Group 1 - Wedbush has adopted a more cautious stance on Nintendo's stock, indicating that forecasts for the Switch 2 may be overly optimistic [1] - The competitive landscape for gaming consoles is described as heated, suggesting increased pressure on Nintendo [1] - Concerns are raised regarding the alignment of market expectations with actual performance metrics for Nintendo [1]

Core Viewpoint - Electronic Arts Inc. has launched the Early Access of its new skateboarding game, skate., which is part of an award-winning franchise and is available on multiple platforms [1]. Group 1: Game Release Details - The game skate. is now available in Early Access on PlayStation 5, Xbox Series X|S, PlayStation 4, Xbox One, and PC through Steam, Epic Games Store, and EA App [1]. - skate. is a free-to-play game, allowing easy access for both new players and long-time fans [1]. - The game features full cross-platform capabilities with cross-progression support, enhancing the multiplayer experience [1].

Core Insights - Snail, Inc. is set to showcase its upcoming game Honeycomb: The World Beyond at the Tokyo Game Show 2025, with an official global launch scheduled for November 6, 2025 [1] - The game follows a successful presentation at Gamescom 2025, which attracted over 357,000 visitors, and aims to build awareness in the Asian market through the Tokyo Game Show [2] - Honeycomb: The World Beyond is a cozy survival sandbox game where players assume the role of a bioengineer on a dynamic planet, designed to appeal to a global audience [3] Company Strategy - Snail Games and Frozen Way Games are executing a coordinated global strategy to maximize market penetration and expand their international player base by leveraging major gaming events [4] - The strategy aims to enhance portfolio visibility and align with consumer demand in diverse global markets, moving beyond the ARK franchise [4] Event Details - The Tokyo Game Show 2025 will take place from September 25 to 28 at Makuhari Messe in Chiba, Japan, where attendees can experience Honeycomb: The World Beyond [5]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Internet Sector in North America - **Key Companies**: GOOGL, META, AMZN, DASH, CHWY, DUOL, U, RBLX - **Overall View**: The internet sector is viewed as attractive with a focus on GenAI catalysts and evolving debates impacting major players [1][2][3] Core Points and Arguments GenAI Catalysts - **Catalysts Identified**: Model advances, agentic offerings, capital expenditures (capex), and custom silicon are expected to drive performance for GOOGL, META, and AMZN [1] - **Capex Projections**: Total data center capex is expected to reach approximately $505 billion in 2026, up 24% from the previous year, and $586 billion in 2027 [5][6] Company Preferences - **Mega Caps Preference**: The order of preference for the next 12 months is AMZN, META, and GOOGL [2] - **Smids Preference**: Positive outlook on DASH, CHWY, DUOL, U, and RBLX [2] GOOGL Insights - **Search Revenue Growth**: Anticipated search revenue growth of approximately 12% in 2025 and 9% in 2026, driven by AI innovations [16] - **GCP Growth**: Google Cloud Platform (GCP) is expected to grow by 31% in 2026, with potential upside from TPUs and custom silicon [16] META Insights - **Revenue Growth**: Expected revenue growth of 23% in Q4 2025 and 18% in 2026, driven by core GPU-enabled improvements [25] - **Llama Model Launch**: Anticipated launch of the next Llama model in early 2026, which is crucial for META's competitive positioning [25] AMZN Insights - **AWS Growth**: AWS is projected to achieve over 20% growth in 2026, supported by increased data center square footage [37] - **Retail Margins**: North America retail margins are expected to improve, with potential EPS growth of $8-$9 in 2026/2027 [33][38] Shared Economy Insights - **Rideshare Growth**: UBER and LYFT are expected to grow US trips by 15% and 12% respectively in 2026, with UBER's scale providing a competitive advantage [43] - **Food Delivery**: DASH is projected to add over $300 million in annual adjusted EBITDA in 2026, driven by synergies from the ROO acquisition [46] Online Travel Agencies (OTAs) - **Room Night Growth**: Stable growth of 7% in room nights is expected for ABNB, BKNG, and EXPE in 2026, influenced by macro leisure travel demand [49] - **Agentic AI Risks**: The rise of agentic AI poses both risks and opportunities for OTAs, particularly in retaining market share at the top of the travel funnel [49] Additional Important Insights - **Capex as % of FCF**: GOOGL, META, and AMZN are expected to have capex as a percentage of free cash flow (FCF) reaching 57%, 73%, and 78% respectively in 2026 [12] - **Consumer Behavior Trends**: Surveys indicate that a significant portion of ChatGPT and Gemini users engage in commercial behavior, highlighting the competitive landscape for GOOGL and META [21][22] This summary encapsulates the key discussions and insights from the conference call, providing a comprehensive overview of the current state and future outlook of the internet sector and its major players.

