Key Takeaways Figma beat Q4 estimates with 8-cent EPS and 40% revenue growth to $303.7M.Figma expanded its base, with 13,861 customers above $10K ARR and 1,405 above $100K ARR.Figma sees 2026 revenues of $1.366B-$1.374B and operating income of $100M-$110M.Figma (FIG) came out with fourth-quarter 2025 earnings of 8 cents per share, beating the Zacks Consensus Estimate by 14.3%. The company reported earnings of 6 cents per share in the year-ago quarter.Figma posted revenues of $303.7 million in the fourth qua ...

Core Insights - MongoDB's expanding partner network is becoming a structural growth lever, integrating the platform into the modern enterprise software stack and positioning Atlas as a default data layer [1] - The acquisition of Voyage AI enhances upsell opportunities, allowing AI-native customers to transition smoothly from Voyage embeddings to Atlas Vector Search and the core operational database [2] - Atlas revenues increased by 30% year over year, representing 75% of total revenues, with a net ARR expansion rate of 120%, indicating sustainable growth driven by partner adoption [3] Partner Ecosystem - The Zacks Consensus Estimate for fiscal 2026 projects total customers at 64,200, a 17.8% increase year over year, and customers generating over $100,000 in ARR at 2,786, a 16.3% increase year over year, suggesting an expanding partner ecosystem [4] - Co-sell agreements and broader integrations are expected to enhance MongoDB's growth trajectory, functioning as a long-term growth engine [4] Competitive Landscape - MongoDB faces significant competition from Snowflake and Amazon, both of which have extensive partner ecosystems [5] - Snowflake focuses on analytics workloads, while Amazon emphasizes vertically integrated services through AWS, but MongoDB differentiates itself by embedding directly into developer tools [6] Financial Performance - MongoDB shares have returned 62.2% over the past six months, outperforming the Zacks Internet – Software industry's decline of 22.4% and the Zacks Computer and Technology sector's return of 7.8% [7] - The stock is currently trading at a forward 12-month Price/Sales ratio of 10.36X, significantly higher than the industry's 3.9X, indicating a premium valuation [10] - The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings is $1.47 per share, reflecting a year-over-year growth of 14.84% [12]

Core Insights - Snowflake (SNOW) shares are considered overvalued with a Value Score of F, trading at a forward Price/Sales (P/S) ratio of 10.80X compared to the industry average of 3.90X [1] - The company has experienced an 8% decline in share price over the last six months, underperforming the Zacks Computer and Technology sector, which appreciated by 7.8% [3] - Despite the decline, Snowflake has outperformed the Zacks Internet Software industry, which saw a 22.4% decline in the same period, driven by strong customer growth and platform adoption [4] Valuation - SNOW's forward P/S ratio of 10.80X is higher than competitors like Amazon (2.61X) and Oracle (10.37X) [1][7] - The company reported a 20% year-over-year growth in customer numbers, reaching 12,621 in Q3 FY26, with 688 customers generating over $1 million in trailing 12-month product revenues, a 29% increase year-over-year [8][7] Performance - Snowflake's net revenue retention rate was 125% in Q3 FY26, indicating strong customer loyalty and usage of its platform [4][7] - The company anticipates product revenue growth of 27%-28% for Q4 and FY26, despite facing macroeconomic challenges [7] AI and Product Development - Snowflake is benefiting from its role in the enterprise AI revolution, with over 7,300 customers using its AI and ML technology weekly [9] - AI influenced 50% of bookings in Q3 FY26, and the company achieved a $100 million AI revenue run rate earlier than expected [10] - Recent product enhancements include new AI capabilities and an AI-powered Business Intelligence Agent for United Rentals [11][12] Partnerships - Snowflake has expanded its partnership with Alphabet's Google Cloud to enhance product integration and market strategy, allowing for secure generative AI applications [13][14] Guidance - For Q4 FY26, Snowflake expects product revenues between $1.195 billion and $1.2 billion, indicating a 27% year-over-year growth [17] - For FY26, the expected product revenues are $4.446 billion, reflecting a 28% year-over-year growth [18] Competition - Snowflake faces stiff competition from major players like Amazon and Oracle, both of which are also expanding their AI capabilities [19] - Oracle has launched role-based AI agents, while Amazon's AI initiatives have gained significant momentum, with AWS's custom chips business exceeding a $10 billion annual revenue run rate [20][21]

