https://3mb.videonest.co/videos/83/warren-buffett-just-bought-this-stock https://atto.videonest.co/83_horizontal_thumbnail_v3.webp https://atto.videonest.co/83_video_v3_360.mp4 Warren Buffett Just Bought This Stock! Published first at https://www.3minutebreakdowns.com Ulta Beauty stock analysis. Ticker $ULTA Warren Buffett just bought this stock! Cosmetic company Ulta Beauty jumped 11% yesterday on news that Warren Buffett’s company Berkshire Hathaway had purchased almost 700,000 shares. So what does Warren Buffett see in the business? At the latest price, Ulta now has a market cap of 17.8 billion dollars. With 525 million of cash on the balance sheet and no debt the enterprise value is 17.3 billion. Revenue over the last 12 months comes to 11.3 billion with 1.26 billion of net income, 1.9 billion of adjusted ebitda and 914 million of free cash flow. So Ulta stock is now valued at 14 times earnings, 19 times free cash flow and 8.9 times EBITDA. That PE ratio is right at the bottom of the company’s historical range. And that low valuation is because Ulta is not performing as well as in the past. Same-store sales in the first quarter rose just 1.6% year-over-year. Ulta then cut its full-year outlook to just 2 to 3%, growth. That guidance requires a significant improvement in the second half of the year which isn’t guaranteed. #investing #stocks #3mb #warrenbuffett 2024-08-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/84/this-small-uk-stock-looks-like-a-buy https://atto.videonest.co/84_horizontal_thumbnail_v3.webp https://atto.videonest.co/84_video_v3_360.mp4 This Small UK Stock Looks Like A Buy Published first at https://www.3minutebreakdowns.com Eurocell stock analysis. Ticker: $ECEL.L This small cap stock from the UK looks like a buy. Eurocell plc recycles and manufactures plastics that are used to create doors, windows, roof lights and garden rooms. The company supplies raw materials to fabricators as well as producing finished goods for tradesmen and homebuilders. At the latest price, Eurocell has a market value of 160 million pounds and the enterprise value is roughly the same. Revenue last year was 365 million with 9.6 million pounds of net income and 44 million of free cash flow. So the stock is currently valued at just under 17 times earnings but only 3.6 times free cash flow. Eurocell is under pressure right now thanks to higher interest rates and inflation which are affecting the housing market. Total revenues fell 4% last year and ebitda margins dropped 3 percentage points to 7%. This performance comes as the market for building materials and new home builds has softened. In fact, industry pressures forced two of Eurocell’s competitors, Duraflex and Safestyle to close down last year. #investing #stockanalysis #stockstobuy 2024-08-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/85/why-did-warren-buffett-buy-this-oil-stock https://atto.videonest.co/85_horizontal_thumbnail_v3.webp https://atto.videonest.co/85_video_v3_360.mp4 Why Did Warren Buffett Buy This Oil Stock? Published first at https://www.3minutebreakdowns.com Occidental Petroleum stock analysis. Ticker: $OXY Occidental Petroleum, at the current price has a market value of 55 billion. It’s got 5.3 billion of cash and investments and 20 billion of debt so the enterprise value is 78 billion. Meanwhile, the company has reported 28 billion of revenue over the last 12 months, 3.9 billion of net income and 4.1 billion of free cash flow. So the stock is now valued at 14 times earnings and 19 times free cash flow. Occidental has not had the best couple of years. Including dividends, the stock has returned negative 9% while the S&P 500 is up 34% and the XLE energy ETF is up 22% over the same period. But the performance of Occidental isn’t that surprising. Back in 2019, the company won a bidding war with Chevron for Anadarko Petroleum. But in winning that deal, Oxy ended up losing. The company ran up massive debt, issued preferred stock to Berkshire Hathaway at onerous terms — and then took a leveraged balance sheet headfirst into the pandemic. Oil prices were crushed and turned negative in April 2020. Occidental stock went below $10 a share, a decline of 90%. Later, as oil prices recovered, the stock gained over 500%. #investing #stockmarket #stocks #3mb 2024-08-22T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/86/shoud-you-buy-sentinelone-stock-august-2024 https://atto.videonest.co/86_horizontal_thumbnail_v3.webp