Latest news with #ThomasFuller
Forbes
3 days ago
- Business
- Forbes
What's Behind The 400% Rise In IONQ Stock?
CANADA - 2025/05/09: In this photo illustration, the IonQ logo is seen displayed on a smartphone ... More screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) IonQ Inc. (NYSE: IONQ), a company specializing in quantum computing, has witnessed its stock price rise dramatically by 400% over the past twelve months. This surge demonstrates an increasing interest in quantum computing, a domain that has the capacity to transform multiple industries. Unlike traditional computers that operate on binary bits, quantum computers utilize qubits that can exist in various states at the same time. This core distinction enables them to conduct complex calculations and manage extensive data by examining numerous potential outcomes simultaneously. The scope of quantum computing applications is wide-ranging, encompassing everything from financial modeling and drug discovery to materials science. Nevertheless, despite its potential, quantum computing encounters a major obstacle: the frequency of errors increases as systems become more intricate with higher qubit counts. This characteristic renders the technology inherently unstable, which is typical for emerging advanced technologies. Nonetheless, substantial progress is being made. Firms like Google, IBM, and IonQ have shown the capability to create scalable quantum computers with dozens of qubits, a pivotal advancement toward practical uses. IBM is at the forefront of this field, featuring its 1,121-qubit Condor processor and plans to develop systems with 100,000 qubits by 2033. IonQ has also introduced new quantum systems, such as Forte, which provides software configurability and versatility for researchers. However, if you are seeking potential gains with a more stable investment than an individual stock, you might want to explore the High Quality portfolio, which has surpassed the S&P and achieved >91% returns since its establishment. Additionally, see – Nvidia Stock's 1 Big Risk IonQ provides a variety of quantum computing solutions, including high-performance quantum computers and networking systems. These are available through cloud platforms and direct agreements, such as Amazon Braket, Azure Quantum, and IonQ's own Quantum Cloud. IonQ's unique method employs trapped ions as quantum bits. They specifically utilize ionized ytterbium atoms, which are ionized by removing an electron using lasers in a technique also known as 'trapping.' These ions are held steady by a specialized chip. IonQ's product lineup features IonQ Forte – a 36-qubit quantum computer tailored for commercial and research purposes. An enterprise edition is also offered. Additionally, they provide IonQ Aria: – a 25-qubit quantum computer available through the cloud. The company plans to introduce Tempo later this year, aimed at large enterprises and governmental bodies, featuring 99.9% fidelity. Recently, IonQ's management drew comparisons between their enterprise and Nvidia within the quantum computing landscape, which has further fueled investor enthusiasm. While quantum computing holds immense potential, it is still in a developmental phase and is not yet prepared for widespread practical usage. IonQ's revenue of $43 million over the past twelve months is relatively modest, and the company reported an operating loss of $255 million during that same timeframe. IonQ's stock is particularly vulnerable to negative market conditions, exhibiting significantly greater volatility than the overall market. For example, amid the inflation shock of 2022, IonQ's value dropped by 90%, while the S&P 500 recorded a peak-to-trough decline of 25.4%. Similarly, during the market correction induced by the COVID-19 pandemic, IonQ saw a 51% decrease in value from its peak, contrasting sharply with the benchmark index's 34% decline. This trend underscores the substantial risk of IonQ's stock declining in unfavorable market circumstances. Like many stocks in the quantum computing sector, IONQ represents a high-risk, high-reward investment opportunity. Key elements affecting its direction include ongoing technological advancements and cost management. IonQ could potentially sell many quantum computers in the upcoming years, which might contribute to further increases in its stock price. For investors, backing IonQ equates to supporting the future possibilities of quantum computing and IonQ's role in that future. The company stands out as one of the few providing high-fidelity quantum computing through platforms like Amazon Braket and has significant clients including Hyundai, Airbus, and Dow. As technology progresses, we can anticipate enhanced precision from a wider array of firms in the quantum computing sphere. Reflecting on its previous performance, IONQ stock has exhibited considerable volatility when juxtaposed with the broader markets. The stock returns were 55% in 2021, -79% in 2022, 259% in 2023, and 237% in 2024. In contrast, the Trefis High Quality (HQ) Portfolio, comprising 30 stocks, has displayed much less volatility and has comfortably outperformed the S&P 500 over the last four years. What accounts for this? On average, HQ Portfolio stocks yielded superior returns with lower risk compared to the benchmark index, providing a less tumultuous investment experience, as shown in HQ Portfolio performance metrics.
