Core Viewpoint - The Communication Services ETF (XLC) has a significant concentration of 46% of its assets in just three stocks: Meta, Alphabet, and Netflix, which poses an unusual risk for sector ETF buyers [1] Group 1: ETF Composition and Strategy - XLC provides concentrated exposure to companies that dominate communication, content consumption, and online connectivity, primarily through its top three holdings [1] - The fund's strategy allows investors to gain direct exposure to the digital advertising duopoly and streaming entertainment without selecting individual stocks [1] Group 2: Financial Performance - XLC has returned 10.79% over the past year, which is lower than the broader market represented by SPY, indicating that legacy telecom holdings have negatively impacted performance [1] - Meta and Alphabet maintain profit margins above 30%, showcasing their strong market positions in digital advertising, while Netflix has shifted to a profit-generating model with 24% margins [1] Group 3: Risks and Trade-offs - The concentration of three companies controlling over 40% of the portfolio presents a risk; any regulatory challenges or market weaknesses affecting these companies could lead to underperformance [1] - XLC is not designed for diversification but rather as a sector bet, making it suitable for investors seeking concentrated exposure to digital advertising and streaming [1]

The tone of the earnings season has been better, which was expected after the second quarter, where most analysts predicted a recovery. According to "The 3QFY26 earnings season reaffirms our analysis that the aggregate earnings revision trajectory has become more palatable," the brokerage said. It pointed out that after a period of earnings cuts in early FY26, upgrades began in Q2 and were further supported in Q3. The MOFSL universe posted 16% year-on-year profit growth in the quarter, slightly ahead of it ...

Verizon, T-Mobile and AT&T logos beside a cell tower, symbolizing strong 2026 telecom gains. Key Points While telecom earnings cycles can feature clear winners and losers, this wasn't the case in Q4. The United States' Big Three telecom companies all impressed investors, for one reason or another. Still, Verizon delivered a standout performance, massively beating expectations on wireless customer additions. Interested in Verizon Communications Inc.? Here are five stocks we like better. For U.S. tel ...

Core Viewpoint - A coalition of 15 companies, led by Microsoft and Ericsson, has launched the "Trusted Tech Alliance" to promote digital trust and address concerns about data sovereignty amid increasing isolationist policies in the U.S. [1] Group 1: Alliance Formation - The alliance is the first coordinated effort by global companies to tackle issues related to data storage and digital sovereignty [1] - Discussions about forming the alliance began in mid-2022 between Microsoft and Ericsson [1] Group 2: Member Companies - The alliance includes notable companies such as Anthropic, Amazon Web Services, Alphabet's Google, Reliance Jio Platforms, Nokia, Cohere, NTT, and SAP [1] Group 3: Principles of the Alliance - The alliance is built around five principles: strong corporate governance, ethical conduct, secure technology development, adherence to global security standards, and support for an open digital environment [1] - Members will self-attest to these principles, which also include provisions for independent assessments [1] Group 4: Industry Context - The initiative responds to a growing trend of countries seeking to establish stronger technology borders and reduce dependence on foreign suppliers [1] - Microsoft President Brad Smith emphasized the need for a clear definition of trust in technology [1] - Ericsson CEO Börje Ekholm noted that no country can achieve full sovereignty alone, highlighting the interconnected nature of technology [1]

Group 1 - Venezuela is set to grant more oil drilling blocks to Chevron and Repsol, with the announcement expected as soon as this week [1] - The initiative follows U.S. President Donald Trump's statement that major U.S. companies would invest billions to rebuild Venezuela's oil sector [1] - Chevron and Repsol have not yet responded to requests for comments regarding the new drilling opportunities [1]

Core Insights - Verizon Communications Inc. has been recognized among the Dividend Champions, Contenders, and Challengers List, highlighting its strong dividend yield [1] - TD Cowen raised its price target for Verizon from $51 to $54, maintaining a Buy rating due to better-than-expected phone subscriber additions in Q4, despite some impact on EBITDA [2] - Verizon reported its strongest net customer additions since 2019 in Q4 2025, meeting its full-year guidance, which is a significant indicator of telecom growth [3] Financial Performance - Verizon's operating revenue for the full year increased by 2.5% to $138.2 billion, with a notable 12% rise in share price on the earnings release day [4] - The company generated $20.1 billion in free cash flow over the past year, up from $19.8 billion the previous year, providing a solid cushion for dividend payments of approximately $11.6 billion [5] Strategic Developments - Verizon completed its acquisition of Frontier Communications in January, which enhances its fiber footprint and supports long-term growth strategies [4] - The company operates as a holding entity providing a range of communication, technology, information, and streaming services to various customer segments [6]

