The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth-quarter 2025 investor letter. In Q4 2025, US equities ended the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. A copy of the letter can be downloaded here. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio ...

Oracle Corporation (NYSE:ORCL) faces a securities fraud lawsuit, potentially affecting its stock performance.CEO Magouyrk Clayton M. sold 10,000 shares, raising questions about the company's internal affairs.The stock price shows a 2.34% increase today, despite ongoing legal proceedings and market volatility.Oracle Corporation (NYSE:ORCL) is a leading technology company known for its software products and services, including database management systems and cloud solutions. The company competes with other te ...

We recently compiled a list of the 20 Most Profitable Stocks of the Last 20 Years. The third stock on our list is Oracle Corporation. TheFly reported on January 23 that Morgan Stanley lowered its price target for ORCL to $213 from $320 and maintained an Equal Weight rating. The firm acknowledged that GPU-as-a-Service represents a sizable revenue opportunity but noted that the buildout is likely to push EPS below company targets and increase funding needs. Additionally, Morgan Stanley stated that it believ ...

Core Insights - Avnet reported second-quarter fiscal 2026 results that exceeded the high end of the company's sales and earnings guidance, driven by record revenue in Asia and improved demand across multiple end markets [5][7] Financial Performance - Adjusted operating income was $172 million with a total adjusted operating margin of 2.7% [1] - Sales reached $6.3 billion, representing a 12% year-over-year increase and a 7% sequential increase, surpassing guidance [3][7] - Adjusted diluted earnings per share (EPS) were $1.05, exceeding the high end of guidance for the quarter [7] - Gross margin was reported at 10.5%, described as "flattish" year-over-year and slightly up sequentially [2] Segment Performance - Electronic components generated an operating income of $187 million with a 3.2% operating margin, while Farnell produced an operating income of $20 million with a 4.7% operating margin, the latter being the highest since fiscal 2023 [1][4] - Farnell's gross margins improved by over 100 basis points year-over-year but decreased by 25 basis points sequentially [2] Regional Highlights - Asia sales exceeded $3 billion, marking the sixth consecutive quarter of year-over-year growth and now account for over 50% of total sales [3][12] - Sales in Europe increased year-over-year and sequentially, with clear signs of recovery noted [13] - The Americas also saw sales growth for the second consecutive quarter, led by aerospace and defense [14] Demand and Supply Chain Dynamics - Demand signals are resetting higher, particularly driven by data center and AI demand, with lead times trending upward across most product categories [9][10] - The pricing environment remained stable, although spot price increases were noted in some areas, indicating potential upward pricing pressure as supply tightens [11] Working Capital and Inventory Management - Working capital improved with inventory reduced by $126 million, resulting in 86 days of inventory at quarter-end [6][18] - The company aims to reduce total inventory days to below 80 [18] Guidance and Outlook - For Q3 fiscal 2026, sales are guided to be between $6.2 billion and $6.5 billion, with diluted EPS expected to be between $1.20 and $1.30, implying modest sequential growth [20][21] - The guidance reflects anticipated growth in the Americas and EMEA, with a slight seasonal decline in Asia due to the Lunar New Year [21]

Core Viewpoint - VEON Ltd. and Rakuten Group have signed a Memorandum of Understanding to explore strategic collaboration in next-generation connectivity and digital services, focusing on cloud-native network infrastructure [1][2][3] Group 1: Collaboration Framework - The MoU establishes a framework for cooperation on modern, software-driven telecom networks and scalable digital platforms [2] - The collaboration will assess opportunities in key technology areas such as Open RAN architectures, AI-powered network intelligence, and global IoT connectivity [2] Group 2: Strategic Goals - The partnership aims to leverage Beeline Kazakhstan's market position and Rakuten Symphony's expertise to modernize connectivity infrastructure and develop advanced digital services in Kazakhstan [3] - The collaboration reflects a commitment to enhancing efficiency, resilience, and customer experience through next-generation network architectures [4] Group 3: Company Backgrounds - VEON provides connectivity and digital services to nearly 150 million connectivity users and 140 million digital users across five countries [5] - Beeline Kazakhstan serves 11.9 million mobile customers and around one million fixed internet customers, with a focus on digital solutions [6] - Rakuten Group operates in e-commerce, fintech, digital content, and communications, serving 2 billion members globally [7][8] Group 4: Innovation and Technology - Rakuten Symphony aims to disrupt traditional telecom models with open interface platforms that enable rapid service deployment at lower costs [9] - The collaboration with Beeline Kazakhstan is part of a broader strategy to enhance network evolution and digital service ambitions within the VEON Group [4]

