Core Insights - Crexendo (CXDO) reported $17.5 million in revenue for Q3 2025, marking an 11.9% year-over-year increase and a 2.71% surprise over the Zacks Consensus Estimate of $17.04 million [1] - The company achieved an EPS of $0.10, up from $0.06 a year ago, resulting in a 25% surprise over the consensus EPS estimate of $0.08 [1] Revenue Breakdown - Service revenue was $8.57 million, exceeding the estimated $8.47 million, reflecting a 7.8% increase year-over-year [4] - Product revenue was $1.41 million, slightly below the estimated $1.46 million, showing a significant decline of 22.4% compared to the previous year [4] - Software solutions revenue reached $7.52 million, surpassing the average estimate of $7.12 million, with a year-over-year growth of 28.3% [4] Stock Performance - Over the past month, Crexendo's shares have returned +9.2%, outperforming the Zacks S&P 500 composite's +2.1% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Group 1 - The semiconductor and chip industry is crucial for the artificial intelligence and digital infrastructure revolution, with several ETFs providing leveraged exposure to leading companies in this sector [1] - Unbiased Alpha is a Swiss Fintech startup that offers consulting services to institutional investors globally, focusing on quantitative trading and systematic strategies [1] - The company specializes in developing software solutions, cloud services, and API-based data science algorithms, emphasizing machine learning and AI in its investment strategies [1] Group 2 - Unbiased Alpha has extensive experience managing funds over $1 billion in assets under management (AuM) with small teams [1] - The research conducted by Unbiased Alpha covers various asset classes and instruments, including stocks, ETFs, foreign exchange, commodities, and cryptocurrencies [1] - The company also monitors hedge funds as part of its comprehensive investment strategy [1]

Core Partnership and Acquisitions - The partnership with Core Scientific is solid, with a commitment to consume their services for the next 10 to 15 years through infrastructure extensions [2][3] - Recent shareholder votes resulted in the rejection of an acquisition, primarily due to price considerations, despite strategic alignment [3] - The company has been actively acquiring other firms, such as Mariano and Waits Biases, to enhance its cloud capabilities and broaden software solutions [4][8] Infrastructure Development - The company has a significant footprint within Core Scientific, utilizing approximately 580 megawatts of infrastructure, while also signing over 600 megawatts of data center infrastructure outside of Core Scientific [6][7] - New data centers are being built in Pennsylvania and New Jersey to increase control over infrastructure [9] - The company is focused on raising capital to support ongoing infrastructure buildout, leveraging innovative financing products [11][12] Market Position and Strategy - The company believes it has a strong business model that generates substantial returns and meets global infrastructure needs [13][14] - There is a growing interest in the company's offerings, particularly in artificial intelligence infrastructure, which is seen as a bullish indicator for future growth [16][17] - The company aims to diversify its customer base while remaining disciplined in its acquisition strategy, ensuring that any potential deals are at the right price [10][15]

Core Viewpoint - GE Vernova Inc. (NYSE:GEV) is viewed positively by Jim Cramer, who criticized a recent sell rating on the stock, suggesting it has potential for a multi-year upward movement [1]. Group 1: Company Overview - GE Vernova Inc. provides energy technologies and services for power generation, including gas, nuclear, hydro, wind, solar, storage, and software solutions [2]. - Since its spin-off, GE Vernova's stock has increased significantly, rising from the low 100s to the low 600s since becoming an independent entity in April of the previous year [2]. Group 2: Market Position - The stock's performance is highlighted as part of a broader discussion on data center stories, indicating its relevance in the energy sector [1]. - While acknowledging GE Vernova's potential, there is a belief that certain AI stocks may offer greater upside potential and less downside risk [2].

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank as of October 7th: eGain Corporation, StoneCo Ltd., and Alignment Healthcare, Inc. [1] Company Summaries - **eGain Corporation (EGAN)**: - Provides an AI-powered knowledge hub to enhance customer experiences - Zacks Rank 1 with a 52.2% increase in current year earnings estimate over the last 60 days - Shares increased by 51.4% in the last three months, outperforming the S&P 500's 7.8% gain - Holds a Momentum Score of A [1][2] - **StoneCo Ltd. (STNE)**: - A fintech company offering software solutions - Zacks Rank 1 with an 8.7% increase in current year earnings estimate over the last 60 days - Shares gained 9.7% in the last three months, also outperforming the S&P 500's 7.8% gain - Holds a Momentum Score of A [2] - **Alignment Healthcare, Inc. (ALHC)**: - A healthcare platform focused on seniors - Zacks Rank 1 with a 14.3% increase in current year earnings estimate over the last 60 days - Shares increased by 24.8% in the last three months, surpassing the S&P 500's 7.8% gain - Holds a Momentum Score of A [3]

Group 1: Biotechnology Sector - The biotechnology sector is characterized by long, expensive, and uncertain development paths, where enterprise value is derived from research quality, patent soundness, and clinical success likelihood [1] Group 2: Unbiased Alpha - Unbiased Alpha is a Swiss Fintech startup that provides consulting services to institutional investors globally, focusing on quantitative trading and systematic strategies [1] - The company develops software solutions, cloud services, and API-based data science algorithms, emphasizing investment and trading [1] - Unbiased Alpha has experience managing over $1 billion in assets under management (AuM) with small teams, specializing in statistical arbitrage, systematic strategies, and innovative machine learning algorithms [1] - The research conducted by Unbiased Alpha spans various asset classes and instruments, particularly stocks, ETFs, FX, commodities, and cryptocurrencies, including futures, CFDs, options, and DeFi products [1] - The company also monitors hedge funds as part of its research focus [1]

