Core Insights - Snowflake (SNOW) shares have increased by 11.7% since the release of its first-quarter fiscal 2026 results, driven by strong platform adoption and a net revenue retention rate of 124% as of April 30, 2025 [1] - The company has seen a year-to-date share price increase of 29.5%, outperforming the Zacks Computer and Technology sector, which decreased by 3.8%, and the Zacks Internet Software industry, which increased by 4.3% [2] - Snowflake's customer base has grown significantly, with 11,578 customers as of April 30, 2025, up from 9,741 customers a year earlier, and a net addition of 451 customers in the first quarter of fiscal 2026, representing a 19% year-over-year increase [2] Financial Performance - For the second quarter of fiscal 2026, Snowflake expects product revenues to be between $1.03 billion and $1.04 billion, indicating a year-over-year growth of 25% [15] - The Zacks Consensus Estimate for second-quarter fiscal 2026 revenues is currently at $1.08 billion, reflecting a 24.60% year-over-year growth [16] - For fiscal 2026, Snowflake anticipates product revenues to reach $4.32 billion, a 25% increase from fiscal 2025 [15] Competitive Landscape - Snowflake's strong partner ecosystem, including major companies like Microsoft, Amazon, and NVIDIA, has been a key growth driver [7] - The company faces intense competition from major cloud providers such as AWS, Azure, and Google Cloud, as well as rivals like Databricks [18][19] - Rising expenses and GPU-related costs due to aggressive investments in AI initiatives are impacting profitability [18][19] Product and Innovation - Snowflake's expanding portfolio includes products like Apache Iceberg, Hybrid tables, and Cortex AI, which are attracting new clients [12] - The integration of OpenAI's models into Snowflake Cortex AI through a partnership with Microsoft enhances enterprise AI capabilities [8] - More than 5,200 customers are utilizing Snowflake's AI and machine learning technology weekly, indicating strong engagement [14]

Core Viewpoint - Sea Limited's shares have significantly outperformed the market, driven by strong first-quarter results and growth across all major segments [1][2]. Financial Performance - Sea Limited reported first-quarter 2025 revenues of $4.8 billion, a 30% year-over-year increase, with a net income of $410.8 million, marking a recovery from a loss in the same period last year [2]. - The Zacks Consensus Estimate for second-quarter 2025 revenues is $5.08 billion, indicating a 29.87% year-over-year increase, while earnings are estimated at 96 cents per share, reflecting a 108.7% increase from the previous year [7]. Segment Analysis - The e-commerce platform Shopee generated $3.5 billion in revenues, a 28.3% year-over-year increase, with adjusted EBITDA rising to $264.4 million from a prior loss [3]. - The digital financial services division, Monee, reported revenues of $787.1 million, up 57.6% year-over-year, driven by a 76.5% increase in loans outstanding to $5.8 billion [4]. - Garena, the digital entertainment segment, saw bookings of $775.4 million, a 51.4% year-over-year increase, with revenue growing 8.2% to $495.6 million [5]. Competitive Landscape - The launch of TikTok Shop in Brazil poses a significant competitive threat to Shopee, offering integrated shopping experiences and aggressive incentives [9]. - Shopee Live is facing challenges in Brazil due to limited awareness and a lack of local content creators, which may require investment to build the ecosystem [10]. Future Outlook - For 2025, the Zacks Consensus Estimate for revenues is $22.28 billion, suggesting a 31.53% year-over-year growth, with earnings estimated at $3.94 per share, indicating a 134.52% jump from 2024 [8].

