Group 1: Arm Holdings - Arm is a British chipmaker that designs CPU architectures and licenses its intellectual property to other companies for custom chip development [3] - The company has gained market share in data centers, with over 70,000 enterprises using Arm server CPUs, a 14-fold increase in four years [4] - Nvidia owns a $178 million stake in Arm and has built its Grace CPU on Arm architecture, with other major companies like Amazon, Alphabet, and Microsoft also designing Arm-based server CPUs [5] - Arm reported a 12% increase in total sales to $1 billion, but missed expectations on the top line, with operating margin contracting by 8 percentage points due to increased R&D spending [6] - Wall Street estimates Arm's adjusted earnings will grow at 23% annually through March 2027, making its current valuation of 87 times earnings appear expensive [7] - Coatue estimates Arm will be worth $787 billion by 2030, implying a 430% upside from its current market value of $148 billion, equating to nearly 40% annual returns over the next five years [9] Group 2: MercadoLibre - MercadoLibre operates the largest online marketplace in Latin America, where e-commerce accounts for only 15% of total retail sales, compared to over 30% in the U.S. [8] - The company accounted for about 28% of retail e-commerce sales in Latin America last year, with projections to reach 30% market share by 2026 [8] - MercadoLibre has established its leadership by providing logistics, payments, and advertising services, creating a robust ecosystem for merchants [9] - The company reported a 34% increase in total revenue to $6.8 billion, with 29% growth in the commerce segment and 40% growth in the fintech segment [11] - Wall Street expects MercadoLibre's earnings to grow at 32% annually over the next three years, making its current valuation of 58 times earnings appear reasonable [12] - Coatue estimates MercadoLibre will be worth $300 billion by 2030, implying a 150% upside from its current market value of $120 billion, equating to 20% annual returns over the next five years [9]

Group 1: Arm Holdings - Arm Holdings has a median target price implying a 106% upside from its current share price of $86, with analysts optimistic about its growth potential [3][11] - The company reported a 19% increase in revenue to $983 million, driven by strong growth in royalties and adoption of its latest CPU architecture, Armv9 [5] - Arm's technology is gaining traction in data centers, particularly for AI workloads, as major public clouds have deployed Arm-based chips [4][6][7] Group 2: The Trade Desk - The Trade Desk has a median target price suggesting a 124% upside from its current share price of $46, despite a 67% decline from its high [9][11] - The company reported a 22% revenue increase to $741 million, but fell short of its own sales guidance for the first time in 33 quarters [10] - Wall Street expects The Trade Desk's earnings to grow at 14% annually through 2026, with potential for faster growth due to increasing adtech spending [12][13]

Group 1: Market Overview - The Nasdaq Composite fell 5% from its record high due to concerning economic data, including the lowest consumer sentiment in 15 months [1] - Despite the market downturn, analysts remain optimistic about potential gains for Arm Holdings and Axon Enterprise in the coming year [1] Group 2: Arm Holdings - Arm Holdings is a semiconductor company that primarily designs CPU architectures and licenses its intellectual property to clients [3] - The company’s processors are highly efficient, found in 99% of smartphones and 67% of other mobile devices, and are gaining market share in data centers [4] - Arm's Q3 fiscal 2025 revenue rose 19% to $983 million, driven by strong growth in royalty fees, while non-GAAP net income increased 26% to $0.39 per diluted share [5] - CEO Rene Haas emphasized Arm's role in the AI market, predicting increased demand for compute in AI cloud applications [6] - Wall Street estimates a 32% annual increase in Arm's adjusted earnings through fiscal 2026, leading to a current valuation of 96 times adjusted earnings [7] Group 3: Axon Enterprise - Axon specializes in public safety, known for its Taser products and a suite of sensors and software for law enforcement [8] - The company integrates AI into its products, such as using AI for transcribing and redacting audio and video in its digital evidence management software [9] - Axon launched Draft One, a generative AI application for automating report writing, which quickly reached a $100 million revenue pipeline [10] - Analysts project a 135% upside for Axon, with a bull-case target price of $1,150 per share from its current price of $488 [10] - Despite a recent downgrade due to valuation concerns, some analysts believe the market overreacted, and Axon shares present a buying opportunity [11][12] - Axon's earnings have consistently exceeded consensus estimates by an average of 34% over the last six quarters, suggesting potential for reasonable valuation if the trend continues [13]