Core Viewpoint - The agency is focused on reversing a setback in the government's efforts to limit the influence of major tech companies [1] Group 1 - The agency's initiative is part of a broader campaign to address the growing power of the largest technology firms [1]

Core Viewpoint - The U.S. Federal Trade Commission (FTC) plans to appeal in order to revive its case against Meta Platforms, alleging that the company has created an illegal monopoly through its acquisitions of Instagram and WhatsApp [1] Group 1 - The FTC's appeal aims to challenge the previous dismissal of its antitrust case against Meta Platforms [1] - The case centers on accusations that Meta's acquisitions of Instagram and WhatsApp have strengthened its market dominance in social media [1] - The legal actions reflect ongoing scrutiny of large tech companies and their market practices [1]

Key Points This growth company expects to continue investing more in AI than the market was predicting. The company's CEO, however, arguably left an honest comment on the matter up to too much unfair bearish interpretation. The stock's subsequent near-term pullback has now become a long-term buying opportunity. 10 stocks we like better than Meta Platforms › Most investors understand that buying above-average growth stocks usually means paying above-average prices for them. This is particularly t ...

Economic Indicators - December pending home sales are expected to decline by -0.5% month-over-month [1] - Initial weekly unemployment claims are projected to increase by +12,000 to 210,000 [1] - Q3 GDP is anticipated to remain unchanged at +4.3% quarter-over-quarter annualized [1] - November personal spending is expected to rise by +0.5% month-over-month, while personal income is projected to increase by +0.4% month-over-month [1] - The November core PCE price index is expected to rise by +0.2% month-over-month and +2.8% year-over-year [1] - January S&P US manufacturing PMI is expected to increase by +0.2 to 52.0 [1] - The final University of Michigan January US consumer sentiment index is expected to remain unchanged at 54.0 [1] Stock Market Movements - US natural gas-producing stocks surged over +25% to a three-week high, with companies like Coterra Energy up more than +3% [2][15] - Gold and silver mining stocks are climbing as prices reach all-time highs, with Newmont Mining up more than +3% and Barrick Mining up more than +2% [2][14] - The S&P 500, Dow Jones Industrials, and Nasdaq 100 indexes fell to two-week lows, with declines of -1.23%, -1.07%, and -1.36% respectively [4] - The Magnificent Seven technology stocks are experiencing declines, with Nvidia and Tesla down more than -2% [12] - Cryptocurrency-exposed stocks are also down, with Bitcoin falling more than -2% [13] Earnings Reports - 88% of the 33 S&P 500 companies that have reported earnings so far have beaten expectations, with S&P earnings growth expected to climb by +8.4% in Q4 [5] - Excluding the Magnificent Seven, Q4 earnings are expected to increase by +4.6% [5] - 3M Co. is down more than -7% after forecasting 2026 adjusted EPS below consensus [16] - Fastenal reported Q4 net sales of $2.03 billion, below the consensus of $2.04 billion, leading to a decline of more than -4% [16] Bond Market - The 10-year T-note yield rose to a 4.75-month high of 4.31%, influenced by rising bond yields and concerns about an independent Fed [3][8] - Rising inflation expectations are bearish for T-notes, with the 10-year breakeven inflation rate climbing to a 3.25-month high of 2.342% [8] - European government bond yields are also increasing, with the 10-year German bund yield rising to a two-week high of 2.894% [10]

Core Thesis - Weibo Corporation is viewed as a peculiar investment case, blending stagnation with latent value, primarily due to its significant stake in INMYSHOW, which is undervalued on its books [2][4]. Financial Performance - As of January 13th, Weibo's share was trading at $10.99, with trailing and forward P/E ratios of 6.28 and 6.32 respectively [1]. - The stock has risen from $7.84 in summer 2024 to $10.14, and it pays an annual dividend of $0.82 [3]. - The business is trading around nine times after-tax operating earnings, indicating it is no longer exceptionally cheap on a cash flow basis [3]. Strategic Investments - Weibo holds a 26.57% stake in INMYSHOW, a Shanghai-listed entity valued at $10 billion, which is recorded on Weibo's books at just $300 million [4]. - This hidden value implies an intrinsic worth of approximately $16 per share, significantly above the current market price [4]. Investment Outlook - The juxtaposition of a stagnating operating business against a deeply undervalued strategic investment positions Weibo as a long-term asymmetric risk/reward opportunity [5]. - While short-term performance may disappoint due to ongoing operational challenges, the underlying net cash value provides a durable floor and potential for future revaluation if the stake in INMYSHOW is realized [5]. - Weibo represents a patient, value-oriented play, requiring investors to wait to capture the embedded upside [5].