Core Viewpoint - Snowflake is expected to report strong fiscal Q1 2026 results, with projected revenues of $1 billion and earnings of 22 cents per share, indicating significant year-over-year growth [1][2]. Financial Performance - The Zacks Consensus Estimate for Snowflake's Q1 fiscal 2026 revenue is $1 billion, reflecting a year-over-year growth of 21.13% [1]. - The earnings consensus is 22 cents per share, unchanged over the past 30 days, indicating a 57.14% year-over-year growth [1]. - Snowflake's product revenues for Q1 fiscal 2026 are expected to be in the range of $955-$960 million, suggesting a year-over-year growth of 21-22% [5]. Customer Growth and Retention - As of January 31, 2025, Snowflake had 11,159 customers, up from 9,384 a year earlier, with 745 being part of the Forbes Global 2000 [5]. - The net revenue retention rate stood at 126% as of January 31, 2025, indicating strong customer loyalty and expansion [4]. Product and Technology Advancements - Snowflake's investments in AI and machine learning, including the introduction of Cortex AI, have driven customer engagement, with over 4,000 customers using these technologies weekly [6]. - The company has enhanced its AI Data Cloud by integrating core capabilities with Apache Iceberg tables, improving query performance and data sharing [13]. Market Performance - Snowflake shares have increased by 18.5% year-to-date, outperforming the Zacks Computer and Technology sector, which has decreased by 1.4% [7]. - The stock is currently trading at a forward Price/Sales ratio of 12.81X, significantly higher than the sector average of 6.18X, indicating potential overvaluation [10][11]. Strategic Partnerships - Snowflake's partnerships with major companies like Microsoft, Amazon, and NVIDIA are expected to drive growth through enhanced product integrations and collaborative sales efforts [15][16][18]. - The expanded partnership with Microsoft aims to integrate OpenAI's models into Snowflake's offerings, enhancing productivity through AI-driven insights [16]. Challenges and Considerations - The company anticipates a tougher year-over-year revenue comparison due to the impact of the leap year, which may affect top-line growth [19]. - Non-GAAP operating margins for Q1 fiscal 2026 are expected to be impacted by approximately $15 million in expenses related to the annual sales kickoff event [20].

Group 1 - Alkami Technology, Inc. (ALKT) is experiencing significant activity in the options market, particularly with the Jun 20, 2025 $35.00 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts have mixed views on Alkami Technology, with the Zacks Consensus Estimate for the current quarter decreasing from nine cents per share to eight cents due to one upward and one downward revision in estimates [3] Group 2 - The high implied volatility surrounding Alkami Technology may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to benefit from time decay [4]

Core Insights - D-Wave Quantum Inc. has experienced a significant stock increase of 59.6% in May, outperforming the Internet Software industry's 16.2% and the S&P 500's 5.7% gains [1][4] - The stock rally is attributed to strong Q1 2025 financial results and notable technological advancements, including a recent demonstration of quantum supremacy [2][5] Financial Performance - In Q1 2025, D-Wave's revenues surged by 509% year over year, primarily due to the sale of the Advantage2 system to the Julich Supercomputing Center [5] - GAAP gross profit increased by 736%, while non-GAAP gross profit rose by 644% [5] - The net loss decreased to 2 cents per share, down from 11 cents per share in Q1 2024, marking the lowest loss since the company's public debut [6] Technological Achievements - D-Wave achieved quantum supremacy by using its 1,200-qubit Advantage2 prototype to simulate complex magnetic materials in minutes, a task that would take traditional supercomputers nearly a million years [7] - This breakthrough highlights the practical applicability of D-Wave's quantum annealing systems, distinguishing the company in a field often dominated by theoretical claims [7] Market Position and Growth Potential - D-Wave is the only company with production-level quantum applications in real-world use, with major clients including Ford Otosan, NTT DOCOMO, and Japan Tobacco [11] - The global quantum computing market is projected to reach $125 billion by 2030, growing at a CAGR of 36.9%, indicating strong long-term potential for D-Wave [16] Technical Indicators - D-Wave's stock is trading above both the 50-day and 200-day moving averages, suggesting a bullish trend and positive market sentiment [13]

