Riverwater Partners, an investment management company, released its “Small Cap Strategy” Q3 2025 investor letter. A copy of the letter can be downloaded here. The Small Cap Core Strategy reported solid results for the quarter but did not keep pace with the sharp rally, thus lagging the benchmark. The market’s preference for lower-quality companies persisted in the quarter and contributed significantly to the benchmark’s outperformance. On the other hand, the strategy remains focused on higher-quality compa ...

Core Insights - HOPSCOTCH has opened a new agency in Switzerland, marking a significant step in its international expansion strategy [6][13] - The new entity, HOPSCOTCH Switzerland, will leverage the group's comprehensive expertise across various sectors [7][8] - The agency is co-managed by Stéphanie Grizaud and Edouard Neveu, both of whom bring extensive experience in communication and international development [9][12] Company Overview - HOPSCOTCH is an international communications group founded in France, with a focus on relational capital and a diverse range of communication services [14] - The group employs over 1,000 people, with half based internationally across 40 offices on five continents [14] - HOPSCOTCH's 2024 financial performance includes a turnover of €319.1 million and a gross margin of €104.8 million [16]

Second are auto manufacturers like Vinfast (+8%), Tesla (+3.9%), and Rivian (+3.8%). While the Vietnamese EV firm seems to be surging on plans to increase its investment in Indonesia, the latter two seem to be jumping on self-driving and AI chatter. Tesla in particular is getting its bump amid talks about Robotaxi testing.For one, apparel names Abercrombie & Fitch (+6.2%) and American Eagle (+6%) are on the move today, joined by some other retail names like GameStop (+5%) and Wayfair (+4.9%).The winners tod ...

Core Insights - Alphabet Inc. is a leading global technology conglomerate and the parent company of Google, recognized as one of the "magnificent seven" tech giants in the communication services industry [1] Business Segments - Alphabet operates through three primary segments: Google Services, Cloud, and Other Bets. Google Services includes products like search, YouTube, Gmail, and Android, generating revenue mainly through advertising and subscriptions [2] - The Cloud segment provides AI infrastructure, cybersecurity, and enterprise solutions, while the Other Bets segment focuses on emerging technologies such as healthcare and autonomous vehicles [3] Competitive Landscape - Alphabet faces competition in search and advertising from Microsoft, which offers Bing and Azure services, and in cloud services from Amazon's AWS and Microsoft Azure [3][4] - In the social media and digital content space, Alphabet competes with Meta Platforms, which operates Facebook and Instagram [4] Unique Value Proposition - Alphabet's integration of artificial intelligence across its ecosystem enhances its data capabilities, allowing for personalized services and maintaining a leading position in digital advertising [5] - Proprietary AI technologies, such as Tensor Processing Units (TPUs) and the Gemini AI models, provide a competitive advantage in processing and monetizing AI workloads [5] Recent Financial Performance - For Q3 2025, Alphabet reported earnings and sales revenues exceeding $102 billion, a 16% year-over-year increase, marking the first quarter above $100 billion in sales [7] - Earnings per share (EPS) reached approximately $2.87, beating consensus estimates and growing about 35% year-over-year, driven by operating leverage and investment gains [7] - Search revenue was approximately $87.1 billion, up 14% year-over-year, while cloud revenue climbed to about $15.2 billion, growing in the low 30% range year-over-year [8] AI Advancements - The launch of Gemini 3, described as the most capable AI model to date, is expected to enhance Alphabet's service offerings and drive revenue growth [9] - AI-driven initiatives are anticipated to boost profitability and market share, with AI products contributing to a 34% increase in revenues [10] Future Outlook - Alphabet's TPU technology is expected to become a significant revenue stream as it gains traction among external clients, potentially capturing market share from competitors like Nvidia [11] - Forward revenue estimates suggest a growth rate of around 14%, with EBITDA growth at 21%, indicating robust expansion [11] Profitability Metrics - Alphabet maintains a net income margin of nearly 32%, which is 600 basis points higher than its 5-year average and significantly above the sector median of around 4% [11] Stock Performance - The stock has shown a 12-month performance increase of approximately 70%, outperforming the broader communication services sector and major indices [16] - Recent trading indicates a shallow pullback and consolidation after setting a new 52-week high, with the stock trading above its 50 and 200-day moving averages [17] Summary - Alphabet remains a dominant player in the global tech and AI landscape, with a powerful suite of consumer properties and a rapidly growing enterprise franchise in Google Cloud [18] - The rollout of Gemini 3 and expanded AI infrastructure is expected to deepen Alphabet's capabilities in AI and cloud workloads, benefiting shareholders in the long term [19]

