To The Moon

Market-Driver Themes

• AI Infrastructure & Cloud Scale: Alphabet and Cisco are seeing record demand from hyperscalers building out AI data centers, while Williams is securing long-term power contracts to energize those same facilities. The trio illustrates how AI investment is cascading from silicon and software down to physical infrastructure.

• Cybersecurity Platform Consolidation: Palo Alto Networks, CrowdStrike, and Fortinet are all touching all-time highs as enterprises consolidate security spending onto integrated platforms. The market is rewarding vendors that can bundle network, endpoint, and cloud security into a single architecture.

• Energy Transition & Data-Center Power: TotalEnergies and Williams are benefiting from a dual tailwind—higher hydrocarbon prices and surging demand for gas-fired power and pipeline capacity to serve AI data centers. Both are converting fossil-fuel cash flows into transition-era infrastructure.

• Recession-Resistant Compounders: Costco and Royal Bank of Canada are defying cyclical worries. Costco’s membership-fee engine and RBC’s diversified lending and fee income are generating steady earnings growth and returning cash through dividends and buybacks.

$Alphabet(GOOGL)$

• Core Business: Google Search, YouTube, and Google Cloud, serving advertisers, content creators, and enterprise customers. Cloud is the fastest-growing segment, spanning AI infrastructure, workspace software, and generative AI APIs.

• Latest Developments: On April 29, 2026, Alphabet reported Q1 2026 results that smashed expectations, with Cloud operating margin surging from 18% to 33% and backlog nearly doubling quarter-over-quarter to $460 billion. The company also highlighted non-marketable equity gains from Waymo and Anthropic.

• Latest Earnings Highlights: Q1 2026 Financial Highlights: Revenue was $109.9 billion, up 21.8% year-over-year and $2.86 billion above consensus; diluted EPS came in at $5.11, beating estimates by $2.48. Cloud revenue growth and margin expansion were the standout drivers.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Alphabet(GOOG)$

• Core Business: Identical to GOOGL—Google Search, YouTube, and Google Cloud—though this share class carries no voting rights. The economic exposure is the same, with identical revenue and profit streams.

• Latest Developments: On April 29, 2026, Alphabet reported Q1 2026 results that smashed expectations, with Cloud operating margin surging from 18% to 33% and backlog nearly doubling quarter-over-quarter to $460 billion. The company also highlighted non-marketable equity gains from Waymo and Anthropic.

• Latest Earnings Highlights: Q1 2026 Financial Highlights: Revenue was $109.9 billion, up 21.8% year-over-year and $2.86 billion above consensus; diluted EPS came in at $5.11, beating estimates by $2.48. Cloud revenue growth and margin expansion were the standout drivers.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Costco(COST)$

• Core Business: Membership-only warehouse retailer operating 923+ locations globally. Profits are driven primarily by high-margin membership fees rather than merchandise sales, creating a recurring-revenue moat.

• Latest Developments: On April 12, 2026, analysts highlighted that Costco's 2024 membership fee increase to $130 (from $120) is flowing straight to the bottom line with minimal renewal-rate friction. U.S. and Canada renewals stood at 92.2% as of the last report. The company is set to report fiscal Q3 2026 results on May 28, 2026, with consensus revenue of $69.58 billion and EPS of $4.98.

• Latest Earnings Highlights: Q1 FY2026 Financial Highlights (quarter ended November 23, 2025): Net sales rose 8.2% year-over-year to $65.98 billion; total revenue was $67.31 billion; EPS was $4.50, beating consensus of $4.27. Membership fees grew 14% to $1.33 billion, and e-commerce comparable sales surged 20.5%.

• Price Target Outlook: Consensus rating is Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Cisco(CSCO)$

• Core Business: Networking hardware, software, and security for enterprises, service providers, and hyperscalers. Key product lines include data-center switching, campus networking, routing, and coherent optics.

• Latest Developments: On May 13, 2026, Cisco reported fiscal Q3 2026 results and raised full-year AI infrastructure order guidance to approximately $9 billion for hyperscalers—4.5x the prior-year total. AI infrastructure orders in Q3 alone totaled $1.9 billion versus $600 million in the year-ago quarter. The Acacia optics business booked over $1 billion in orders in Q3 and is on track to grow more than 200% year-over-year.

• Latest Earnings Highlights: Q3 FY2026 Financial Highlights: Record revenue of $15.8 billion, up 12% year-over-year; product revenue up 17%; non-GAAP EPS grew 10%. The company guided Q4 revenue to $16.7–$16.9 billion and non-GAAP EPS to $1.16–$1.18, implying full-year FY2026 revenue of $62.8–$63.0 billion and non-GAAP EPS of $4.27–$4.29.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Royal Bank of Canada(RY)$

• Core Business: Canada’s largest bank by market capitalization, with diversified operations in personal and commercial banking, wealth management, insurance, and capital markets. It serves a broad North American and global client base.

• Latest Developments: On February 26, 2026, RBC declared a quarterly common-share dividend of CAD $1.64, payable on or after May 22, 2026. The bank is scheduled to report fiscal Q2 2026 results on May 28, 2026, with consensus estimates of CAD $3.89 EPS and CAD $17.5 billion in revenue.

• Latest Earnings Highlights: Q1 FY2026 Financial Highlights (quarter ended January 31, 2026): Adjusted EPS was CAD $4.08, beating the consensus forecast of CAD $3.85 by nearly 6%; revenue reached CAD $18.0 billion versus expected CAD $17.36 billion. Return on equity was 17.6%.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Total SA(TTE)$

• Core Business: Integrated global energy major spanning upstream oil and gas, LNG, refining and chemicals, and a growing renewables and power division. Operations are balanced across Europe, the Americas, Africa, and the Middle East.