Economic Indicators - December pending home sales are expected to decline by -0.5% month-over-month [1] - Initial weekly unemployment claims are projected to increase by +12,000 to 210,000 [1] - Q3 GDP is anticipated to remain unchanged at +4.3% quarter-over-quarter annualized [1] - November personal spending is expected to rise by +0.5% month-over-month, while personal income is expected to increase by +0.4% month-over-month [1] - The November core PCE price index is forecasted to rise by +0.2% month-over-month and +2.8% year-over-year [1] - January S&P US manufacturing PMI is expected to increase by +0.2 to 52.0 [1] - The final University of Michigan January US consumer sentiment index is expected to remain unchanged at 54.0 [1] Stock Market Performance - The S&P 500 Index is down -1.29%, the Dow Jones Industrials Index is down -1.22%, and the Nasdaq 100 Index is down -1.41% [5] - Overseas stock markets are also lower, with the Euro Stoxx 50 down -1.17%, China's Shanghai Composite down -0.01%, and Japan's Nikkei Stock 225 down -1.11% [8] Earnings Reports - Q4 earnings season has begun positively, with 88% of the 33 S&P 500 companies that have reported beating expectations [6] - S&P earnings growth is expected to increase by +8.4% in Q4, while excluding the Magnificent Seven technology stocks, growth is expected to be +4.6% [6] Commodity and Sector Movements - US natural gas-producing stocks are surging as natural gas prices have increased by more than +25% to a 3-week high [2][16] - Gold and silver mining stocks are climbing as gold and silver prices reach all-time highs, with companies like Hecla Mining and Coeur Mining up more than +4% [2][15] - The Magnificent Seven technology stocks are declining, with Nvidia down more than -3% and other major players like Amazon and Tesla down more than -2% [13] Bond Market - Rising bond yields are impacting stocks, with the 10-year T-note yield reaching a 4.75-month high of 4.31% [3] - The 10-year Japanese government bond yield has risen to a 27-year high of 2.359% due to fiscal concerns [3][9] - The 10-year T-note yield is up by +6.2 basis points to 4.285% [9] Company-Specific News - 3M Co. is down more than -5% after forecasting 2026 adjusted EPS below consensus [17] - RAPT Therapeutics is up more than +62% after GSK Plc agreed to acquire the company for approximately $2.2 billion [18] - Micron Technology is up more than +4% after a price target increase by Stifel [18] - Intel is up more than +2% following an upgrade by Seaport Global Securities [19] - Netflix is up more than +1% after reaching an agreement to buy Warner Bros. Discovery's studio and streaming business [20]

Market Overview - The US equity market ended Q4 2025 positively, with the S&P 500 increasing by 2.7%, reflecting strong upward momentum [1] - Investor optimism was bolstered by better-than-expected corporate earnings, the US Federal Reserve's easing stance on interest rates, and a resilient macroeconomic environment [1] - Clarity on trade policy also contributed to market support, although there was increasing divergence beneath the surface of the Index [1] Investment Trends - AI continues to be a significant market driver, though it faces scrutiny regarding funding, limitations, and potential returns on investment [1] - There are observable secular trends that present attractive investment opportunities, particularly in AI infrastructure, supported by rising business spending and tax incentives from the One Big Beautiful Bill [1] Fund Performance - Class A shares of the Alger Spectra Fund underperformed the Russell 3000 Growth Index in Q4 2025 [1] - The Information Technology and Utilities sectors contributed positively to the Fund's performance, while the Health Care and Communication Services sectors detracted from it [1] Meta Platforms, Inc. Analysis - Meta Platforms, Inc. (NASDAQ:META) was identified as a leading detractor to the Fund's performance, with a one-month return of -6.24% and a 52-week gain of 1.22% [2] - The company's market capitalization stands at $1.56 trillion [2] - Concerns arose regarding management's guidance for significantly higher operating expenses and capital expenditures (CapEx) related to AI infrastructure investments, which pressured forward earnings and free cash flow expectations [3] - Despite strong underlying results and continued advertising momentum, investors are worried about the scale and timing of AI-related CapEx, with 2026 CapEx expected to be "notably" higher than in 2025 [3]

