Core Insights - The cloud computing market has seen mixed stock performance over the past year, but the Fidelity Cloud Computing ETF (FCLD) is positioned for potential outsized performance in 2026 as the next iteration of cloud computing, termed Cloud 3.0, approaches [2][3] Industry Overview - The global cloud computing market is projected to grow from nearly $944 billion in 2025 to approximately $3.35 trillion by 2033, reflecting a compound annual growth rate (CAGR) of 16% [3][4] - Major drivers of this growth include the transition from legacy on-premises infrastructure to scalable and cost-efficient cloud environments, as well as the modernization of applications and data platforms across industries [4] Cloud 3.0 Characteristics - Cloud 3.0 is characterized by the integration of AI, advanced automation, distributed infrastructure, serverless microservices, and orchestration of APIs and web services [4][5] - Organizations are expected to adapt their enterprise architecture and upgrade processes to leverage Cloud 3.0 technologies effectively [5] Investment Potential - The Fidelity Cloud Computing ETF has gained 49% since the market bottomed in April 2023 and is rated as a Moderate Buy by analyst consensus, with a low volatility beta of 1.01 [5]

Core Viewpoint - First Trust Cloud Computing ETF (SKYY) provides thematic exposure to companies involved in cloud services, capturing trends in enterprise IT modernization and software delivery models [1] Group 1: Investment Proposition - SKYY targets companies that develop, enable, or deliver cloud services across various segments including infrastructure, platforms, and software [1] - The portfolio is primarily composed of technology and communication services firms, which may exhibit varying growth, profitability, and capitalization profiles [1] - SKYY serves as a satellite investment for growth-oriented investors, offering targeted participation in digital transformation and innovation [1] Group 2: Market Dynamics - The fund is likely to perform well when long-duration growth assets are favored, corporate IT budgets increase, and subscription models gain traction [1] - Potential challenges for SKYY include rising discount rates, cyclical spending pauses, and competitive disruptions in key subsectors [1] Group 3: Risk Considerations - A specific risk associated with SKYY is thematic concentration, which can lead to increased idiosyncratic risk due to narrow leadership or rapid product obsolescence [1]

Core Viewpoint - A class action lawsuit has been filed against CoreWeave, Inc. and its senior executives for securities fraud following significant stock drops attributed to potential violations of federal securities laws [1][3]. Company Overview - CoreWeave is an AI-focused cloud computing company that operates data centers providing high-performance GPU infrastructure, relying on partners like Core Scientific for development [4]. Allegations of Securities Fraud - The lawsuit claims that CoreWeave misrepresented its ability to meet customer demand and concealed construction delays at its data centers, despite assurances of being able to capitalize on strong demand [5]. Stock Performance and Impact - On October 30, 2025, CoreWeave's stock dropped by $8.87 (over 6%) after the termination of a merger agreement with Core Scientific due to insufficient shareholder votes, falling from $139.93 to $131.06 per share [6]. - Following a revenue guidance reduction on November 10, 2025, due to delays from a third-party developer, the stock fell by $17.22 (over 16%), from $105.61 to $88.39 per share [7]. - A report on December 15, 2025, regarding delays in a major data center project led to an additional drop of $2.85 (over 3%), from $72.35 to $69.50 per share [8].

Core Viewpoint - Snowflake Inc. (NYSE:SNOW) is currently viewed as a strong investment opportunity, particularly following its strategic acquisition of Observe, which enhances its AI Data Cloud capabilities [1][3]. Company Developments - On January 8, 2026, Snowflake announced the acquisition of Observe, a leader in AI-powered observability, which will allow enterprises to combine telemetry and business data for faster troubleshooting [3]. - The integration of Observe's technology enables anomaly detection and efficient resolution of production issues, leveraging an AI Site Reliability Engineer (SRE) that consolidates logs, metrics, and traces [3]. - The platform supports open standards like Apache Iceberg and OpenTelemetry, facilitating large-scale retention of telemetry data, which is increasingly important as AI applications generate vast amounts of data [4]. Market Potential - Snowflake aims to tap into the $51.7 billion IT operations management market with its enhanced capabilities following the acquisition of Observe [4]. Analyst Sentiment - Analyst opinions on Snowflake are mixed; Barclays downgraded the stock to 'Equal Weight' due to a 42% price rally in 2025, suggesting the current valuation is stretched [5]. - Conversely, Goldman Sachs initiated coverage with a 'Buy' rating and a price target of $286, highlighting AI adoption and data platform modernization as significant growth drivers [5]. Business Focus - Snowflake is dedicated to providing cloud-native data warehousing through its Data Cloud, enabling secure and scalable development of AI, analytics, and data applications globally [6].

