Group 1: Core Insights - Several tech stocks are gaining attention for their affordability and strong buy ratings, supported by positive earnings estimate revisions [1][2] - The Zacks Internet-Software Industry is in the top 32% of over 240 Zacks industries, highlighting the potential for growth among its companies [3] Group 2: Company Highlights - Udemy (UDMY) has shown increased profitability, with annual earnings expected to rise 194% in fiscal 2025 to $0.47 per share, and projected EPS growth of 24% in FY26 [5][6] - StoneCo (STNE) is trading under $15 per share with a forward earnings multiple of 8.5X, and is expected to see EPS growth of 10% this year and 16% in FY26 [7][8] - Hewlett Packard (HPE) is trading under $20 per share with a forward earnings multiple of 10X, and has surpassed $1 billion in AI systems revenue, with projected top-line growth of over 14% in FY25 and FY26 [9][10] Group 3: Financial Metrics - Udemy's EPS estimates for FY25 and FY26 are $0.47 and $0.58 respectively, with a year-over-year growth estimate of 193.75% for FY25 [6] - StoneCo's annual sales exceed $2 billion, with EPS expected to rise to $1.73 in FY26 [7] - Hewlett Packard's annualized revenue run rate for AI systems reached $2.2 billion, with EPS projected to rebound to $2.30 in FY26 [10][13]

MCLEAN, Va., July 17, 2025 /PRNewswire/ -- Appian (NASDAQ: APPN), today announced the appointment of David Crozier to the position of Chief Marketing Officer, effective July 21, 2025. He will report to Appian's CEO, Matt Calkins. Crozier brings more than 20 years of marketing experience to Appian. Post this David Crozier is named Chief Marketing Officer at Appian. Crozier brings more than 20 years of marketing experience to Appian. He was Vice President of Marketing at Hewlett Packard Enterprise (HPE) wh ...

Core Insights - Hewlett Packard Enterprise (HPE) reported Q2 fiscal 2025 earnings of $0.38 per share on revenues of $7.6 billion, slightly exceeding analyst expectations of $0.33 and $7.5 billion respectively [2] - HPE revised its full-year revenue growth outlook to 7% to 9%, down from 7% to 11%, which contributed to stock price stagnation around $18 [2] - The stock is currently valued at 0.7 times its trailing revenues, lower than its three-year average price-to-sales (P/S) ratio of 0.8 [3] Financial Performance - HPE's Q2 results showed a year-over-year revenue growth of 6% and an Annualized Revenue Run Rate (ARR) of $2.2 billion, up 46% [5] - The adjusted gross margin decreased by 370 basis points year-over-year to 29.4%, while net income was impacted by a $1.4 billion non-cash impairment charge, resulting in a GAAP loss of $0.82 per share [6] - HPE's Q3 revenue forecast is between $8.2 billion and $8.5 billion, surpassing the consensus prediction of $8.17 billion [6] Growth Outlook - Analysts expect HPE's sales to grow by 8% this year and an additional 6% the following year, indicating a potential increase in valuation multiples [7] - The average price target for HPE is set at $21, suggesting an upside potential of over 15% from the current price [7] Strategic Initiatives - HPE is focusing on its edge-to-cloud platform transition, particularly through its GreenLake hybrid cloud solution, aimed at generating recurring income [9] - The partnership with NVIDIA for integrated AI computing solutions enhances HPE's competitive position against hyperscaler alternatives [9]

