This Top Software Stock Will Benefit From Major Tech Tailwinds – Why I’m Buying Now.
Earnings highlights:
The earnings calendar is well underway, with 3 major reports coming this afternoon – Microsoft, Meta, and Tesla. Here are some of the highlighted companies we’ve heard from so far this week…
$T (AT&T Inc.) earnings report:
Estimated revenue: $31.94B
Reported revenue: $32.30B (+0.87% YoY)
Estimated EPS: $0.51
Reported EPS: $0.54 (flat YoY)
$SOFI (SoFi Technologies Inc.) earnings report:
Estimated revenue: $682.20M
Reported revenue: $739.11M (+24.38% YoY)
Estimated EPS: $0.04
Reported EPS: $0.05 (+150% YoY)
$BA (Boeing Co.) earnings report:
Estimated revenue: $16.17B
Reported revenue: $15.24B (-30.79% YoY)
Estimated EPS: -$2.44
Reported EPS: -$5.90 (-1,155.32% YoY)
$SBUX (Starbucks Corp.) earnings report:
Estimated revenue: $9.31B
Reported revenue: $9.40B (-0.32% YoY)
Estimated EPS: $0.67
Reported EPS: $0.69 (-23.34% YoY)
$ASML (ASML Holding NV) earnings report:
Estimated revenue: $9.02B
Reported revenue: $9.89B (+26.96% YoY)
Estimated EPS: $6.71
Reported EPS: $7.31 (+30.31% YoY)
Reports overall have had a net positive reaction in the stock market, as DeepSeek concerns and allegations continue to circle. ASML this morning made no indication toward slowing demand, and exceeded QoQ booking estimates. I wouldn’t be surprised to hear DeepSeek being a topic of discussion in this afternoon’s slate of Microsoft, Meta, Tesla, IBM, ServiceNow, and Lam Research.
Stock Spotlight: Is Oracle the real deal?
DeepSeek aside, AI development and infrastructure talks have been heating up lately. OpenAI and their Stargate plan have been making headlines, as well as OpenAI’s integration of ChatGPT Gov – which will streamline government agencies and boost efficiency. Out of this whole development however, my favorite stock is $ORCL (Oracle Corp.). OpenAI, Softbank, and Oracle are teaming up to bring Stargate’s $500B venture to fruition, in what President Trump is calling “the future of technology.” Oracle seems poised to reap the benefits of Trump’s enthusiasm, and after the DeepSeek shake-up, I was able to grab some shares at a hefty discount.
Oracle has been an extremely steady name in the software infrastructure industry, and has routinely outperformed the market. They’ve also made headlines this week surrounding TikTok buyout rumors, as well as a Starlink (not to be confused with Stargate) partnership. Oracle is set to deliver high-speed satellite connectivity for its enterprise communications platform, even in remote locations. Here is a direct quote from Oracle’s press release on the matter yesterday:
“Starlink provides reliable high-speed connectivity for those in areas where it has been historically difficult due to lack of infrastructure or natural obstacles,” said Jason Fritch, SpaceX’s Vice President of Starlink Enterprise Sales. “Providing fast and secure broadband to all corners of the world will help Oracle expand the reach of cloud technology and real-time information for its customers in invaluable ways.”
All in all, Oracle is set to benefit from multiple possible tailwinds in both the short and long term. I am personally happily adding shares at the current discount.
Programming Notes:
* If you want to see my immediate reaction and thoughts on the Microsoft, Meta, and Tesla earnings report this afternoon, make sure to follow me on X at @FlyerWealth. A deeper analysis will be included in Friday’s newsletter. *
* Additionally, DeepSeek rumors ranging from stolen code to inaccurate spending reports have been floating around all week. Once the dust settles, I will have a full conclusion and analysis on the situation and how it’ll impact investments. *