Core Insights - MongoDB's expanding partner network is a key driver for revenue growth and market penetration, positioning it as a default data layer in modern software stacks [2][4] Group 1: Partner Ecosystem - MongoDB's partnerships with LangChain, Temporal, and Galileo integrate the platform into daily developer tools, enhancing its appeal for modern application development [3] - The collaboration with Microsoft continues to grow, focusing on AI development, security, and governance, which broadens MongoDB's reach within Azure's enterprise customer base [3] Group 2: Customer Growth and Metrics - The Zacks Consensus Estimate for fiscal 2026 projects total customers at 64,200, reflecting a 17.8% year-over-year increase, while customers generating over $100,000 in ARR are expected to reach 2,786, up 16.3% year over year [5] - These metrics indicate that the partner ecosystem is effectively increasing both customer volume and account quality, positioning MongoDB for long-term growth [5] Group 3: Competitive Landscape - MongoDB's strategy contrasts with Snowflake and Amazon, as it focuses on embedding within developer tools rather than solely on analytics and operational workflows [6] - Snowflake's partnerships are primarily centered around analytics, while Amazon emphasizes vertically integrated services, highlighting MongoDB's unique positioning in the developer tool layer [6] Group 4: Stock Performance and Valuation - MongoDB shares have appreciated by 108.6% over the past six months, significantly outperforming the Zacks Internet – Software industry's decline of 6.2% [7] - The stock is currently trading at a forward Price/Sales ratio of 12.52X, compared to the industry's 4.8X, indicating a premium valuation [11] - The Zacks Consensus Estimate for Q4 fiscal 2026 earnings is $1.46 per share, reflecting a 14.06% year-over-year growth [13]

Core Insights - Chegg, Inc.'s current valuation appears attractive for investors, trading at a forward 12-month price-to-sales (P/S) ratio of 0.36, significantly lower than the industry average of 4.76 and the sector's 7.42 [1][5] Industry Trends - The U.S. education market is increasingly shifting towards digital and career-focused learning models, with a strong emphasis on flexible, outcome-driven skill development [2] - The rapid adoption of AI is transforming how learners access information, leading to a decline in traditional academic services and a rise in scalable digital platforms [2] Company Strategy - Chegg is restructuring its business to adapt to AI-driven changes and evolving demand, focusing on the skilling segment for workforce training and job-relevant skills while managing legacy academic offerings for cash generation [3][11] - The company is implementing a leaner cost structure and emphasizing B2B partnerships to stabilize performance and support sustainable growth [3][11] Financial Performance - Chegg's stock has declined 30.6% over the past six months, underperforming the industry and broader market, which has seen gains of 6.2% and 14.4%, respectively [10] - Non-GAAP operating expenses are projected to drop below $250 million by 2026, down from $536 million in 2024, indicating a more efficient operating model [12][17] Academic Services - Despite pressures from AI disruption, Chegg's academic services remain a valuable asset, providing cash support during the transition due to an established content base [13][14] Skilling Platform Growth - The consolidation of Busuu and Chegg Skills into a single unit is expected to drive growth, with projected revenue growth of 14% year-over-year for Q4 2025 and sustained double-digit growth beyond [15] - The focus on B2B distribution is expected to provide greater stability, with partnerships enhancing engagement and supporting growth [16] Capital Efficiency - Chegg is prioritizing capital efficiency and free cash flow generation, with capital expenditures declining 63% year-over-year in Q3 2025 and expected to reduce further by 60% in 2026 [17][18] Earnings Outlook - Earnings estimates for 2026 have trended upward to 18 cents per share, indicating a year-over-year growth of 228.6% [19] - In contrast, competitors like Coursera and Udemy are expected to see more modest earnings growth, with Coursera at 18.3% and Udemy flat [20] Investment Consideration - Chegg's discounted valuation and improving earnings outlook present a compelling opportunity for investors, despite ongoing challenges in legacy academic traffic [21]

