Earnings Call Insights: DLH Holdings Corp. (DLHC) Q1 2026 Management View Zachary C. Parker, President and CEO, opened by highlighting that "the first quarter was marked by the longest government shutdown in our nation's history, followed by a short-term funding gap at the end of January." He stated that the new budget "provides increased funding capacity and improved visibility for our clients fo...
Earnings Call Insights: DLH Holdings Corp. (DLHC) Q1 2026 Management View Zachary C. Parker, President and CEO, opened by highlighting that "the first quarter was marked by the longest government shutdown in our nation's history, followed by a short-term funding gap at the end of January." He stated that the new budget "provides increased funding capacity and improved visibility for our clients for the remainder of the fiscal year," which the company expects to positively impact its operations and organic growth initiatives. Parker noted that "key federal health agencies received funding increases compared to the fiscal 2025 levels, reversing in part previously disclosed funding reductions to our current and addressable markets." He emphasized a focus on digital modernization, advanced technology integration, and C6ISR expertise, stating that DLH is "competitively well for modernization-driven awards." The CEO addressed revenue declines as "largely due to our previously discussed program transitions to small business set aside contracts such as the VA CMOP and Head Start," but conveyed optimism about "improved visibility and... the midterm outlook." Parker reiterated the company's commitment to "expanding efficiencies and margins and improving overall returns as the year progresses and award decisions are made." He also highlighted the ongoing execution of debt reduction plans and the company's "well positioned" status for future growth. Kathryn M. Johnbull, Chief Financial Officer, stated, "We reported revenue of $68.9 million in the first quarter versus $90.8 million in the prior year period, reflecting contributions from expansion on existing contracts, offset by the impact of conversion of certain programs to small business set aside contracts as discussed in the past and certain government efficiency initiatives." Johnbull emphasized, "adjusted EBITDA margin improved sequentially to 9.5% for the quarter." Outlook Management expects that the improved federal bud...
JHVEPhoto/iStock Editorial via Getty Images Shares of Principal Financial Group ( PFG ) have been a solid performer over the past year, gaining about 14%, and the stock has recently rallied to a 52-week high. After mixed performance for some time, a more attractive valuation and ongoing capital returns have helped shares. That said, a relatively in-line Q4 sent shares lower in late trading Monday,...
JHVEPhoto/iStock Editorial via Getty Images Shares of Principal Financial Group ( PFG ) have been a solid performer over the past year, gaining about 14%, and the stock has recently rallied to a 52-week high. After mixed performance for some time, a more attractive valuation and ongoing capital returns have helped shares. That said, a relatively in-line Q4 sent shares lower in late trading Monday, suggesting much of the optimism may be priced in. I last covered shares in October , upgrading them to a “ B uy.” This was a timely change, with the stock adding 18% since then. With updated financials, a 2026 outlook, and shares above my $88-$90 price target, now is a good time to revisit PFG. Seeking Alpha In the company’s fourth quarter , Principal Financial Group earned $2.24 per share, which beat estimates by $0.02. Now, this excludes -$0.05 of significant variances; otherwise, adjusted EPS was $2.19. This variance was the underperformance of variable investment income (“VII”), or its alternative portfolio. The industry has struggled with weak VII returns given pressure from interest rates on real estate and private equity performance; I expect a similar level of underperformance in 2026. The fact EPS only beat when adding back this underperformance is why I would view Q4 as being a functionally in-line quarter. For the full year, PFG earned $8.55, up 12% from last year while converting 92% of earnings into free cash flow, better than its long-term 75-85% target. Insurance Results Were Solid Diving into segment results, Retirement and Solutions Income grew earnings 7% to $306 million, with operating margins expanded 130 bps to 39.7%, with about half of this growth due to less-bad alternative returns. Sales activity remains strong as the rate environment is still favorable. Transfer deposits grew by 35% to $12 billion. This was a record level; with long-term rates likely having peaked this cycle, I suspect sales have peaked. Still, the sales environment in 2026 should ...
