Core Viewpoint - Cloudflare Inc. (NYSE:NET) achieved a new all-time high following strong Q3 earnings, leading to an optimistic growth outlook for the full year [1][3]. Financial Performance - Cloudflare narrowed its net loss by 91% to $1.29 million from $15.3 million year-on-year, while revenues increased by 31% to $562 million from $430 million [3]. - For the full year 2025, revenues are now projected between $2.142 billion and $2.143 billion, an increase from the previous estimate of $2.113 billion to $2.115 billion [4]. - Earnings per share for the full year are expected to be $0.91, with operational income projected at $297 million to $298 million, up from the prior outlook of $284 million to $286 million [4]. Q4 Expectations - For Q4, Cloudflare anticipates revenues between $588.5 million and $589.5 million, with operational income targeted at $83 million to $84 million [5]. Leadership Change - CJ Desai, the head of product and engineering at Cloudflare, will resign on November 7 to become the CEO of another publicly listed company [5].

CNBC’s MacKenzie Sigalos reports on Amazon’s blowout quarter and CEO Andy Jassy’s push to make AWS the backbone of the AI economy. ...

Core Insights - Amazon's AWS reported Q3 revenue of $33 billion, marking an increase of over 20%, the first such jump in three years, driven by strong demand from AI customers [2][3] - CEO Andy Jasse expressed confidence in the continuation of this momentum, which contributed to a significant rise in Amazon's stock price [2] - The establishment of a hyperscaler campus in Indiana for AI partner Anthropic is a key development, showcasing Amazon's commitment to meeting the growing compute demands of AI [4][6] Company Developments - Amazon is developing in-house AI chips, known as tranium, which are approximately 30-40% cheaper than industry standards, providing a competitive edge against Nvidia [6][7] - The hyperscaler project in Indiana is a significant investment, transforming agricultural land into a data center to support AI operations [4][5] - Amazon's strategy of integrating chip manufacturing into its operations positions it alongside Alphabet as a leader in the hyperscaler market [8]

Core Insights - The artificial intelligence (AI) infrastructure buildout has transitioned from a theoretical concept to a tangible reality, with major tech companies collectively spending $100 billion per quarter on data centers, indicating a significant shift in capital allocation within the tech sector [2][3]. Company Summaries - Microsoft plans to nearly double its data center footprint over the next two years, while Alphabet has raised its 2025 capital expenditure guidance to between $91 billion and $93 billion. Meta has also increased its guidance to a range of $70 billion to $72 billion, with expectations of even larger spending in 2026 [3][4]. - Nvidia has reached a market capitalization of over $5 trillion and has visibility into more than $500 billion in revenue from its Blackwell and Rubin GPU orders through 2026, indicating strong demand for AI accelerators [5][6]. - Amazon Web Services reported a 20% growth in Q3, marking its fastest growth rate since 2022, as the demand for AI workloads continues to rise [7].

Core Viewpoint - Microsoft is a global leader in software development and support services, focusing on enhancing productivity and business operations across various sectors [2][6]. Company Segments - Microsoft operates through three primary segments: - Productivity and Business Processes, accounting for about 50% of sales, includes products like Microsoft Office and Dynamics 365 [3]. - Intelligent Cloud, making up around 41% of sales, is driven by Azure and includes GitHub and server products [4]. - Personal Computing, which covers Windows operating systems, Surface devices, and Xbox gaming services [4]. Competitive Landscape - Microsoft faces competition from major technology companies such as Amazon (AWS), Google (Google Workspace), Apple, and Oracle in various sectors [5]. Unique Value Proposition - Microsoft holds a competitive advantage through its diversified product portfolio and the integration of artificial intelligence across its ecosystem, particularly in Azure and productivity software [6][11]. Recent Financial Performance - In Q1, Microsoft reported adjusted earnings of $4.13 per share, with revenues growing 18% year-over-year to $77.67 billion, surpassing estimates [7][8]. - The Intelligent Cloud division generated $30.9 billion, with Azure revenue growing 40% year-over-year [8]. Future Outlook - The fiscal second quarter sales forecast is between $79.5 billion and $80.6 billion, slightly higher than previous expectations [9]. - Azure revenue is expected to grow 37% year-over-year next quarter, which is a decrease from the current quarter's growth rate [10]. Investment and Growth Strategy - Microsoft is strategically positioned to leverage the AI boom, supported by a $368 billion backlog for Azure and a growing user base for Microsoft 365 Copilot [11][12]. - The company has a net income margin of over 36%, significantly higher than the sector average, indicating strong profitability [14]. Technical Analysis - Microsoft's stock has shown a one-year price performance increase of approximately 25%, outperforming the S&P 500 [17]. - The stock is currently rangebound, with resistance at $555 and support around $495 [18]. Long-term Positioning - Microsoft continues to invest in AI infrastructure and partnerships, maintaining a competitive edge in enterprise technology [19][20].

