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👉 Week in Review — Too Long; Didn’t Read:
Key Earnings Announcements:
Oracle plans to open 47 more cloud regions to service hyperscaler demand
Adobe expects AI-specific annual recurring revenue to exceed $250M this year
GitLab reported lower-than-expected net new customers
Investor Events & Global Affairs:
China pledged to speed up rare Earth exports as the U.S. eased export controls
Iran and Israel are at war — preventing nuclear negotiations with the U.S.
Apple unveiled “liquid glass” at their WWDC
Major Economic Events:
Inflation for Consumers and Producers came in below expectations — despite ongoing tariff tensions
Consumer sentiment experienced its biggest gain in six months
Happy Father’s Day Sunday.
Before we get started, we wanted to offer a warm welcome to the +1,424 new subscribers who joined us this week!
In case you’re new around here, I’m Austin Hankwitz — I’ve been publishing earnings analysis on publicly-traded companies for over half a decade. My podcast, Rich Habits, has hit #1 on Spotify’s Business Podcast chart four times since it’s inception only two years ago.
At the start of 2023, I began my journey of building a $2M Dividend Growth Portfolio from scratch. This twice-weekly newsletter is how I keep you all updated on my progress.
For me, early retirement means $2M invested. For you, it might mean something else. Regardless of your early-retirement number — I hope these weekly synopses of my portfolio progress + what’s been happening in the markets helps you on your own journey.
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👉 Portfolio Updates (YTD Performance):
The stock section of my portfolio is up +4.1% YTD, with the “Long Risky” subsection leading the way. Remember, these are high-octane growth names who I believe will continue to benefit tremendously from the rise of AI. They make up the majority of my stock portfolio for a reason!
The “Dividend Growth Stocks” subsection is flat YTD, while the “Long Technology” subsection continues to be dragged down by Tesla’s underperformance this year.
Berkshire Hathaway stock has fallen -9.7% since Warren Buffett announced his retirement. Let’s hope Greg Abel will demonstrate the ability to drive long-term shareholder value. Not worried about this one in the short-term, as I plan to continue to ride the wave.
The “Monthly Income” portfolio is trending in the right direction. As a reminder, my goal is to grow this to $100K in value by the end of the year. By achieving that goal, I’ll set myself up to begin receiving ~$1,650 per month in tax-efficient passive income. That’s nearly $20,000 / year in passive income just from a $100K investment strategically allocated across the NEOS Funds.
Finally, the “Cryptocurrency” portfolio — Bitcoin is up modestly, whereas I’m still down “all-time” on my $75K ETH investment. Below is a screenshot of my ETH on a different platform. I sold and moved the ETH to this platform a few months ago to “wash” the losses for tax purposes. Again, it shows a +$21,239 gain, but my original investment was $75K about a year ago. Patience!
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👉 Key Earnings Announcements:
Oracle plans to open 47 more cloud regions to service hyperscaler demand, Adobe expects AI-specific ARR to exceed $250M this year, and GitLab reported lower-than-expected net new customers.
Oracle (ORCL)
Key Metrics
Revenue: $15.9 billion, an increase of +11% YoY
Operating Income: $5.1 billion, an increase of +9% YoY
Profits: $3.4 billion, an increase of +9% YoY
Earnings Release Callout
“FY25 was a very good year—but we believe FY26 will be even better as our revenue growth rates will be dramatically higher. We expect our total cloud growth rate—applications plus infrastructure—will increase from 24% in FY25 to over 40% in FY26.
Cloud Infrastructure growth rate is expected to increase from 50% in FY25 to over 70% in FY26. And RPO is likely to grow more than 100% in FY26. Oracle is well on its way to being not only the world’s largest cloud application company—but also one of the world’s largest cloud infrastructure companies.”
My Takeaway
Oracle’s business had a strong finish to their fiscal year 2025. The positive quarterly results were anchored by fast growth across their Cloud Infrastructure, remaining performance obligations (RPOs), and cloud services business segments. Additionally, their fiscal year 2026 outlook exceeded Wall Street expectations and implies material growth across bookings and revenue.
On the flip side, their cash efficiency and margins are facing near-term headwinds as the business makes necessary investments to support their growth over the long-term. For example, Oracle’s capital expenditures came in $5B above Wall Street’s expectations during the recent quarter. Their forward guidance also called for $25B+ of CapEx next year, more than $5B+ higher than what Wall Street was modeling.
Oracle now has 23 cloud regions for databases and hyperscalers, with plans to open 47 more with AWS, Azure, and Google Cloud. Management spoke to remaining performance obligation (RPO) growth north of +100% next fiscal year, as customers continued to want larger and larger contracts. Most importantly, this growth discounts the potential impact of Stargate, with management noting RPO growth is “understated” is Stargate manifests as advertised.
It seems like Oracle has earned a spot in the “Long Technology” subsection of the portfolio!
Adobe (ADBE)
Key Metrics
Revenue: $5.9 billion, an increase of +11% YoY
Operating Income: $2.1 billion, an increase of +12% YoY
Profits: $1.7 billion, an increase of +8% YoY
Earnings Release Callout
“Our strategy to deliver ground-breaking innovation for Business Professionals and Consumers, and Creative and Marketing Professionals is delighting customers and we are pleased to raise Adobe’s FY25 revenue target. Adobe’s AI innovation is transforming industries enabling individuals and enterprises to achieve unprecedented levels of creativity.”
My Takeaway
As you might remember, I held a position in Adobe for about 18-months after ChatGPT was revealed to the world. I had a suspicion Adobe would figure out how to introduce and monetize AI to their customers. They unfortunately weren’t able to do that — so I exited the position in the mid-$500s. Now their stock is under $400 per share.
With that being said, cumulative Firefly-powered generations (their version of AI artwork) reached 24 billion, up +20% sequentially. Additionally, their Express product added +8,000 new businesses during the quarter, compared to +6,000 and +4,000 the previous quarters. This acceleration in enterprise adoption is certainly encouraging, especially in-light of ongoing investor concerns around AI monetization.
Adobe did not disclose the ending ARR for AI-standalone SKUs this quarter, which was $125M last quarter. However, the company now expects to exit 2025 with AI-specific ARR of at least $250M. Additionally, the company aggressively repurchased their shares — repurchasing ~6% of total shares outstanding during the quarter.
Their remaining performance obligations (future revenue) continue to decline, showing only +11% growth this quarter — down from +13% growth last quarter.
As you can see above, their stock is dramatically undervalued when compared to their historical free cash flow multiple of 34X (blue line). Wall Street expects their free cash flow to surpass $10B next year, up +41% over a two year period of time.
At the moment, I don’t own shares of Adobe. However, this momentum in Express & their AI-specific annual recurring revenue of $250M+ by EOY25 is really interesting to me.
GitLab (GTLB)
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