Core Insights - Nvidia's quarterly report shows a 66% year-over-year increase in data center revenue, enhancing the investment outlook for related companies like Dell and HP [1][2] - The company is significantly involved in AI data center infrastructure, collaborating with OpenAI and Anthropic, indicating strong growth potential in the AI sector [2][3] Nvidia's Performance and AI Involvement - Nvidia is aiding OpenAI in establishing at least 10 gigawatts of data centers, which reflects its growing influence in AI infrastructure [2] - The partnership with Anthropic marks a positive sentiment for Nvidia's role in the AI ecosystem, as it will be the first time Anthropic utilizes Nvidia's infrastructure [2] Data Center Market Outlook - The current developments suggest that the AI sector is not in a bubble, with substantial infrastructure still needed for both existing and new AI-driven companies [3] - Companies like Dell and Hewlett-Packard are expected to experience significant growth due to increasing data center spending [3] Hewlett-Packard Enterprise (HPE) Stock Analysis - HPE's stock has risen nearly 80% from its April lows but has underperformed over the past year with a -4% return, compared to the S&P 500's 12% [5] - HPE's valuation metrics show it as a more attractive investment compared to Dell, with a FY26 PE of 11.11x versus Dell's 13.33x [6] Financial Metrics Comparison - HPE's forward revenue growth of 11.84% surpasses Dell's 10.33%, and HPE's gross margins of 29.88% are better than Dell's 21.26% [7] - HPE offers a dividend yield of 2.43%, which is higher than Dell's 1.67%, providing additional appeal to investors concerned about market volatility [7]

Financial Data and Key Metrics Changes - Third quarter consolidated net sales were $5.7 billion, up 4% year-over-year [5][19] - Gross profit was $1.3 billion, up 5% [5][19] - Non-GAAP operating income was $531 million, down 1% [5][24] - Non-GAAP net income per share was $2.71, up 3% [5][25] - Adjusted free cash flow was $209 million [5][26] - Gross margin was 21.9%, up 10 basis points year-over-year [20][24] Business Line Data and Key Metrics Changes - Small business delivered double-digit growth in top line and gross profit, driven by cloud and client device solutions [8][9] - Corporate delivered mid-single-digit top line growth with low single-digit gross profit [9] - Government net sales increased 8%, with state and local showing double-digit growth [9][10] - Education net sales declined 9%, with higher education growth offset by K-12 decline [10] - Services grew 9% in top line, contributing 9% of total CDW top line [12][19] Market Data and Key Metrics Changes - U.K. and Canadian operations reported a 9% increase in net sales [10][11] - Healthcare gross profit grew faster than its 7% top line growth, driven by cloud solutions [10] - Demand for client devices increased mid-single digits in top line and double digits in gross profit [9][11] Company Strategy and Development Direction - The company is embedding AI into operations to drive productivity and efficiency [14][15] - Focus on delivering enterprise-grade AI solutions to help customers unlock value [15][17] - Maintaining a prudent full-year outlook with expectations of low single-digit growth in the U.S. IT market [17][30] Management's Comments on Operating Environment and Future Outlook - Management highlighted the complexity and volatility of the current operating environment, impacting customer investment decisions [44] - The company is navigating uncertainties such as government shutdowns and economic conditions while focusing on execution [18][30] - Expectations for 2026 are still being planned, with a focus on maintaining competitive strength [18][31] Other Important Information - Non-GAAP SG&A totaled $725 million, up 8.7% year-over-year [23][24] - The company returned approximately $150 million in share repurchases and $82 million in dividends [26][28] - The dividend was increased by approximately 1% to $2.52 annually [28] Q&A Session Summary Question: Impact of government shutdown on federal contributions - Management acknowledged a conservative view for Q4, anticipating some pipeline and backlog but recognizing constraints from agencies not open [35][36] Question: Drivers of small business growth - Small businesses are leaning more into technology for competitive advantage, showing resilience and strong execution [37][38] Question: Outlook for PC and endpoint market - Demand remains solid, driven by Windows 10 end-of-life transitions and AI productivity initiatives [39][40] Question: Federal funding for education and healthcare - Federal funding for K-12 is primarily state-funded, while higher education is focused on technology to attract students [41][42] Question: Complexity of the current spending environment - The primary issue is volatility and uncertainty, affecting investment commitments [44] Question: Gross profit dollar growth needed for EPS growth - Sustaining gross profit growth and focusing on operating leverage are essential for returning to high single-digit EPS growth [46][47] Question: Opportunities in services and M&A - Strong growth in services is expected, with a focus on data, AI, and cloud [49][50]