Group 1 - The central theme of the week was artificial intelligence, with significant interest from investors despite the Federal Reserve cutting interest rates and numerous earnings reports from US companies [1][2] - Major US technology companies are investing billions into AI infrastructure, which has positively influenced investor sentiment and contributed to the rise of the S&P 500 Index and Nasdaq 100, nearing record highs [2] - There is a noticeable shift in investor sentiment, with a focus on immediate returns from AI investments, leading to negative reactions for companies like Meta Platforms and Microsoft when their spending did not yield expected results [3][4] Group 2 - Investors are increasingly prioritizing revenue growth over mere AI spending, as demonstrated by the contrasting market reactions to earnings reports from major tech firms [5] - Alphabet reported that its third-quarter revenue from generative AI products more than tripled year-over-year, with Google Cloud sales increasing by approximately 34% to $15.2 billion, surpassing analyst expectations [6] - Amazon also reassured investors with strong cloud growth and outlined expectations that its AI-related initiatives, such as a shopping chatbot, could generate an additional $10 billion in annual sales [6]

Core Viewpoint - CoreWeave, an AI infrastructure provider, has seen its shares increase by over 231% in 2025, indicating strong growth potential in the coming years [1] Industry Overview - Global demand for data center capacity is projected to increase from 82 gigawatts in 2025 to 219 gigawatts by 2030, a rise of nearly 2.7 times [2] - The compute capacity required for AI workloads is expected to grow from 44 gigawatts in 2025 to 156 gigawatts by 2030, nearly 3.5 times [2] Company Growth Strategy - CoreWeave is focused on expanding its data center capacity, ending Q2 2025 with 470 megawatts and planning to increase to 900 megawatts by the end of 2025 [4] - The company has expanded its contracted data center capacity from 600 megawatts to 2.2 gigawatts [4] - CoreWeave's revenue backlog reached $30.1 billion at the end of Q2 2025, up from $4 billion in the same quarter the previous year [6] Strategic Partnerships - CoreWeave has secured significant partnerships, including a $22.4 billion deal with OpenAI and a $14.2 billion agreement with Meta Platforms [8][9] - Microsoft accounted for 71% of CoreWeave's revenues in Q2 2025, highlighting the importance of this partnership [7] Vertical Integration and Acquisitions - The proposed $9 billion acquisition of Core Scientific aims to add 1.3 gigawatts of data center capacity to CoreWeave's portfolio [10] - The acquisition is expected to eliminate $10 billion in lease liabilities over the next 12 years [11] - CoreWeave has strengthened its software offerings by acquiring Weights & Biases, adding 1,600 new clients [12] Software Innovations - CoreWeave launched Serverless RL, a managed reinforcement learning service, which allows organizations to enhance AI agents without heavy investments [13] - The company is also improving its platform with tools like Mission Control and SUNK, enhancing user experience and customer loyalty [14] Financial Valuation - CoreWeave is currently trading at 18.7 times sales, which is considered high for an unprofitable company, but justified by its market opportunity [15] - Revenue projections suggest growth from $5.27 billion in fiscal 2025 to $18.09 billion by fiscal 2027, with some analysts estimating revenues could reach $25 billion by 2028 [16] - A conservative valuation adjustment could see market capitalization rise to between $235.2 billion and $271.3 billion by the end of fiscal 2027 [17]

