In today’s briefing:
- Hyperscalers’ Cloud Revenue and Capex Update
- Confluent: Real-Time Data Processing with Stream Processing & Flink Are Driving Growth!
- Amkor Technology Doubles Down on Ultra-High-Density Packaging – Is This the Next Tech Revolution?
- Seagate Technology Goes All-In on HAMR – Will 40TB Drives Change Everything?
- PayPal’s BNPL Boom: How Is It Winning Over Gen Z Shoppers?
- HNI: 3Q25 EPS Upside; Workplace Leading Indicators Firming
- REPX: Free Cash Flow to Execute Strategy
- Corning Unveils What’s Next in Solar, Optical, and Auto Tech – Investors Take Note!
- Weekly Update (WDC, AAF, LBTYA, LEN)
- Booking Holdings Just Launched a B2B Shakeup—Here’s What It Means for Travel Giants!
Hyperscalers’ Cloud Revenue and Capex Update
- 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.
Confluent: Real-Time Data Processing with Stream Processing & Flink Are Driving Growth!
- Confluent, a company specializing in data streaming solutions, reported solid quarterly results, surpassing all guided metrics.
- The company’s subscription revenue saw a 19% increase year-over-year, reaching $286 million, while Confluent Cloud revenue increased by 24% to $161 million.
- This highlights the firm’s strong growth trajectory in cloud services, which now represent 56% of its subscription revenue.
Amkor Technology Doubles Down on Ultra-High-Density Packaging – Is This the Next Tech Revolution?
- Amkor Technology’s third-quarter 2025 financial results showcased strong performance and strategic advancements, yet they also highlighted some areas of pressure and challenges.
- The company reported a revenue of $1.99 billion, marking a 31% sequential increase and a 7% year-over-year growth, exceeding expectations.
- Earnings per share (EPS) for the quarter stood at $0.51, also above the guidance provided.
Seagate Technology Goes All-In on HAMR – Will 40TB Drives Change Everything?
- Seagate Technology recently reported its fiscal first-quarter 2026 results, showcasing a strong start to the year marked by notable financial performance and strategic advancements.
- Positively, Seagate reported a year-over-year revenue growth of 21%, reaching $2.63 billion.
- Non-GAAP gross margin reached a new record for the company at 40.1%, with operating margins climbing to 29%.
PayPal’s BNPL Boom: How Is It Winning Over Gen Z Shoppers?
- PayPal’s third-quarter 2025 financial performance and strategic direction reveal a nuanced picture with both notable achievements and ongoing challenges.
- The company has demonstrated impressive progress in strengthening its foundational operations and focusing on profitable growth.
- Revenue has accelerated recently, stemming from strategies centered on expanding branded experiences, buy now, pay later (BNPL) services, and increased Venmo monetization.
HNI: 3Q25 EPS Upside; Workplace Leading Indicators Firming
- HNI reported 3Q25 ongoing EPS of $1.10 versus $1.03 in 3Q24, up 6.8%, which was ahead of our $1.06 estimate, which was also consensus
- Sales grew 1.7% in the quarter to $683.8MM, slightly below our forecast for 2.2% growth and consensus of 2.5% growth.
- Excluding the HNI India divesture, organic sales growth was 2.6% in the quarter.
REPX: Free Cash Flow to Execute Strategy
- Riley’s solid cash flow profile provides management with the flexibility to navigate the current commodity price environment.
- Management’s latest (August 6, 2025) FY25 total capital spending plan totaled $113-146 million, which included $84-100 million of upstream capex and $29-46 million of midstream capex.
- An additional $15-18 million investment is planned in the company’s power joint venture.
Corning Unveils What’s Next in Solar, Optical, and Auto Tech – Investors Take Note!
- Corning Inc. reported a robust third quarter for 2025, demonstrating strong financial performance and strategic advancements across its business segments.
- However, there are both positive factors and challenges that potential investors might want to consider when evaluating their investment in Corning.
- Positively, Corning posted a year-over-year sales growth of 14% to $4.27 billion and an impressive 24% increase in earnings per share (EPS) to $0.67, with the operating margin expanding by 130 basis points to 19.6%.
Weekly Update (WDC, AAF, LBTYA, LEN)
- This week we had a busy week of earnings (WDC, AAF, LBTYA), and it will continue next week.
- Honeywell (HON) spun off 100% of its Advanced Materials business, Solstice (SOLS), on October 30, 2025.
Solstice was added to the S&P 500 and performed well on its first day of trading before selling off on Friday.
Booking Holdings Just Launched a B2B Shakeup—Here’s What It Means for Travel Giants!
- Booking Holdings delivered a strong performance in the third quarter, demonstrating resilience and adaptability in a dynamic travel industry landscape.
- The company’s broad global footprint and diversified revenue streams contributed to robust financial results that surpassed expectations.
- These results were highlighted by several key metrics that combined both positive trends and potential areas of caution.
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