Latest news with #MatthewSwanson
Yahoo
3 days ago
- Business
- Yahoo
RBC Capital Maintains a Buy on Zeta Global Holdings (ZETA) With a $25 PT
Zeta Global Holdings Corp. (NYSE:ZETA) is one of the top NYSE stocks with the highest upside potential. In a report released on July 30, Matthew Swanson from RBC Capital maintained a Buy rating on Zeta Global Holdings Corp. (NYSE:ZETA) with a price target of $25.00. A marketing manager looking at the data dashboard of a marketing automation software showing successful campaign results. Zeta Global Holdings Corp. (NYSE:ZETA) reported a strong fiscal Q1 2025, with revenues for the quarter reaching $264 million, reflecting a growth of 36% year-over-year. The company grew its scaled customer count to 548, an increase of 19% year-over-year. The super scaled customer count also rose to 159, up 10% year-over-year. Zeta Global Holdings Corp. (NYSE:ZETA) generated $35 million in net c ash provided by operating activities, reflecting a 41% year-over-year growth. Free cash flow also rose a notable 87% year-over-year to $28 million. Zeta Global Holdings Corp. (NYSE:ZETA) is a marketing technology software company that provides marketing automation software and consumer intelligence to enterprises. The company allows customers to connect, target, and engage consumers through marketing software across all addressable channels, including social media, email, web chat, connected TV, and others. While we acknowledge the potential of ZETA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
25-07-2025
- Business
- Business Insider
International Business Machines (IBM): New Buy Recommendation for This Technology Giant
In a report released yesterday, Matthew Swanson from RBC Capital maintained a Buy rating on International Business Machines, with a price target of $315.00. The company's shares closed yesterday at $260.51. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Swanson is a 3-star analyst with an average return of 2.4% and a 46.71% success rate. Swanson covers the Technology sector, focusing on stocks such as International Business Machines, DoubleVerify Holdings, and Zeta Global Holdings Corp. In addition to RBC Capital, International Business Machines also received a Buy from Bank of America Securities's Wamsi Mohan in a report issued yesterday. However, on the same day, BMO Capital maintained a Hold rating on International Business Machines (NYSE: IBM). Based on International Business Machines' latest earnings release for the quarter ending March 31, the company reported a quarterly revenue of $14.54 billion and a net profit of $1.06 billion. In comparison, last year the company earned a revenue of $14.46 billion and had a net profit of $1.61 billion
Yahoo
10-06-2025
- Business
- Yahoo
Here's why IBM could be a member of the 'Magnificent Seven'
IBM (IBM) is trading near all-time highs. The company has been a technology leader for decades, but doesn't get the same sort of flashy headlines that companies like Alphabet (GOOG, GOOGL), Apple (AAPL), and Nvidia (NVDA) get. Should that change? In the video above, RBC Capital Markets director Matthew Swanson explains they the stock has been moving higher and how it could be a contender to join the "Magnificent Seven." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. IBM, obviously a tech giant, but it's not in the so-called magnificent seven, right? Yet here it is, hitting a record. So, I guess just high level, give us kind of what's going on here that's been propelling that recent growth. Yeah, and thank you guys so much for having me. I think with IBM, it really started off as a free cash flow story when we look back about five, six quarters ago going into Q4 when they had the big beat. That was kind of the start of the rally. But you mentioned it not being part of the magnificent seven. I, I think they're really starting to make their name, being able to enable the magnificent seven, right? They've talked about the core pillars being hybrid cloud and gen AI. But a lot about that is being in the infrastructure layer. Really, how do we make all of this work? And they're uniquely positioned to do that by leveraging both infrastructure and consulting with that growing software business that they're starting to get some more recognition for. And of course, um, when they last reported earnings, the stock actually initially fell because the numbers weren't quite strong enough to meet some lofty expectations. And since then, obviously, we have seen a rebound. When you look forward at what growth is expected, you know, you look at revenue growth, um, in the out years, it's expected it will show kind of low to mid single digit revenue growth, which isn't huge. So is that enough to continue to propel the stock higher? Yeah, well, maybe touching on the quarter real quick. You know, a lot of times we try to break down these complicated businesses into some of these key metrics. And I think it was Gen AI bookings, free cash flow, and then Red Hat, which is kind of that center of gravity for their software business. And, you know, two of the three were below at least kind of consensus expectations. Free cash flow is the outlier to the positive side. So we look to the future, I think a lot of it, you know, they peg that 5% growth rate. That's kind of what they're looking for. But it's going to be just as much about how they get it than if they get it. So software growth definitely is the number one thing that investors are focused on. You follow that with the Gen AI side of consulting. And then infrastructure obviously going to be much more refresh dependent. So a lot of this valuation and the current sentiment is really coming down to just how does that software business performs? Um, and to dig into the Gen AI piece of it a little more, obviously on overall AI and sort of machine learning, IBM had Watson and sort of was a pioneer there. Where do they play in that world, not from an infrastructure perspective, but that actual product, right? What's the role that it plays now in terms of the company's growth? Yeah. Yeah, and I think one thing to always to point out is from a book of business standpoint, we're still at about 80% consulting, right, for Gen AI, which means that they're not only helping people deploy all this, but they're seeing all the trends, seeing all the choke points. And they're really starting to talk a lot more about this idea of client zero, which is about how IBM themselves have saved $3.5 billion in run rate costs at the end of last year by deploying Gen AI. So if you talk about what are they really doing from a product standpoint, their own series of models, the granite models would be what we would call small language model. It's open source. You can move from, um, openshift AI to Watson XAI once you're fully deployed and actually build up your own IP on those smaller models. They're really focused around the enterprise