💰 NEW ALPHA|Financial Report Highlights: V/SEZL/PRCH
💰 The trade war nearing its end and expectations of interest rate cuts, the market is showing further upward momentum.
💹 $Visa(V)$/$Sezzle Inc(SEZL)$/$Porch Group, Inc.(PRCH)$: Set to report earnings soon, demonstrating a remarkable resilient growth trend.
📣 Stay tuned, supercharge purchasing power through CashBoost!
| Doubling down on AI power, with stock prices doubling
--Going off the rail on a crazy train.
On July 23, the "America's AI Action Plan" is out, outlining key initiatives to accelerate AI innovation, build U.S. AI infrastructure, and lead in international AI diplomacy and security. In this action plan, the U.S. states that in the global race for AI dominance, the nation with the largest AI ecosystem will set global standards and reap extensive economic and military benefits.
Currently, the biggest bottleneck for AI development is energy supply. Data indicates that electricity consumption by data centers is expected to rise sharply from 4.4% of total U.S. electricity usage in 2023 to between 6.7% and 12% by 2028, with a median forecast of 12%. This suggests that in just five years, electricity consumption by data centers could double.
As a result, AI energy stocks have surged this year, with companies like $Oklo Inc.(OKLO)$, $Power Solutions International, Inc.(PSIX)$, and $NuScale Power(SMR)$ leading the way (among marketcap > $1B), posting gains of 256%, 204%, and 188% respectively.
Additionally, fintech newcomers $Sezzle Inc(SEZL)$ and $Porch Group, Inc.(PRCH)$ have seen their stocks rise by 249% and 173% respectively, warranting close attention ahead of their upcoming earnings releases.
| Market recap
On July 26, U.S. stock indices closed higher, with $NASDAQ(.IXIC)$ up 0.24% for a weekly gain of 1.02%, and $S&P 500(.SPX)$ rising 0.4% for a weekly increase of 1.46%.
Most popular tech stocks saw gains, with $Tesla Motors(TSLA)$ climbing over 3%, while $Microsoft(MSFT)$ and $Alphabet(GOOG)$ had gains of less than 1%.
Megacaps - AMZN vs AAPL
This week, the Magnificent 7 continues to report earnings for the new quarter.
$Amazon.com(AMZN)$: After hours on July 31, the company will disclose its Q2 earnings, with expected revenue of $162.3 billion, a year-over-year increase of 9.7%, and EPS of $1.33, reflecting an 8.1% increase.
Highlights include potential offsetting of negative impacts from AI infrastructure investments and geopolitical uncertainties through AI innovation and improved logistics efficiency. In e-commerce, subscriptions for Prime memberships may exceed expectations. In the cloud business, AMZN is expected to maintain its lead over Microsoft Azure and Google Cloud, with a historical first-quarter revenue surpassing $30 billion and potential acceleration in revenue growth. Additionally, advertising revenue growth is projected to outpace overall performance growth, becoming the second growth engine after AWS.
Risks include slightly weak overall Q2 U.S. retail data, indicating that Amazon's e-commerce figures this quarter may fall short of expectations. Capital expenditure in Q1 reached $25 billion, exceeding market expectations, and Q2 may remain elevated, impacting net profit performance.
$Apple(AAPL)$: After hours on July 31, the company will report Q3 earnings, with market expectations for revenue of $89.07 billion, a yoy growth of 4%, and net profit of $21.38 billion, showing flat growth. EPS is projected at $1.43, a 2% increase from the previous year.
Highlights include steady hardware sales, maintaining its core strengths. iPhone shipments in China during Q2 saw a yoy increase of approximately 8%, boosted by significant discounts during the 618 shopping period and local government consumption subsidies, enhancing its penetration in lower-tier markets.
Risks include a 12% yoy increase in App Store revenue in Q2, but with slowing growth; user subscription rates are nearing saturation, with limited new space in core markets like Europe and the U.S. Additionally, uncertainty stemming from EU antitrust measures and the company's struggles in the AI space, which lag behind competitors. Recent initiatives, including integrating external models into Siri and Safari, indicate potential long-term subscription growth for AI services, but investors will be closely watching the rollout schedule, particularly with the upcoming iPhone 17 series and Siri upgrades as key observation windows.