Financial Data and Key Metrics Changes - RADCOM achieved a record revenue of $71.5 million for 2025, representing a 17.2% year-over-year growth, exceeding the guidance of 15%-18% [5][22] - GAAP earnings per share increased by over 65% year-over-year, reaching $1.09 per diluted share [5][22] - The company reported a cash and short-term deposit balance of $109.9 million, with no debt, marking the highest in its history [5][24] - Gross margin for the fourth quarter was 77.6%, the highest since 2018, while the full year gross margin was 76.8%, up from 75.2% in 2024 [20][22] Business Line Data and Key Metrics Changes - In Q4 2025, RADCOM's revenue was $18.9 million, up 16% year-over-year [20] - Operating income for Q4 reached $4.3 million, with an operating margin of 23%, the highest in eight years [20] - R&D expenses for Q4 were $4.9 million, reflecting a 16.2% year-over-year increase, indicating a focus on innovation [21] Market Data and Key Metrics Changes - A GSMA survey indicated that 71% of operators plan to implement Agentic AI in 2026, highlighting a significant market opportunity [8] - The demand for AI-driven solutions is reshaping network priorities, with operators increasingly integrating AI across network layers [9] Company Strategy and Development Direction - RADCOM aims to expand its tier-one customer base and is actively engaged with new prospects, expecting revenue growth of 8%-12% in 2026 [6][17] - The company is committed to product innovation and R&D investments, particularly in 5G service assurance and Agentic AI capabilities [7][17] - Strategic partnerships with NVIDIA and ServiceNow are being deepened to enhance product offerings and market presence [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to execute its growth strategy, supported by a strong balance sheet and operational efficiency [7][18] - The company anticipates another year of double-digit revenue growth in 2026, driven by a robust pipeline of opportunities [17][18] Other Important Information - RADCOM was recognized in the Fast Mode 100 for 2025 and received multiple awards for innovation, reinforcing its competitive differentiation [15] - A governance update was provided, with Rami Schwartz appointed as chairman of the board effective February 2026 [15][16] Q&A Session Summary Question: How should RADCOM think about capital allocation in 2026, especially regarding M&A? - Management indicated that M&A remains a top priority and is being accelerated [25] Question: Any changes in the guidance philosophy and assumptions for the 2026 guidance? - Management noted that they are in the second half of their sales cycle, leaving guidance at 8%-12% with expectations to close in the first half of the year [26] Question: What are the key drivers for expanding business with existing customers like AT&T? - Management highlighted that Agentic AI is driving many opportunities, with unique datasets helping customers improve operational efficiencies [27] Question: How critical is Agentic AI for breaking into new accounts? - Management stated that both analytics capabilities and Agentic AI are critical for driving opportunities and expanding within existing customers [28] Question: What architecture is being used for data collection? - Management confirmed the use of both NVIDIA-based standard servers and cloud-native solutions, asserting their product's efficiency compared to competitors [28] Question: Are there any further questions? - No further questions were raised, concluding the call [29]

Group 1: Market Overview - The Straits Times Index is at record highs, leading to mixed emotions among investors, including anxiety about potential crashes and fear of missing out on further gains [1] - High stock prices often reflect strong underlying business fundamentals, driven by sustained earnings growth, improved sentiment, or structural tailwinds [2] Group 2: Company Analysis - OCBC - Overseas-Chinese Banking Corporation Limited (OCBC) shares are trading above S$21, driven by better-than-expected earnings for the quarter ending September 30, 2025, marking five-quarter highs [3] - The earnings rebound is supported by strong contributions from its insurance arm, Great Eastern, and a robust wealth management segment [3][4] - OCBC maintains financial strength with ample capital buffers and low loan delinquency rates [4] Group 3: Company Analysis - Singtel - Singapore Telecommunications Limited (Singtel) shares are also at record highs, benefiting from strong earnings and successful execution of its digitalisation strategy [5] - Singtel's forward price-to-earnings (P/E) ratio is approximately 22 times, representing a 20% premium over its five-year historical average [5][6] - The positive investor sentiment towards Singtel's data centres and digitalisation initiatives has contributed to its elevated valuation [6] Group 4: Company Analysis - Seatrium - Seatrium Limited's share price has surged since mid-2024, reflecting a recovery in the offshore marine industry [8] - The company's operating leverage has improved significantly, with gross margin doubling and net margin tripling in the first half of 2025 [8] - Seatrium's operations are sensitive to global economic conditions, and while profitability has increased, it may reverse if the economy weakens [9] Group 5: Investment Strategy - Investors should assess whether the business is performing well and growing earnings before making buy or sell decisions at high prices [10] - Valuations should be compared to long-term fundamentals to determine if they are reasonable [10] - Consideration of portfolio concentration is important; if a position has become significant, partial selling may be prudent to mitigate risk [10][11]