cost efficiency of running those models. And then the other side of that, I know you said not in the infrastructure side, but we got to touch on it a little bit is these things like Watson X governance and Watson X orchestrate. And those two things are really about managing the basically practical, uh, implications of having Gen AI run in your environment. How does the data get accessed, how does it not get access for areas that you don't want it going? And then how do you keep track of all these different models and how they're interacting with each other? Matt, I also want to ask you about quantum because you wrote about this in your latest note, uh, saying that IBM could be a stealth quantum play. Now, quantum is confusing, right? Because you hear on the one hand that we're sort of years away from it having practical applications, but then you see it, you know, that the some companies like IBM are already making money from it. So help help explain that for our viewers. Yeah, and I think one of the reasons IBM started talking about is that it is starting to come up so much more with some of these other companies coming up in the space. And it's also coming up more for investors talking to people like me. And so we addressed it, um, at IBM Think. And the way they kind of pointed it out is they have 75 quantum computers, 13 of them are currently running at production. And they feel like this will be a real part of their business by the end of the decade. And I think that by the end of the decade was the part that really surprised a lot of people in the room because like you mentioned, quantum has felt like it's been a story for quite some time, but it's never felt really tangibly real. And I think we're starting to get to the place that the costs are coming down to a point where we can have commercial applications beyond some of these early adopters like biotech. Um, finally, Matt, I'm curious what you think the biggest risk is or risks, uh, for the stock going forward that might disrupt this trajectory it's been on. Yeah. Yeah, you know, when you talk about risks from a stock specific perspective, it's kind of when you look at how the stock came up too, right? When you have 62 billion in revenue, it's hard to really get that big of a ship moving fast in one direction in terms of accelerating growth to have numbers go up that way. But the multiple expansion comes around sentiment. And sentiment right now is really improving around those core use cases of Gen AI and that core use case around hybrid cloud. So I, I think if we saw a change in their competitive positioning, particularly as it pertains to Gen AI, where I think people see this as a safer way to play the underlying part and not have to make a bet on who's going to win at the actual large language model level. I think that would be where you could see the most risk from a rerating happening. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-06-2025
- Business
- Yahoo
Here's why IBM could be a member of the 'Magnificent Seven'
IBM (IBM) is trading near all-time highs. The company has been a technology leader for decades, but doesn't get the same sort of flashy headlines that companies like Alphabet (GOOG, GOOGL), Apple (AAPL), and Nvidia (NVDA) get. Should that change? In the video above, RBC Capital Markets director Matthew Swanson explains they the stock has been moving higher and how it could be a contender to join the "Magnificent Seven." To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Yahoo
13-03-2025
- Business
- Yahoo
Adobe Gives Tepid Revenue Outlook With Focus on AI Tools
(Bloomberg) -- Adobe Inc. gave a disappointing outlook for revenue growth in the current quarter despite a recent focus on monetizing its new generative artificial intelligence features. Trump DEI Purge Hits Affordable Housing Groups NYC Congestion Pricing Toll Gains Support Among City Residents Electric Construction Equipment Promises a Quiet Revolution Open Philanthropy Launches $120 Million Fund To Support YIMBY Reforms Inside the 'Not Architecture' of High Line Designers Diller Scofidio + Renfro Sales in the period ending in May will be $5.77 billion to $5.82 billion, the company said Wednesday in a statement. Analysts, on average, estimated $5.8 billion. Profit, excluding some items, will be $4.95 a share to $5 a share, compared with the average projection of $5. Adobe, the top maker of software for creative professionals, has been incorporating its AI model, Firefly, into apps like Photoshop and Premiere. Investors have debated whether generative AI will make the products more lucrative and indispensable, or fuel the rise of AI-native competitors. During the quarter, Adobe announced it would charge about 50 cents per AI-generated video and separately announced price increases for some of its applications. Shares declined about 3% in extended trading after closing at $438.60 in New York. Adobe's stock has slipped 24% over the past 12 months. Investor sentiment has primarily been driven by views of Adobe's AI, 'which has become increasingly interconnected with concerns around competition,' wrote Matthew Swanson, an analyst at RBC Capital Markets. Adobe is scheduled to host an event for investors next week in which the company is expected to provide additional long-range financial information and more details of its AI strategy. Fiscal first-quarter revenue increased 10% to $5.71 billion, topping the $5.66 billion anticipated by Wall Street. Remaining performance obligations, a metric of future sales, were $19.7 billion, compared with analysts' average estimate of $19.8 billion, according to data compiled by Bloomberg. The digital media unit, which includes Adobe's flagship creative and document-processing software, posted a 11% increase in sales to $4.23 billion. Revenue from the unit that includes marketing and analytics software rose 10% to $1.41 billion. 'Adobe's success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers,' Chief Executive Officer Shantanu Narayen said in the statement. 'Adobe is well-positioned to capitalize on the acceleration of the creative economy driven by AI and we are reaffirming our FY2025 financial targets.' In December, gave a fiscal year outlook for revenue of $23.3 billion to $23.6 billion and adjusted profit of $20.20 a share to $20.50 a share. The company also said it would change the way it reports subscription revenue, and would now announce the data in two groups: 'business professionals and consumers' and 'creative and marketing professionals.' (Updates with unit revenue in the seventh paragraph.) How America Got Hooked on H Mart How Natural Gas Became America's Most Important Export Disney's Parks Chief Sees Fortnite as Key to Its Future Germany Is Suffering an Identity Crisis 80 Years in the Making The Mysterious Billionaire Behind the World's Most Popular Vapes ©2025 Bloomberg L.P. Sign in to access your portfolio