https://atto.videonest.co/86_video_v3_360.mp4 Shoud you buy SentinelOne stock? (August 2024) Published first at https://www.3minutebreakdowns.com SentinelOne stock analysis. Ticker symbol: $S Since July 18th, cybersecurity stock SentinelOne has climbed 13%. But those gains have little do with business results. Instead, SentinelOne stock has soared after rival CrowdStrike caused a global outage that disrupted millions of people. The question is whether SentinelOne can hold on to those gains. At the latest price, SentinelOne has a market cap of 7.9 billion dollars. With 200 million of cash and 900 million of investments the enterprise value is 6.8 billion. Revenue over the last 12 months comes to 674 million but the company is not yet profitable. Net income is minus 300 million with zero free cash flow and 220 million of stock based compensation. But SentinelOne is delivering excellent growth. Sales more than doubled in 2021, 2022 and 2023. According to Bank of America, SentinelOne and Crowdstrike are the only two high-end players in endpoint security. Crowdstrike is clearly larger and more popular among big enterprise with nearly 5 times the amount of recurring revenue. But SentinelOne is growing faster. Fiscal 2024 revenue rose 47% at SentinelOne compared to 36% for Crowdstrike. And SentinelOne is also cheaper trading at 10 times revenue compared to Crowdstrike’s 18 times. Meanwhile, SentinelOne is moving closer to profitability. Free cash flow margin in the latest quarter was a respectable 18%. Crowdstrike was about 35%. #sentinelone #investing #stocks #stockanalysis #3mb 2024-08-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/87/2-stocks-to-avoid-august-2024 https://atto.videonest.co/87_horizontal_thumbnail_v3.webp https://atto.videonest.co/87_video_v3_360.mp4 2 Stocks To Avoid (August 2024) Published first at https://www.3minutebreakdowns.com 2 stocks to avoid August 2024 edition. #investing #stockanalysis #3mb #money 2024-08-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/129/upwork-stock-looks-cheap-and-attractive https://atto.videonest.co/129_horizontal_thumbnail_v3.webp https://atto.videonest.co/129_video_v3_360.mp4 Upwork Stock Looks Cheap (And Attractive) Published first at https://www.3minutebreakdowns.com Upwork stock analysis. Ticker: $UPWK Upwork operates an online marketplace for freelancers. The stock boomed during the pandemic when people were stuck at home but shares have fallen over 80% since. At the latest price, Upwork has a market value of 1.3 billion dollars. It’s got almost 500 million of cash and investments on the balance sheet and 360 million of debt so the enterprise value is 1.2 billion. Revenue over the last 12 months comes to 744 million with 74 million of net income and 73 million of free cash flow so the stock is valued at 18 times earnings and 16 times free cash flow. That valuation is not bad when you look at Upwork’s recent performance. Average revenue growth over the last 5 years is 22% with sales up 14% over the past 12 months. Crucially, Upwork recently turned the corner on profitability. Cost cutting helped total operating expenses to decline by 10 percentage points in the latest quarter. As a result adjusted ebitda margin more than doubled, to 21%. And free cash flow surged to 33.5 million. #investing #stockstobuy #stockstobuynow #3mb 2024-08-25T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/323/be-careful-investing-in-ai-stocks https://atto.videonest.co/323_thumbnail_resized.webp https://atto.videonest.co/323_video_v3.mp4 Be careful investing in AI stocks Source: https://www.overlookedalpha.com I just watched a TikTok about how many millionaires are going to be created from using AI.And if you look at the stock market, many AI companies are on a tear, with some of them up more than 200% this year already. But, you have to be very careful when investing in AI companies. Because some of these so called AI stocks on the market are not necessarily doing very advanced AI. C3, for example, has been called a cash-burning consulting company that masquerades as a software business. The company has a market cap of 2.1 billion which is 8 x revenue and a queue of short sellers trying to short the stock. Meanwhile, Bigbear.ai tripled in value after a supposed contract win with the US air force. However, that contract was completely misinterpreted by the market. And that stock also has a very high short interest. There are companies like