Core Insights - Zeta Global Holdings Corp. (NYSE:ZETA) is recognized as one of the top mid-cap AI stocks to invest in according to hedge funds [1] - RBC Capital has lowered its price target for Zeta from $30 to $27, indicating a potential upside of 68.6% from current levels, while maintaining a Buy rating [1] - Goldman Sachs has raised its price target from $23 to $26, suggesting a 62% upside, while maintaining a Neutral rating [2] Company Overview - Zeta Global operates an omnichannel, data-driven cloud platform that provides marketing automation and consumer intelligence software to enterprises both in the U.S. and globally [3] - The company offers a variety of product suites, including agile intelligence, enhancing its service offerings [3] Market Outlook - The software mergers and acquisitions market is expected to gain momentum in 2026, driven by lower public-market valuations and the advantages of software companies [2] - Factors such as broad distribution networks, strong data positions, specialized industry knowledge, and established brand value are anticipated to facilitate significant value creation through strategic acquisitions and synergies [2]

Financial Performance - Klaviyo, Inc. reported Q4 revenue of $350 million, a 30% increase year-over-year [1] - Non-GAAP operating income for Q4 was $51 million, resulting in a 15% operating margin [1] - Non-GAAP gross margin for the quarter was 73%, with operating expenses at 58% of total revenue, marking the lowest level since the company went public [1] - Free cash flow increased to $87 million, reflecting a 61% year-over-year rise [2] - For the full year, non-GAAP operating income totaled $169 million with a 14% margin [2] - Free cash flow margin reached 16%, and cash balance exceeded $1 billion for the first time [2] Customer Metrics - 60% of Annual Recurring Revenue (ARR) now comes from multiproduct customers [2] - More than 15% of ARR is generated by customers using at least three products, indicating strong cross-sell and expansion opportunities [2] - The company serves over 193,000 customers in more than 100 countries, with strong momentum in the enterprise customer base and internationally [3] Market Position and Analyst Insights - Klaviyo is recognized as one of the 12 best mid-cap AI stocks to buy according to hedge funds [1] - Following the Q4 results, Jefferies lowered its price target from $35 to $29 while maintaining a Buy rating, citing long-term questions around AI [3] - Klaviyo operates a software-as-a-service platform targeting small and medium-sized businesses, enterprises, and mid-market businesses globally [4]

Core Insights - monday.com Ltd. (NASDAQ:MNDY) is recognized as one of the top mid-cap AI stocks to consider for investment by hedge funds [1] - UBS analyst Taylor McGinnis has lowered the price target for monday.com from $140 to $93, maintaining a Neutral rating, which suggests a potential upside of 25.49% from current levels as of February 11 [1] - The price target adjustment was influenced by the company's fourth-quarter earnings report, which indicated significant margin pressure [1] Financial Performance - For Q4, monday.com reported revenue of $333.9 million, representing a year-over-year increase of 24.6%, and exceeding consensus estimates by $4.24 million [2] - Non-GAAP earnings per share for the quarter were $1.04, surpassing estimates by $0.12 [2] - The company generated $59.7 million in net cash from operating activities and $56.7 million in adjusted free cash flow, both of which decreased from $76.7 million and $72.7 million in the same quarter of the previous year [2] - The number of paid customers increased across all segments [2] Future Guidance - For Q1 2026, monday.com anticipates revenue between $338 million and $340 million, slightly below the consensus estimate of $342.87 million, indicating approximately 20% year-over-year growth [3] - Non-GAAP operating income is expected to be between $37 million and $39 million, with an operating margin projected at 11% to 12%, factoring in a negative foreign exchange impact of 100 to 200 basis points [3] Company Overview - monday.com develops software applications globally, including in the United States, Middle East, Europe, United Kingdom, and Africa [4] - The company's product offerings include monday work management, monday CRM, monday dev, monday service, WorkCanvas, and WorkForms, primarily serving educational institutions, government entities, and various business units [4]

