TCX Overview

Caterpillar Inc. (CAT): Caterpillar's shares have outperformed the industry, with a significant backlog supporting growth despite earnings declines due to tariffs. The company anticipates a $1.6-$1.75 billion impact from tariffs in 2025 but expects growth from increased construction activities and commodity demand.

Shopify Inc. (SHOP): Shopify's stock has risen significantly, driven by an expanding merchant base and new AI-driven tools. However, the company faces challenges with gross margin pressure and higher operating expenses, which may impact profitability in the near term.

Qualcomm Inc. (QCOM): Qualcomm's shares have seen moderate growth, bolstered by advancements in AI capabilities and a strong automotive business. Nonetheless, competition in the mobile chipset market and trade tensions may hinder future profit potential.

Micro-cap Stocks: Waterstone Financial and Tucows have shown strong performance relative to their industries, with Waterstone benefiting from improved net interest margins and Tucows leveraging high-margin services. Both companies face challenges, including rising loan stress for Waterstone and operational risks for Tucows.

Stock Performance: Tucows Inc. (TCX) shares rose 15.1% following their Q3 2025 results, significantly outperforming the S&P 500, which declined by 5.4% during the same period.

Financial Highlights: The company reported a 6.8% increase in consolidated net revenues to $98.6 million and a 9% rise in gross profit to $24.2 million, with adjusted EBITDA jumping 53% year-over-year to $13.3 million.

Operational Insights: Tucows’ Domains and Wavelo Services were key revenue drivers, with Domains revenues increasing by 5% and Wavelo Services growing nearly 18%, while Ting Internet Services also saw an 11% revenue increase.

Leadership Transition and Strategic Review: David Woroch was appointed as the new CEO, succeeding Elliot Noss, and the company is exploring options for Ting Internet Services, including a potential sale, to focus on its capital-light business models.

Leadership Transition: Tucows Inc. has appointed David Woroch as the new President and CEO, succeeding Elliot Noss, who served for 25 years and will remain on the Board of Directors and as a consultant for Ting Internet.

Elliot Noss's Legacy: Noss transformed Tucows from a software download platform into a diversified technology company, advocating for an open internet and significantly impacting the company's culture and growth.

David Woroch's Experience: Woroch, a 25-year veteran of Tucows, has led Tucows Domains to become the world's largest wholesale domain registrar and is recognized for his strategic and executional skills in the technology sector.

Strategic Focus: Tucows is exploring strategic options for its Ting Internet business while maintaining leadership continuity, with Woroch continuing as CEO of Tucows Domains and Ivan Ivanov taking on the role of CEO for Ting Internet.

Financial Performance: Tucows Inc. reported a 6.8% increase in consolidated net revenue for Q3 2025, reaching $98.6 million, with a 53% rise in Adjusted EBITDA to $13.3 million, driven by growth across all business segments.

Net Loss: The company experienced a net loss of $23.0 million in Q3 2025, slightly higher than the $22.3 million loss in the same quarter of 2024, although the adjusted net loss improved by 20% year-over-year.

Cash Position: Tucows ended Q3 2025 with cash and cash equivalents totaling $70.8 million, an increase from $68.6 million in the previous quarter but a decrease from $91.1 million a year earlier.

Management Outlook: CFO Ivan Ivanov highlighted the company's operational improvements and ongoing initiatives aimed at enhancing shareholder value, indicating a positive trajectory for future performance.

Featured Stocks: Zacks.com highlights stocks such as AbbVie Inc., ServiceNow, The Boeing Co., Tucows Inc., and Ampco-Pittsburgh Corp. in their Analyst Blog, providing insights into their recent performance and market outlook.

AbbVie Performance: AbbVie has shown strong growth post-Humira's loss of exclusivity, driven by new immunology products, although it faces challenges from competitive pressures and slowing sales in its aesthetics division.

ServiceNow Growth: ServiceNow is benefiting from increased enterprise digital transformation and has raised its subscription revenue guidance for 2025, indicating strong demand for its AI-driven solutions.

Boeing and Microcap Insights: Boeing's stock has outperformed its industry, supported by growing air travel and defense prospects, while microcap stocks like Tucows and Ampco-Pittsburgh face challenges but show potential for future growth through strategic initiatives.

Zacks Research Daily Highlights: The report features research on 16 major stocks, including AbbVie, ServiceNow, and Boeing, along with insights on micro-cap stocks like Tucows and Ampco-Pittsburgh, emphasizing unique research on smaller companies.

AbbVie’s Growth Prospects: AbbVie is expected to return to robust revenue growth in 2025, driven by successful new immunology medicines, despite facing challenges from Humira's loss of exclusivity and competitive pressures.

ServiceNow's Strong Performance: ServiceNow has outperformed its industry, benefiting from digital transformation trends and raising its subscription revenue guidance for 2025, with a focus on AI and machine learning technologies.

Boeing's Market Position and Challenges: Boeing remains a leader in commercial aircraft manufacturing with a positive outlook for its defense segment, but faces labor shortages and supply chain issues that could impact operational performance.