John M Lund Photography Inc/DigitalVision via Getty Images Figma ( FIG ) shares jumped more than 10% by noon trading on Tuesday, erasing some of its year-to-date losses, as the creative design software company prepares to deliver its fourth quarter financial results next week. Before today's gains, Figma had plunged about 40% since the beginning of 2026. Shares of the company spiked from $33 to $1...
John M Lund Photography Inc/DigitalVision via Getty Images Figma ( FIG ) shares jumped more than 10% by noon trading on Tuesday, erasing some of its year-to-date losses, as the creative design software company prepares to deliver its fourth quarter financial results next week. Before today's gains, Figma had plunged about 40% since the beginning of 2026. Shares of the company spiked from $33 to $122 during its initial public offering in late July. However, it has steadily drifted downward since its dramatic IPO. The intense selloff has likely created a more attractive entry point for investors. The digital design company, whose most direct competitor is Adobe ( ADBE ), will release its fourth quarter 2025 results post-market on Wednesday, Feb. 18. A consensus estimate calls for adjusted earnings per share of $0.06 on revenue of $293.15M. Its revenue totaled $250M in the second quarter and $274M in the third quarter. "The current valuation, down sharply in recent months, has brought the shares to levels at which I can start to build a position at a valuation that I can live with," said Seeking Alpha analyst Bert Hochfield . "Figma is, I believe, the leading company in its space. It is offering a series of AI capabilities, and it can and is used in a collaborative process by both technical and non-technical users to create and then iterate the best possible graphic designs." He believes consensus estimates are conservative, and the company is in position to sustain growth and expand its addressable market due to AI-driven product launches. The software sector as a whole was mostly trending higher on Tuesday, with the iShares Expanded Tech-Software Sector ETF ( IGV ) up 1.4%. More on Figma, Inc. Figma: Leader In The Graphic Design Space Marked Down For Competitive Fears Figma: Insider Sales Are A Risk Figma: Comfortable On Sidelines; Waiting For Next Catalyst Figma gets an upgrade, Intuit sees rating cut as Wells Fargo highlights 2026 outlook for software stocks Salesf...
Draped in burnt-orange robes, two dozen Buddhist monks arrived in Washington on Tuesday on a 3,700km (2,300-mile) “Walk for Peace”, a self-described spiritual journey across nine states that has been cheered on by crowds of thousands. “I feel like in our country and in our world right now that you have to show your support for peace in every possible way you can,” said Bob Anderson, 74, of Glouc...
Draped in burnt-orange robes, two dozen Buddhist monks arrived in Washington on Tuesday on a 3,700km (2,300-mile) “Walk for Peace”, a self-described spiritual journey across nine states that has been cheered on by crowds of thousands. “I feel like in our country and in our world right now that you have to show your support for peace in every possible way you can,” said Bob Anderson, 74, of Gloucester County, Virginia, during a stop by the monks in Richmond on February 3. “And so this is a great way to do so. That’s why I’m here.” Advertisement The monks began their walk in Texas more than three months ago, at times braving frigid winter temperatures, sometimes with bare feet, to raise “awareness of peace, loving kindness, and compassion across America and the world”. Buddhist monks cross Chain Bridge over the Potomac River between Arlington, Virginia, and Washington on Tuesday. Photo: AFP The marchers continued on despite a powerful winter storm that spread a paralysing mix of heavy snow, sleet and freezing rain from the Ohio Valley and mid-South to New England, compounded by bitter, Arctic cold gripping much of the US.
It has been dubbed Bulgaria’s “Twin Peaks”: a grim saga involving the mysterious deaths of six people in the middle of the mountains that has gripped the eastern European country. Zahari Vaskov, the director of the national police general directorate, told a press conference on Monday that the deaths were “a case without comparison in our country”. Fittingly, perhaps, for an investigation that has...
