Core Viewpoint - The Vanguard Information Technology ETF has significantly outperformed the market over the past decade, primarily driven by the AI boom, but it lacks exposure to key companies in the AI sector, making it potentially less attractive for investors seeking broad AI stock exposure [1][2]. Group 1: ETF Performance and Composition - The Vanguard Information Technology ETF (VGT) has increased by approximately 670% over the past decade, compared to a 270% gain for the S&P 500 [1]. - The ETF tracks the MSCI US IMI Information Technology 25/50 index and holds stakes in 320 companies, with nearly 59% of its value concentrated in the top 10 holdings [3]. - The top three holdings—Nvidia, Apple, and Microsoft—account for nearly 45% of the ETF's assets, indicating a high concentration risk [4]. Group 2: Missing Key Companies - The ETF does not include major players in the AI ecosystem such as Alphabet, Amazon, and Meta Platforms, which are classified in different sectors [5][6]. - Alphabet and Meta are categorized under the communication services sector, while Amazon falls under consumer discretionary, thus excluding them from the ETF's holdings [6]. - The absence of these companies is significant as Amazon and Alphabet are two of the largest cloud infrastructure providers, holding market shares of 29% and 13%, respectively, which are crucial for AI model training and operation [7]. Group 3: Implications of Missing Companies - The exclusion of Amazon, Alphabet, and Meta from the ETF limits its exposure to the AI megatrend, as these companies play vital roles in cloud services and AI development [8].

Core Insights - Oracle Corp (NYSE:ORCL) has experienced a significant price movement, breaking through its December low and reaching 2024 highs, while also failing at its one-year volume point of control (VPOC) [1] - The stock closed below the put support at the 180-strike, indicating a potential delta hedge meltdown, with lower strikes at 160 and 152.5 likely to act as magnets [1] Options Activity - ORCL has a front-month gamma-weighted Schaeffer's open interest ratio (SOIR) of 1.15, suggesting a moderate level of options activity [3] - The Schaeffer's Volatility Scorecard (SVS) for ORCL is 99 out of 100, indicating that the stock has frequently exceeded option traders' volatility expectations over the past year [3] - A recommended March put option has a leverage ratio of 4.9, which means it will double in value with a 17.5% drop in the underlying equity [3]

Core Insights - Polaris Capital Management disclosed a sale of 204,200 shares of Popular (NASDAQ:BPOP) in the fourth quarter, valued at approximately $24.13 million based on average pricing [1][2] - Following the sale, Polaris holds 682,330 shares of Popular, valued at $84.96 million, with a net position value decrease of $27.63 million due to both share sales and market price changes [2] Company Overview - Popular is a leading regional financial institution with a diversified portfolio of banking and financial services, leveraging an extensive branch and ATM network to serve a broad customer base [6] - The company offers a comprehensive suite of retail, mortgage, and commercial banking products, generating revenue primarily through net interest income from lending activities and fee-based income from investment banking, insurance, and leasing services [8] Financial Performance - As of January 28, Popular shares were priced at $131.54, reflecting a 31.9% increase over the past year, outperforming the S&P 500 by 16.89 percentage points [3] - The company reported a revenue of $3.05 billion and a net income of $833.16 million for the trailing twelve months (TTM), with a dividend yield of 2.3% [4] Investment Implications - Despite the sale, Popular remains the largest holding in Polaris's portfolio, indicating that the conviction in the stock has been recalibrated rather than diminished [9] - The company has demonstrated strong fundamentals, with resilient net interest income, stable credit quality, and capital ratios exceeding regulatory minimums, contributing to the stock's nearly 32% increase over the past year [10] - The sale appears to be a risk-management decision rather than a bearish call, as the position still represents over 7% of reported assets, maintaining its status as one of the portfolio's highest-conviction ideas [11]

Group 1 - RBC Capital analyst Gerard Cassidy raised the price target on Popular (BPOP) to $141 from $137 and maintains an Outperform rating after the company's Q4 earnings beat [1] - The company has a strong capital position with a 15.7% common equity tier 1 ratio, providing flexibility for growth opportunities [1] - The Puerto Rican economy is benefiting from U.S. Government disaster relief spending and U.S. economic growth, positioning it well for the "on-shoring" trend [1]

Core Viewpoint - SoundHound AI is experiencing rapid revenue growth but faces challenges with stock volatility and high valuation, leading to a significant stock price decline in 2025 [1][8]. Company Overview - SoundHound is a prominent developer of conversational AI software utilized by major brands across various industries, including hospitality, automotive, and healthcare [2]. - The company offers a range of products, such as a Voice AI platform for car manufacturers and solutions for fast-food restaurants, enhancing customer interaction and operational efficiency [3]. Financial Performance - SoundHound's revenue is projected to reach between $165 million and $180 million for 2025, indicating a growth of approximately 103% compared to 2024 [5]. - Despite revenue growth, the company reported a net loss of $109.2 million for Q3 2025, primarily due to increased marketing and administrative expenses [6][7]. Market Position - SoundHound's stock is currently trading at a price-to-sales (P/S) ratio of 27.9, which, while lower than its peak, is still considered high compared to industry peers like Nvidia, which has a P/S ratio of 24.6 [8][9]. - Wall Street estimates suggest that SoundHound could generate $230.2 million in revenue for 2026, leading to a forward P/S ratio of 18.8 [9]. Future Outlook - There is potential for SoundHound's stock to recover some losses in 2026, especially for long-term investors who can allow the business to mature [11][12].