Core Insights - MongoDB's Atlas platform is central to its growth strategy as enterprises increasingly adopt cloud databases and deploy AI applications at scale [1][2] - Atlas's document-oriented architecture is designed for unstructured and semi-structured data, providing flexibility compared to traditional relational databases [1] - The platform's multi-cloud support helps enterprises avoid infrastructure lock-in while ensuring consistent performance and security [1] Subscription Growth - Atlas is driving durable subscription growth, becoming a key component of MongoDB's recurring revenue as organizations adopt consumption-based cloud models [2] - The pricing structure of Atlas facilitates cloud migration for organizations at various stages, contributing to steady revenue compounding [2] - The platform has gained traction in sectors like financial services, healthcare, and technology, which require real-time access and high availability [2] Financial Performance - In Q3 of fiscal 2026, Atlas revenue grew by 30% year-over-year, accounting for 75% of MongoDB's total revenues [3] - The Zacks Consensus Estimate for Q4 fiscal 2026 revenues is $667.6 million, with Atlas revenues projected at $495.05 million, reflecting a 27.2% year-over-year growth [3] - The ongoing enterprise modernization and AI adoption are expected to sustain Atlas's subscription growth into 2026 and beyond [3] Competitive Landscape - MongoDB faces competition from Snowflake and Oracle, both of which are pursuing subscription-led growth in the cloud data market [4] - Snowflake promotes its Data Cloud as an alternative to Atlas, focusing on elastic scaling and AI-enabled analytics [4] - Oracle's Autonomous Database targets mission-critical workloads, emphasizing automation and reliability, intensifying competition for MongoDB [4] Stock Performance and Valuation - MongoDB shares have increased by 98.6% over the past six months, outperforming the Zacks Internet – Software industry's decline of 6.6% [5] - The stock is currently trading at a forward Price/Sales ratio of 12.08X, significantly higher than the industry's 5.63X [9] - The Zacks Consensus Estimate for Q4 fiscal 2026 earnings is $1.46 per share, indicating a 14.06% year-over-year growth [11]

Core Insights - Cloudflare Inc. (NET) shares have increased by 85.1% over the past year, significantly outperforming the Zacks Internet – Software industry's growth of 4.5% [1] - The current performance raises questions for investors regarding whether to buy, sell, or hold Cloudflare stock [1] Group 1: AI and Security Growth - Cloudflare's edge network and security capabilities provide a low-latency network at an affordable cost, giving it a competitive edge among AI companies, serving approximately 80% of leading AI firms globally [4] - The company has over 55 revenue-generating products, which facilitate frictionless adoption and contribute to its annual contract value and net retention rate [5] - Cloudflare's security solutions, including Magic Transit, Zero Trust, and SASE, are gaining traction, with increased monetization opportunities from AI-related products like AI Crawl Control and Bot Management [6] Group 2: Long-term Growth Potential - The combination of AI, security, multi-cloud networking, and enterprise scale creates a robust growth engine for Cloudflare, with a Zacks Consensus Estimate projecting a 28% year-over-year revenue growth for 2025 [7] - Recent upward revisions in earnings estimates indicate positive sentiment, with a penny increase in the past week [7] Group 3: Strategic Partnerships - Cloudflare has strengthened collaborations with major companies such as Oracle, Alphabet, and Coinbase, enhancing its capabilities in cryptography and payment protocols [8][11] - The partnership with Oracle focuses on hybrid and multi-cloud workloads, while collaboration with Alphabet aims at post-quantum cryptography standards [10] - These strategic alliances position Cloudflare as a key player in shaping the future of the Internet and AI [11] Group 4: Market Position and Recommendations - Cloudflare's shares are currently trading above the 200-day moving average, indicating a bullish trend [14] - Given the company's strong performance in AI, security, enterprise adoption, and partnerships, it is recommended that investors consider buying NET stock now [15]