Summary of RingCentral's 2025 Barclays TMT Conference Call Company Overview - **Company**: RingCentral - **Industry**: Unified Communications as a Service (UCaaS) and Contact Center as a Service (CCaaS) - **Revenue**: Approximately $2.5 billion - **Customer Base**: 500,000 customers across various sizes - **Profitability**: Generating around $500 million in cash annually with expanding margins [3][4][31] Key Business Trends - **Voice Communication**: Voice remains mission-critical for businesses, with RingCentral processing tens of billions of minutes and over a billion SMS annually [6][7] - **Product Evolution**: Transitioning from RingCentral 1.0 (cloud PBX) to 2.0 (integrated UC and CC) and now to 3.0 (agentic voice AI) [4][5] - **AI Integration**: Leveraging AI across the product portfolio to enhance customer experiences, reduce costs, and improve efficiency [5][37] Market Position and Differentiation - **Market Share**: RingCentral has maintained its market share despite new entrants due to reliability, security, and rapid innovation [8][46] - **Partnerships**: Over 15 partnerships with global service providers and thousands of channel partners enhance market reach and product innovation [9][46] AI Product Portfolio - **Three A's**: - **Air**: AI receptionist for pre-conversation interactions, starting at $40/month, showing significant ROI for customers [14][15] - **Ava**: Copilot for during conversations, enhancing productivity by transcribing and analyzing discussions [16][18] - **Ace**: Business intelligence tool for post-conversation analysis, providing insights and scoring for agents [18][20] - **Growth Metrics**: All three AI products are experiencing triple-digit growth, with Air growing over 80% quarter-over-quarter [20][21] Financial Performance and Margin Expansion - **Margin Growth**: Margins have increased from over 10% to 22.5% through reducing redundancies, rationalizing vendor spending, and leveraging AI [31][34] - **Free Cash Flow**: Free cash flow has increased nearly fivefold over the past few years, aiding in capital allocation [34] Capital Allocation Strategy - **Focus Areas**: - Investing in innovation - Reducing debt to $1 billion by the end of 2026 - Share buybacks with $400 million authorization remaining - Exploring tuck-in acquisitions [35][36] Market Dynamics and Future Outlook - **UCaaS and CCaaS Growth**: The market is competitive but still has significant opportunities due to the migration of on-prem systems to cloud [24][49] - **Customer Demand**: Customers are seeking transformation systems rather than just communication systems, indicating a shift in purchasing behavior [25][37] - **ARPU Increase**: New products are driving ARPU growth, with RingCX's average ARPU increasing from $65 to over $100 due to AI integrations [41] Competitive Landscape - **AI vs. Human Agents**: AI is seen as a supplement to human agents rather than a replacement, enhancing efficiency and customer experience [42][44] - **Differentiation Factors**: Trust, innovation, and partnerships are key differentiators that help RingCentral capture market share [46][48] Guidance and Future Expectations - **Growth Projections**: Expecting continued growth in small business and GSP segments, with enterprise migration to cloud driving further expansion [48][49] - **Market Share Goals**: Aiming for mid-single-digit market share growth, supported by strong integration with platforms like Teams [49]

We came across a bullish thesis on Zoom Communications Inc. on Value investing subreddit by mrmrmrj. In this article, we will summarize the bulls’ thesis on ZM. Zoom Communications Inc.'s share was trading at $84.96 as of November 28th. ZM’s trailing and forward P/E were 16.53 and 14.03 respectively according to Yahoo Finance. Beamr Imaging Ltd. (BMR): AI-Driven Media Optimization Photo by Chris Montgomery on Unsplash Zoom Communications Inc. provides an Artificial Intelligence-first work platform for h ...

Core Insights - Alphabet Inc's shares have increased by 67% year-to-date, outperforming NVIDIA's 32% rise as of November 25, 2025 [1] - Berkshire Hathaway has taken a new position in Alphabet, making it the 10th largest equity holding in its portfolio as of the end of Q3 2025 [2] - Alphabet is part of the "Magnificent Seven" group, which includes major tech companies known for their AI initiatives, and has shown strong revenue and earnings growth [4] Financial Performance - Alphabet's stock has surged 18.3% in the past month, contrasting with NVIDIA's 4.7% decline [1] - Alphabet's forward price-to-earnings (P/E) ratio is 26.68X, lower than the tech sector's 30.75X and the S&P 500's 24.03X, indicating a cheaper valuation compared to peers like Microsoft, which trades at 32.31X [11] Strategic Moves - Alphabet is expanding into AI chip production, potentially competing with NVIDIA [6] - Meta Platforms is reportedly in discussions to utilize Google's AI chips, which could enhance Alphabet's market position [7][8] - Google has secured a deal to supply up to 1 million tensor processing units (TPUs) to Anthropic, suggesting growing interest in its AI chip technology [10] Market Position - Alphabet has a strong Growth score of "B" and a Momentum Score of "A," positioning it well within the top 13% of its sector and top 33% of its industry [12] - The stock has solid exposure to various exchange-traded funds (ETFs), making it an attractive option for investors following Berkshire's investment strategy [13]