It has been dubbed Bulgaria’s “Twin Peaks”: a grim saga involving the mysterious deaths of six people in the middle of the mountains that has gripped the eastern European country. Zahari Vaskov, the director of the national police general directorate, told a press conference on Monday that the deaths were “a case without comparison in our country”. Fittingly, perhaps, for an investigation that has been shrouded in sensationalised conspiracy, conflicting accounts and fevered speculation, Borislav Sarafov, the general prosecutor, gave his own verdict. “Life has given us more shocking details here than in the Twin Peaks series,” he told local media, alluding to the 1990s US television drama. The case began at the start of February, when three men aged 45, 49, and 51 were found dead in a the burned-out remains of a lodge near the Petrohan pass, a mountain pass that connects Sofia province with the northwestern Montana province. All three had gunshot wounds to the head, which forensic experts said were apparently self-inflicted, either point-blank or at close range. DNA traces detected on the firearms belonged only to the deceased men, they said. Then, on Sunday, the police discovered the bodies of three more people, two men aged 51 and 22 and a 15-year-old boy, in a campervan in the Okolchitsa Peak area, about 62 miles (100km) north of the capital, Sofia. The trio was tracked down by law enforcement as investigators suspected they were linked to the Petrohan pass deaths. View image in fullscreen Zahari Vaskov, the director of the national police general directorate, told a press conference on Monday the deaths were ‘a case without comparison in our country’. Photograph: Bulgarian Ministry of Interior Agence France-Presse reported that the prosecutors’ office said on Tuesday: “Based on the autopsy data for the [latter] three bodies, it appears that there were probably two murders committed successively and one suicide.” According to the police, five of the deceased were ...
Alphabet sold billions of dollars in sterling and Swiss franc-denominated bonds today, widening its funding avenues as the Google parent plans as much as $185 billion in capital expenditures this year. For the £5.5 billion ($7.5 billion) sterling portion, the company offered several tenors including an ultra-rare issue of a 100-year note. The Swiss offering raised 3.1 billion Swiss francs ($4.1 bi...
Alphabet sold billions of dollars in sterling and Swiss franc-denominated bonds today, widening its funding avenues as the Google parent plans as much as $185 billion in capital expenditures this year. For the £5.5 billion ($7.5 billion) sterling portion, the company offered several tenors including an ultra-rare issue of a 100-year note. The Swiss offering raised 3.1 billion Swiss francs ($4.1 billion) across various maturities. Both sales set records for corporate bonds in the respective markets. Alphabet’s sterling and franc bond offerings follow a $20 billion dollar debt sale yesterday that drew the strongest-ever orders for a corporate bond offering. The company plans to double its capital expenditures this year as the artificial-intelligence race heats up among tech giants. Alphabet isn’t alone in relying on bond sales to help fund its AI ambitions. Morgan Stanley expects borrowing by the massive cloud-computing companies known as hyperscalers to reach $400 billion this year, up from $165 billion in 2025. — What You Need to Know Today Vladimir Putin is likely buying time in Ukraine peace talks and has no intention to end the war, according to assessments from Poland and Estonia. Estonia’s foreign intelligence said Russia is using negotiations as a “tool for manipulation,” while a Polish official said the Kremlin is “playing games.” The assessments cast a shadow over US President Donald Trump’s efforts to end the four-year war. There’s a potential candidate emerging to replace Turkish President Recep Tayyip Erdogan — his younger son, Bilal . The state-run news service now features regular reports on Bilal, and he’s joined his father on more foreign trips during this presidential term. Bilal’s entry into politics are under considerations with a few towards him potentially becoming leader, we’re told. The subject succession has long been taboo but the transition of power has become a frequent discussion topic behind closed doors among the governing AK Party’s ran...
winhorse Coca-Cola ( KO ) seemingly turned a corner by reporting unit case volume of 1% globally and in North America, reversing several quarters of flat or declining sales. However, shares fell off as investors latched on to the below-consensus organic sales forecast. On Seeking Alpha, analyst Agar Capital noted that the best part of Coca-Cola's ( KO ) results is that it did exactly what Coca-Col...
