Earnings Reports Overview - The earnings season is slowing down, but several retail-favorite companies are set to report this week [1] - Key companies reporting include Barrick Mining Corp., Plug Power Inc., Oklo Inc., Cisco Systems Inc., Walt Disney Co., and Applied Materials Inc. [2][3][5][10][11] Company-Specific Insights - Barrick Mining Corp. reported its third-quarter results before the market opened on November 10 [2] - Plug Power Inc. is expected to report losses of 12 cents per share and revenue of $179.54 million, having missed earnings expectations for the last 18 quarters [3] - Oklo Inc. is anticipated to report losses of 13 cents per share and revenue of $17.01 billion, with stock volatility noted ahead of the report [5] - Cisco Systems Inc. is expected to be a focal point for investors, particularly regarding management's guidance and updates on AI and cybersecurity business momentum [10] - Walt Disney Co. and JD.com Inc. will release earnings reports before the market opens on November 13 [11] - Applied Materials Inc. is set to release its Q4 results after the market closes on November 13 [11] Additional Companies Reporting - Other companies reporting this week include Workhorse Group Inc., Beyond Meat Inc., Microvision Inc., and Virgin Galactic Holdings Inc. [4][6][12]

Core Viewpoint - AST SpaceMobile's stock experienced a significant decline, ending the week down 13.8%, despite a recovery on Friday [1][3]. Group 1: Stock Performance - AST SpaceMobile's share price fell as much as 22.9% during the week before recovering [1]. - The stock closed at $3.95 after a 6.05% increase on Friday [6]. - The company's market capitalization is currently $19 billion, with a 52-week range of $17.50 to $102.79 [6]. Group 2: Market Context - The broader market saw increased bearish sentiment, with the S&P 500 declining 1.6% and the Nasdaq Composite down 3% over the same week [2]. - A tech sell-off was triggered by concerns that AI stock valuations were in bubble territory, leading to a broader market pullback [3]. - AST SpaceMobile is indirectly affected by the tech sector's performance, as its satellite-based internet services are expected to be utilized in AI, robotics, and IoT applications [3]. Group 3: Economic Indicators - The tech sector faced heavy valuation contractions, influenced by news of over 153,000 layoffs in the U.S. and a decline in consumer sentiment to its lowest level since 2022 [4]. - The University of Michigan's consumer confidence index fell by approximately 6% since the last report, contributing to early trading pullbacks [6].

Core Viewpoint - AST SpaceMobile Inc is facing financial challenges despite a significant year-to-date stock increase, with upcoming earnings expected to show continued losses and high valuation metrics indicating potential overvaluation [1][2][3][5]. Financial Performance - The company is set to release its third-quarter earnings on November 10, 2025, with an expected earnings per share (EPS) of -$0.39 and projected revenue of approximately $22 million [1][5]. - The stock has recently declined by 5.3% to $66.68 after a record high of $102.79 on October 16, attributed to a $1 billion debt offering [2][5]. - Year-to-date, the stock has increased by 214.8%, indicating strong performance despite recent declines [2][5]. Valuation Metrics - AST SpaceMobile has a negative price-to-earnings (P/E) ratio of -47.44, reflecting a lack of profitability [3][5]. - The price-to-sales ratio is extremely high at 4,224.34, suggesting the stock is trading at a premium relative to its sales [3]. - The enterprise value to sales ratio stands at 4,040.25, indicating a high valuation compared to revenue [3][5]. Recent Developments - The company completed a $64.5 million acquisition of global S-Band spectrum rights, which may enhance its network reach [4]. - AST SpaceMobile faces challenges with high operating costs and macroeconomic pressures that could impact near-term margins [4]. - The debt-to-equity ratio is low at 0.02, indicating minimal reliance on debt financing, while the current ratio is strong at 8.23, suggesting solid liquidity to cover short-term liabilities [4].

Core Insights - The fund experienced a return of approximately -9% during Q3, leading to a year-to-date return of approximately -9% [2] - The portfolio lacks direct exposure to AI, focusing instead on companies that are integrating AI into their operations, which has affected short-term performance [3][5] - The investment strategy emphasizes long-term growth potential and durable competitive advantages rather than short-term market trends [5][8] Portfolio Analysis - The top five holdings include PAR Technologies, Cellebrite, KKR, LifeCore, and Burford, all of which have faced declines in share price year-to-date [7][32] - LifeCore's share price dropped over 10% following a shelf offering announcement, despite positive business developments [12][15] - Cellebrite's valuation has been impacted by a general decline in software multiples, with a 26% drop in Enterprise Value to Next 12 Months Revenue for medium growth companies [17][18] Company-Specific Developments - LifeCore is expected to ramp up revenues significantly by 2026, driven by new customer wins and favorable regulatory changes [13][15] - Cellebrite is positioned to benefit from AI advancements, with plans to release investigative AI tools in January 2026 [20][22] - KKR's diversified asset management approach remains robust, with significant growth in Fee Related Earnings and a focus on expanding its investor base [25][31] Market Trends and Challenges - The current market environment has led to a compression of software multiples, affecting companies like Cellebrite and PAR Technologies [18][46] - Concerns regarding traditional private equity and private credit have emerged, but KKR's diversified model mitigates some of these risks [24][30] - The investment landscape is characterized by volatility, with a disconnect between share prices and underlying business progress [10][42] Future Outlook - The fund's strategy focuses on long-term value realization, with expectations that current market conditions will eventually improve for the companies held [9][43] - There is potential for significant growth in companies like Hagerty and Kingsway, driven by strategic partnerships and management quality [33][35] - The outlook for PAR Technologies hinges on winning key contracts, which could substantially increase recurring revenue and growth rates [51][60]