Forbes
5 days ago
- Business
- Forbes
What's Next For OKTA Stock?
CANADA - 2025/01/31: In this photo illustration, the Okta, Inc. logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Okta (NASDAQ:OKTA), a leading cloud-based identity and access management provider, experienced a significant stock decline of 13% in after-hours trading on Tuesday, May 27, following the release of its fiscal 2026 first-quarter financial results (fiscal ends in January). The company's performance exceeded the Wall Street expectations in both earnings and revenue but it was the guidance that didn't sit well with the investors. For the quarter, Okta reported earnings of $0.86 per share on revenue of $688 million, surpassing analyst predictions of $0.77 per share and $680 million in sales. As of May 27, OKTA stock was up nearly 60% year-to-date, significantly outperforming the broader NASDAQ index, down 0.4%. The company's continued growth in subscription services has kept investors optimistic. Now investors seeking consistent returns might consider exploring diversified investment options like the Trefis High-Quality portfolio, which has demonstrated impressive performance, generating over 91% returns since its inception. In the first quarter, Okta demonstrated robust financial performance with its revenue reaching $688 million, representing a 12% year-over-year increase, primarily fueled by growing subscription services. The company's forward-looking indicator, Remaining Performance Obligations (RPO), showcased strong potential by expanding 21% year-over-year to $4.1 billion. Beyond top-line growth, Okta also made significant strides in operational efficiency. The company's adjusted operating margin improved substantially, widening by 500 basis points to 27% in Q1. This combination of revenue expansion and margin enhancement translated into a 32% increase in earnings per share, which reached $0.86 for the quarter. For fiscal 2026, Okta anticipates earnings of $3.23 to $3.28 per share on roughly $2.85 billion in sales. The company has now taken into account the potential risks related to the uncertain economic environment in its outlook. Okta's stock, currently trading at approximately $110 per share (after market hours), is valued at about 8 times its trailing revenues. This is a slight increase from its three-year average price-to-sales (P/S) ratio of around 7x. While the recent pullback in stock might worry investors, several fundamental factors suggest that further appreciation is likely. In fact, we think that the recent 13% pullback in the stock post its Q1 announcement appears overdone. The company's robust performance indicators—including a strong revenue backlog, improving profitability, and double-digit subscription revenue growth—justify a potential upward revision of its valuation multiple. After the recent decline, the current valuation seems to offer the potential for additional growth. Okta's underlying business fundamentals continue to demonstrate resilience and strategic momentum in the competitive cloud-based identity management market. Surely, there are risks to consider. OKTA stock has a history of weak downturn resilience, having fallen 84% during the 2022 inflation shock market downturn, which was significantly worse than the S&P 500's peak-to-trough decline of 25.4% in the same period. In fact, there always remains a meaningful risk when investing in a single, or just a handful of stocks. Consider Trefis High Quality (HQ) Portfolio which, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride as evident in HQ Portfolio performance metrics.