SoundHound and Guardforce AI and many more. They might be doing some type of AI but it’s just not clear how advanced any of these products really are. For the most part, we agree with this tweet from dali Bali which reads: Any AI company with meaningful revenue today probably isn’t real AI. After all, the company behind ChatGPT, OpenAI was started as a non-profit and has only just started to monetize. OpenAI are making real advances but they’re not a public company so you can’t invest in them directly. Of course, some companies will hit it big with AI. The problem is that many of these companies on the public market are just trying to jump on the bandwagon. We’ve clearly entered a hype cycle and these companies are trying to take advantage and many of these AI stocks are going to end up being very poor investments. #stocks #investing #stockstowatch #aistocks 2023-04-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/324/should-you-buy-meta-stock-february-2024 https://atto.videonest.co/324_horizontal_thumbnail_v2.webp https://atto.videonest.co/324_video_v3.mp4 Should you buy Meta stock? (February 2024) Published first at https://www.3minutebreakdowns.com Meta stock analysis. Ticker: $META Meta just reported earnings and the stock jumped by 14%. At the after-hours price of $450 dollars, the company is now valued at 1.18 trillion. With 65 billion of cash and 18 billion of long term debt, the enterprise value is 1.14 trillion. This was a strong earnings report from Meta adding to a hugely impressive year. Revenue increased 25% in the quarter to 40 billion and net income increased to 14 billion, taking the net income margin up to 35%. The number of daily people using one of Meta’s apps rose 8% to 3.19 billion and the company introduced its first ever dividend of $2 a share. On a yearly basis, revenue increased 16% to just under 135 billion, net income was 39 billion and free cash flow was 43 billion. So based on the after hours price, Meta stock is now valued at 30 times earnings and 26 times free cash flow. Crucially, Meta did this while keeping a lid on expenses which grew by only 1%. All in all, there isn’t much to criticize about Meta’s results. The company did lose 16 billion on its Reality Labs division but that hardly matters when the core business is performing so well. Meta’s investments into AI are clearly paying off and providing real value for advertisers with ad impressions increasing by 21%. #investing #metastock #3mb 2024-02-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/325/should-you-buy-amazon-stock-february-2024 https://atto.videonest.co/325_horizontal_thumbnail_v2.webp https://atto.videonest.co/325_video_v3.mp4 Should you buy Amazon stock? (February 2024) Published first at https://www.3minutebreakdowns.com Amazon stock analysis. Ticker: $AMZN Amazon reported earnings last week and the stock climbed by 7% taking the market value to 1.8 trillion dollars. With 87 billion of cash and investments and 58 billion of long term debt, the enterprise value is 1.79 trillion. Amazon has invested heavily in its fulfillment network in recent years and is now reaping the rewards. Total revenue in the quarter grew 14% to 170 billion dollars and this was supported by growth in all of the company’s business segments. Online store sales were up 8% to 71 billion Physical stores grew 4% to 5.2 billion Third party services grew 19% to 44 billion Advertising grew 26% to 15 billion Subscriptions grew 13% to 10.5 billion And AWS grew 13% to 24 billion. For the full year the company delivered 575 billion dollars of revenue and 109 billion of ebitda. Even more impressive, free cash flow swung from a 20 billion loss in 2022 to over 32 billion. It’s that huge swing which highlights a key argument for owning Amazon stock despite the high valuation. #investing #stocks #stockstobuy #3mb 2024-02-05T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/326/should-you-buy-tesla-stock-february-2024 https://atto.videonest.co/326_horizontal_thumbnail_v3.webp https://atto.videonest.co/326_video_v3.mp4 Should you buy Tesla stock? (February 2024) Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla stock is down 26% this year and over 50% from its all time high. At the current price, the company has a market cap of $586 billion dollars. The company has 29 billion of cash and investments and 5 billion of long term debt taking the enterprise value to 562 billion. Revenue over the last 12 months comes