Core Insights - Wall Street experienced a record-setting rally, with Nvidia Corp. achieving a market cap of $5 trillion, marking a historic milestone [2] - The "Magnificent Seven" tech giants, including Apple, Amazon, Alphabet, Microsoft, Meta, and Tesla, contributed to significant market gains [2] - Federal Reserve Chair Jerome Powell expressed caution regarding future rate cuts, impacting market sentiment [3] Company Highlights - **MercadoLibre Inc.** reported Q3 revenue of $7.41 billion, a 39% year-over-year increase, marking its 27th consecutive quarter of over 30% revenue growth, driven by strong performance in Brazil, Mexico, and Argentina [5] - **Microsoft Corp.** shares rose following a new agreement with OpenAI, making Microsoft a 27% stakeholder in OpenAI's public-benefit corporation, valued at approximately $135 billion, and securing a commitment for $250 billion in Azure cloud services [6] - **Joby Aviation Inc.** saw its stock surge after being named the exclusive aviation launch partner for Nvidia's IGX Thor AI platform, which is expected to enhance Joby's autonomous flight technology [7] Bearish Developments - **Meta Platforms Inc.** reported Q3 revenue of $51.24 billion, up 26% year-over-year, but missed EPS expectations due to a significant tax charge, leading to a stock sell-off [8] - **Chipotle Mexican Grill Inc.** experienced a decline in stock price after Q3 revenue fell short of estimates at approximately $3.00 billion, with only a 0.3% increase in comparable restaurant sales [9] - **Carvana Co.** posted Q3 revenue of $5.65 billion, a 55% year-over-year increase, but missed EPS expectations, causing concerns over margin pressure and stock decline [10]

Core Viewpoint - Nebius Group has experienced significant stock price appreciation, with a 347% increase in 2025 and over 500% since its return to Nasdaq in October 2024, indicating strong market momentum and investor interest in the company [1][2]. Company Overview - Nebius Group, formerly known as Yandex N.V., has transitioned from a Russian internet company to an AI cloud computing platform, successfully restructuring after facing sanctions and trading suspension [4][5]. - The company has a market capitalization of $33 billion and is currently trading at approximately $130.82, with a 52-week price range of $17.39 to $141.10 [7]. Financial Performance - Nebius reported a revenue of $105.1 million in the second quarter, reflecting a remarkable 625% year-over-year increase, although it has not yet achieved profitability [8]. - The company has raised substantial capital, including $1.15 billion from a public offering and $3.16 billion from senior convertible notes, to finance its AI data center projects [7]. Strategic Partnerships - Nebius has secured a five-year, $19.4 billion agreement with Microsoft to provide dedicated GPU capacity for Microsoft Azure, which significantly boosted its stock price by 200% following the announcement [8]. Industry Position - The company is well-positioned in the rapidly growing sectors of artificial intelligence and cloud computing, with plans to expand its data center capacity to 1 gigawatt by next year [7][5].

Core Insights - Amazon experienced significant job cuts and faced concerns regarding its AI capabilities, but a strong earnings report led to a rebound in investor confidence, with shares reaching record highs [1][8]. Group 1: Job Cuts and AI Concerns - The recent layoffs of 14,000 employees raised questions about Amazon's growth and efficiency, with some analysts labeling the company as an "AI laggard" [2][3]. - Amazon's CEO Andy Jassy emphasized that the layoffs were a preemptive measure to make the company "leaner" and to streamline its culture [2][11]. Group 2: AWS Performance - Amazon Web Services (AWS) reported $33 billion in sales, marking a 20% increase, which is the fastest growth since 2022, alleviating some investor concerns [8]. - AWS has a backlog of $200 billion in contracts not yet recognized as revenue, indicating strong demand for its services [9]. Group 3: AI Developments - Amazon is making strides in AI, with its in-house AI chip, Trainium 2, becoming a "multi-billion dollar" business, and its AI shopping assistant, Rufus, projected to contribute over $10 billion in sales volume [9]. - Despite these advancements, skepticism remains regarding AWS's ability to compete with Microsoft and Google in the AI space [10][11].