Nothing But Good News

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Nothing But Good News We’ve got a bunch of positive news yesterday which painted a picture of a resilient economy. Let’s start with the economic news. Business activity jumped in October after back-to-back months of stagnation. Factory demand rebounded while service-sector inflation slowed down. That’s putting the economy on the right track. However, Don Rissmiller at Strategas isn’t popping the champagne yet. He warns that the labor market remains extremely tight, thus the Federal Reserve may be forced to tighten further. - “The US economy is generating growth, but it still must digest the ‘last mile’ of policy tightening in our view,” said Don Rissmiller of Strategas. - “We would be more convinced that the growth we are seeing was high-quality or sustainable growth if the labor market was re-balanced (with labor demand equal to supply). Until then, the risk remains that continued restrictive monetary policy becomes too restrictive.” Now for the earnings. Microsoft kept dominating by crushing expectations. The EPS came in at $2.99 versus $2.65 expected, and revenue also topped the estimates. Revenue grew 13% year over year for the quarter, while net income ballooned by 27%. Most importantly, its Intelligent Cloud segment brought in $24.26 billion in revenue – a 19% growth. Azure, its public cloud, surged 29% during the quarter – way above the expectation of 26% growth. So, there is no sign of a slowdown for Microsoft. As for Alphabet, its revenue grew slightly slower than Microsoft at 11%. Its advertising revenue rebounded with a double-digit growth for the first time in over a year. (This could be good news for Meta that relies on advertising revenue.) This quarter is the third straight quarter of a revenue growth for Alphabet: (Source: CNBC) But its stock dropped by 6% after the bell. Why? Its cloud business missed analysts’ estimates. The cloud segment grew 22% from a year earlier and turned profitable with $266 million after losing $440 million in the same period a year earlier. But Lee Munson at Portfolio Wealth Advisors believes that profit needs to be higher. - “If you want this stock to keep going higher, you’ve got to have cloud become more profitable,” said Lee Munson, chief investment officer of Portfolio Wealth Advisors. “It’s a third-rate cloud platform. We need to see it make money.” To compare, Amazon’s AWS posted $5.4 billion in operating income in the second quarter. That is more than ten times Alphabet’s profit for the cloud segment. What’s the takeaway? While some companies missed expectations, the overall earnings season is off to an excellent start. Microsoft’s strong growth in the cloud segment could help investors feel optimistic about the stock market. Apple, Amazon and Meta will be key to solidify any bullish case. And of course, we’ve got a new inflation reading this Friday that could change everything.  Want To Bet Big On A.I.? Buy This Stock Immediately Today’s Stock Pick: ZoomInfo Technologies, Inc. ([ZI]() Have you seen Amazon’s recommended products? Boy, these recommendations were irresistible! I ended up adding a lot of items to the cart. This happens to you all the time, right? So, artificial intelligence is really, really, really powerful. Imagine if you were a salesperson. You need good leads to meet the quota. Finding leads is like browsing for books. If you closed a lead that was perfect for your product, there are hundreds of other leads with similar characteristics. However, if you are searching for them manually (like I did in Barnes and Noble), you will be lucky to find one or two on a given day. With artificial intelligence? You can find dozens of them in five minutes! What does this mean? Business takes off like a rocket. You focus on high-probability leads and close them fast. Salespeople’s morale soars because nobody likes prospecting with a low success rate. That’s what ZoomInfo does for its customers. It leverages data (like Amazon does) to engage the right customers at the right time. Best of all, it scrapes data all over the Internet to keep databases updated. A lead may move on to another company. Therefore, ZoomInfo would update the data automatically. In fact, ZoomInfo makes more than 250 million changes to contact information every month. Signals around potential purchase intent are also available. It helps answer the key questions: Did the person just get funding? Is there a new executive in the role? Is the company opening a new location in the area? And the list goes on. Anybody who works in sales knows that “triggers” are the holy grail of hot prospects. A new CEO will be eager to make changes, and you must hit him/her before vendors are chosen. You would get in ZoomInfo just at the inflection point. IT firm Gartner estimates that 60% of business-to-business sales will be data-driven by 2025. Management believes the current penetration is in the single digits. So, the growth opportunity could be six times larger than today. However, you don’t have to wait for growth. The business is growing very well. Its recent quarter had a 16% revenue growth. The retention rate is high at 104%. In short, ZoomInfo is one of top software companies in the country. (Source: ZoomInfo) Moreover, large accounts are exploding. The number of clients spending more than $100,000 jumped to 1,893. Plus, its engagement rate (daily active users) is close to an all-time high. Its client base is enviable with big logos like Affirm, Verizon, Workday, and Raymond James. (Source: ZoomInfo) Superior reputation: ZoomInfo is generally accepted as the dominant leader in sales intelligence, with a long list of awards by G2: (Source: ZoomInfo) Two new growth catalysts: ZoomInfo added a new vertical in its new TalentOS platform. It helps companies recruit and hire talents. The concept is the same. ZoomInfo’s AI offers key information that helps HR track the hiring process. As for the second catalyst, ZoomInfo is expanding its international footprint by opening offices in London and India. Bottom line: ZoomInfo is one of the top growth stories for software stocks. It operates in the hottest megatrend – artificial intelligence. You can clearly see the benefits of its products, so it’s an easy sale. If you are looking for an AI stock, look no further than ZoomInfo.   [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.