to 97 billion with 15 billion of net income and 4.4 billion of free cash flow. So Tesla stock is now valued at 39 times earnings and 129 times free cash flow. In my last video on Tesla I gave the stock a bearish rating which was based on the company’s disappointing fourth quarter earnings and outlook for 2024. In that earnings, Tesla reported a slowdown in top line growth and weakness in profit margins. Automotive revenue grew by less than 2% and the company’s overall operating margin dropped to 8.2%, putting it below legacy automaker Toyota Motors. And although Tesla reported strong net income, it was boosted by a one-time tax benefit of almost 6 billion. Zooming out, however, provides some perspective. Full year revenues still advanced 19% with a record 1.8 million vehicles delivered. And the company managed 4.4 billion of free cash flow despite investing a record amount in research and development. #investing #stockstobuy #teslastock #3mb 2024-02-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/327/should-you-buy-google-stock-february-2024 https://atto.videonest.co/327_horizontal_thumbnail_v2.webp https://atto.videonest.co/327_video_v3.mp4 Should you buy Google stock? (February 2024) Published first at https://www.3minutebreakdowns.com Google / Alphabet stock analysis. Ticker: $GOOG $GOOGL Google just reported earnings and the stock dropped by over 7%.. Despite the reaction, this was another impressive quarter from Google. Search revenue grew by 13% to 48 billion. YouTube ads grew 16% to 9.2 billion. Google subscriptions grew 23% to 10.8 billion and Google Cloud grew 26% to 9.2 billion. The one disappointment was Google Network which saw a 2% decline. To put those numbers in perspective, Google has now reported 307 billion of revenue over the last 12 months, 74 billion of net income and 124 billion of adjusted ebitda. Net income in 2023 was also 23% higher than the year before and now stock is at only 24 times earnings. Account for one-off restructuring charges and the multiple is even lower. So why did the stock drop? The obvious answer is that while results were good, they weren’t quite good enough. Google’s total advertising revenue may have grown 11% but it came in just below analyst estimates. And zooming out, Google’s full year revenue growth, at just under 9% is the lowest in the company’s recent history. More broadly, there’s a clear debate going on about the future of Google Search and its place in a world of artificial intelligence. If AI tools and chat bots take market share away from Google search, the stock would face significant downside pressure, since search continues to be the company’s largest revenue driver. #investing #googlestock #stocks #3mb 2024-02-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/328/should-you-buy-snowflake-stock-march-2024 https://atto.videonest.co/328_horizontal_thumbnail_v3.webp https://atto.videonest.co/328_video_v3.mp4 Should you buy Snowflake stock? (March 2024) Published first at https://www.3minutebreakdowns.com Snowflake stock analysis. Ticker: $SNOW Snowflake just reported earnings and the stock dropped 18%. At the current price, the company has a market cap of 68 billion dollars. With 4.8 billion of cash and investments and no debt, the enterprise value is 63.2 billion. Revenue over the last 12 months grew 36% to 2.8 billion with 813 million of free cash flow. However, net income was negative -836 million, mainly due to a large chunk of stock based compensation. At first glance, Snowflake earnings look pretty good. 4th quarter revenue was up 32% year over year, gross margins improved to 78% and the company achieved a best in class retention rate of 131%. But there were two pieces of news that spooked investors. First, was the resignation of highly regarded CEO Frank Slootman and second was company guidance for 2024. Full year revenue is expected to grow only 22% this year to 3.25 billion. 