Core Viewpoint - The launch of AI plug-ins by Anthropic for its Claude Cowork agent has raised concerns about potential disruptions in the data and professional services industry, which were previously expected to benefit from AI advancements [1][12]. Company Impact - Thomson Reuters, owner of the Westlaw legal database, experienced a nearly 18% drop in its stock, marking its largest daily loss on record and the lowest close since June 2021. The company's shares are down 33% year-to-date after a 22% decline in 2025 [2][12]. - RELX and Wolters Kluwer, both providers of legal analytics services, saw their shares fall by 14% and approximately 13%, respectively. RELX's shares have nearly halved from their peak in February, indicating significant pressure from AI advancements [6][12]. - Other professional services firms also faced declines, with Factset Research down 10.5%, Morningstar losing 9%, and LegalZoom slumping 19.7%. In London, companies like Experian, Sage Group, London Stock Exchange Group, and Pearson fell between 6% and 12% [7][12]. Market Sentiment - Investors are increasingly bearish on Thomson Reuters, with concerns that the company may struggle to maintain growth in its legal segment due to rising competition from specialized AI tools [5][12]. - The selling pressure in software and data analytics reflects a broader structural debate, as AI tools challenge traditional business models and erode the historical 'visibility premium' in valuations [8][12]. - Major U.S. technology stocks also declined, with Nvidia down 2.8%, Meta Platforms down 2.1%, Microsoft down 2.9%, and Oracle down 3.4%. The S&P 500 and Nasdaq indices fell by 0.84% and 1.43%, respectively [8][12]. Advertising Sector Impact - Advertising companies faced significant pressure, with Omnicom down 11.2% and Publicis shares dropping over 9%. Publicis has allocated approximately 900 million euros ($1.06 billion) for acquisitions in AI technologies and data assets [9][12]. - Other advertising-dependent firms, such as Pinterest and Snap, also saw declines of 5.6% and 8.4%, respectively, as AI capabilities increasingly threaten traditional business models in the sector [10][12].

Core Insights - Publicis Groupe reported a 5.9% year-over-year organic revenue growth in Q4 2025, reaching 3.87 billion euros (approximately $4.57 billion), surpassing analyst expectations but lower than the previous year's growth of 6.3% [1] - The full-year organic growth for Publicis was 5.6%, attributed to advancements in artificial intelligence, although challenges in fully leveraging this technology were acknowledged [2] Group Performance - CEO Arthur Sadoun emphasized a focus on transformative growth rather than restructuring legacy assets, aiming to be the most valuable partner for clients, employees, and shareholders [3] - Publicis secured significant accounts in 2025, including The Coca-Cola Company's North American media and data business, with net-new business exceeding $8 billion and no material account losses reported [3] Revenue Composition - AI-supported creative and media functions constituted over 85% of Publicis' net revenue, with creative services accounting for about 25% of total revenue [4] - The growth of the Sapient consulting arm was flat, as clients exhibited cautious spending due to economic conditions [4] AI Challenges - Despite the potential of AI in advertising, it is noted to be difficult to scale, costly to implement, and often fails to deliver measurable value in 95% of cases [5] - Publicis is leveraging its assets like Sapient and Epsilon to enhance its role as a transformation partner in the industry [5] Future Guidance - Publicis provided a 2026 growth guidance of 4% to 5%, consistent with targets set for 2024 and 2025 [6] - Following the earnings report, shares declined, but the company plans to pursue acquisitions in AI, identity resolution, new media channels, production, and business transformation [6]

Core Viewpoint - Amazon is gaining renewed interest from Wall Street as it enters 2026, with shares up over 6.7% in early trading, outperforming its entire gain from 2025, which was only 5% compared to the S&P 500's 16% advance [1] Financial Performance - Amazon reported earnings per share (EPS) of 1.95 in the most recent quarter, exceeding estimates of 1.57, marking a year-over-year increase of over 36% [3] - Earlier in the year, EPS rose more than 60% year-over-year in Q1 and over 33% in Q2, indicating strong earnings momentum [3] - Q4 estimates are conservative, suggesting potential for an upside surprise in the next earnings release [4] Business Segments - Amazon Web Services (AWS) remains a core long-term growth driver, with sales growth increasing from 17% in the first half of 2025 to approximately 20% in Q3, with expectations for continued improvement in 2026 [5] - AWS's recent customer wins, including a partnership with Aumovio, highlight its role in AI and corporate technology spending [6] - The advertising segment is also growing rapidly, with Q3 advertising revenue rising 24% year-over-year to $17.7 billion, benefiting from improved personalization and user engagement [8] Investor Sentiment - Wall Street sentiment towards Amazon is overwhelmingly positive, with 36 out of 37 analysts rating it a Buy, and an average 12-month price target of $297.29, implying a 23.43% upside from the recent share price of $240.85 [12][13] - Recent analyst updates have mostly reiterated Buy ratings, reflecting confidence in Amazon's fundamentals despite some adjustments in price targets [14] Future Outlook - Analysts expect AWS growth to reach the mid-twenties in 2026, with operating margins remaining in the mid-thirties, making Amazon's current valuation attractive at roughly 12 times 2026 enterprise value to EBITDA [16] - Despite concerns about trailing peers in AI development, AWS's leadership in cloud infrastructure positions Amazon as a key player in enterprise AI [17] - Overall, Amazon's recent earnings execution, improving cloud trends, and growing advertising business support a positive outlook heading into 2026 [18]