Market Overview - U.S. stocks stabilized on Friday following a positive inflation update, easing concerns about the impact of artificial intelligence on businesses [1][10] - The S&P 500 remained relatively unchanged after experiencing significant losses, while the Dow Jones Industrial Average increased by 48 points (0.1%) and the Nasdaq composite decreased by 0.2% [1][10] Inflation and Economic Indicators - Treasury yields decreased after a report indicated that inflation slowed more than expected, with U.S. consumers facing a 2.4% increase in prices compared to the previous year [2][10] - Although inflation remains above the Federal Reserve's 2% target, it improved from December's 2.7% rate, with a key underlying measure of inflation reaching its lowest level in nearly five years [10][11] Company Performance - AppLovin saw a significant drop of nearly 20% on Thursday despite reporting stronger-than-expected profits, but rebounded with a 6.4% increase on Friday [5][11] - C.H. Robinson Worldwide experienced a 14.5% decline on Thursday but recovered with a 4.9% rise on Friday after news of an AI platform that could increase freight volumes by up to 400% without increasing operational headcount [6][11] - Applied Materials was a major contributor to the S&P 500's upward movement, rising 8.1% after reporting better-than-expected profits, attributed to increased investments in AI computing [8][11] - DraftKings fell 13.5% despite exceeding profit expectations, as its revenue forecast for the year did not meet market expectations [8][11] - Norwegian Cruise Line Holdings dropped 7.6% following the replacement of its CEO just weeks before reporting quarterly results [9][11] - Nvidia, being the largest stock on Wall Street, declined by 2.2%, significantly impacting the S&P 500 due to its market weight [9][11] Market Sentiment - The market has shown aggressive reactions to perceived threats from AI disruption, with analysts describing the sentiment as a "shoot first, ask questions later" approach [7][11]

Core Insights - Palantir Technologies Inc. (NASDAQ:PLTR) is recognized as one of the top innovative stocks to buy, with a Buy rating reaffirmed by Truist Securities and a price target of $223, emphasizing its strong performance as an "AI pure-play victor" [1] - The company reported its best quarter as a public entity, achieving a 70% year-over-year revenue increase, marking the tenth consecutive quarter of revenue growth, with annual revenues exceeding $4 billion [1][2] - Truist has raised its revenue and free cash flow expectations for 2026 by over $1 billion each, now exceeding Palantir's own forecast ranges, indicating strong momentum in AI adoption among its customers [2] Company Overview - Palantir Technologies Inc. specializes in software platforms like Gotham and Foundry, which assist governments and businesses in integrating, analyzing, and acting on large datasets through AI and machine learning, serving various sectors including defense, healthcare, finance, and automotive [3]

Company Overview - The company, Shanghai Goraili Software Co., Ltd., is a leading provider of intelligent manufacturing software solutions tailored for the semiconductor industry, focusing on advanced manufacturing [3][4] - Since its establishment in 2007, the company has strategically concentrated on the semiconductor sector, utilizing AI, big data, and automation technologies to develop comprehensive intelligent manufacturing software solutions [3][4] - According to Frost & Sullivan, the company ranks first among domestic providers of semiconductor intelligent manufacturing software solutions in China by revenue in 2024 [3][6] Product and Market Position - The company has successfully delivered a fully automated intelligent manufacturing software solution for 12-inch wafer manufacturing, becoming one of the first domestic suppliers to achieve this milestone [4] - The company has established partnerships with over 290 clients in the semiconductor industry, including major players like SMIC and Tianma Microelectronics, enhancing its competitive edge [6] - The company offers end-to-end solutions covering all aspects of the semiconductor value chain, from materials to downstream applications [6] Financial Performance - The company's revenue for the fiscal years ending April 30 is projected as follows: approximately RMB 111 million in 2022, RMB 165 million in 2023, RMB 249 million in 2024, and RMB 81 million in the first four months of 2025 [7] - The company reported losses of approximately RMB 86.88 million in 2022, RMB 127.19 million in 2023, RMB 103.12 million in 2024, and RMB 43.34 million in the first four months of 2025 [8] - The gross profit margins for the same periods were 16.9% in 2022, 3.4% in 2023, 13.2% in 2024, and 6.1% in the first four months of 2025 [9] Industry Outlook - The Chinese semiconductor intelligent manufacturing software solutions market is expected to grow significantly, with the total market size projected to increase from RMB 1.1 billion in 2020 to RMB 6.6 billion by 2029, reflecting a compound annual growth rate (CAGR) of 25.4% from 2024 to 2029 [11] - The semiconductor segment is anticipated to lead this growth, with an expected increase from RMB 800 million in 2020 to RMB 5.2 billion by 2029, representing a CAGR of 26.2% from 2024 to 2029 [11] - The overall market for semiconductor intelligent manufacturing software solutions is on an upward trajectory, with a projected growth from RMB 800 million in 2020 to RMB 1.6 billion by 2024, and further expansion expected from 2024 to 2029 [13]

This is The Takeaway from today's Morning Brief, which you can sign up to receive in your inbox every morning along with: What we're watching What we're reading Economic data releases and earnings I am getting some friendly heat from all of you about a video I posted on X.com Friday before 6 a.m. It was actually live — I began rolling from inside Yahoo Finance HQ around 5:30 a.m. with a full stream of consciousness on the software stock crash. If you are up before 6 a.m. studying stocks and reading ...