Core Viewpoint - The Alger Spectra Fund's second-quarter 2025 investor letter indicates a significant rebound in equities after a challenging first quarter, with the fund's Class A shares outperforming the Russell 3000 Growth Index [1]. Group 1: Fund Performance - The Alger Spectra Fund's Class A shares outperformed the Russell 3000 Growth Index in Q2 2025 [1]. - The equities market showed a significant rebound in Q2 2025 following a difficult first quarter [1]. Group 2: Company Focus - Globant S.A. - Globant S.A. (NYSE:GLOB) is a Luxembourg-based technology services company that focuses on digital transformation through software solutions, AI, and cloud services [3]. - In Q2 2025, Globant S.A. reported revenues of $614.2 million, reflecting a 4.5% year-over-year growth [5]. - The stock of Globant S.A. experienced a one-month return of -14.30% and a 52-week loss of 70.76%, closing at $57.49 per share with a market capitalization of $2.53 billion on September 22, 2025 [2][5]. Group 3: Performance Challenges - Globant S.A.'s performance was negatively impacted by weaker-than-expected fiscal first-quarter results, with revenue growth missing analyst estimates [3]. - The revenue shortfall was attributed to clients delaying discretionary IT and digital transformation projects due to macroeconomic uncertainty, particularly in North America [3]. - Management noted that the slowdown in non-essential corporate spending was a primary factor affecting new bookings and revenue growth [3]. Group 4: Hedge Fund Interest - Globant S.A. was held by 26 hedge fund portfolios at the end of Q2 2025, a decrease from 31 in the previous quarter [5].

Core Insights - Investors are encouraged to focus on profitable companies that yield strong returns after covering all expenses, rather than those that are unprofitable [1] Profitability Assessment - Accounting ratios are utilized to evaluate a company's profitability, with a focus on effective metrics that measure profit generation relative to sales, assets, or equity [2] Top AI Stocks - Broadcom Inc. (AVGO) and NVIDIA Corporation (NVDA) are highlighted as leading profitable companies for the month, recognized for their high net income ratios [3] Net Income Ratio - The net income ratio indicates a company's profitability level, reflecting the percentage of net income to total sales revenues, with a higher ratio suggesting better revenue generation and expense management [4] Screening Parameters - Additional criteria for identifying potential winning stocks include a Zacks Rank of 3 or lower, trailing 12-month sales and net income growth exceeding industry averages, and a strong buy percentage rating above 70, narrowing the stock universe to 72 candidates [5][6] Broadcom Overview - Broadcom designs and supplies semiconductor devices and software solutions globally, recently reporting fiscal Q3 earnings that exceeded estimates and projecting strong Q4 revenues driven by demand for AI accelerators [6][7] Broadcom Financials - Broadcom's 12-month net profit margin stands at 31.6%, indicating solid profitability, and it holds a Zacks Rank of 3 (Hold) [7][8] NVIDIA Overview - NVIDIA, led by Jensen Huang, has seen improvements in its fiscal Q2 top and bottom lines due to increased sales of data center GPUs, maintaining its leadership in AI hardware [9] NVIDIA Financials - NVIDIA boasts a 12-month net profit margin of 52.4% and holds a Zacks Rank of 2 (Buy), reflecting its strong market position and profitability [8][9]

Revenue Performance - Total revenue for Q3 Fiscal Year 2025 was $51.901 million, reflecting a 12% year-over-year growth[4,11] - Payments revenue reached $13.100 million, showing an 11% year-over-year increase[4] - Recurring revenue totaled $40.201 million for the quarter[4] - Total Annualized Recurring Revenue (ARR) reached $160.804 million, a 12% increase year-over-year[4] Revenue Composition - Software and related service revenue amounted to $36.245 million[4] - SaaS revenue contributed $9.299 million to the total[4] - Transaction-based revenue was $4.052 million[4] - Maintenance revenue reached $8.648 million[4] - Professional services generated $9.458 million[4] Profitability Metrics - Adjusted EBITDA from continuing operations was $12.724 million, representing an Adjusted EBITDA margin of 25%[11] - Net loss from continuing operations attributable to i3 Verticals, Inc was $(410) thousand[12] - Non-GAAP adjusted income before taxes from continuing operations was $10.249 million[12] - Adjusted net income from continuing operations was $7.687 million[12] - Adjusted diluted earnings per share from continuing operations was $0.23[14]

Core Insights - Crexendo (CXDO) reported revenue of $16.55 million for the quarter ended June 2025, marking a year-over-year increase of 12.7% and exceeding the Zacks Consensus Estimate by 2.2% [1] - The earnings per share (EPS) for the same period was $0.09, compared to $0.07 a year ago, resulting in a surprise of 50% over the consensus EPS estimate of $0.06 [1] Revenue Breakdown - Service revenue was reported at $8.37 million, surpassing the average estimate of $8.23 million by analysts, reflecting a year-over-year increase of 3.8% [4] - Product revenue was $1.2 million, exceeding the average estimate of $1.13 million, but showing a year-over-year decline of 7% [4] - Software solutions revenue reached $6.98 million, above the average estimate of $6.82 million, with a significant year-over-year increase of 31% [4] Stock Performance - Over the past month, Crexendo's shares have returned -8.1%, contrasting with the Zacks S&P 500 composite's increase of 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]