Tobias

Jim Cramer’s “Investing Club” is upgrading Meta Platforms to a buy-equivalent rating despite a recent stock dip following earnings. While Meta’s increased AI investments sparked investor concern, Cramer believes the long-term potential outweighs the short-term anxieties. He highlights that these investments will enhance Meta’s video capabilities, benefiting advertisers and driving user engagement. The upgrade follows strong quarterly revenue and EPS, coupled with raised revenue guidance. While acknowledging spending concerns, Cramer emphasizes Zuckerberg’s aggressive approach and Meta’s ability to reallocate computing power, making the dip a strategic entry point.

Roblox shares fell 15% after the company projected higher capital expenditures, raising margin concerns. While Q3 revenue surged 48% to $1.36B and bookings jumped 70% to $1.92B, exceeding expectations, increased DevEx costs and safety investments contributed to the revised outlook. Roblox raised its full-year bookings guidance but average bookings per DAU missed estimates. The company is also facing pressure to improve child safety and is involved in related lawsuits, prompting investments in safety measures and collaboration with safety organizations.

Dynamix Corporation III raised an upsized $175 million in its IPO, potentially reaching $201.25 million with additional shares. The SPAC targets acquisitions in AI, energy, or digital assets, aiming for companies valued at $1 billion or more. Advisors from Prologis and Nvidia will aid in identifying suitable targets. This debut occurs during a cautious recovery phase for the SPAC market after a period of decreased activity and scrutiny, requiring Dynamix III to demonstrate strong valuation and synergies to investors.

Apple (AAPL) reported strong fiscal Q4 2025 earnings, exceeding expectations with EPS of $1.85 and revenue of $102.47 billion. While iPhone revenue slightly missed estimates, Mac and Services revenue beat expectations, driving overall growth. CEO Tim Cook anticipates a minimum 10% revenue increase for the December quarter, fueled by strong iPhone 17 demand. The company reported $416 billion in total revenue for fiscal year 2025, a 6% increase year-over-year. Supply chain constraints and tariffs impacted specific product lines, but Apple absorbed the tariff costs.

Amazon shares surged after a strong Q3 earnings report, beating expectations with $1.95 EPS and $180.17B revenue. Amazon Web Services (AWS) growth accelerated to 20.2%, addressing prior concerns, driven by AI demand. Amazon is investing heavily in AI infrastructure, including Project Rainier, and raised its capital expenditure forecast. Q4 sales are projected at $206B-$213B. While pursuing AI opportunities, Amazon is also implementing cost optimization, including layoffs, to enhance efficiency and adapting to business evolution.

Navan, formerly TripActions, a corporate travel and expense management platform, went public on Nasdaq (NAVN) with a $6.2 billion valuation following a $923 million IPO. Shares dipped 20% despite pricing at $25, the midpoint of its range, which was lower than its $9.2 billion 2022 private valuation. Navan distinguishes itself with AI integration and a focus on traveler experience, boasting clients like Geico and OpenAI. It reported strong revenue growth but also a recent quarterly net loss, making profitability a key focus.

Wall Street saw mixed trading, pressured by Meta and Microsoft’s AI spending concerns despite strong earnings. Honeywell spun off Solstice Advanced Materials (SOLS), receiving an “outperform” rating from BMO. DuPont is set to separate Qnity Electronics (“Q”). Goldman Sachs CEO David Solomon remains confident despite stock performance, citing strong global banking and markets division performance. He sees a low recession risk and AI infrastructure investment as an economic tailwind. Investors await earnings reports from Apple, Amazon, Cloudflare, and Linde.

Amazon Web Services (AWS) reported a strong 20% revenue increase in Q3, reaching $33 billion and exceeding expectations. Despite facing growing competition from Google Cloud and Microsoft Azure, AWS’s operating income rose 9% to $11.4 billion, contributing significantly to Amazon’s overall profit. Amazon’s recent $11 billion AI data center, Project Rainier, and its investment in Anthropic highlight its focus on AI cloud services amid intensifying competition, spurred by significant partnerships between other tech giants and cloud providers.

Reddit’s Q3 earnings exceeded expectations, with revenue jumping 68% year-over-year to $585 million and EPS at 80 cents. Growth was fueled by strong advertising and data licensing, with the latter becoming increasingly important as companies like Google and OpenAI leverage Reddit’s data for AI training. Global daily active users reached 116 million, a 19% increase. While US logged-in DAU growth slowed, Reddit focuses on improving user experience and international marketing to drive further engagement. Q4 sales are projected to reach $655-$665 million.

Coinbase shares rose nearly 3% after reporting Q3 earnings that exceeded expectations, driven by a resurgence in retail and institutional crypto trading. Net income reached $432.6 million, or $1.50 per share, surpassing estimates. Revenue climbed to $1.87 billion, with transaction revenue reaching $1 billion. The exchange’s growth is attributed to a more favorable regulatory environment and improving trade relations. CEO Brian Armstrong emphasized the “everything exchange” vision, expanding tradable assets to 40,000. Coinbase is integrating prediction markets and tokenized equities in response to increasing competition.