Market Overview - AI turbulence has significantly impacted various sectors, including software, real estate, financial services, and logistics, leading to selling pressure on stocks due to concerns over AI-related disruptions [1] - The Nasdaq Composite fell by 0.2% on Friday, concluding the week with a total loss of 2.1%, while the S&P 500 saw a minor gain of less than 0.1% but ended the week down 1.4%. The Dow Jones Industrial Average increased by 0.1% on Friday but recorded a weekly decline of 1.2% [2] Sector-Specific Insights - The market experienced sharp movements beneath the surface, with investors closely monitoring whether the disruptions caused by AI will persist in the upcoming week [3] - A notable sell-off began in early February, affecting software companies like Salesforce and ServiceNow, and has since spread to financial services and logistics sectors, with stocks declining on any indication that AI tools may disrupt their core operations [7] Upcoming Economic Data - The Personal Consumption Expenditures (PCE) report, scheduled for release on Friday, will provide insights into consumer spending during December and inflation trends, following last week's Consumer Price Index (CPI) data that indicated a greater-than-expected slowdown in inflation [4] - The University of Michigan's market sentiment reading, also due on Friday, will gauge consumer attitudes against actual spending data, with the measure recently reaching its highest level since August but still lower than the previous year [5] Corporate Earnings Focus - Attention will be on Walmart's fourth-quarter earnings release on Thursday, which is expected to be a strong indicator of consumer spending and will mark the first report under new CEO John Furner [5] - Other significant earnings reports include those from DoorDash and Molson Coors, as well as energy companies like Constellation Energy, Energy Transfer, and Southern Company, which will provide insights into how AI is influencing power demand in the energy sector [6] AI Impact on Logistics - A recent press release from a karaoke machine maker about an AI-powered logistics platform that claims to increase freight volumes by 300% to 400% without a proportional rise in operational headcount led to significant stock declines for CH Robinson Worldwide and Universal Logistics, which fell by 12% and 10% respectively for the week [8]

Core Viewpoint - Microsoft stock has dropped 16% since the earnings report on January 28, despite being a leader in the AI sector, raising questions about the sustainability of its growth and investment returns [1][2]. Group 1: Stock Performance and Market Sentiment - Microsoft stock has seen a significant decline of 16% since the earnings report, indicating investor concerns [2]. - The current stock price is $401.32, with a market cap of $3.0 trillion [7][8]. - The price-to-earnings (P/E) ratio is at 25, the lowest in approximately three years, suggesting a potentially attractive valuation [9]. Group 2: Azure Performance and Competitive Landscape - Azure's revenue grew by 39% year over year, while AWS grew by 24% and Google Cloud Platform (GCP) increased by 48%, indicating competitive pressures [5]. - Concerns over Azure's growth relative to its peers are contributing to the stock's decline, alongside rising infrastructure costs [4][6]. Group 3: Analyst Outlook and Investment Potential - The consensus price target for Microsoft stock is $596, indicating a potential upside of 48% from current levels, reflecting continued bullish sentiment from analysts [11]. - While the valuation appears attractive, there are execution risks related to infrastructure investments and their impact on Azure and other business areas [12]. - The current sell-off may present a buying opportunity, although caution is advised due to potential risks [13].

Core Viewpoint - WeChat has introduced new features for the Spring Festival, allowing users to create personalized New Year songs using AI and enhanced red envelope covers with customizable decorations [1][4]. Group 1: New Features - Users can create a New Year song by accessing the "Discover" section and selecting "Listen" [1]. - The new red envelope covers allow users to add "decorations" and customize their greetings and images [4][6]. - Users can share their red envelope covers on public accounts to allow more people to use them [9]. Group 2: User Engagement - From today until February 17 (the first day of the Lunar New Year), users can change their comment identity on public accounts to a "golden" nickname, enhancing user experience [11].