• Latest Developments: On April 30, 2026, TotalEnergies reported Q1 2026 results that overcame significant Middle East disruptions—evacuating over 1,300 personnel and shutting assets representing roughly 15% of output. Despite this, strong commodity prices and trading gains drove adjusted net income up 29% year-over-year.

• Latest Earnings Highlights: Q1 2026 Financial Highlights: Revenue was $49.5 billion, beating consensus of approximately $46.8 billion; adjusted net income was $5.4 billion (+29% YoY, +41% QoQ); adjusted EPS was $2.45, well above estimates near $2.00. Operating cash flow excluding working capital reached $8.6 billion. The company maintained full-year net investment guidance at $15 billion and raised the interim dividend by 5.9% to €0.90 per share while repurchasing $0.75 billion in stock.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Palo Alto Networks(PANW)$

• Core Business: Enterprise cybersecurity platform spanning network security, cloud security, and AI-driven threat intelligence. The company is executing a "platformization" strategy to consolidate point-product spending into its integrated stack.

• Latest Developments: On May 6, 2026, Truist Securities reiterated a Buy rating and raised the price target from $205 to $220. The company guided Q3 FY2026 revenue to $2.94 billion (+28–29%) and Next-Gen Security ARR to $7.94–$7.96 billion (+56%), reflecting the contribution from recent CyberArk and Chronosphere acquisitions.

• Latest Earnings Highlights: Q2 FY2026 Financial Highlights: Revenue was $2.6 billion, up 15% year-over-year; non-GAAP EPS was $1.03; GAAP net income was $432 million, up 62% year-over-year. Next-Gen Security ARR reached $6.3 billion (+33%). Product revenue grew 22%. Management raised full-year FY2026 revenue guidance to $11.28–$11.31 billion (+22–23%) and targets a 40% free cash flow margin by FY2028.

• Price Target Outlook: Truist Securities reiterated a Buy rating on May 6, 2026, raising the price target from $205 to $220. Consensus rating is Strong Buy.

$CrowdStrike Holdings, Inc.(CRWD)$

• Core Business: Cloud-native endpoint and workload protection, identity security, and next-gen SIEM delivered through the Falcon platform. The company uses AI and a single-agent architecture to stop breaches.

• Latest Developments: On April 27, 2026, Mizuho analyst Gregg Moskowitz upgraded CrowdStrike to Outperform from Neutral and raised the price target from $490 to $520, citing healthy demand across the platform and strong positioning in AI security. The company is set to report Q1 FY2027 results on June 3, 2026, with consensus revenue of $1.39 billion and EPS of $1.09.

• Latest Earnings Highlights: The most recent quarterly report reflected a GAAP EPS decline of 781.76% year-over-year as the company absorbed one-time charges related to prior-period outage matters and accelerated platform investments. For Q1 FY2027, management has guided revenue to approximately $1.36–$1.39 billion, with full-year FY2027 revenue targeted at roughly $6.0 billion.

• Price Target Outlook: Mizuho analyst Gregg Moskowitz upgraded the stock to Outperform from Neutral on April 27, 2026, raising the target from $490 to $520. Consensus rating is Strong Buy.

$Williams(WMB)$

• Core Business: Large-scale natural gas pipeline, storage, and midstream infrastructure operator, with an expanding power-generation business serving utilities and data centers.

• Latest Developments: On May 5, 2026, Williams reported record Q1 2026 adjusted EBITDA of $2.25 billion (+13%) and raised its growth CapEx midpoint guidance to $7.3 billion. The company commercialized the Neo power project—a 682-megawatt, $2.3 billion investment under a 12.5-year contract—and placed the Naughton coal-to-gas conversion into service. It also broke ground on the Northeast and Southeast Supply Enhancement pipeline projects.

• Latest Earnings Highlights: Q1 2026 Financial Highlights: Adjusted EBITDA was $2.25 billion, up 13% year-over-year; adjusted EPS grew 22%. Segment highlights included Transmission & Gulf EBITDA up ~17%, Deepwater Gulf EBITDA up more than 60%, and Natural Gas Storage EBITDA up 35%. Management now expects full-year EBITDA to come in at the upper half of guidance.

• Price Target Outlook: Consensus rating is Strong Buy. Recent specific target changes from named analysts could not be verified for inclusion.

$Fortinet(FTNT)$

• Core Business: Broad cybersecurity and networking platform built around the FortiOS operating system, spanning firewalls, SASE, SD-WAN, and AI-driven threat detection for enterprises and governments.

• Latest Developments: On May 6, 2026, Fortinet reported Q1 2026 results that set a first-quarter record for non-GAAP operating margin at 35.8% and delivered record free cash flow of $1.01 billion. The company repurchased 10.6 million shares for $827 million during the quarter and highlighted accelerating enterprise adoption of its unified FortiSASE platform.

• Latest Earnings Highlights: Q1 2026 Financial Highlights: Non-GAAP EPS rose 41% year-over-year to $0.82; GAAP EPS was $0.72, up 29%. Product revenue surged 41%, driving non-GAAP gross margin to 81%. Adjusted free cash flow reached $1.07 billion, representing a 58% margin. The remaining share-repurchase authorization stands at approximately $766 million.

• Price Target Outlook: Consensus rating is Buy. Recent specific target changes from named analysts could not be verified for inclusion.