Core Viewpoint - Block is expected to report first-quarter 2025 results on April 30, with revenue estimates of $6.18 billion, reflecting a year-over-year growth of 3.81% and earnings per share (EPS) of 88 cents, indicating a 3.53% increase from the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate indicates that Block's earnings have beaten expectations in two of the last four quarters, with an average earnings surprise of 11.25% [2]. - Gross Payment Volume (GPV) for Block reached $61.95 billion in Q4 2024, marking a 7.8% year-over-year increase, driven by strong performance in the Square ecosystem [3]. - Gross profit is anticipated to grow 11% year-over-year to $2.32 billion, with adjusted operating income expected at $430 million and an adjusted operating margin of 19% [4]. Market Conditions - Block shares have declined 31% year-to-date, underperforming the Zacks Computer & Technology sector's decline of 11.1% and the Zacks Internet Software industry's fall of 6.2% [6]. - The company faces challenges from a difficult macroeconomic environment, including the risk of recession due to higher tariffs [6]. Competitive Position - Block's stock is currently trading at a Price/Cash Flow ratio of 21.84X, which is higher than the sector average of 18.75X and competitors like PayPal at 8.84X [10]. - The company is expanding its product offerings, including a new Square POS app that integrates various functionalities for different industries [14][15]. Strategic Initiatives - Cash App's partnership with Google Play enhances its payment options, and the Afterpay division has seen significant consumer engagement, with over $72 billion spent since its acquisition [16]. - Block's comprehensive commerce ecosystem supports sellers by combining software, hardware, and payment services, which is expected to sustain momentum [13]. Investment Outlook - Despite strong product offerings and a growing partner base, challenging macroeconomic conditions and sluggish consumer spending trends raise concerns [18]. - Block's shares are currently trading below their 50-day and 200-day moving averages, indicating a bearish trend [18].

Core Viewpoint - Meta Platforms (META) is expected to report strong first-quarter 2025 results, driven by robust advertising revenue growth and effective use of AI technologies [1][4][21] Revenue Expectations - META anticipates total revenues between $39.5 billion and $41.8 billion for Q1 2025, reflecting an 8-15% year-over-year growth or 11-18% growth at constant currency [1] - The Zacks Consensus Estimate for first-quarter revenues is $41.22 billion, indicating a 13.08% increase from the previous year [1][2] Earnings Projections - The consensus estimate for earnings per share stands at $5.21, down 2.3% over the past month, suggesting a 10.62% growth from the year-ago quarter [2] Advertising Revenue Growth - Strong advertising revenue growth is anticipated, with the Zacks Consensus Estimate for Q1 2025 advertising revenues at $40.44 billion, indicating a 13.5% year-over-year growth [4] - META's platforms, including WhatsApp, Instagram, Messenger, and Facebook, reach over three billion users daily, enhancing its position in the digital ad market [5] AI and Machine Learning Utilization - META is leveraging AI and machine learning to enhance user engagement and advertising effectiveness, with AI-driven feed recommendations being a key factor [6][15] - The deployment of deep neural networks has improved ad quality and recall rates significantly [18] Financial Performance and Valuation - The Family of Apps' operating income is estimated at $19.97 billion, reflecting a 13% year-over-year growth, while Reality Labs is expected to incur a loss of $4.70 billion, wider than the previous year's loss [7] - META shares have declined 6.6% year-to-date, outperforming the Zacks Computer & Technology sector's 11% decline but lagging behind the Internet Software Industry's 5.9% drop [8] Competitive Position - META is expected to capture a significant share of global ad spending, alongside Alphabet and Amazon, projected to absorb roughly 50% of the market by 2028 [5] - The company's focus on improving advertisers' return on ad spending through proprietary machine learning systems enhances its competitive edge [16]