CNET
20-05-2025
- CNET
Gemini and Other AI are Searching Our Security Videos: Here's What You Should Know
Google's Gemini AI has unleashed a new era for home security, one where algorithms search through our uploaded videos, label them and use that data to answer complex questions. Other AI from Arlo, Amazon Alexa, Siri and many more companies are also adding these search functions for our home security cameras and similar devices. That's useful, but it does come with some caveats. When we asked Tete Xiao, CEO and co-founder of startup Prompt AI, about how these features can be used, he replied, "Home AI could enable language-based notifications and conversations about what's happening at home in real-time. You can get insights such as which delivery service came by, whether the dog was fed and if suspicious activity was detected around your house. You could even ask what your kids did after school or if specific people it recognizes stopped by." As our CNET survey confirmed, people have worries about AI and privacy, and new features like these are bound to raise questions. Let's go over everything you should know about this new technology. Read more: I Thought I'd Hate AI in Home Security. I Couldn't Have Been More Wrong What's special about an AI video search? Ring has a video search option next to its camera view. Ring Home security cameras are triggered by motion detection and object recognition. While there are ways to cut down on the triggers and associated alerts you get, cameras still tend to pick up lots of action, especially in a busy home. That adds up to a lot of footage to look through. Most of this footage isn't very important -- until it suddenly is. If you want to find the details or where a pet ran off to, why an expected package disappeared or another key event, you may have to sift through a day of triggered motion recordings (or longer, depending on the scenario). That's a headache. AI video searches have come to security cameras to make it easier. These allow you to type in a quick question or use a voice assistant to ask about specific objects and people. The search function will then scan all related video recordings and summarize them in a text answer so you can get the details you need. It's a bit like how AI can summarize long text chains for you, but applied to videos. So where does the "AI" part of the search come in? AI searches are being powered by Gemini and other platforms. Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images This new wave of AI technology refers to machine learning algorithms like LLMs (large language models) that are capable of assimilating a ton of human "language" and replicating it. Those languages include not only what we speak or type (think ChatGPT), but the way we identify objects in paintings, use logic to figure out problems and share ideas via mathematics or coding. So these kinds of home searches have been trained to identify all kinds of common objects found in security videos, then put that identification together into a cohesive explanation that makes sense to humans. Combine that with their ability to understand even casual questions and you can get a specific answer without hunting through video yourself -- at least, when everything works right. How am I supposed to use a feature like that? Gemini can answer questions from your video history, too. Tyler Lacoma/CNET It may seem like a strange use of AI at first, but we do run into home and family situations where it can be useful. One of Google's examples is asking "Did the kids leave their bikes in the driveway again?" with Gemini reporting back that the kids had left their bikes in the driveway several times this week. Of course, this kind of snitching works with all kinds of toys or belongings from pets or children. Homeowners may also want answers to questions like, "Did a UPS truck stop by today?" "Where did the cat go?" "Where did I leave the keys" or "Did the dog jump up on the sofa today?" Others may want the details about, "Every visitor who opened the door today," or info on "a red car that stopped by on March 3," and so on. Many of these AIs also have the ability to give broad summaries of what happened, security-wise, during the day or weekend. Add face recognition technology and they may be able to answer questions about certain people, like, "Did Aunt Marge come knocking today?" What brands are offering this kind of video search? We've seen these kinds of AI searches offered by Google Home in combo with its Gemini AI, as well as Ring (currently in beta), Wyze and a number of third-party AI platforms with more on the way. Most recently, Amazon has announced Alexa Plus that includes a similar search analysis (free for Prime users, $20 for others). While Arlo doesn't have AI searches, it is working on particularly advanced, customizable object detection. Even pet cams like Furbo's subscription cam are using AI to understand and report on what pets are doing. Eventually, we expect AI searches to arrive at nearly every security brand that offers video storage. Do I need a special kind of camera to use this type of AI video search? Not usually. These features aren't really housed in cameras, so any newer security camera that works with the brand's app should benefit from these AI searches. Some brands may list specific exceptions: Ring, for example, warns its search won't work with cams like the Ring Edge or Ring Alarm Pro. However, with searches like these it's a good idea to have a series of cameras around or inside your home, so they can analyze and track things from multiple angles to provide more complete explanations. Do I have to pay for an AI video search? Cams like Arlo's cam capture a lot of footage in day, especially if they're outdoors. Arlo You probably won't have to pay any extra fees specifically for an AI search add-on. However, this AI functionality is typically bundled into higher-tier security subscription services and often requires cloud video storage. If you aren't paying for a subscription right now, you will likely need a