winhorse Coca-Cola ( KO ) seemingly turned a corner by reporting unit case volume of 1% globally and in North America, reversing several quarters of flat or declining sales. However, shares fell off as investors latched on to the below-consensus organic sales forecast. On Seeking Alpha, analyst Agar Capital noted that the best part of Coca-Cola's ( KO ) results is that it did exactly what Coca-Cola ( KO ) is supposed to do since the beverage giant protected its margin, increased market share, and showed that it can continue to grow even during a brief period of decline in consumer sentiment. Agar Capital sees the share price decline as a classic drop due to psychology rather than fundamentals. "As an analyst, though, what really matters to me is that despite all of this, the underlying quality of the business remains solid; in fact, the mix continues to improve (zero sugar is growing very fast, so it's not just pricing), and the company continues to gain more shelf space, and there is no evidence that operational discipline is in trouble," highlighted Agar Capital. Regarding the Body Armor issue, Agar Caital said it “dirties” the numbers and raises concerns again about the company's execution in specific areas but does nothing to alter the fact that Coca-Cola's ( KO ) core remains a well-known and respected brand globally, with tremendous scale and the ability to absorb a non-trivial macroeconomic downturn. BNP Paribas was also positive on the long-term thesis on Coca-Cola ( KO ), pointing to the best-in-class portfolio, market share momentum, and improved EPS delivery. Analyst Kevin Grundy also called Coca-Cola ( KO ) an emerging capital return story and said valuation is attractive. Shares of Coca-Cola ( KO ) were down 2.3% in early afternoon trading. More on Coca-Cola The Coca-Cola Company 2025 Q4 - Results - Earnings Call Presentation Coca-Cola Q4 Preview: No Hype, Just Quality The Coca-Cola Company: Slowing Spending By Lower-Income Individuals Is A Significant ...
This article first appeared on GuruFocus. Intel Corp. (INTC, Financials) is reportedly preparing to invest at least $100 million in SambaNova Systems, a move analysts say could strengthen its artificial intelligence roadmap as competition intensifies. Wedbush Securities analyst Matt Bryson said the investment should help Intel accelerate its AI push, noting that SambaNova's value has risen as the ...
This article first appeared on GuruFocus. Intel Corp. (INTC, Financials) is reportedly preparing to invest at least $100 million in SambaNova Systems, a move analysts say could strengthen its artificial intelligence roadmap as competition intensifies. Wedbush Securities analyst Matt Bryson said the investment should help Intel accelerate its AI push, noting that SambaNova's value has risen as the market for AI chip design talent tightens. With AI demand continuing to lift and custom ASIC efforts proving difficult, it makes sense that SambaNova's perceived value is increasing, Bryson wrote in a client note. SambaNova, which builds hardware and software for inference computing, counts Intel CEO Lip Bu-Tan as its executive chairman. Intel Capital has previously invested in the company, while SoftBank Group Corp. another Intel investor also holds a stake in SambaNova. The potential investment follows earlier talks about a full acquisition that stalled late last year, after both parties reportedly signed a term sheet in December. SambaNova is now exploring a $500 million funding round. Wedbush said Intel's move underscores how the chipmaker is adapting its strategy as rivals like Nvidia Corp. expand AI partnerships including a $20 billion non exclusive licensing deal between Nvidia and Groq Inc. announced in December. Intel and SambaNova have not yet commented on the reported investment plans.
Intel Corp. (INTC, Financials) is reportedly preparing to invest at least $100 million in SambaNova Systems, a move analysts say could strengthen its artificial intelligence roadmap as competition intensifies. Wedbush Securities analyst Matt Bryson said the investment should help Intel accelerate its AI push, noting that SambaNova's value has risen as the market for AI chip design talent tightens....
Intel Corp. (INTC, Financials) is reportedly preparing to invest at least $100 million in SambaNova Systems, a move analysts say could strengthen its artificial intelligence roadmap as competition intensifies. Wedbush Securities analyst Matt Bryson said the investment should help Intel accelerate its AI push, noting that SambaNova's value has risen as the market for AI chip design talent tightens. With AI demand continuing to lift and custom ASIC efforts proving difficult, it makes sense that SambaNova's perceived value is increasing, Bryson wrote in a client note. SambaNova, which builds hardware and software for inference computing, counts Intel CEO Lip Bu-Tan as its executive chairman. Intel Capital has previously invested in the company, while SoftBank Group Corp. another Intel investor also holds a stake in SambaNova. The potential investment follows earlier talks about a full acquisition that stalled late last year, after both parties reportedly signed a term sheet in December. SambaNova is now exploring a $500 million funding round. Wedbush said Intel's move underscores how the chipmaker is adapting its strategy as rivals like Nvidia Corp. expand AI partnerships including a $20 billion non exclusive licensing deal between Nvidia and Groq Inc. announced in December. Intel and SambaNova have not yet commented on the reported investment plans.