Industry Overview - The Internet Software and Services sector is experiencing growth due to increased IT spending on hybrid operating environments and the high penetration of mobile devices, prompting businesses to invest in web-based infrastructure, applications, and security software [1][3] - The Internet Software industry is ranked in the top 37% of Zacks Industry Rank, indicating an expectation to outperform the market in the next three to six months [2] Growth Drivers - The industry is benefiting from the global digital transformation and the rapid adoption of Software as a Service (SaaS), which provides flexible and cost-effective application delivery [3] - There is a growing demand for web-based cybersecurity software due to the need to secure cloud platforms against cyber-attacks, leading to increased demand for performance management monitoring tools [5] Company Highlights Affirm Holdings Inc. (AFRM) - Affirm is projected to achieve revenues between $3.13 billion and $3.19 billion in fiscal 2025, driven by growing active merchant numbers and partnerships with companies like Apple Pay [11] - The expected revenue and earnings growth rates for Affirm are 36.9% and 96.4%, respectively, for the current year, with a short-term price target indicating a potential upside of 112.4% from the last closing price of $40.49 [12][13] Five9 Inc. (FIVN) - Five9 offers intelligent cloud software for contact centers, benefiting from the adoption of AI tools, with a focus on personalized AI agents [14][16] - The expected revenue and earnings growth rates for Five9 are 9.8% and 5.7%, respectively, with a short-term price target suggesting a maximum upside of 190.4% from the last closing price of $23.07 [17] Unity Software Inc. (U) - Unity provides a platform for creating interactive, real-time 3D content across various devices, catering to developers and content creators [18][19] - The expected revenue and earnings growth rates for Unity are -2% and 31%, respectively, with a short-term price target indicating a potential upside of 82% from the last closing price of $19.23 [20][21] Olo Inc. (OLO) - Olo operates an open SaaS platform for restaurants, facilitating digital ordering and payment solutions, enhancing guest experiences [22][23] - The expected revenue and earnings growth rates for Olo are 17.5% and 40.9%, respectively, with a short-term price target suggesting a maximum upside of 62.1% from the last closing price of $6.17 [25] StoneCo Ltd. (STNE) - StoneCo provides financial technology solutions for electronic commerce in Brazil, distributing through proprietary Stone Hubs [26] - The expected revenue and earnings growth rates for StoneCo are 4.1% and -6.7%, respectively, with a short-term price target indicating a potential upside of 90.8% from the last closing price of $11.53 [27][28]

Core Viewpoint - GitLab's share price has declined significantly due to increasing competition in the AI-driven code generation market, particularly from Microsoft's GitHub, alongside macroeconomic challenges and a shift towards agentic AI capabilities [1][2][3]. Company Performance - GitLab shares have lost 27.1% year to date, underperforming the broader Zacks Computer & Technology sector's 21% decline and the Zacks Internet Software industry's 18.3% drop [1]. Competitive Landscape - The competition in the AI-driven code generation space is intensifying, with GitHub's AI-powered coding assistant, GitHub Copilot, gaining traction and reinforcing Microsoft's dominance in the developer tools market [2]. - Persistent macroeconomic headwinds and the rapid shift towards agentic AI capabilities present growing challenges for GitLab [3]. Product Strengths - GitLab's robust DevSecOps platform, including GitLab Ultimate, GitLab Dedicated, and GitLab Duo, has driven customer adoption and retention, enhancing security, scalability, and AI-driven automation [4]. - GitLab Ultimate, the flagship product, accounted for 50% of the company's Annual Recurring Revenues as of the fourth quarter of fiscal 2025, highlighting its importance in revenue growth [6]. - The introduction of GitLab Duo, an AI-powered assistant, aims to improve software development workflows and developer productivity [7]. Innovation and Development - GitLab's Duo Workflow product, which focuses on AI-driven software development, entered private beta in the fourth quarter of 2024, leveraging Generative AI to enhance the software development lifecycle [8]. Strategic Partnerships - GitLab's partnerships with leading cloud providers, including Amazon Web Services and Zscaler, enhance the platform's scalability and deployment capabilities, strengthening its competitive position in the DevSecOps market [9]. - The integration of GitLab Duo with Amazon Q aims to improve AI-driven DevSecOps on AWS, enhancing security and efficiency [10]. Future Outlook - Despite challenges such as rising competition and cautious enterprise spending, GitLab's strong AI-driven DevSecOps platform, strategic partnerships, and growing enterprise adoption support long-term growth [11].