Core Viewpoint - Popular, Inc. (BPOP) reported better-than-expected quarterly results, with shares rising 6.3% following the announcement of adjusted earnings per share of $3.40, surpassing the Zacks Consensus Estimate of $3.02 and showing an increase from $2.51 in the same quarter last year [1][9]. Financial Performance - The fourth-quarter 2025 adjusted earnings per share of $3.40 exceeded expectations, while net income on a GAAP basis reached $233.9 million, reflecting a 31.5% year-over-year increase [2][9]. - Total quarterly revenues amounted to $823.8 million, a 9.1% increase from the previous year, and also surpassed the Zacks Consensus Estimate of $814.9 million [4]. - For the full year 2025, adjusted earnings per share were $12.18, beating the Zacks Consensus Estimate of $11.81, and net income was $833.2 million, up 35.6% year over year [3]. Revenue and Income Breakdown - Net interest income (NII) for the quarter was $657.6 million, an 11.3% increase year over year, with the net interest margin expanding by 26 basis points to 3.61% [4]. - Non-interest income rose by 1% to $166.3 million, driven by increased service charges and trading account gains [5]. Loan and Deposit Trends - Total loans held in portfolio increased by 1.6% sequentially to $38.5 billion, while total deposits decreased slightly to $66.2 billion [6]. Credit Quality and Provisions - The company recorded a provision for credit losses of $71.4 million, a 3.3% increase from the prior year, with non-performing assets rising 32.5% year over year to $540.8 million [7][9]. - The ratio of non-performing assets to total assets increased to 0.72% from 0.56% a year earlier [7]. Capital Ratios - As of December 31, 2025, the Common Equity Tier 1 capital ratio and Tier 1 capital ratio were 15.72% and 15.77%, respectively, both down from the previous year [10]. Share Repurchase Activity - In the reported quarter, the company repurchased 1.25 million shares of common stock for $147.8 million [11].

Core Viewpoint - Shares in Popular, a bank focused on Puerto Rico, have started 2026 strongly, driven by robust Q4 2025 financial results, including a notable 40.6% year-over-year increase in quarterly EPS [1] Financial Performance - The bank reported a quarterly EPS increase of 40.6% year-over-year, indicating strong financial health and operational performance [1]

Core Insights - Popular reported a total loan growth of $2.2 billion for 2025, marking a 6% increase, with significant contributions from commercial loans and construction loans [1] - The company achieved a net income of $833 million for the full year 2025, a 36% increase compared to 2024, and a fourth-quarter net income of $234 million, reflecting strong performance driven by higher net interest income and lower operating expenses [2][3][6] Financial Performance - For Q4 2025, Popular's earnings per share reached $3.53, an increase of $0.38 from the previous quarter, with a return on tangible common equity (ROTCE) exceeding 14% [2][6] - The net interest income (NII) for Q4 was $658 million, up $11 million from Q3, and for the full year, NII increased by $259 million, or 11% [6][7] - The fourth-quarter net interest margin expanded by 10 basis points to 3.61% on a GAAP basis, driven by higher loan balances and lower interest expenses [7] Loan and Deposit Trends - Loans grew by $641 million in Q4, with $497 million from Banco Popular de Puerto Rico (BBPR) and $144 million from Popular Bank, while management anticipates a consolidated loan growth of 3%-4% for 2026 [7][8] - Ending deposit balances decreased by $323 million in Q4, primarily due to expected outflows in Puerto Rico public deposits, which ended the quarter at $19.4 billion [10] Capital Management and Shareholder Returns - Popular repurchased approximately $500 million of common stock in 2025 and increased its quarterly dividend to $0.75 per share [5][18] - The Common Equity Tier 1 (CET1) ratio stood at 15.7% at year-end 2025, with tangible book value per share rising by 21% to $82.65 [17] Expense Management and Guidance - Operating expenses for Q4 were $473 million, down $22 million from Q3, with management expecting a 3% increase in GAAP expenses for 2026 [14][15] - For 2026, Popular guided to a net interest income growth of 5%-7% and a modest increase in expenses, while anticipating continued margin expansion albeit at a slower pace than in 2025 [4][8] Credit Quality - Credit metrics remained stable, with non-performing loans decreasing to 1.27% of total loans, and net charge-offs for the full year 2025 improved to 52 basis points [16]

Core Insights - Popular (BPOP) reported revenue of $823.84 million for Q4 2025, marking a year-over-year increase of 9.1% and exceeding the Zacks Consensus Estimate by 1.1% [1] - The earnings per share (EPS) for the same quarter was $3.38, up from $2.51 a year ago, representing an EPS surprise of 11.8% compared to the consensus estimate of $3.02 [1] Financial Performance Metrics - Mortgage banking activities generated $3.62 million, below the average estimate of $4.95 million from two analysts [4] - Net Interest Income was reported at $657.55 million, slightly above the average estimate of $653.47 million from two analysts [4] - Service charges on deposit accounts totaled $38.91 million, exceeding the average estimate of $38.49 million from two analysts [4] - Total non-interest income reached $166.29 million, surpassing the average estimate of $163.38 million from two analysts [4] - Other operating income was $19.35 million, compared to the average estimate of $19 million from two analysts [4] - Other service fees amounted to $106.51 million, exceeding the average estimate of $100.84 million from two analysts [4] Stock Performance - Over the past month, shares of Popular have returned -2.3%, contrasting with a +0.4% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Popular (NasdaqGS:BPOP) Q4 2025 Earnings call January 27, 2026 10:00 AM ET Company ParticipantsBen Gerlinger - Director of Equity ResearchBrandon Berman - VP of Equity ResearchBrett Rabatin - Director of ResearchGerard Cassidy - Managing Director and Head of U.S. Bank Equity StrategyJavier Ferrer - President and CEOJorge García - EVP and CFOKelly Motta - Director of Equity ResearchLidio Soriano - EVP and CROPaul Cardillo - SVP and Investor Relations OfficerTimur Braziler - Director of Mid-Cap Bank Equity Re ...