subscription (and its monthly fee) like Nest Aware or Ring Home Premium to enable AI searches. Alexa Plus is a slight exception, since you do have to pay an Amazon Prime subscription to access it, but it's also available on its own for $20 per month. Is this type of video searching accurate? In our testing it has performed adequately so far. Modern AIs do have their struggles with hallucinations and misinformation, but they seem to do better with relatively straight object recognition and explanations about what it has seen in video. It doesn't always get all the details right or tell every bit of important info, but it works to track objects and answer basic questions about what it has seen. Of course, like all LLMs there's lot of potential for improvement as video AI search training is refined. That brings us to another important point… What if I don't want AI looking through all my security videos? Brands like Ring will require subscriptions for advanced features. Ring It's normal to have some privacy questions about AI, and this field is so new in home security that we're still learning about the risks ourselves. AIs generally want lots of information to train on, and using AI features in home cams typically gives the company permission to use your video footage for AI training. Since the footage analyzed is generally kept in the cloud, it may also be more vulnerable to security flaws and employee abuse as well. However, there are usually ways to turn AI assistants like Gemini off entirely or to avoid participating in the video AI search. You do not have to use these search features, but the companies offering them will be looking for ways to analyze your video footage any way they can. We do have options for video cameras without subscriptions if this all makes you nervous. Some companies are more focused on privacy than others. Tete Xiao of Prompt AI noted that, with its home security platforms, "We never train on user data without explicit permission, and even then, we do not use personal details—period. We also give users the ability to permanently delete their data from our platform at any time" Look for signs like these if you're concerned about privacy. If you want to learn even more, check out our guide on if the police can seize your home security footage and the absolute worst spots to put security cameras.
Forbes
19-05-2025
- Business
- Forbes
Why META Stock Is A Prime Choice In The AI Boom
CANADA - 2025/05/18: In this photo illustration, the Meta AI logo is seen displayed on a smartphone ... More screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Question: Why pay a premium of 35 times earnings for Microsoft stock when Meta stock is available at 25 times earnings? This seems particularly questionable when considering the following three key factors: Meta isn't exactly a safe haven investment. To illustrate this, consider how Meta's stock has reacted during past market shocks: it experienced a significant 77% decline during the 2022 inflation shock, compared to a peak-to-trough drop of only 25% for the S&P 500. Similarly, during the COVID-19 pandemic in 2020, Meta's stock fell by 35%, while the S&P 500 saw a comparable decline of 34%. These instances suggest that Meta is not a particularly "safe" stock. Also, see Buy or Sell Meta Stock. Furthermore, it has already seen substantial gains this year, rising 7%, and a remarkable 32% in just one month, climbing from around $485 on April 21st to $640 currently. On the other hand, for a more balanced perspective, consider the Trefis High Quality strategy, which has outperformed the market with over 91% returns since its inception, as demonstrated by its performance metrics. Confident in the long-term potential of the AI revolution? Meta Platforms presents a compelling investment opportunity due to its unique position. Unlike companies solely focused on AI development, Meta integrates AI across its massive and growing user base. The daily active people (DAP) across Meta's family of apps have grown by an impressive 16%, from 2.95 billion in 2022 to 3.43 billion currently. This vast engagement provides a distinct advantage in monetizing AI advancements through enhanced advertising, content recommendations, and overall user experience. A substantial portion of the company's revenue is directly generated from ad sales on its key platforms: Facebook, Instagram, Threads, and WhatsApp, making AI-driven improvements in ad targeting and delivery particularly impactful. Supported by significant investments in AI research and development, and leveraging this unparalleled global social media network, Meta is strategically positioned to capitalize on AI growth, regardless of the dominant technologies that emerge. Despite its compelling advantages, investing in Meta is not without risks. A key concern is the potential for earnings to fall short of expectations or for sales growth to decelerate from 22% in the past year to a possible 15% in the near future. This slowdown could be driven by broader economic headwinds, where businesses might reduce advertising expenditures to preserve capital, particularly in the event of slowing economic growth or a recession. Furthermore, unforeseen or unexpected shocks could negatively impact the stock's performance. Consequently, investors should be prepared for the possibility of significant declines, potentially reaching 50% or more. Selling during such downturns could be detrimental to long-term returns. Instead of reacting impulsively, consider consulting a financial advisor with experience navigating multiple bear markets. They can provide insights into strategies like the Trefis HQ strategy and other prudent approaches to potentially capitalize on market downturns. Remember, substantial wealth can be generated in such environments by maintaining a rational perspective. Considering these factors, if you are a long-term investor with a 3-to-5-year horizon and a buy-and-hold strategy, Meta could present an interesting entry point at its current valuation, even after its recent price increase.