Core Viewpoint - A sell-off in European software, data analytics, and advertising companies has intensified, driven by concerns over the ability of established firms to maintain their business models in light of advancements in artificial intelligence [1] Group 1: Market Reaction - The sell-off accelerated on Tuesday, indicating a significant market response to the updated AI models [1] - The decline highlights the growing skepticism regarding the sustainability of business models for companies previously considered winners in the AI space [1] Group 2: Industry Impact - The developments underscore the disruptive potential of AI technology, which poses a threat to sectors that were once viewed as secure [1] - Companies in software, data analytics, and advertising are particularly vulnerable to these changes, as their traditional business models may not withstand the competitive pressure from new AI advancements [1]

Core Insights - Publicis Groupe reported a strong Q4 2025 with organic growth of +5.9%, leading to a full-year organic growth of +5.6%, which is an acceleration compared to the previous five-year CAGR [5][9][22] - The company is confident in achieving a seventh consecutive year of outperformance in 2026, with guidance for organic growth between +4% to +5% [10][47] Financial Performance - Revenue for FY 2025 reached €17,399 million, an increase of +8.5% compared to 2024 [3][25] - Net revenue was €14,547 million, up +4.2% year-on-year [11][22] - Operating margin improved to 18.2%, up 20 basis points from 2024 [3][9] - Headline diluted EPS was €7.48, reflecting a +6.6% increase at constant currency [3][35] - Free cash flow reached €2,032 million, an increase of +10.6% [3][36] Regional Performance - North America saw organic growth of +5.4%, with the U.S. contributing +5.2% [23][24] - Europe achieved +4.2% organic growth, with the U.K. at +6.3% and Germany at +8.9% [20][24] - Asia Pacific recorded +5.8% organic growth, with China at +6.0% [24] - Middle East & Africa experienced +10.8% organic growth, while Latin America grew by +18.7% [24] Strategic Focus - The company emphasized its AI-powered growth model, which has been a strategic driver for growth and margin expansion [6][7] - Publicis aims to be the industry's Most Valuable Partner by delivering effective AI solutions and investing in talent [8][10] - The company has made significant acquisitions to enhance its capabilities, including Atomic 212°, BR Media Group, and Lotame [41][42][46] Outlook - Publicis expects to maintain an operating margin slightly above 18.2% and free cash flow around €2.1 billion in 2026 [49] - The company is focused on transformational growth through new addressable markets rather than legacy asset consolidation [10]

Core Viewpoint - The current stock market presents opportunities to increase holdings in five specific stocks that are expected to thrive in the coming years, despite the market being near all-time highs. Group 1: Nvidia - Nvidia has been a top-performing stock and continues to benefit from significant spending in the artificial intelligence sector, with data center buildouts still ongoing [2][4] - The stock is currently priced at $185.71, with a market cap of $4.6 trillion and a gross margin of 70.05% [3][4] - Analysts project over 50% year-over-year revenue growth for fiscal 2027, with the stock trading at 25 times full-year 2027 earnings, indicating it is undervalued [4] Group 2: The Trade Desk - The Trade Desk is trading at a low valuation of 15 times forward earnings, while experiencing healthy growth, with a reported 18% year-over-year revenue increase in Q3 2025 [5][6] - Despite market pessimism due to slowing growth and rising competition, it remains a leading advertising platform, making it an attractive investment opportunity [6] Group 3: MercadoLibre - MercadoLibre offers exposure to the Latin American market and has shown strong performance over the past decade, including recent quarterly results [7][9] - The stock is currently priced at $2,147.20, with a market cap of $109 billion, and is down approximately 13% from its peak in July 2025, presenting a buying opportunity [8][9] Group 4: Nebius Group - Nebius Group provides full-stack AI computing solutions, with management expecting significant growth, projecting an annual run rate of $7 billion to $9 billion by year-end [10][11] - The company’s annual run rate was only $551 million at the end of the last quarter, indicating substantial growth potential for 2026 [11] Group 5: Broadcom - Broadcom is focusing on AI computing units, partnering with AI hyperscalers to design specialized computing units, which may offer better results at lower costs compared to traditional GPUs [12] - The stock is currently priced at $331.11, with a market cap of $1.6 trillion and a gross margin of 64.71% [13]