Core Viewpoint - The article highlights three stocks with significant long-term upside potential, suggesting that they could double in value by 2030 due to favorable growth conditions in their respective industries [2]. Group 1: Take-Two Interactive - Take-Two Interactive is positioned in a resilient $190 billion video game industry, experiencing strong financial results and entering a major growth phase [4]. - The company is set to launch the sixth installment of the Grand Theft Auto series in May 2026, which is expected to drive substantial revenue growth [5]. - In fiscal 2026, Take-Two's first-quarter results exceeded expectations, with strong player interest in franchises like Grand Theft Auto and NBA 2K, and success in mobile game expansion [6]. - Recurrent consumer spending, which constitutes 83% of net bookings, grew 17% year-over-year, indicating strong momentum [7]. - Analysts project revenue to reach a record $9.2 billion in fiscal 2027, driven by the upcoming Grand Theft Auto VI sales, with earnings expected to grow at an annualized rate of 42% [8]. Group 2: On Holding - On Holding is outperforming larger activewear brands like Nike and Adidas, showing strong growth and resilience in a challenging market [9]. - The company has low brand penetration in key markets, presenting significant growth opportunities, with only 6% in major U.S. cities like New York and San Francisco [10]. - On Holding's growth strategy focuses on product innovation, brand awareness, geographic expansion, and operational excellence, supported by a robust direct-to-consumer segment [11]. - In the second quarter, sales increased by 38% year-over-year, with direct-to-consumer sales up 54% and wholesale up 29%, alongside the highest gross margin in the industry at 61.6% [12]. - Management aims for a compound annual growth rate (CAGR) of 26% through 2026, with potential revenue growth from $3.1 billion to $9.5 billion by 2030 [13]. Group 3: Lululemon Athletica - Lululemon has faced challenges this year, being the second-worst-performing stock on the S&P 500, down 57% year-to-date [14]. - The company is experiencing weak discretionary spending in the U.S. due to economic pressures and shifting fashion trends away from its core products [15]. - Lululemon has adjusted its full-year guidance and is redesigning its supply chain to adapt to new import tax regulations [16]. - Despite these challenges, the stock trades at a forward P/E of 13, suggesting potential for recovery and doubling by 2030 [16]. - The company is increasing the percentage of new styles in its collection and enhancing its responsiveness to consumer demand [17]. - Lululemon is witnessing strong growth in China, with a 25% revenue increase in Q2, and continues to expand its store presence [18]. - Given its current valuation, the stock has a reasonable chance to double in value over the next five years [19].

Core Insights - The sequel to "The Super Mario Bros. Movie" is officially titled "The Super Mario Galaxy Movie," set for release on April 3, 2026, by Universal Pictures and Illumination Entertainment [10][11] - The original film achieved a worldwide gross of $1.36 billion, making it the highest-grossing video game adaptation in cinema history [3][10] - The Super Mario Galaxy Movie will feature the complete voice cast from the first film, confirming the return of principal voice actors [2][10] Box Office Performance - The original Super Mario Bros. Movie ranks as the fifth highest-grossing animated film ever, following "Ne Zha 2," "Inside Out 2," "The Lion King," and "Frozen 2" [5][10] - The box office success of the original film laid the groundwork for the sequel's production [5][10] Film Production and Partnerships - Universal Pictures and Illumination Entertainment are continuing their partnership with Nintendo for the production of the Super Mario Galaxy Movie, building on the success of the first film [9][11] - Nintendo is expanding its film partnerships beyond the Super Mario franchise, collaborating with Sony Pictures for "The Legend of Zelda" movie, scheduled for release on March 26, 2027 [7][10] Source Material and Themes - The Super Mario Galaxy Movie draws inspiration from the acclaimed 2007 Wii title "Super Mario Galaxy," which featured Mario's adventures across various planets and introduced gravity-based gameplay mechanics [8][10] - The teaser trailer suggests a space-themed setting, aligning with the cosmic adventure elements of the original video game series [8][10]