Forbes
19-05-2025
- Business
- Forbes
Buy Or Sell ZM Stock Ahead Of Earnings?
CANADA - 2025/01/30: In this photo illustration, the Zoom Communications logo is seen displayed on a ... More smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images) Zoom Communications (NASDAQ:ZM) is set to announce its earnings on Wednesday, May 21, 2025. Analysis from the past five years shows that Zoom's stock has recorded a negative one-day return after its earnings announcements in 68% of cases. These negative returns have a median of -8.1% and a maximum of -16.7%. For event-driven traders, these historical trends can provide valuable insights, although the actual market reaction will ultimately depend on how the reported results align with consensus estimates and market expectations. There are two main strategies to exploit this historical data: At present, consensus estimates anticipate Zoom to announce earnings per share of $1.31 on revenues of $1.17 billion for the upcoming quarter. This is a comparison to the same quarter last year, where Zoom reported earnings per share of $1.35 on revenues of $1.14 billion. From a fundamental perspective, Zoom currently holds a market capitalization of $26 billion. Over the past twelve months, the company generated $4.7 billion in revenue, realizing an operating profit of $813 million and a net income of $1.0 billion. Additionally, see Buy or Sell Zoom Stock That being said, if you are looking for potential upside with lower volatility than individual stocks, the Trefis High Quality portfolio offers an alternative – having outperformed the S&P 500 and yielded returns exceeding 91% since its inception. See earnings reaction history of all stocks Here are some insights on one-day (1D) post-earnings returns: Additional observations for the 5-Day (5D) and 21-Day (21D) returns post earnings are compiled in the table below. ZM 1D, 5D, and 21D Post Earnings Return A relatively less risky approach (though not effective if the correlation is low) is to understand the correlation between short-term and medium-term returns post earnings, identify a pair that exhibits the highest correlation, and execute the relevant trade. For instance, if 1D and 5D exhibit the highest correlation, a trader can position themselves 'long' for the subsequent 5 days if the 1D post-earnings return is positive. Here is some correlation data based on 5-year and 3-year (more recent) history. Note that the correlation 1D_5D refers to the relationship between 1D post-earnings returns and subsequent 5D returns. ZM Correlation Between 1D, 5D and 21D Historical Returns Occasionally, the performance of peers can influence post-earnings reactions of stocks. Indeed, the pricing may start before the earnings are revealed. Here are some historical insights regarding the past post-earnings performance of Zoom Communications stock, compared with the stock performance of peers that reported earnings just before Zoom Communications. For accurate comparisons, peer stock returns also represent post-earnings one-day (1D) returns. ZM Correlation With Peer Earnings Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), to generate strong returns for investors. Furthermore, if you're looking for upside with a more stable experience than owning an individual stock such as Zoom Communications, consider the High Quality portfolio, which has surpassed the S&P and delivered >91% returns since its inception.