Summary of AI Application Tracking Commentary Industry Overview - The commentary focuses on the AI application industry, particularly during the Chinese New Year period, highlighting the competitive landscape among major companies in the sector [1]. Core Insights and Arguments - Recent AI applications have been catalyzed significantly, especially during the "red envelope battle" during the Spring Festival, where major companies compete for AI access points due to their substantial traffic [1]. - This competition is expected to create a "phenomenal level" of discussion and interest in AI applications and the associated computing power leasing businesses, driven by a rapid increase in AI model downloads and computing demand [1]. - The advertising aspect of AI applications is emphasized, with a noted "industry reversal" in AI advertising. Companies such as GEO's BlueFocus, Yidian Tianxia, Zhejiang Wenlian, and InGravity Media are gradually emerging in this space [1]. Key Company Insights - Tencent's computing power leasing is primarily associated with Litong Electronics, which is currently involved in distributing red envelopes [1]. - The highest revenue share from Doubao is attributed to Runze Technology, which is sponsored by ByteDance for the Spring Festival Gala [1]. - Alibaba's highest revenue share is likely from Data Harbor, although it has not been explicitly disclosed. Alibaba's "Spring Festival Guest Plan" is set to launch on February 6 [1]. Additional Important Points - The overall market pressure prior to the Spring Festival is expected to lead to mixed performances in the technology sector. However, the event of "major companies distributing red envelopes and competing for traffic access points" is anticipated to be the most significant hype leading up to the festival [1].

Economic Overview - U.S. manufacturing activity unexpectedly expanded in January, marking the biggest jump since 2022, which is a positive indicator for the economy [2][20] - The S&P 500 is heading for record highs, currently up by about 0.5% [1][20] - The U.S. dollar continues to rally, with the Bloomberg Dollar Spot Index higher by about 0.3% [2] Federal Reserve Insights - There is speculation about a potential reshaping of the Federal Reserve under Kevin Warsh, who is critical of quantitative easing (QE) and aims to create a separation from the administration [4][7][15] - The Fed's balance sheet has decreased from $9 trillion to approximately $6.6 trillion, raising questions about future monetary policy and the implications for government funding [14][15][18] - The Fed is currently believed to be pausing on balance sheet shrinkage, which may lead to discussions about the appropriate size of the balance sheet during abnormal economic times [16][18] Market Reactions - Traders are adjusting their expectations regarding Federal interest rate cuts, with discussions of a "Goldilocks" scenario of solid growth that contains inflation [3][19] - Concerns about the sustainability of elevated prices in precious metals like gold and silver are emerging, as the dollar strengthens [42][46] - Companies in the AI sector, including Oracle, are facing scrutiny over their debt levels as they raise funds to support growth ambitions [60][66] Corporate Developments - Coeur Mining is actively pursuing acquisitions to create a North American mining powerhouse, focusing on low-risk exposure in Canada, the U.S., and Mexico [56][58] - The company anticipates more consolidation in the mining sector as investors seek sustainable price levels [58] - Disney's recent earnings report reflects a strong performance driven by its parks and cruise business, despite some concerns about future growth [30][33][39]

TORONTO, Feb. 02, 2026 (GLOBE NEWSWIRE) -- illumin Holdings Inc. (TSX:ILLM) (OTCQB:ILLMF) (“illumin” or the “Company”) today announced changes to its board of directors (the “Board”) and the composition of its audit committee (“Audit Committee”) and corporate compensation and governance committee (“CCGC”). The Board has received and accepted the resignations of directors Roger Dent, Michele Tobin, and Yishay Waxman, effective February 1, 2026. “Roger, Michele and Yishay have been instrumental to our growth, ...

TORONTO, Feb. 02, 2026 (GLOBE NEWSWIRE) -- illumin Holdings Inc. (TSX:ILLM) (OTCQB:ILLMF) (“illumin” or the “Company”) today announced changes to its board of directors (the “Board”) and the composition of its audit committee (“Audit Committee”) and corporate compensation and governance committee (“CCGC”). The Board has received and accepted the resignations of directors Roger Dent, Michele Tobin, and Yishay Waxman, effective February 1, 2026. “Roger, Michele and Yishay have been instrumental to our growth, ...