Core Insights - Alibaba Group Holding Limited (NYSE:BABA) is currently viewed positively by investors, with 85% of Wall Street analysts expressing bullish sentiments and a consensus price target of $196.99, indicating a potential upside of 31.50% [2] Group 1: Company Developments - On January 5, 2026, Alibaba announced plans to introduce AI-powered services for restaurants through its Amap app, allowing businesses to create 3D interior renderings at no cost for a limited time, aiming to enhance competition with Meituan in China's food and dining sector [3] - The company is focusing on expanding its ecosystem beyond traditional e-commerce by leveraging ongoing advancements in AI and cloud technology [3][5] Group 2: Analyst Ratings and Market Outlook - Morgan Stanley maintained an 'Overweight' rating but reduced its price target from $200 to $180, citing a weaker outlook for core e-commerce due to high consumption levels expected in the first half of 2027, despite strong cloud growth [4] - Jefferies reiterated its 'Buy' rating while lowering its price target from $231 to $225, highlighting robust performance in Quick Commerce and accelerating cloud revenue driven by AI demand [4]

Core Points - The CoreWeave class action lawsuit has been initiated against CoreWeave, Inc. and its executives for alleged violations of the Securities Exchange Act of 1934 during the class period from March 28, 2025, to December 15, 2025 [1][3] - CoreWeave is accused of overstating its ability to meet customer demand and failing to disclose significant risks associated with its reliance on a single third-party data center supplier [3][4] - The lawsuit highlights a significant deal worth up to $11.9 billion with OpenAI announced shortly before CoreWeave's IPO, and a subsequent all-stock acquisition agreement with Core Scientific, which was later terminated due to insufficient shareholder votes [2][4] Allegations and Impact - Allegations include that CoreWeave's executives made misleading statements regarding the company's operational capabilities and the risks posed by its data center supplier, which were likely to negatively impact revenue [3][5] - Following the announcement of lower revenue guidance due to delays from a third-party data center developer, CoreWeave's stock price fell by over 16% [5] - A Wall Street Journal article revealed that delays were more severe than previously acknowledged, leading to an additional 3.4% drop in CoreWeave's stock price [6] Legal Process - Investors who purchased CoreWeave securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to represent the interests of all class members [7][8] - The lead plaintiff can select a law firm to litigate the case, and participation as lead plaintiff is not required to share in any potential recovery [8] About the Law Firm - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having secured over $2.5 billion for investors in 2024 alone [9]

Group 1: Amazon - Amazon constitutes 8.73% of Bill Ackman's portfolio and is considered a strong long-term investment due to its diverse operations in e-commerce, cloud computing, AI, and digital advertising [2][5] - The company is working to improve its e-commerce margins by utilizing industrial robots to reduce fulfillment costs, which is expected to lead to lower costs and higher profits over the next decade [3] - Amazon's cloud division remains a core growth engine, with a significant addressable market as 85% of IT spending still occurs on-premises, indicating room for growth [5][6] Group 2: Alphabet - Alphabet makes up 10.52% of Ackman's portfolio and is a strong long-term investment, maintaining its dominance in the search engine market despite the rise of AI chatbots [7] - The company's digital advertising business is thriving, and its cloud division is experiencing rapid sales growth, with a cloud backlog of $155 billion, reflecting a 46% quarter-over-quarter increase [9][10] - Alphabet's investments in AI are enhancing user engagement and query growth, further solidifying its market position [7][10] Group 3: Uber Technologies - Uber is the largest holding in Ackman's portfolio, representing 20.25%, and is seen as a justified investment due to its strong financial performance and user growth [11][12] - The company benefits from network effects, with a growing customer base strengthening its competitive advantage [14] - Uber has significant growth potential as younger generations are driving less and may rely more on ride-hailing services, with only about 10% of adults in its top markets using the platform monthly [15][17]