wildpixel/iStock via Getty Images Bitcoin’s February selloff reflects orderly deleveraging rather than capitulation. Despite a roughly 20% YTD decline, leverage has normalized and volatility remains below prior bear-market levels. Please note that VanEck may have a position(s) in the digital asset(s) described below. Note: This commentary was written on February 5 , when Bitcoin was trading in the...
wildpixel/iStock via Getty Images Bitcoin’s February selloff reflects orderly deleveraging rather than capitulation. Despite a roughly 20% YTD decline, leverage has normalized and volatility remains below prior bear-market levels. Please note that VanEck may have a position(s) in the digital asset(s) described below. Note: This commentary was written on February 5 , when Bitcoin was trading in the mid- $60,000s . Deleveraging is Driving the Bitcoin Drawdown Bitcoin has experienced a sharp drawdown over the past week, with prices falling roughly 19% and currently trading in the mid- $60,000s . The move has been driven by a rapid unwind of leverage rather than a single liquidation shock. BTC futures open interest has fallen from roughly $61 billion one week ago to about $49 billion today, a decline of more than 20% in notional exposure in just a few sessions. More broadly, futures open interest peaked above $90 billion in early October ahead of the 10/10 inflection, meaning the market has now shed over 45% of peak leverage. Bitcoin Price Movement Bitcoin’s price has declined by a similar magnitude over the same period. This symmetry cuts both ways. On one hand, it suggests leverage has been reduced alongside price rather than driving a disorderly unwind. On the other hand, it implies the market has not yet experienced a classic capitulation event where price overshoots leverage reduction. Over the past week, crypto markets experienced approximately $3 to $4 billion in total liquidations, with an estimated $2 to $2.5 billion concentrated in Bitcoin futures, indicating meaningful but not climactic forced selling. A Tail-Event Move in Terms of Speed While the magnitude of the drawdown has been orderly relative to leverage reduction, the speed of the move has been extreme. On February 5 , Bitcoin registered a -6.05σ move on the rate-of-change Z-score, placing it among the fastest single-day crashes in crypto history. In simple terms, σ measures how unusual a move is, and ...
A 15-year-old boy has been sentenced to at least 13 years in custody for the murder of Leo Ross, 12, in Birmingham last year. Leo was stabbed in the stomach as he made his way home from his school in Yardley Wood on 21 January 2025 and later died in hospital. The 15-year-old, who cannot be named for legal reasons, pleaded guilty to the murder last month. Delivering the sentence at Birmingham crown...
A 15-year-old boy has been sentenced to at least 13 years in custody for the murder of Leo Ross, 12, in Birmingham last year. Leo was stabbed in the stomach as he made his way home from his school in Yardley Wood on 21 January 2025 and later died in hospital. The 15-year-old, who cannot be named for legal reasons, pleaded guilty to the murder last month. Delivering the sentence at Birmingham crown court on Tuesday, Justice Choudhury KC said the 15-year-old had been “engaged in a campaign of violence against several people” and Leo’s family were enduring a “living hell” now. “Leo was an innocent schoolboy, who was just on his way to meet a friend in the park … you stabbed Leo with a knife and left him to die. Leo was only 12 years old,” Choudhury said. “The devastation you have caused to so many lives is hard to comprehend and for those who knew and loved Leo, almost too great to bare. You have robbed Leo of his life and his future.” The judge told the court the 15-year-old would serve a minimum term of 13 years in prison and would not be released unless a Parole Board found it was safe to do so. Leo’s mother, Rachel Fisher, read out a statement in court and described her son as “the most beautiful little soul”. “His life should have been just beginning but now he will never get to have his first job, his first car, get married or have his own children,” she said. “I will never see my lovely boy get married or have a family of his own. I have lost everything I did have and would have with him.” His father spoke directly to his son’s attacker and said: “Look up man ... You killed my son.” He added: “Leo was loved by everyone. Everyone said how special he was. He was the kindest little boy you could ever hope to meet.” Officers believed Leo had no connection to the 15-year-old and he was the victim of a random attack. Defending the 15-year-old, Alistair Webster said the boy has “formidable mental health problems” and a “repeated history of hearing voices”. In mitigatio...