Financial Data and Key Metrics Changes - Q2 revenue was $7.6 billion, up 7% year over year, exceeding the high end of guidance [11][25] - Non-GAAP diluted net earnings per share were $0.38, above the guided range of $0.28 to $0.34 [12][29] - Non-GAAP gross margin was 29.4%, down 370 basis points year over year [26] - Non-GAAP operating margin was 8%, down 150 basis points year over year [28] Business Line Data and Key Metrics Changes - Server revenue was $4.1 billion, up 7% year over year but down 5% sequentially [30] - Intelligent Edge revenue was $1.2 billion, up 8% year over year, marking the first growth in five quarters [33] - Hybrid Cloud revenue was $1.5 billion, up 15% year over year and 4% sequentially [36] - Financial Services revenue was $856 million, up 1% year over year [37] Market Data and Key Metrics Changes - AI systems saw $1.1 billion in net new orders, with over $1 billion converted to revenue, up from $900 million last quarter [14][32] - The backlog in AI systems stood at $3.2 billion, reflecting strong demand [14][61] - GreenLake customer count reached approximately 42,000, generating an annualized revenue run rate of over $2.2 billion, up 47% year over year [16] Company Strategy and Development Direction - The company is focused on executing its strategy in AI, networking, and hybrid cloud, capitalizing on megatrends reshaping the IT industry [13][21] - Recent product launches include advanced private cloud solutions and enhanced networking capabilities to bolster cybersecurity [17][19] - The company aims to close the Juniper Networks transaction, expecting at least $450 million in annual run rate synergies within 36 months [22] Management's Comments on Operating Environment and Future Outlook - Management noted a dynamic macro and trade policy environment, with significant uncertainty affecting demand [10] - The company expects revenue growth of 7% to 9% year over year for the fiscal year, tightening guidance based on improved visibility [13][46] - Management remains optimistic about the profitable growth opportunities ahead, particularly with the anticipated closure of the Juniper Networks transaction [23] Other Important Information - The company is implementing a cost reduction program, including a 5% workforce reduction, to streamline operations and improve profitability [40][41] - Free cash flow was negative $847 million, slightly better than expected, with inventory levels down to $8.1 billion [38][39] Q&A Session Summary Question: What is needed for server margins to improve? - Management addressed execution challenges from Q1, implementing pricing analytics and inventory management to improve margins [52][54] Question: Can you elaborate on the pipeline strength? - Management noted strong momentum in AI orders, particularly from enterprise and sovereign markets, with a backlog of $3.2 billion [61] Question: Where is the most AI server traction seen? - AI server traction is strong across service providers and enterprises, with a focus on compute and storage integration [70] Question: What is the outlook for federal and state spending? - Management expects improvements in federal spending as government plans are enacted, with a solid pipeline for U.S. federal business [99] Question: What are the margin impacts of the workforce reduction plan? - The workforce reduction is expected to positively impact margins, particularly in the server business, as the company aims for a 10% margin exit by year-end [108]

Core Insights - Hewlett Packard Enterprise (HPE) is set to report its second-quarter fiscal 2025 results on June 3, with expected non-GAAP earnings per share between 28 cents and 34 cents, a decrease of 19.05% from the prior year [1][10] - HPE's revenue expectations for the same quarter are between $7.2 billion and $7.6 billion, with a consensus estimate of $7.47 billion, indicating a growth of approximately 3.66% year-over-year [2][10] Financial Performance - HPE has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average earnings surprise of 5.67% [2] - The Earnings ESP for HPE is +2.94%, suggesting a potential earnings beat this season [9] Growth Drivers - The demand for HPE's AI systems and sovereign AI cloud offerings is expected to have positively influenced revenue growth, particularly through HPE Private Cloud AI [4][10] - The adoption of the Aruba Edge Services Platform and HPE GreenLake is anticipated to have contributed to revenue growth, aided by a simplified cloud strategy [5][10] - Persistent growth in sales of HPE's accelerator processing units, driven by demand for AI-optimized servers, is also a contributing factor [6] Challenges - Softening IT spending due to higher interest rates and inflationary pressures may have negatively impacted overall financial performance [7][10] - Enterprises are delaying large IT spending plans amid a weakening global economy and ongoing macroeconomic and geopolitical issues [7]

Core Insights - The AI infrastructure market is expected to exceed $200 billion in spending by 2028, with both Dell Technologies and Hewlett Packard Enterprise well-positioned to benefit from this growth opportunity [2] Dell Technologies - Dell Technologies is experiencing strong demand for its AI-optimized servers, particularly the PowerEdge XE9680L, driven by digital transformation and interest in generative AI applications [3] - In Q4 of fiscal 2025, Dell's AI-optimized server orders increased by $1.7 billion, with shipments totaling $2.1 billion and a backlog of $4.1 billion [5] - Dell's partnership with companies like NVIDIA and Microsoft is expanding, enhancing its AI capabilities and enterprise AI adoption [6] - Dell's shares are trading at a forward Price/Sales ratio of 0.5X, indicating a relatively low valuation [13] - The Zacks Consensus Estimate for Dell's fiscal 2026 earnings is $9.34 per share, reflecting a 14.74% year-over-year increase [15] Hewlett Packard Enterprise - Hewlett Packard is also benefiting from strong demand for its AI-optimized servers, with its server business growing 30% year-over-year to $4.3 billion in Q1 of fiscal 2025 [7] - The launch of HPE's ProLiant Gen 12 server platform is expected to improve performance and energy efficiency, potentially replacing multiple older server generations and reducing power consumption by at least 65% [8] - HPE's GreenLake cloud product has achieved significant growth, with annual recurring revenue surpassing $2 billion, a 46% increase year-over-year [9] - HPE's shares are trading at a forward Price/Sales ratio of 0.52X, slightly higher than Dell's [13] - The Zacks Consensus Estimate for HPE's fiscal 2025 earnings is $1.94 per share, indicating a 2.51% decline year-over-year [15] Stock Performance - Year-to-date, Dell's shares have decreased by 34.9%, while HPE's shares have dropped by 37.6%, largely due to broader market weaknesses and rising trade tensions [10] - Dell holds a Zacks Rank of 3 (Hold), making it a stronger pick compared to HPE, which has a Zacks Rank of 4 (Sell) [17]