Core Points - A class action lawsuit has been filed against CoreWeave, Inc. and its senior executives for securities fraud following significant stock drops due to potential violations of federal securities laws [1][3] - Investors are encouraged to seek additional information regarding the lawsuit and their legal options [2][9] Company Overview - CoreWeave is an AI-focused cloud computing company that operates data centers providing high-performance GPU infrastructure [4] - The company relies on partnerships, notably with Core Scientific, to develop its data centers [4] Stock Performance and Issues - CoreWeave's stock dropped significantly after the merger agreement with Core Scientific was terminated due to insufficient shareholder votes, resulting in a decline of $8.87 per share (over 6%) from $139.93 to $131.06 on October 30, 2025 [6] - On November 10, 2025, CoreWeave lowered its guidance for revenue and operating income due to construction delays, causing a further drop of $17.22 per share (over 16%) from $105.61 to $88.39 [7] - A report on December 15, 2025, indicated additional delays in a major data center project, leading to a decline of $2.85 per share (over 3%) from $72.35 to $69.50 [8] Legal Context - The lawsuit asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in CoreWeave securities [3] - Investors have until March 13, 2026, to request to be appointed to lead the case, which is pending in the U.S. District Court for the District of New Jersey [3]

Core Viewpoint - The article highlights Amazon as a strong investment opportunity, particularly in the context of the ongoing AI boom and its solid performance in e-commerce and cloud computing [2][4][9]. Industry Overview - The AI market, currently valued at $300 billion, is projected to reach trillions by the end of the decade, indicating significant growth potential for companies involved in AI technologies [2]. - The Nasdaq has seen growth driven by excitement around AI and quantum computing, suggesting a favorable environment for tech stocks [1]. Company Performance - Amazon's stock rose approximately 5% last year, reflecting growth from its AI initiatives and established e-commerce and cloud computing sectors [3]. - Amazon Web Services (AWS) has achieved an annual revenue run rate of $132 billion, benefiting from AI offerings and innovations [6][9]. Investment Appeal - Amazon is positioned as a suitable investment for both aggressive and cautious investors due to its diversified business model and proven growth outside of AI [4]. - The stock is currently trading at about 30 times forward earnings estimates, a decrease from over 50 times in previous years, making it an attractive valuation for investors [7][8]. Future Outlook - The expectation is that Amazon will continue to thrive as a key player in the AI space, with potential for significant stock appreciation as the Nasdaq is predicted to soar in 2026 [2][9].

Core Insights - The article discusses the shift in investor focus towards companies with sustainable earnings power, indicating that future market returns will be driven by fundamentals rather than hype [1][2] Group 1: Market Trends - Investors are increasingly looking for a broader market rally beyond technology stocks, with industrials, healthcare, and small-cap companies expected to lead [2][3] - There is a growing caution among investors regarding high tech valuations, allowing other sectors to gain traction [3] Group 2: Stock Selection Methodology - Stocks considered for analysis have market capitalizations exceeding $2 billion, with a focus on those forecasted to have EPS growth over the next 5 years and a return on equity above 20% [5] - The stocks are ranked based on the number of hedge fund holdings, utilizing Insider Monkey's database as of Q3 2025 [5][6] Group 3: Company Highlights - ServiceNow, Inc. (NYSE:NOW) has a return on equity of 16.81% and is projected to have an upside potential of 68% with a price target of $200 [8] - Micron Technology, Inc. (NASDAQ:MU) has a return on equity of 22.55%, with a price target raised to $385 from $330, indicating strong demand for generative AI and a potential upcycle extending into 2027 [12][13][14]