Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Equity Bottom-Up

<ul>
<li>GitLab Inc. is a complete DevSecOps platform delivered as a single application that empowers organizations to maximize the overall return on software development.</li>
<li>In October 2021, one the largest all-remote companies in the world completed an initial public offering at $77/share, raising $801M at ~$11B valuation.</li>
<li>The stock peaked at $137 in 2021 and fell ~71% over the next 4 years. The underperformance was driven by investor concerns around slowing revenue growth, competition and AI monetization.</li>
</ul>


GitLab Inc. is a complete DevSecOps platform delivered as a single application that empowers organizations to maximize the overall return on software development.
In October 2021, one the largest all-remote companies in the world completed an initial public offering at $77/share, raising $801M at ~$11B valuation.
The stock peaked at $137 in 2021 and fell ~71% over the next 4 years. The underperformance was driven by investor concerns around slowing revenue growth, competition and AI monetization.


2026 High Conviction: GitLab Inc., Undervalued With Duo Agent Platform Growth Upside/M&A Optionality

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

<ul><li>Microsoft reported (30 Jan HKT) 2QFY25 (June year-end) results: revenue was US$69.6bn, up 12% YoY (1QFY25: +16% YoY), 1% better than consensus, driven by a 3/2% beat in productivity and business process (PBP) / more personal computing (MPC) segment, while partly offset by a 1% short in Intelligent Cloud (IC) segment.</li><li>Net profit was up 10% YoY to US$24.1bn, 3% better than consensus, driven by better-than-expected operating efficiency gains.</li><li>Management noted that Azure AI services revenue generation was ahead of expectations, while non-AI cloud services was slightly lower than expectation due to go to market execution challenges, and the trend is likely to sustain in 2HFY25. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

Microsoft reported (30 Jan HKT) 2QFY25 (June year-end) results: revenue was US$69.6bn, up 12% YoY (1QFY25: +16% YoY), 1% better than consensus, driven by a 3/2% beat in productivity and business process (PBP) / more personal computing (MPC) segment, while partly offset by a 1% short in Intelligent Cloud (IC) segment.Net profit was up 10% YoY to US$24.1bn, 3% better than consensus, driven by better-than-expected operating efficiency gains.Management noted that Azure AI services revenue generation was ahead of expectations, while non-AI cloud services was slightly lower than expectation due to go to market execution challenges, and the trend is likely to sustain in 2HFY25. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Microsoft (MSFT US) - Cloud Revenue Growth and AI Related Monetization Remain Keys to Watch

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Microsoft’s latest earnings report for its fiscal second quarter of 2025 reveals a compelling mix of strengths and challenges.</li><li>While the company demonstrated solid overall revenue and profit growth, a slowdown in its flagship cloud computing business, Azure, tempered investor enthusiasm.</li><li>The stock reacted negatively, slipping 5% in after-hours trading, reflecting concerns about whether Microsoft can maintain its momentum in an increasingly competitive AI and cloud landscape.</li></ul>

Microsoft’s latest earnings report for its fiscal second quarter of 2025 reveals a compelling mix of strengths and challenges.While the company demonstrated solid overall revenue and profit growth, a slowdown in its flagship cloud computing business, Azure, tempered investor enthusiasm.The stock reacted negatively, slipping 5% in after-hours trading, reflecting concerns about whether Microsoft can maintain its momentum in an increasingly competitive AI and cloud landscape.

Microsoft’s Cloud Growth Hits A Speed Bump Amidst AI Surge: A Turning Point For Investors?

<ul><li>Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s all-in commitment to artificial intelligence (AI).</li><li>As AI reshapes industries, Microsoft has found itself playing catch-up against Google, Amazon, and Meta, all of whom have already developed custom AI chips.</li><li>By investing heavily in Nvidia's cutting-edge Hopper GPUs, Microsoft has managed to build out a formidable AI infrastructure but at a significant cost.</li></ul>

Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s all-in commitment to artificial intelligence (AI).As AI reshapes industries, Microsoft has found itself playing catch-up against Google, Amazon, and Meta, all of whom have already developed custom AI chips.By investing heavily in Nvidia's cutting-edge Hopper GPUs, Microsoft has managed to build out a formidable AI infrastructure but at a significant cost.

