Group 1 - Oracle Corporation is experiencing increased interest from hedge funds as a potential investment opportunity [1] - RBC Capital has lowered its price target for Oracle to $195 from $250, maintaining a Sector Perform rating, and suggests that 2026 will be a pivotal year for AI adoption in enterprises [1][3] - The company reported a 13% year-over-year increase in total revenue to $16.1 billion for FQ2 2026, with cloud revenue growing by 33% to $8 billion [2] Group 2 - The cloud sector is now responsible for half of Oracle's total revenue, with significant growth in cloud infrastructure/OCI (66% increase) and GPU-related revenue (177% increase) [2] - For FQ3, Oracle expects total revenue growth between 16% and 18%, with cloud revenue projected to increase by 37% to 41% in constant currency [3] - Oracle's AI-integrated application suites are anticipated to outperform competitors facing sector deceleration [3]

Company Overview - Ziff Davis has a long history, with its brand dating back a century to the original Ziff Davis [2] - The company initially focused on eFax services and diversified into Internet-based digital media, software, and subscription data assets over the past decade [2] - In 2021, Ziff Davis rebranded after spinning off its legacy business, marking a significant transformation [3] Business Structure - The company serves global communities with digital media content, software, and database services [3] - As of February of this year, Ziff Davis has structured its operations into five divisions, which are now reportable segments [3]

Group 1: Oracle - Oracle's stock recently reached a new high following a strong earnings report for its fiscal fourth quarter, driven by accelerating growth in cloud services [3][5] - Cloud revenue grew 27% year over year last quarter, with projections for fiscal 2026 cloud revenue to grow over 40% compared to fiscal 2025, leading analysts to raise earnings estimates [5][6] - Revenue from cloud infrastructure services increased by 52% year over year, with expectations for further acceleration, supported by Oracle's involvement in the Stargate project with OpenAI, which aims to build $500 billion worth of AI infrastructure in the U.S. over the next four years [6][8] Group 2: Broadcom - Broadcom benefits from strong demand for cloud providers, supplying semiconductors, software, and networking products for data centers, as well as chips for smartphones [10] - Over the last decade, Broadcom's revenue and earnings grew at an annualized rate of 28%, reflecting a strategy focused on profitable long-term growth opportunities, particularly in AI infrastructure [11] - AI semiconductor revenue grew 46% year over year last quarter, reaching $4.4 billion, which constitutes 30% of Broadcom's total revenue [12] - Networking products for AI surged 170% year over year, with the new Tomahawk 6 Ethernet switch capable of delivering 102.4 terabits per second of data capacity, enhancing performance for AI model training [14] - Broadcom's stock typically trades at a high earnings multiple, with a forward P/E ratio currently at 37, indicating potential upside as the company continues to deliver strong growth [15]