Core Insights - Opendoor Technologies (OPEN) has experienced a significant stock decline of 11.4% over the past month, underperforming compared to its industry, sector, and the S&P 500, raising questions about whether this downturn is a value trap or the beginning of a recovery [1][7][28] Company Strategy and Performance - Under new CEO Kaz Nejatian, Opendoor has shifted its strategy towards a technology-centric approach, focusing on software, automation, and speed, marking a departure from its previous turnaround narrative [2][10] - The third-quarter 2025 results showed a 34% year-over-year revenue decline to $915 million, primarily due to efforts to clear old inventory, with gross profit dropping to $66 million and contribution margin decreasing to 2.2% from 3.8% [8][26] - The net loss widened to $90 million, although the adjusted net loss improved to $61 million, with inventory levels significantly reduced to 3,139 homes, nearly half of the previous year's levels [9][26] Operational Changes - The company has doubled its weekly acquisition pace and launched numerous AI-driven tools to enhance operational efficiency, aiming to transform into a high-velocity transaction engine rather than a housing speculator [11][12] - Key growth drivers include faster and higher-quality acquisitions, improved resale velocity, and operating leverage through AI efficiencies, with management expecting stable fixed operating expenses as acquisitions ramp up [13][16] Financial Outlook - Opendoor's valuation stands at 1.13X forward 12-month sales, which is below the industry average of 4.98X but above its three-year median of 0.21X, indicating it is no longer deeply undervalued [23] - Earnings estimates have improved, with expected losses per share narrowing to 23 cents for 2025 and 13 cents for 2026, despite a projected revenue decline of 18% in 2025 followed by a 17.1% rebound in 2026 [26] Competitive Landscape - The stock's performance must be viewed in the context of competitors like Zillow Group and Offerpad Solutions, which are also navigating the housing and technology cycles, with Zillow setting consumer engagement standards and Offerpad emphasizing operational discipline [27] Conclusion - Opendoor's stock decline reflects market caution rather than a collapse in long-term potential, as the company undergoes a significant reset with structural changes in its operations and product offerings [28][29]

Core Insights - Chegg, Inc. (CHGG) has experienced a significant decline of 45.4% in its stock price over the past three months, contrasting with a 10.1% decline in the Zacks Internet-Software industry and an 8.9% gain in the broader Computer and Technology sector [2][3] Company Performance - Chegg is facing multiple pressures, including declining traffic in its legacy academic services, substantial year-over-year revenue contraction, and an operational reset due to recent restructuring [3] - The company is transitioning towards a skilling-focused model, which is influenced by shifts in student behavior and competition from AI-driven alternatives [3] Restructuring and Cost Management - Chegg has implemented a major restructuring to enhance long-term profitability, dividing operations into a legacy academic business and a growth-oriented skilling business [9][10] - The restructuring has led to a 46% year-over-year reduction in non-GAAP operating expenses in Q3 2025, with expectations for total non-GAAP expenses to drop from $536 million in 2024 to under $250 million by 2026 [11] Skilling Business Growth - The consolidation of Busuu and Chegg Skills into a single "Chegg Skilling" unit is projected to achieve 14% year-over-year revenue growth for Q4 2025, with sustained double-digit growth anticipated beyond 2025 [12] - Demand for workforce training in areas such as AI and language learning is increasing, aligning with broader corporate training trends [12][13] Legacy Academic Operations - Despite challenges, the legacy academic services segment remains valuable, with over 130 million questions in its database, allowing for efficient operation with fewer resources [14] - This segment is expected to continue generating solid cash flow, providing funding for future investments in the skilling business [15] Financial Outlook - Chegg anticipates significant improvement in free cash flow in 2026, supported by lower operating expenses and capital expenditures [16] - Capital expenditures fell by 63% year-over-year in Q3 2025, with an additional 60% reduction expected in 2026, enhancing cash preservation while maintaining product quality [17] Valuation and Earnings Estimates - Chegg's stock is currently trading at a forward price-to-sales (P/S) ratio of 0.34X, significantly lower than industry peers like Coursera and Udemy [18][20] - Earnings estimates for 2026 have increased to 18 cents per share, indicating a year-over-year growth of 228.6% [21] Investment Opportunity - Chegg's strategic restructuring, growth in the skilling business, and disciplined cost management create a solid foundation for potential recovery, making it an attractive investment opportunity despite near-term uncertainties [23]

Group 1 - The options market indicates significant implied volatility for Docebo Inc. (DCBO), particularly for the May 15, 2026 $15 Call option, suggesting that investors expect a substantial price movement [1] - Implied volatility reflects market expectations of future stock movement, often indicating potential upcoming events that could lead to a major price change [2] - Docebo currently holds a Zacks Rank 3 (Hold) in the Internet – Software industry, which is in the top 27% of the Zacks Industry Rank, with recent earnings estimates showing a slight increase from 32 cents to 34 cents per share [3] Group 2 - The high implied volatility may signal a developing trading opportunity, as options traders often seek to sell premium on such options, aiming for the underlying stock to not move as much as anticipated [4]