Core Insights - Zoom Communications reported $1.23 billion in revenue for the quarter ended October 2025, marking a year-over-year increase of 4.4% and an EPS of $1.52 compared to $1.38 a year ago, exceeding the Zacks Consensus Estimate of $1.21 billion by 1.4% [1] - The company delivered an EPS surprise of 6.29%, with the consensus EPS estimate being $1.43 [1] Financial Performance Metrics - Zoom's shares have returned -6.7% over the past month, while the Zacks S&P 500 composite changed by -1.8% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3] Customer and Revenue Metrics - The number of enterprise customers reached 185,100, slightly below the four-analyst average estimate of 185,888 [4] - Customers generating over $100K in TTM revenue totaled 4,363, exceeding the three-analyst average estimate of 4,341 [4] - Current Remaining Performance Obligation (RPO) stands at $2.41 billion, compared to the $2.44 billion average estimate [4] - Total Remaining Performance Obligations (RPO) are $4.02 billion, surpassing the two-analyst average estimate of $3.96 billion [4] - Non-Current Remaining Performance Obligation (RPO) is $1.61 billion, above the two-analyst average estimate of $1.51 billion [4] - Online revenue reached $488.4 million, exceeding the three-analyst average estimate of $482.58 million [4] - Enterprise revenue was reported at $741.4 million, also above the three-analyst average estimate of $730.97 million [4]

Business Highlights - Agora highlights the challenges in building and scaling voice agents, emphasizing its SD-RTN's global coverage and enterprise-level customer service as key differentiators[7] - A Deepgram and Opus Research survey indicates that only 21% of users are very satisfied with current voice agent technology, highlighting significant room for improvement[10, 11] - Agora's Conversational AI Engine 2.0 supports STT, LLM, and TTS, featuring AI noise suppression, echo cancellation, and advanced attention locking[20] - Agora's Conversational AI Studio enables building voice AI agents with a zero-code visual interface and fast deployment[22, 25, 28] Financial Performance - Agora's active customers increased from 3,731 in September 2024 to 3,944 in September 2025[38] - Agora's dollar-based net retention rate improved, with Agora reaching 108% and Shengwang reaching 90% in September 2025[39] - Total revenues reached $35.4 million in 2025 Q3, with a year-over-year growth of 12%[43] - Agora revenues were $18.2 million in 2025 Q3[47] - Shengwang revenues were $17.2 million in 2025 Q3[49] - The company's cash, cash equivalents, bank deposits, and financial products totaled $374.3 million as of September 30, 2025[62]

Summary of RingCentral Conference Call Company Overview - **Company**: RingCentral - **Industry**: Unified Communications as a Service (UCaaS) Key Points Financial Performance - **Q3 Earnings**: Achieved revenue at the top end of guidance with record operating margins [8] - **Free Cash Flow**: Expanded free cash flow to over $525 million, with free cash flow per share growth of 35% [10][50] - **Stock Buybacks**: Continued stock buybacks, reducing share count to 2020 levels [11][54] - **Debt Management**: Reduced gross debt to under $2 billion, with a commitment to reach $1 billion by the end of 2026 [11][54] Market Position - **Market Share**: Maintains a 20% market share in the UCaaS sector, serving over 500,000 customers and 8 million digital lines [8][56] - **Customer Growth**: Added over 1,000 customers to the RingCX contact center solution in under two years [56] Product Development - **AI Product Portfolio**: Launched new AI products (Air, Ava, Ace) that are driving demand and revenue growth [9][32][34] - **Air**: Handles initial calls, improving efficiency and reducing missed calls, leading to increased revenues for clients [23][24] - **Ava**: Acts as a copilot during calls, taking notes and assisting agents [32] - **Ace**: Provides conversational intelligence, allowing for analysis of 100% of calls [34] - **Ease of Deployment**: New products are easy to deploy, allowing customers to set them up without professional services [28] Customer Segments - **Golden Verticals**: Approximately 50% of business comes from healthcare, financial services, retail, and professional services, where voice remains critical [20] - **New Customer Acquisition**: Half of the new product users are new customers, indicating strong market demand [21][22] Competitive Landscape - **Differentiation**: RingCentral's scale and established platform provide a competitive advantage in the AI space, with a significant investment in innovation [57][58] - **Market Dynamics**: The company is well-positioned to capture market share from smaller players and benefit from the ongoing migration from on-premise to cloud solutions [56][64] Operational Efficiency - **AI Utilization**: Increased use of AI across various functions, leading to improved operating margins and productivity [41][42] - **Cost Management**: Focus on revenue growth outpacing expense growth, with disciplined hiring and vendor consolidation [49] Future Outlook - **Growth Strategy**: Plans to continue expanding the AI product suite and leveraging existing customer relationships for cross-selling opportunities [44] - **Market Trends**: Anticipates accelerated migration to cloud solutions driven by the need for AI capabilities [64] Additional Insights - **Customer Success Stories**: Highlighted examples of clients achieving significant revenue increases and improved customer satisfaction through the use of AI products [24][42] - **Investment in R&D**: Over $250 million allocated to R&D, with a focus on AI products [53] This summary encapsulates the key insights and developments discussed during the RingCentral conference call, highlighting the company's strong financial performance, innovative product offerings, and strategic market positioning.