Core Viewpoint - Trump Media and Technology Group Corp. is launching a digital token initiative for shareholders, with a record date set for February 2, 2026, allowing eligible shareholders to receive tokens and associated incentives [2][3]. Group 1: Digital Token Initiative - The digital token initiative will allow ultimate beneficial owners and registered holders of at least one whole share of DJT stock as of the record date to receive tokens [3]. - Trump Media will collaborate with Crypto.com to mint the digital tokens, display them on the blockchain, and manage the digital assets until distribution [4]. - Additional rewards for record-date shareholders will be available periodically throughout the year, potentially including benefits or discounts related to Trump Media products [5]. Group 2: Shareholder Eligibility and Process - Shareholders are encouraged to confirm their status as non-objecting beneficial owners (NOBO) to ensure timely information sharing regarding the token distribution [3]. - The tokens distributed will not represent an ownership interest in Trump Media and are not expected to be transferable or exchangeable for cash [6]. Group 3: Company Overview - Trump Media aims to counteract Big Tech's censorship by providing platforms for free expression, including Truth Social and Truth+, a family-friendly streaming service [10].

Core Insights - The Mar Vista U.S. Quality Premier Strategy reported a return of +1.80% net-of-fees in Q4 2025, underperforming the Russell 1000® Index (+2.41%) and the S&P 500® Index (+2.65%) [1] - US equities showed strong momentum in 2025, marking the third consecutive year of double-digit gains, with a rapid recovery from a bear market dip in April [1] - Market leadership has narrowed, with mega-cap stocks and AI-driven companies dominating, but signs of broader market participation began to emerge in Q4 2025 [1] Company Insights - Meta Platforms, Inc. (NASDAQ:META) closed at $620.25 per share on January 16, 2026, with a one-month return of -6.24% and a 52-week gain of 1.22% [2] - Meta has a market capitalization of $1.56 trillion, continuing its growth trajectory of 13-15% [3] - The company is facing increased scrutiny over rising capital expenditures and operating expenses projected for 2026, driven by infrastructure development and the "Meta Superintelligence" team [3] - While revenue growth remains strong, fueled by a 10% rise in average ad prices and AI-powered content recommendations, concerns exist regarding the sustainability of these investments and their impact on near-term earnings [3]

Core Insights - The increasing dominance of Reels in Meta's advertising strategy is evident, with over 50% of ads on Instagram being run through Reels in 2025, up from 35% in 2024 [1] - Reels accounted for 46% of time spent on Instagram in 2025, a significant increase from 37% in 2024, while Facebook's Reels usage reached 29% in 2025 [1] Group 1: Engagement and Revenue - The rise of Reels is crucial for Meta's engagement and advertising revenue across Instagram and Facebook, as vertical video content is increasingly favored by users [2] - AI-driven recommendation systems are enhancing user engagement by surfacing personalized video content, which has positively impacted Reels' revenue [3] - Advertisers are shifting their focus towards short-form video content to better reach consumers on Reels, reflecting a broader trend in advertising strategies [3] Group 2: Monetization Challenges - Despite the growth in Reels, monetization remains a challenge for Meta, as short-form videos typically generate less revenue compared to the main feed [4] - Meta's CEO highlighted the trade-off between increased engagement from Reels and the lower monetization efficiency compared to the Feed, indicating a potential revenue loss [5] - The overall activity on Instagram has increased, with daily active users up by 2% since last year, driven by Reels usage [5] Group 3: Future Projections - Analysts believe that the growing viewership on Reels could still lead to higher overall advertising revenue for Meta, despite the lower monetization rate compared to the Feed [6] - Meta's Reels have surpassed a $50 billion annual run rate, and analysts are keen to see growth figures in the upcoming fourth-quarter and full-year results for 2025 [7]