Latest news with #cloudgrowth
Yahoo
01-08-2025
- Business
- Yahoo
Amazon Stock Is Falling. Analysts Say to Buy the Dip.
Key Takeaways Amazon shares tumbled in the wake of the company's quarterly results, but analysts say there's an opportunity to buy the dip. AWS may have underwhelmed investors relative to the cloud growth seen from peers like Microsoft and Google. UBS analysts said traders shouldn't be scared off by Amazon's growing investments in AI (AMZN) shares plunged after the company's quarterly results, as investors may have been hoping for stronger cloud growth. Some analysts, though, are raising their price targets. JPMorgan analysts said they 'would buy the pullback,' as Amazon shares have tumbled more than 6% in premarket trading Friday. The bank raised its price target to $265 from $255, implying 23% upside. Amazon Web Services is a likely culprit for the stock slump, JPMorgan said. The cloud division's revenue growth, while in line with analysts' expectations, didn't accelerate from the previous quarter. Meanwhile, rival cloud offerings Microsoft (MSFT) Azure and Alphabet's (GOOGL) Google Cloud Platform delivered breakout performances. On the company's earnings call, CFO Brian Olsavsky said Amazon spent $31.4 billion in capital expenditures in the second quarter and expects to maintain that level of investment through 2025. 'AWS continues to be the primary driver, as we invest to support demand for our AI services,' Olsavsky said, according to a transcript provided by AlphaSense. Analysts at UBS, which maintained a price target of $271, said investors shouldn't be too worried about growing capex. '[T]o sell the stock is to believe that management and the board are making the economically irrational decision, in our view, to invest an increasing amount of capital,' UBS said. 'But we find that to be a difficult scenario to believe, especially for what has been one of the best capital allocators in our space.' Citi, meanwhile, raised its price target to $270, arguing that the increase in investment 'highlights continued demand strength as AWS alleviates its infrastructure capacity constraints.' Read the original article on Investopedia 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
23-07-2025
- Business
- Yahoo
Analyst Says He's Going to ‘Sleep Like a Baby' After Trimming Oracle (ORCL) Position
Oracle Corp (NYSE:ORCL) is one of the . Jim Lebenthal, partner at Cerity Partners, explained in a recent program on CNBC why he's trimming his position in Oracle Corp (NYSE:ORCL). 'I've been in the stock 2 and a half years. I'm up 150%. It's become a very big position. I'm trimming the stock. I'm going to sleep like a baby tonight trimming the stock. I'm still going to own shares. However, we're entering earnings season. We all know that in earnings season something gets stupidly dislocated. I have been fully invested. I need to have some dry powder. If I want to buy low, I have to sell high. That's the name of the game.' Lebenthal, however, insisted that he's not 'hating on' Oracle Corp (NYSE:ORCL). He said he first bought the stock when it was around $86. For fiscal 2026, Oracle expects strong cloud growth amid rising AI datacenter demand. The company is spending heavily in Cloud infrastructure. The stock has gained about 68% over the past year and its P/E is now above 50. As most of its revenue now comes from cloud services, any slowdown in AI momentum could weigh on growth and margins. Photo by Science in HD on Unsplash Mar Vista U.S. Quality Strategy stated the following regarding Oracle Corporation (NYSE:ORCL) in its second quarter 2025 investor letter: 'Oracle Corporation (NYSE:ORCL) shares rebounded from the pressure experienced in calendar Q1 2025, as concerns about tariffs impacting IT budgets proved to be overstated. The company reported a strong fiscal Q4 2025 (May quarter), driven by robust demand for its hyperscale cloud offering, OCI Gen 2, which supports large language models. While we acknowledge the potential of ORCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . 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.