Microsoft Is Betting Big on NVIDIA GPUs — But Will Custom Chips Save Its AI Ambitions?

Technology / Semiconductor / Internet Research

Nicolas Baratte

<ul>
<li>Hyperscalers (AMZN, GOOG, META, MSFT) revenues accelerating from 1Q25. Total revenues in 2025 ~$1.15tn, up 17% YoY.</li>
<li>Cloud (AWS, GOOG, MSFT) revenues accelerating. 2025 Cloud revenues in 2025 ~$375bn, up 25% YoY.</li>
<li>2025 Capex up 63% YoY to $376bn. 2026 Capex will increase by ~46% YoY to reach ~$550bn. I estimate ~30% increase in 2027 to reach $715bn.</li>
</ul>


Hyperscalers (AMZN, GOOG, META, MSFT) revenues accelerating from 1Q25. Total revenues in 2025 ~$1.15tn, up 17% YoY.
Cloud (AWS, GOOG, MSFT) revenues accelerating. 2025 Cloud revenues in 2025 ~$375bn, up 25% YoY.
2025 Capex up 63% YoY to $376bn. 2026 Capex will increase by ~46% YoY to reach ~$550bn. I estimate ~30% increase in 2027 to reach $715bn.


Hyperscalers’ Cloud Revenue and Capex Update

United States

Microsoft Corporation operates as a software company. The Company offers applications, extra cloud storage, and advanced security solutions. Microsoft serves customers worldwide.

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Microsoft Corp (MSFT US)

2026 High Conviction: GitLab Inc., Undervalued With Duo Agent Platform Growth Upside/M&A Optionality

GitLab Inc., the leading DevSecOps platform provider that delivers software faster and efficiently, is my 2026 high conviction idea in the U.S....

Andrei Zakharov

Microsoft’s Cloud Growth Hits A Speed Bump Amidst AI Surge: A Turning Point For Investors?

Microsoft’s latest earnings report for its fiscal second quarter of 2025 reveals a compelling mix of strengths and challenges. While the company...

Baptista Research

Microsoft Is Betting Big on NVIDIA GPUs — But Will Custom Chips Save Its AI Ambitions?

Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s all-in commitment to artificial...

Baptista Research

Hyperscalers’ Cloud Revenue and Capex Update

Hyperscalers' revenues and cloud revenues are accelerating from 1Q25, Capex set to increase significantly in the coming years.

Nicolas Baratte

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2026 High Conviction: GitLab Inc., Undervalued With Duo Agent Platform Growth Upside/M&A Optionality

GitLab Inc., the leading DevSecOps platform provider that delivers software faster and efficiently, is my 2026 high conviction idea in the U.S....

Andrei Zakharov

Microsoft (MSFT US) - Cloud Revenue Growth and AI Related Monetization Remain Keys to Watch

Microsoft reported (30 Jan HKT) 2QFY25 (June year-end) results: revenue was US$69.6bn, up 12% YoY (1QFY25: +16% YoY), 1% better than consensus

CMB International

Microsoft’s Cloud Growth Hits A Speed Bump Amidst AI Surge: A Turning Point For Investors?

Microsoft’s latest earnings report for its fiscal second quarter of 2025 reveals a compelling mix of strengths and challenges. While the company...

Baptista Research

Microsoft Is Betting Big on NVIDIA GPUs — But Will Custom Chips Save Its AI Ambitions?

Microsoft’s aggressive acquisition of nearly half a million Nvidia AI chips underscore the tech giant’s all-in commitment to artificial...

Baptista Research

Hyperscalers’ Cloud Revenue and Capex Update

​Hyperscalers' revenues and cloud revenues are accelerating from 1Q25, Capex set to increase significantly in the coming years.

Nicolas Baratte

Hyperscalers' revenues and cloud revenues are accelerating from 1Q25, Capex set to increase significantly in the coming years.