operates, is valued at $700 billion, and the company has a significant user base of over 3.3 billion daily users [8] - Meta's revenue and earnings grew by 21% and 60%, respectively, last year, aided by the launch of Meta AI [9] - The company utilizes AI for optimal ad placement, enhancing user engagement and advertiser ROI through its Andromeda machine learning system [10] - With a net income of $62 billion last year, Meta is positioned as a strong long-term investment, with expected earnings growth of 14% annually [11]

Core Viewpoint - A securities class action lawsuit has been filed against AppLovin Corporation, alleging misleading information regarding its financial growth and the launch of its AXON 2.0 digital ad platform [1][3]. Group 1: Lawsuit Details - The lawsuit covers purchasers of AppLovin securities from May 10, 2023, to March 26, 2025 [1]. - Investors have until May 5, 2025, to seek appointment as lead plaintiff [2]. - Allegations include misleading investors about financial stability and growth, particularly concerning the use of AI technologies [3]. Group 2: Emerging Truths - Reports from analysts Fuzzy Panda and Culper Research on February 26, 2025, accused AppLovin of manipulating advertising data and inflating ad metrics [4]. - Following these reports, AppLovin's stock price dropped from $377.06 to $331.00, a decline of $46.06 or 12% [5]. Group 3: Additional Allegations - On March 26, 2025, Muddy Waters Research published a report alleging that AppLovin violated terms of service of major platforms, threatening its revenue sustainability [6]. - The stock fell further by $65.92 or 20%, closing at $261.70 on March 27, 2025 [7].

NEW YORK, April 22, 2025 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors in AppLovin Corporation ("AppLovin" or the "Company") (NASDAQ: APP) of a class action securities lawsuit.CLASS DEFINITION: The lawsuit seeks to recover losses on behalf of AppLovin investors who were adversely affected by alleged securities fraud between May 10, 2023 and February 25, 2025. Follow the link below to get more information and be contacted by a member of our team:https://zlk.com/pslra-1/applovin-corporation-lawsuit ...

Core Viewpoint - Amazon's stock is currently experiencing a significant decline, presenting a potential buying opportunity for investors as it trades at one of its cheapest valuations in years [1][2]. Valuation - Amazon's trailing price-to-earnings (P/E) ratio is 31, with a forward P/E of 27, marking a substantial decrease from its historical averages [2]. - Over the past decade, Amazon's average trailing P/E has been 137, with a three-year average of nearly 84, indicating that the current valuation is exceptionally low [3]. Investment Strategy - Amazon has a history of thriving after periods of heavy investment, which has transformed it into a leading e-commerce and logistics company [6][7]. - The company is currently investing heavily in artificial intelligence (AI) and data center infrastructure, planning to allocate $100 billion by 2025 to meet rising demand for AI workloads [9][10]. Business Performance - Amazon's North American and International segments saw a 74% increase in operating income last quarter, driven by strong operating leverage and AI integration [11]. - The advertising services revenue grew by 18% to $17.3 billion, positioning Amazon as the third-largest digital advertiser globally [13]. Cloud Computing - Amazon Web Services (AWS) remains the most profitable and fastest-growing segment, with a 19% revenue increase last quarter, benefiting from AI workload demands [14][15]. - The development of custom AI chips through Annapurna Labs provides Amazon with a competitive edge in performance and cost efficiency [15].

Market Overview - Recent stock market volatility presents opportunities for long-term investors to acquire quality businesses at discounted prices [2][3] - Major indices like the Dow Jones, S&P 500, and Nasdaq Composite have experienced significant fluctuations, with the Nasdaq entering its first bear market since 2022 [3] Sirius XM Holdings - Sirius XM is a unique satellite-radio operator with a legal monopoly, allowing it to maintain pricing power and stay ahead of inflation [5][6] - The company generates 76% of its net sales from subscriptions, providing stability during economic downturns compared to ad-driven competitors [6] - Sirius XM's forward P/E ratio is below 7, and it offers a dividend yield of 5.3%, indicating potential for substantial stock gains by 2035 [7] Intuitive Surgical - Intuitive Surgical holds a dominant market share in robotic-assisted surgical systems, with over 9,900 systems installed globally [9] - The company is shifting towards higher-margin revenue segments, such as instruments and servicing, which will enhance earnings growth [10] - Despite not being cheap, Intuitive Surgical is expected to maintain a steady earnings growth rate in the mid-teens [11] Airbnb - Airbnb is still in the early stages of expanding its platform, with over 5 million hosts, indicating potential for sustained double-digit sales growth [13] - The company is diversifying into experiences, which could capture a larger share of the $11 trillion global travel market [14] - Airbnb shares are currently trading at a forward P/E of nearly 23, presenting a favorable investment opportunity [15] The Trade Desk - The Trade Desk operates in the rapidly growing digital advertising sector, focusing on connected TV and video, with annual sales growth around 20% [17] - The adoption of Unified ID 2.0 technology positions The Trade Desk as a key player in the evolving digital advertising landscape [18] - The stock is trading at a forward P/E of over 22, significantly lower than its historical average, suggesting potential for growth [19] Visa - Visa dominates the payment processing market, accounting for approximately $6.45 trillion in credit card network purchase volume in the U.S., representing a 61% market share [21] - The company is expected to sustain double-digit growth through international expansion, particularly in underbanked emerging markets [22] - Visa shares are currently available at a 7% discount to their average forward earnings multiple since 2019, making it an attractive investment [23]