Group 1 - Roundhill Video Games ETF (NERD) will transition from a passive index-based strategy to an actively-managed ETF effective after market close on September 30, 2025 [1][2] - The ETF will continue to focus on the video games industry, including publishers, developers, distributors of interactive gaming software, and related online gaming services and esports [2] - NERD will change its exchange listing from Nasdaq to Cboe BZX, with no expected impact on shareholder actions or trading of fund shares [2][3] Group 2 - Roundhill Investments, founded in 2018, is an SEC-registered investment advisor known for innovative exchange-traded funds, having launched over 100 ETFs [3] - The firm has surpassed $6 billion in assets under management (AUM), indicating significant growth and market presence [8]

Core Insights - Electronic Arts Inc. has launched EA SPORTS™ NHL® 26 globally on PlayStation®5 and Xbox Series X|S, enhancing player engagement and showcasing individual skills and stories [1] Product Launch - NHL 26 is released three weeks prior to the NHL® 2025-26 regular season, utilizing ICE-Q 2.0 technology and introducing a reimagined Be A Pro mode along with new HUT Seasons [1]

Core Viewpoint - The article discusses a tragic case involving a 15-year-old boy, Ethan Dallas, who died by suicide after being manipulated by an adult posing as a child on the online gaming platform Roblox. This incident has led to a wrongful death lawsuit against Roblox, highlighting the potential dangers of the platform for children and the need for improved safety measures [6][10][21]. Summary by Sections Incident Overview - Ethan Dallas, who had been playing Roblox since age 7, confided in his mother about feeling worthless and revealed his interactions with an adult, Timothy O'Connor, who posed as a child named Nate [2][3][4]. - After being coerced into sharing explicit photographs, Ethan experienced severe emotional distress, leading to his placement in a residential treatment center [4][17]. Legal Action - Becca Dallas, Ethan's mother, has filed a lawsuit against Roblox, claiming wrongful death and emphasizing the platform's lack of safety measures for children [6][12]. - The lawsuit is part of a growing trend, with over 20 similar lawsuits filed against Roblox this year, focusing on the platform's role in enabling sexual exploitation [10][11]. Platform Safety Concerns - Roblox is described as a virtual world with around 40 million users under the age of 13, making it a significant target for online predators [7][9]. - Despite Roblox implementing age verification measures, experts argue that these can be easily circumvented, raising concerns about the platform's ability to protect its young users [9][10]. Industry Response - The article notes that legal scrutiny of Roblox is increasing, with investigations and lawsuits from various state attorneys general regarding child safety issues [10][11]. - Roblox has stated its commitment to child safety and is working on developing new safety features while cooperating with law enforcement [12]. Broader Implications - The case underscores the need for stricter moderation and safety protocols on platforms frequented by children, as highlighted by safety experts [9][10]. - The lawsuit aims to establish a legal precedent that could hold Roblox and similar companies accountable for the safety of their users, particularly minors [11].

Group 1: Roblox Performance - Roblox is experiencing significant growth with player counts showing triple-digit year-over-year growth rates, despite August typically being a slow month for the gaming industry [1][2] - The platform is benefiting from several "megascale experiences" that consistently attract millions of players, including titles like "Grow a Garden," "Steal a Brainrot," and "99 Nights in the Forest" [2] - Roblox stock is rated as outperform with a price target of 130, and it rose nearly 2% to 135.18 in midday trades [2] Group 2: Electronic Arts Performance - Electronic Arts (EA) is receiving positive feedback for its upcoming game "Battlefield 6," which is set to release on October 10, and is anticipated to be a major title for the industry [3] - EA's "Madden NFL 26" has also garnered positive feedback since its release on August 14 [4] - EA stock ranks third out of 25 stocks in the Computer Software-Gaming industry group, with an IBD Composite Rating of 77 out of 99, while Roblox ranks fourth with a Composite Rating of 75 [5]