In today’s briefing:
- Magnificent 7: Global Fund Positioning Update
- Hyperscalers 2Q25: Revenue Growth Accelerates, Cloud Revenues Accelerate, Capex Higher
- Otis Worldwide Just Unlocked a $40M Transformation Plan in China—How It’s Fighting Price Pressure!
- META Profit Target UPDATED (Pre-Earnings July 30th)
- Las Vegas Sands Corporation: Unlocking New Luxury Demand with Strategic Market Repositioning!
- Hilton Worldwide Holdings: Strategic Brand Diversification to Enhance Network Effects…
- Netflix Is Crushing It Globally—Why Wall Street Still Isn’t Impressed?
- HIT: Strong Momentum
- Graco Inc.: Initiation of Coverage- Setting Its Sights on Housing Boom with High-Stakes Growth Bet!
- Alphabet Just Shocked Wall Street with Its AI Surge — But at What Cost?
Magnificent 7: Global Fund Positioning Update
- Magnificent 7 positioning remains elevated across global funds, but momentum has clearly stalled, with recent activity pointing to consolidation rather than renewed conviction buying.
- Growth and GARP funds are near fully allocated, while Value and Yield managers remain structurally underweight— potentially limiting the potential for broad-based participation from here.
- Microsoft leads with cross-style appeal; Tesla lags with minimal support. Apple is the conviction underweight, while NVIDIA’s benchmark surge has left it at a record active underweight.
Hyperscalers 2Q25: Revenue Growth Accelerates, Cloud Revenues Accelerate, Capex Higher
- Google: increased 2025 Capex ($75bn -> 85bn). Capex will increase in 2026. Higher capex is justified by “strong demand for Cloud products and services“.
- Meta: last quarter increased 2025 Capex ($62.5bn -> 68bn). This quarter, more modest $1bn increase to $69bn. Meta expects “another year of similarly significant capital expenditures dollar growth in 2026”.
- Microsoft: FY26 Capex growth will moderate compared to FY25 (FY25 Capex increased 58% YoY).
Otis Worldwide Just Unlocked a $40M Transformation Plan in China—How It’s Fighting Price Pressure!
- Otis Worldwide Corporation’s second-quarter 2025 earnings report presents both strengths and challenges impacting its investment potential.
- A key positive for Otis is its Service segment, which continues to drive significant performance improvements.
- Service sales were up 4% organically, with all business lines and regions contributing to growth.
META Profit Target UPDATED (Pre-Earnings July 30th)
- Meta (META US) will report its earnings today July 30th, after the Close.
- If the earnings are positive, we predict a rally that could last up to 3 weeks and bring Meta (META US) at 758, above its recent all time high peaks.
- The rally could last up to 3 weeks – this is a short-term tactical forecast, it doesn’t offer a view of where the stock could be several weeks from now.
Las Vegas Sands Corporation: Unlocking New Luxury Demand with Strategic Market Repositioning!
- Las Vegas Sands Corporation’s latest earnings report offers a mixed yet intriguing view into the company’s operational performance, focusing on their flagship properties in Macau and Marina Bay Sands in Singapore.
- The highlights of the earnings call indicate an exceptional quarter for Marina Bay Sands, posting a record quarterly EBITDA of $768 million.
- This reflects significant growth propelled by mass gaming, which reached $843 million – a stark increase of 97% from Q2 2019 and 40% higher year-on-year.
Hilton Worldwide Holdings: Strategic Brand Diversification to Enhance Network Effects…
- Hilton’s latest financial performance in the second quarter of 2025 showcases both strengths and challenges within the company.
- The firm reported an Adjusted EBITDA exceeding $1 billion, surpassing expectations despite facing challenges such as modestly negative system-wide RevPAR and shifting holiday schedules that impacted business transient RevPAR negatively by 2%.
- The leisure transient sector, however, showed resilience with a 1% increase, bolstered by extended spring break periods.
Netflix Is Crushing It Globally—Why Wall Street Still Isn’t Impressed?
- Netflix shares dropped 5.1% despite beating earnings expectations and raising full-year guidance—a reminder that strong results don’t always satisfy a market pricing in perfection.
- The stock is up 36% in 2025 and trades at 44 times forward earnings, just below a three-year high.
- While the selloff may have stemmed from revenue gains partially driven by foreign exchange effects rather than robust U.S. growth, the underlying business performance remains solid.
HIT: Strong Momentum
- As it executes its strategy to continue to expand its reach and distribution, HIT has added many new distribution partnerships, including with large players such as leading pharmacy benefit manager (PBM) MedImpact subsidiary, Verdegard Administrators, and Hilb Group, which ranks among the top 25 U.S. insurance brokers, among others.
- Moreover, HIT is preparing to launch AI-powered solutions for mid-sized and larger businesses later in 2025 and is optimistic about the prospects, based on interest it has generated to-date.
- Concurrently, HIT continues to serve and expand its offerings for the small- to medium enterprise (SME) market.
Graco Inc.: Initiation of Coverage- Setting Its Sights on Housing Boom with High-Stakes Growth Bet!
- Graco Inc.’s latest financial results outline a multifaceted performance with a mix of positive and challenging developments.
- In the second quarter, Graco reported sales of $572 million, marking a 3% increase from the same period last year.
- However, this growth was driven by acquisitions contributing 6%, while organic sales declined by 3%.
Alphabet Just Shocked Wall Street with Its AI Surge — But at What Cost?
- Alphabet’s second-quarter 2025 earnings report marked a pivotal moment in the company’s pursuit of AI-driven growth, delivering strong results alongside escalating investment challenges.
- The company posted a 14% yearover-year revenue increase, reaching a record $96.4 billion, bolstered by significant gains in its cloud, search, and YouTube businesses.
- Earnings per share rose to $2.31, beating Wall Street expectations of $2.18 and up from $1.89 a year ago.
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