US-EU trade deal
Following last week's agreement with Japan, the U.S. has finalized a new trade agreement with the EU, reducing tariffs on most European goods to 15%, half of the previously threatened 30%. In exchange, Europe will invest $600 billion in the U.S. and purchase up to $750 billion worth of U.S. energy products.
Top movers
Last Friday, online education company $Coursera, Inc.(COUR)$ raised its full-year earnings guidance, leading to a stock price increase of over 36%. Similarly, $Comfort Systems USA(FIX)$ posted strong Q2 earnings, exceeding expectations for both revenue and EPS, driving its stock price up over 22%.
$Newmont Mining(NEM)$ rose nearly 6.9%, reaching a new high at one point. The company’s strong earnings growth exceeded market expectations, primarily driven by a yoy increase in actual gold prices.
$Figma(FIG)$’s IPO pricing range is set between $25 and $28 per share, and at the upper limit of $28, it is expected to raise over $1 billion, with a valuation of approximately $16.5 billion. Founded in 2012, the company has evolved from a design tool into an interconnected, AI-driven platform.
| The Remarkably Robust and Resilient Growth
During this earnings season, fintech companies are expected to outperform expectations, with stable payment giant V and innovative newcomers SEZL and PRCH demonstrating impressive and resilient growth trends.
V - to report earnings on Jun. 29th
Global payment leader $Visa(V)$ is about to announce its earnings, with Wall Street consensus expecting revenue of $9.87 billion, a 10.8% increase yoy, and EPS of $2.86, up 18.2% from last year.
Visa also reported solid growth in the previous quarter, with revenue reaching $9.6 billion, a 9% yoy increase, and EPS of $2.76, up 10%. Visa’s robust financial growth is mainly attributed to non-U.S. markets, making it less susceptible to the impact of a weaker dollar and enhancing its resilience.
Visa also reported solid growth in the previous quarter, with revenue reaching $9.6 billion, a 9% yoy increase, and EPS of $2.76, up 10%. Visa’s robust financial growth is mainly attributed to non-U.S. markets, making it less susceptible to the impact of a weaker dollar and enhancing its resilience.
SEZL - to report earnings on Aug. 7th
$Sezzle Inc(SEZL)$, a rising fintech player focused on BNPL, has seen its stock price soar over 11 times in 2024, significantly outperforming its tech peers during the same period. Since 2025, its stock has increased nearly 250%, currently boasting a market capitalization of $5 billion, with further growth potential.
In the past quarter, Sezzle achieved revenue of $105 million, a yoy increase of 123%, with operating profit reaching $49.9 million, up 260.6%. Its monthly active subscribers and on-demand users reached 658,000, marking a 77.4% growth, demonstrating enhanced user retention and purchasing power.
Sezzle's true growth driver comes from its innovative subscription product, "Sezzle Anywhere," which allows users to pay with Sezzle at almost all merchants that accept Visa, significantly broadening payment scenarios.
The majority of Sezzle's users are young and low-to-middle income individuals. The company envisions transforming Sezzle into a super app used daily by 70% of Americans, intending to integrate more banking services in the future. Although revenue growth may gradually slow in the future, Sezzle remains a highly promising company with substantial potential.
PRCH - to report earnings on Aug. 5th
$Porch Group, Inc.(PRCH)$ is a vertical SaaS company dedicated to simplifying home and residential services through software and services for businesses. Year-to-date, its stock has risen over 170%.
Porch represents a new type of homeowners insurance company. The company's business model integrates traditional home improvement processes through technology, providing service providers with real-time data dashboards to enhance customer acquisition and coverage, along with tailored marketing for efficient skill promotion, while also serving homeowners to build a trustworthy ecosystem.
In the last quarter, the company significantly exceeded market expectations, achieving quarterly revenue of $105 million, surpassing the expected $79.44 million. The company also raised its sales guidance for FY “2025, further boosting investor confidence. Since May, the company's stock has consistently risen, with expectations for the upcoming quarter's earnings to yield additional positive outcomes.
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