Yahoo
12-07-2025
- Business
- Yahoo
Jefferies Upbeat on Alibaba's (BABA) AI Cloud and Instant Commerce Growth
Alibaba Group Holding Ltd (NYSE:BABA) is one of the top e-commerce stocks with long-term potential. On July 9, Jefferies reiterated its Buy rating on Alibaba (NYSE:BABA), highlighting strong cloud growth driven by enterprise demand for AI. Pieter Beens / The firm expects Alibaba's Cloud Intelligent Group to report a 23% year-over-year revenue increase—outpacing prior projections—while instant commerce platforms like Taobao and Eleme hit a daily order record of 80 million, signaling solid operational momentum. Despite these gains, Jefferies flagged margin pressures due to heavy investment, forecasting a 15% decline in overall EBITA and a deeper 20% drop for the Taobao Tmall Group. Still, the firm remains optimistic about Alibaba's medium-term prospects, noting that strategic spending could boost long-term growth, especially in cloud and instant commerce segments. Alibaba Group Holding Ltd (NYSE:BABA) is a major player in e-commerce and cloud services, with a growing focus on artificial intelligence as part of its expanding tech ecosystem. While we acknowledge the potential of BABA 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: 15 Successful Spin-Off Companies and Their 2025 Returns and 12 Best Consumer Goods Stocks Billionaires Are Quietly Buying. Disclosure: None. This article is originally published at Insider Monkey. Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
10-07-2025
- Business
- Yahoo
Microsoft Eyes $4 Trillion Badge
Wedbush analysts say Microsoft (NASDAQ:MSFT) is lining up to join Nvidia(NASDAQ:NVDA) in the exclusive $4 trillion market-cap club this summer. The firm has an Outperform rating on the stock and a $600 price target, and it's one of Wedbush's Best Ideas. Warning! GuruFocus has detected 7 Warning Sign with MSFT. According to lead analyst Daniel Ives, AI is driving the next leg of this bull market. He's seeing enterprise customers across financials, government and retail rapidly convert pilot projects into full-scale AI deployments. In fact, he expects over 70 percent of Microsoft's installed base to tap AI features within three years. Wedbush thinks fiscal 2026 will mark the true inflection point for Azure's AI-fueled growth. They believe the company is just beginning to reap the multiplier effects of Nvidia's GPU leadership, and that Copilot deployments alone could add nearly $25 billion to Microsoft's top line by then. Despite AWS and Google Cloud nipping at its heels, Microsoft's AI-first cloud stack gives it an edge in hyperscale scenarios. Wedbush sees this as Microsoft's shining moment, with AI set to reshape cloud growth and margin trajectories for CEO Satya Nadella and company. This article first appeared on GuruFocus.
Yahoo
30-06-2025
- Business
- Yahoo
The Top 5 Analyst Questions From JFrog's Q1 Earnings Call
JFrog's first quarter results for 2025 were met with a positive market reaction, as underlying drivers included robust cloud revenue growth and expanding enterprise adoption of its software supply chain platform. Management credited the quarter's performance to increased customer consumption across its cloud offerings, particularly among large enterprise clients, and highlighted the success of its strategic partnerships and platform enhancements. CEO Shlomi Ben Haim emphasized, 'Our first quarter results underscore JFrog's essential role as a system of record for software delivery from creation to production for customers prioritizing automation, scale, speed, and trust.' Is now the time to buy FROG? Find out in our full research report (it's free). Revenue: $122.4 million vs analyst estimates of $117.3 million (22% year-on-year growth, 4.4% beat) Adjusted EPS: $0.20 vs analyst estimates of $0.16 (21.5% beat) Adjusted Operating Income: $21.35 million vs analyst estimates of $17.08 million (17.4% margin, 25% beat) The company slightly lifted its revenue guidance for the full year to $502.5 million at the midpoint from $501 million Adjusted EPS guidance for the full year is $0.69 at the midpoint, beating analyst estimates by 2.1% Operating Margin: -18.8%, down from -16.6% in the same quarter last year Customers: 1,051 customers paying more than $100,000 annually Net Revenue Retention Rate: 116%, in line with the previous quarter Annual Recurring Revenue: $482.6 million at quarter end, up 22.5% year on year Billings: $123.7 million at quarter end, up 27% year on year Market Capitalization: $5.03 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Pinjalim Bora (JPMorgan): Asked if increased cloud consumption was broad-based or concentrated. CFO Ed Grabscheid replied it was across a wide set of customers and regions, not isolated to a few accounts. Sanjit Singh (Morgan Stanley): Inquired about the emphasis on machine learning and whether models are becoming as important as traditional binaries. CEO Shlomi Ben Haim explained the integration of MLOps positions JFrog to manage both software and AI models in one platform. Brad Reback (Stifel): Questioned whether strong remaining performance obligations (RPO) were driven by a few large deals. Grabscheid clarified that multi-year agreements are increasing across the customer base, not just among a select few. Eamon Coughlin (Barclays): Asked about the impact of the GitHub partnership on customer acquisition and expansion. Ben Haim said customer reaction has been positive, with adoption growing but it is too early to quantify specific impacts. Shrenik Kothari (Baird): Requested details on the adoption and revenue impact of the new MLOps features. Ben Haim responded that it is early days for monetization, with usage just beginning and broader contributions expected over time. As we look to upcoming quarters, our team will be monitoring (1) whether above-contract cloud consumption persists or normalizes, (2) customer migration rates from on-premises to cloud and adoption of the full JFrog platform, and (3) the early impact of the ML and security enhancements on new enterprise deals. The pace at which large deals in the pipeline convert and overall customer retention will also be key markers for sustained momentum. JFrog currently trades at $44, up from $35.20 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
