Just like how I was skimming through the my SG holding’s 1Q earnings, I also did not delve deep into the earnings from my US holdings.
My sense it that while most of the companies continued to do well in the first quarter, they are also grappling with the chaos created by the Trump administration. Taking that into consideration, forward estimates are in general slightly more muted.
That said, it will be very impressive performance if the companies continue to to meet their estimates along the year.
Here’s a look at the 1Q 2025 earnings from the top three holdings in my US portfolio: Arista Networks (NYSE: ANET), Shopify (NASDAQ: SHOP), and Alphabet (NASDAQ: GOOG).
As illustrated in the above table, there’s really nothing not to like about the trio’s first quarter’s performance, with both top and bottom lines growing at a good pace.
Let me briefly highlight what caught my attention when I browsed thought their earning calls transcripts.
Arista Networks
It’s business as usual for Arista, as the company maintains its cloud and AI momentum, confidently aiming to hit its US$750 million goal for this segment.
Arista is also consistently acquiring new customers for its campus segment as organisations modernise their networks.
I’m also aligned with Arista’s measured approach to navigating tariff uncertainties.
CEO Jayshree Ullal openly admitted their confusion regarding these tariffs, noting that without such ambiguities, their outlook for the second half would be even more optimistic. Given the unpredictable nature of the situation, they’re simply taking it one quarter at a time.
Shopify
Similarly, President Harley Finkelstein noted that they are monitoring for potential slowdowns caused by current uncertainties. While they’ve seen little evidence of this so far, he acknowledged it’s still too early to assess the full impact.
Despite these potential headwinds, you can sense how rapidly the platform company is moving to deliver improvements for its merchants.
A great example is the recently launched AI-driven tool, tariffguide.ai, which significantly cuts the time needed to determine duty rates based on product description and country of origin.
Shopify also recently expanded its reach, launching Shopify Payments in 16 new markets, almost doubling its original 23 markets.
Something I hadn’t caught in April was the memo from co-founder and CEO Tobi Lütke to staff, where he declared that “Reflexive AI usage is now a baseline expectation at Shopify“.
To be honest, while I’m glad I invested in Shopify, I’m equally glad I don’t work there.
Don’t get me wrong; I’m deeply impressed by the company’s initiatives and rapid pace. However, thriving in such a high-intensity work culture demands a level of drive and dynamism that perhaps suited my 20-something self, but certainly not the current me.
Nonetheless, as long as Shopify continues to attract and retain large merchants, its growth potential remains high.
Alphabet
Talking about AI, Alphabet continues to make significant inroads by integrating its AI models across its vast ecosystem. This strategic move contributed to a 10% year-on-year (YoY) increase in Google Search’s revenue, reaching US$51 billion for the quarter.
It’s evident that while Alphabet might have been initially slow in its AI model development, the immense leverage from its massive ecosystem has allowed it to effectively defend its turf against ChatGPT and other AI models.
My sense is that, going forward, there will be less incentive for existing Google users, like myself, to switch from Gemini to ChatGPT.
Furthermore, other Alphabet verticals such as Google Cloud and Google subscriptions and platforms are experiencing even stronger YoY growth, at 28% and 19% respectively.
If this growth trend continues, Google Search’s contribution could eventually fall to less than half of Alphabet’s total revenue in the future.
Overall, I am satisfied with the performance across my top US holdings and remain positive of their long-term growth potential. With no more funds to deploy for my US portfolio, I will just be holding on to my current stakes.
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