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Alibaba Group Holding (NYSE:BABA) temporarily pauses shopping coupons on its Qwen AI chatbot after heavy user demand. The company introduces its RynnBrain AI foundation model aimed at real world applications. Alibaba rolls out AI powered retail experiences around the Olympics, br...
Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. Alibaba Group Holding (NYSE:BABA) temporarily pauses shopping coupons on its Qwen AI chatbot after heavy user demand. The company introduces its RynnBrain AI foundation model aimed at real world applications. Alibaba rolls out AI powered retail experiences around the Olympics, bringing its technology into physical shopping settings. For you as an investor, these updates show how Alibaba is pushing its consumer internet and cloud capabilities into everyday use cases. Qwen ties AI directly into shopping, RynnBrain sits behind more complex applications, and the Olympic retail trials link AI to offline traffic. Together, they give a clearer picture of how NYSE:BABA is using its large ecosystem to test and scale new products. Looking ahead, the key questions are how often users return to these AI services, how merchants and brands engage with them, and what that might mean for Alibaba's broader commerce and cloud businesses. The rest of this article breaks down each development so you can judge how material this AI progress is for your own view on the company. Stay updated on the most important news stories for Alibaba Group Holding by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Alibaba Group Holding. NYSE:BABA Earnings & Revenue Growth as at Feb 2026 How Alibaba Group Holding stacks up against its biggest competitors Quick Assessment ✅ Price vs Analyst Target : At US$163, the share price sits about 17.7% below the US$198.06 analyst target. ✅ Simply Wall St Valuation : The shares are described as trading 38.6% below the estimated fair value. ✅ Recent Momentum: The 30 day return is about 8.0%, which is a positive short term move. Check out Simply Wall St's in depth valuation analysis for Alibaba Group Holding. Key Considerations 📊 The heavy Qwen coupon demand, new RynnBrain model, and Oly...
Jayud Global Logistics Ltd SHENZHEN, China, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Jayud Global Logistics Limited (NASDAQ: JYD) ("Jayud" or the "Company"), a leading end-to-end supply chain solutions provider based in Shenzhen specializing in cross-border logistics, today announced that it has signed a three-year cooperation agreement (the “Agreement”) with Guanghong Electronics, a wholly-owned subsidi...
Jayud Global Logistics Ltd SHENZHEN, China, Feb. 10, 2026 (GLOBE NEWSWIRE) -- Jayud Global Logistics Limited (NASDAQ: JYD) ("Jayud" or the "Company"), a leading end-to-end supply chain solutions provider based in Shenzhen specializing in cross-border logistics, today announced that it has signed a three-year cooperation agreement (the “Agreement”) with Guanghong Electronics, a wholly-owned subsidiary of DBG Technology Co., Ltd. (300735.SZ). The Agreement focuses on providing comprehensive logistics and transportation services, including land and air freight from China to Hong Kong, as well as customs-related processes. This collaboration leverages Jayud's extensive logistics network and expertise in cross-border trade to support DBG Technology's expanding global operations. DBG, a prominent Electronic Manufacturing Services (EMS) provider with 2024 revenue of 6.88 billion RMB (approximately US$982 million1), serves top-tier brands such as Huawei, Xiaomi, and Honor, as well as major automotive leaders like BMW and Volkswagen through Tier-1 suppliers. The Agreement is expected to enhance the efficiency and reliability of Guanghong Electronics’ supply chainas it expands its footprint in Hong Kong, India, and Vietnam, where Jayud provides significant logistics support. Transportation plans from China to Hong Kong by land and air, as well as full customs processes, will be part of the services offered which, in turn, is expected to enable a smoother and quicker movement of goods. “This Agreement with Guanghong Electronics demonstrates our commitment to delivering high-quality, end-to-end supply chain solutions that support our clients’ global growth," said Xiaogang Geng, Chairman and Chief Executive Officer of Jayud. “By combining our cutting-edge logistics services with Guanghong Electronics’ cutting-edge manufacturing, we intend to create a powerful synergy that will make the consumer electronics and automotive supply chains more efficient and resilient. We are excited...