Core Insights - The Deloitte Finance Trends report highlights how finance leaders are adapting to complexities and preparing for future challenges through a global survey of 1,326 finance leaders, primarily CFOs from companies with annual revenues exceeding $1 billion [1] Group 1: Finance Trends - Scenario planning and agile governance are essential as finance chiefs balance cost efficiency with growth investments amid supply chain disruptions, with 75% of respondents indicating insufficient resources for investment [2] - Finance leaders are increasingly seen as primary strategy influencers, with 57% of respondents claiming this role, and nearly half utilizing cloud solutions to optimize costs [3][4] Group 2: Cost Management - Finance-led cost management is linked to measurable value, with 36% of finance leaders primarily responsible for cost management, and 47% of these leaders consistently meeting cost-savings targets [6] Group 3: AI Integration - While 63% of finance teams are experimenting with AI, only 21% report clear, measurable value from these investments, and just 14% have fully integrated AI agents into their finance functions [7][8] - Early-stage AI adopters face challenges in justifying ROI, with 30% struggling compared to 21% of more advanced AI users [9] Group 4: Talent Development - A significant focus on infusing technology talent into finance departments is evident, with 64% of respondents planning to enhance technical skills by 2026, particularly in AI, automation, and data analysis [10]

Core Insights - Oracle is expected to announce earnings on September 9, 2025, with analysts estimating earnings of $1.48 per share on revenues of $15.03 billion, reflecting growth from the previous year [3] - Historically, Oracle's stock has shown negative returns on the day following earnings announcements, with a 55% decrease rate over the past five years and a median drop of 3.2% [2][6] Financial Performance - Oracle's market capitalization stands at $626 billion, with $57 billion in revenue, $18 billion in operating profits, and $12 billion in net income over the last twelve months [4] - The expected earnings growth is attributed to the increasing adoption of Oracle's cloud services, particularly in generative AI workloads [3] Historical Earnings Reaction - Over the last five years, Oracle has documented 20 earnings results, with 9 positive and 11 negative one-day returns, leading to a 45% chance of positive returns [6] - The median of positive returns is 11%, while the median of negative returns is -3.2% [6] Post-Earnings Strategies - Traders can utilize historical trends for strategic positioning before and after earnings announcements, assessing correlations between short-term and medium-term returns [5][7] - A less risky strategy involves identifying pairs with the highest correlation between 1D and 5D returns to inform trading decisions [7] Peer Performance Influence - The performance of peers can impact Oracle's stock reactions following earnings, with market dynamics potentially shifting before the earnings announcements [8]

Core Insights - Kyivstar will host an investor meeting on August 28, 2025, to discuss strategic initiatives, financial performance, and market outlook [1][2] - The meeting will include presentations from senior management and a Q&A session with investors [2] Event Details - Date: August 28, 2025 [3] - Time: 10:00 AM – 11:30 AM Eastern Time [3] - Location: Virtual meeting accessible via a provided link [3] Company Overview - Kyivstar serves nearly 22.4 million mobile customers and over 1.1 million home internet fixed line customers as of June 30, 2025 [4] - The company offers a range of services including 4G, big data, cloud solutions, cybersecurity, and digital TV [4] - Kyivstar plans to invest USD 1 billion in Ukraine from 2023 to 2027 for infrastructure, technological development, and strategic acquisitions [4] - VEON, the parent company, operates across five countries and serves nearly 160 million customers [5]