To The Moon

CrowdStrike Holdings, Inc. has now reported two quarters, 2QFY25 and 3QFY25, since its summer outage, underscoring two things: resilience and stickiness. CrowdStrike surpassed its $4B ending ARR milestone, reporting ARR as $4.02B, ahead of estimates for $4.01B. This quarter, CrowdStrike reported a GRR of 97% and net retention of 115%, with customers actually choosing to add products. We think CrowdStrike has outperformance in the bag for next year on higher ARR (annual recurring revenue) in FY26, supported by better macro backdrop and management's execution post outage. Henrik Sorensen/DigitalVision via Getty Images We're picking up our coverage of CrowdStrike Holdings, Inc. (NASDAQ:

We're putting Synaptics on the radar for longer-term investors based on our belief that the stock is trading below its intrinsic value and showing modest recovery in its end markets. SYNA's end markets, including IoT, Enterprise, auto, and mobile, show modest sequential recovery, with management guiding for 3% Q/Q sales growth next quarter. Synaptics is a value play, in our opinion, with a P/E of 26.7x and EV/Sales of 3.0x, trading below semi-peer averages. We see an opportunity for longer-term investors to explore entry points into the stock at current levels and let the pace of recovery play out on its own. DNY59/E+ via Getty Images Synaptics Incorporated (NASDAQ:SYNA) reported its

We called a buying opportunity on Elastic in late October, since which the stock reported its 2QFY25 results and soared 44%. Elastic carved itself a unique spot within AI to help companies filter through which data to train AI on and just launched its Elastic AI ecosystem to feed that appetite. Management's effective handling of go-to-market headwinds confirms our optimism about management's execution going forward. Having said that, a lot of the positives got priced in with the stock's RSI (relative strength index) at 86 heading into Tuesday's trading from 38 when we last published. We like Elastic's midterm position to outperform. We do think investors should be wise about when to jump into the stock for the best returns, and we think that would be at a lower RSI. Hiroshi Watanabe We pic

Alphabet Inc. aka Google remains a top tech pick despite potential DoJ sanctions, with strong ad revenue and AI tools monetization supporting our buy pick. We think the DoJ case won't go away easily, but don't expect it to end with the sale of Chrome. The stock is down 5% Thursday, with RSI down to 41 from 71 ten days ago. We believe the stock will be a 2025 outperformer and recommend investors take advantage of the current panic. tomch/iStock Unreleased via Getty Images Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) remains one of our favorite tech coverage picks for the mid-to long-term guys. We're updating our thoughts on the stock after Bloomberg

NVIDIA 3QFY25 and commentary on the call led us to maintain our hold. Our point of concern is NVIDIA's near-term gross margin issue, with management reporting a sequential decline and guiding for one in Q4 with GM outlook of 73% to 73.5%. NVIDIA's valuation remains priced for perfection, which puts the stock at higher risk with the gross margin issue. We'll watch for the market to digest the news and upgrade on a more attractive buying opportunity. Spiderplay/E+ via Getty Images NVIDIA (NASDAQ:NVDA) (NEOE:NVDA:CA) just reported 3QFY25 earnings and outlook, leaving us not too optimistic about the near

GlobalFoundries reported Q3 FY24 results and outlook earlier this week, leading us to believe there's a U-turn underway for the stock. GlobalFoundries' Q4 guidance surpasses consensus, boosting investor confidence and driving a 27% stock increase in two days. Having said that, GFS's outperformance will remain closely linked to the Smart Mobile Devices segment, which should see recovery next year but remains lackluster for 2024. GFS benefits from U.S. foundry status and CHIPS Act funding, with potential further support under the Trump administration in 2025. We now think GFS is better positioned to outperform but don't expect to see a material sustained level of outperformance in the near term. chinaface/E+ via Getty Images We're upgrading the stock to hold after a long, bearish stance post

We're upgrading PayPal after Q3 FY24 earnings results and outlook pulled back the stock. Q3 results show promising profitability shift, with transaction margin growing to 46.6% and profits up 14% Y/Y, confirming management's on the right track for profitable growth. PayPal also remains cheap relative to the peer group. We think sustained active account growth and better user monetization with partnerships should support the next leg of outperformance. Paper Boat Creative We're upgrading PayPal (NASDAQ:PYPL) to a buy after Q3 FY24 earnings results' revenue miss and higher-than-expected operating expenses dragged the stock price lower and brough

Summary We remain buy-rated on Microsoft, anticipating an AI payoff in 2025. Our belief is that Microsoft’s next leg of material outperformance will come from its heavy AI-related investments turning into AI monetization. We think the company is uniquely positioned to stand on that leg next year due to its positioning with Copilot sticky integration and better Azure growth as macro headwinds ease. We expect Microsoft to be an outperformer for 2025. PM Images/DigitalVision via Getty Images We're maintaining our buy rating on Microsoft (NASDAQ:MSFT), but updating our investment thesis. The stock fell after reporting its Q4 results

Summary We're downgrading NetApp to a hold as the positives from the memory/storage recovery are already priced in, with the stock near historical highs. We don't see any near-term catalyst at play to boost top line growth, and hence we see a higher risk profile for NTAP in the 2H24. We recommend reducing exposure to memory/storage names as the recovery appears fully priced into the peer group. NTAP is relatively cheap compared to peers, but near-term risks and lack of catalysts suggest it won't outperform the S&P 500 in 2H24. Henrik Sorensen We're downgrading NetApp (NASDAQ:NTAP) to a hold as we think the positives from the memory/storage recovery have been priced into the stock, with the stock valued near historical highs. We last up

Summary Advanced Micro Devices, Inc. announced its $4.9B acquisition of ZT Systems as a strategic move in the AI market, but we see things differently. We think AMD holds a higher risk profile after the acquisition inflated AI-related growth expectations further with little fundamental basis. We're also seeing multiple expansions for AMD, making the stock expensive relative to semi-peers and increasing the risk of a price correction. Investor confidence in AMD's AI growth is misplaced; the acquisition will likely only delay a bigger (disappointing) confrontation between AMD's real AI capabilities and Wall Street's AI expectations. Sunny Advanced Micro Devices, Inc. (NASDAQ:AMD)