Group 1 - SoftBank Group CEO Masayoshi Son emphasizes that access to artificial superintelligence should be regarded as a fundamental human right, comparable to electricity and motorization [1] - Son warns that countries lacking access to superintelligence or superrobotics in 30 years will be significantly disadvantaged [1] - He also highlights the risk of increasing economic disparities between nations if equal access to technology is not ensured [1] Group 2 - SoftBank Corp, the telecom arm of SoftBank Group, raised its full-year profit outlook, resulting in a share price surge of over 10% during the Tokyo trading session [3] - The positive sentiment was further fueled by a 6% increase in shares on the previous day, following the election victory of Japanese Prime Minister Sanae Takaichi [3] - For the first nine months of fiscal 2025, SoftBank's revenue increased by 8% year over year to 5.2 trillion yen ($33 billion), with operating income also rising 8% to 884 billion yen ($5.69 billion) [4] - The telecom unit has raised its full-year revenue forecast to 6.95 trillion yen ($45 billion) from 6.7 trillion yen ($43 billion) due to strong performance [4]

Financial Performance - Operating revenue increased by 6.9% year-on-year, reaching KRW 28,244.2 billion [22] - Operating profit surged by 205% year-on-year to KRW 2,469.1 billion, driven by core business performance and one-off gains from real estate projects [22] - Net income rose by 340.4% year-on-year to KRW 1,836.8 billion, with EBITDA increasing by 35.5% to KRW 6,349.3 billion [24][22] - Operating expenses remained flat year-on-year at KRW 25,775.1 billion, attributed to lower labor costs and efficient spending [26] Business Line Performance - Wireless revenue grew by 2.8% year-on-year to KRW 7,155.4 billion, supported by subscriber expansion in 5G, which reached a penetration rate of 81.8% [32] - Broadband revenue increased by 1.9% year-on-year to KRW 2,533.5 billion, driven by growth in giga subscribers and value-added services [34] - B2B service revenue rose by 1.3% year-on-year, with AI and IT business growing by 3.1% [39] - KT Cloud revenue saw a significant increase of 27.4% year-on-year, reaching KRW 997.5 billion, due to rising data center usage and AI cloud demand [41] Market Data - The company reported a debt-to-equity ratio of 120.7% at the end of 2025, with a net debt-to-equity ratio decreasing by 0.4 percentage points to 37.4% [28] Company Strategy and Industry Competition - The company is focusing on enhancing its fundamentals and rebuilding customer trust following a data breach incident, with a commitment to invest around KRW 1 trillion in security over five years [16][14] - The new CEO, expected to take office in 2026, is anticipated to maintain the company's growth strategy and shareholder return policy [66][62] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving better performance in 2026 compared to 2025, despite the financial impact of the customer compensation package related to the data breach [59][55] - The company aims to improve operational efficiency in the wireless business and expects continued growth in the B2B sector, particularly in AI and IT [80][82] Other Important Information - The company announced a 20% increase in annual dividends per share from KRW 2,000 in 2024 to KRW 2,400 in 2025, alongside a KRW 250 billion share buyback plan [6][18] - The appointment of a new CEO was confirmed, who is known for expertise in B2B and future technologies [9] Q&A Session Summary Question: What is the financial impact of the customer compensation package regarding the data breach incident? - The estimated benefit for customers is around KRW 450 billion, but not all will be booked as costs, depending on customer usage [55] Question: Will the new CEO maintain the previous shareholder return stance? - The dividend per share has been increased by 20%, and the new CEO and Board of Directors will finalize the shareholder return plan for 2026 [62][64] Question: What is the outlook for the wireless business following the data breach? - Approximately 230,000 subscribers left during the cancellation fee waiver period, but the overall impact was mitigated by previous net additions [77] Question: Why is B2B growth slower compared to peers? - When including KT Cloud revenue, the overall B2B growth is 6%, which is not considered low given the market size [84]