Core Viewpoint - AST SpaceMobile's stock experienced significant momentum, driven by the completion of its Bluebird 6 satellite and a new agreement with Verizon Communications, leading to a 64% increase in stock price by the end of October [1][2]. Company Developments - The completion of the Bluebird 6 satellite assembly and testing was announced on September 30, resulting in a 16% stock price increase on October 1 and another 16% the following day [4]. - AST SpaceMobile plans to have 45-60 satellites in orbit by the end of 2026 [4]. - The company announced an equity distribution program to sell up to $800 million in stock, which briefly affected stock prices but did not prevent further gains [5]. - A commercial agreement with Verizon to provide direct-to-cellular services for Verizon customers starting in 2026 was also announced [5]. Stock Performance - The stock peaked on October 15 but faced a sharp decline after Barclays downgraded its rating from overweight to underweight on October 17, citing excessive valuation [6]. - On October 22, the stock dipped 9.2% following the announcement of a $1 billion convertible debt sale, indicating ongoing cash needs and potential dilution for existing shareholders [6]. Market Position and Financials - AST SpaceMobile's market cap is currently $25.7 billion, with only $4.9 million in revenue reported over the last four quarters [9]. - Analysts project revenue of $255 million for the next year, suggesting a long path to justify the current valuation [10]. - The company operates in a mature broadband market, with customers like Verizon having low valuations, which raises questions about the size of AST's addressable market [11].

Core Viewpoint - The article highlights the potential of space stocks, particularly AST SpaceMobile, amidst the rising interest in various technology themes [1] Company Summary - AST SpaceMobile is identified as a key player in satellite connectivity, which may be overlooked due to the focus on other technology sectors [1]

Core Insights - AST presents a compelling asymmetric investment opportunity over the next 12 to 18 months, suggesting that early positioning could yield attractive risk/reward ratios [1] - If AST successfully executes its strategic goals, its valuation is expected to increase significantly upon achieving key execution milestones [1] Company Analysis - AST is focused on the buildout, deployment, and maintenance of AI tools and applications, indicating a strong commitment to advancing its capabilities in generative AI systems [1] - The company is associated with a highly knowledgeable individual in the field of AI and machine learning, which may enhance its credibility and expertise in the market [1] Market Context - The investment landscape is characterized by a potential rerating of valuations based on execution milestones, highlighting the importance of operational success for companies in the AI sector [1]

Group 1 - AST presents a compelling asymmetric investment opportunity over the next 12–18 months, with attractive risk/reward positioning before execution milestones [1] - If AST successfully executes its goals, its valuation is expected to rerate based on execution milestones [1] Group 2 - The article emphasizes the importance of first-hand experience in AI and machine learning for understanding the buildout, deployment, and maintenance of AI tools [1] - The author is pursuing advanced AWS machine learning certifications to enhance expertise in AI and machine learning [1]

Core Insights - Vodafone and AST SpaceMobile announced a plan to establish a Europe-led satellite constellation aimed at providing connectivity services between satellites and smartphones for commercial and government applications [1][2] - The satellite constellation's European operations center will be located in Germany, with potential sites near Munich or Hanover [1] - The project is expected to compete with SpaceX's Starlink, which has over 8,000 satellites deployed [2] Industry Overview - The demand for broadband internet in remote areas is driving satellite service providers to offer mobile network connectivity [1] - According to Novaspace, the satellite-to-phone connectivity market could exceed $10 billion by 2033 [1] - Vodafone and AST SpaceMobile's satellite constellation will support broadband services, public safety, and disaster relief efforts for European mobile network operators [1] Company Developments - AST SpaceMobile plans to deploy up to 60 satellites by 2026, currently operating 6 satellites [2] - Vodafone, as an investor in AST SpaceMobile, reported interest from operators in 21 EU member states for satellite-based communication services [2] - The commercial operation of the satellite constellation is planned to begin in 2026, providing a "sovereign satellite solution" for secure satellite communication services in Europe [2]

Core Viewpoint - Vodafone and AST SpaceMobile are collaborating to create a satellite constellation that will provide satellite-to-smartphone connectivity for both commercial and government applications throughout Europe [1] Company Summary - Vodafone is partnering with AST SpaceMobile to enhance connectivity solutions [1] - The initiative aims to bridge connectivity gaps in Europe, potentially transforming communication capabilities [1] Industry Summary - The project represents a significant advancement in satellite communication technology, focusing on direct smartphone connectivity [1] - This development could lead to increased competition in the telecommunications sector, particularly in satellite communication services [1]