Gilnature Rising capital expenditure across the Magnificent 7 tech stocks—AppleApple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet ( GOOGL ), Meta Platforms ( META ), Tesla ( TSLA ), and Nvidia ( NVDA )—signals increased risk for investors and may serve as the catalyst for these dominant companies to finally underperform the broader market, according to Mark Hawtin, Head of Global Equiti...
Gilnature Rising capital expenditure across the Magnificent 7 tech stocks—AppleApple ( AAPL ), Microsoft ( MSFT ), Amazon ( AMZN ), Alphabet ( GOOGL ), Meta Platforms ( META ), Tesla ( TSLA ), and Nvidia ( NVDA )—signals increased risk for investors and may serve as the catalyst for these dominant companies to finally underperform the broader market, according to Mark Hawtin, Head of Global Equities at Liontrust Asset Management. In an interview with CNBC, Hawtin pointed to aggressive spending plans announced during recent earnings reports as the primary concern for shareholders seeking reliable returns. Amazon ( AMZN ) exemplifies the challenge facing these mega-cap companies. Hawtin noted that the giant e-retailer was expected to generate $60B in cash flow this year, but with capex increasing by roughly the same amount, “now they’ll generate no free cash flow after CapEx.” This trade-off between immediate returns and long-term infrastructure investment creates a difficult proposition for investors weighing certainty against potential future gains. The increased capital intensity of these businesses fundamentally changes how they should be valued, Hawtin argued. “We don’t know what the outcome of that capital expenditure is going to be, and therefore, we should pay less for them,” he said. Investors inherently dislike unpredictability, and the current spending trajectory creates a far more uncertain picture of future performance. Compounding the concern is a disconnect between AI spending and AI revenue generation. Hawtin observed that the amount of revenue being generated by artificial intelligence at the moment does not stack up relative to the billions being spent on infrastructure. This gap between investment and return adds another layer of uncertainty for investors trying to assess these companies’ futures. However, Hawtin identified one critical factor that could separate winners from losers in the AI race: proprietary data. “The ownership of the data is goi...
This article first appeared on GuruFocus. Nvidia (NASDAQ:NVDA) shares slipped on Tuesday, as investor concerns around potential tariffs on imported semiconductors showed signs of easing. The stock was down about 1% in morning trade after rising more than 2% in the previous session. Nvidia has been hovering near its highest level so far this year, reflecting continued optimism around demand for art...
This article first appeared on GuruFocus. Nvidia (NASDAQ:NVDA) shares slipped on Tuesday, as investor concerns around potential tariffs on imported semiconductors showed signs of easing. The stock was down about 1% in morning trade after rising more than 2% in the previous session. Nvidia has been hovering near its highest level so far this year, reflecting continued optimism around demand for artificial intelligence chips. Confidence in the AI supply chain has been supported by results from Taiwan Semiconductor Manufacturing (TSM), Nvidia's key manufacturing partner. TSM said January revenue jumped 37% from a year earlier, pointing to strong orders for advanced chips used in data centers and AI workloads. Broader AI demand signals also appeared positive. OpenAI, a major buyer of high-performance processors, is seeing monthly growth of more than 10%, CNBC reported, citing an internal message from Chief Executive Sam Altman. The growth could translate into higher future spending on AI infrastructure. Nvidia may also benefit from possible tariff relief. The Financial Times reported that large U.S. technology companies could receive exemptions from planned semiconductor levies, linked to TSMC's pledge to invest $165 billion in U.S. manufacturing. Elsewhere in the sector, Advanced Micro Devices (AMD) edged higher, while Broadcom (AVGO) also posted modest gains.