22% growth may sound decent but for a company valued at 23 times revenue, it’s probably not enough. And it continues the long term trend of decelerating revenue growth. Considering the recent boom in AI there’s a concern that Snowflake may be losing out to competitors like Databricks. However, there could be another way to interpret these results. #investing #stocks #stockstobuy #3mb 2024-03-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/329/should-you-buy-red-robin-gourmet-burgers-stock https://atto.videonest.co/329_thumbnail_resized.webp https://atto.videonest.co/329_video_v3.mp4 Should you buy Red Robin Gourmet Burgers Stock? Visit https://www.overlookedalpha.com for more Red Robin Gourmet Burgers (RRGB) has been one of the worst performing restaurant stocks in recent years, but shares have rallied 53% in nine trading sessions as investors bet on a turnaround. Right now, the company has a market cap around 127 million dollars. With 50 million of cash and 189 million in debt, the enterprise value is around 268 million. Unlike burger chains Five Guys or Shake Shack, Red Robin also serves beer and liquor, and provides traditional table service. For a while, Red Robin was an excellent business. The company went public in 2002 and grew for roughly 15 years. But the business started to decline in 2015, and it’s never recovered. Since 2015 same-restaurant sales appear to be roughly flat. Adjusted EBITDA peaked at $148 million. Right now, Red Robin is guiding for 53 to 58 million for full year 2022. So it’s little surprise that Red Robin stock is down 91% from its all-time high. And yet there is some logic to the recent rally. These are personal opinions not financial advice and we have no position in Red Robin stock. For more detailed analysis visit our website overlookedalpha.com 2023-01-17T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/330/should-you-buy-coinbase-stock-february-2024 https://atto.videonest.co/330_horizontal_thumbnail_v3.webp https://atto.videonest.co/330_video_v3.mp4 Should you buy Coinbase stock? (February 2024) Published first at: https://www.3minutebreakdowns.com Coinbase stock analysis. Ticker: $COIN Coinbase reported earnings on Thursday and the stock jumped 9%. Shares are now up 160% over the past 12 months taking the market cap to 47.6 billion dollars. With 5 billion of corporate cash on its balance sheet and 3 billion of debt the enterprise value is 45.4 billion. Coinbase is clearly benefiting from rising crypto prices and the collapse of rivals like FTX and Binance. And this was a blowout earnings report from the company. Total revenues increased 52% year over year to 954 million while operating expenses declined by a third leading to a net profit of 273 million. Over the last 12 months, the company has now reported 3.1 billion of revenue and adjusted ebitda has swung from a 371 million loss in 2022 to almost a billion in profit. Coinbase is clearly the dominant crypto platform and with only 12% of last year’s revenue coming from outside the U.S. there’s room for growth overseas. However, there’s also a case for caution. Fourth quarter results were impacted by excitement around the upcoming Bitcoin ETF. And overall net income, at 95 million, is still impacted by a large amount of stock based compensation. #investing #stocks #coinbasestock #3mb 2024-02-20T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/331/should-you-buy-robinhood-stock-february-2024 https://atto.videonest.co/331_horizontal_thumbnail_v3.webp https://atto.videonest.co/331_video_v3.mp4 Should you buy Robinhood stock? (February 2024) Published first at https://www.3minutebreakdowns.com Robinhood stock analysis. Ticker: $HOOD Robinhood reported earnings on Wednesday and the stock jumped by 15% taking the market cap to $11.9 billion dollars. With 4.8 billion of corporate cash on the balance sheet and no debt the enterprise value is 7 billion. This was an impressive quarter from Robinhood. Total revenues increased 24% to $471 million, net income was positive and operating expenses declined 17%. Robinhood’s promotions (such as retirement matching) are clearly gaining traction. 100,000 new retirement accounts were added in the fourth quarter and this helped contribute to a 65% increase in assets under custody, which is the total amount of assets held under Robinhood. The company said on the conference call that it’s taking share from all of the major U.S. brokerages. And with $103 billion of assets under custody, there’s plenty of market share to be had. Schwab, by comparison, is at 9 trillion and Fidelity at 13 trillion. Meanwhile, Robinhood continues to invest in growth. The company is improving it’s web offering, moving into the UK, building a credit card business and its subscription service Robinhood Gold grew 25%. #investing #stocks #stockstobuy #3mb 2024-02-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/332/should-you-buy-snapchat-stock-february-2024 https://atto.videonest.co/332_horizontal_thumbnail_v3.webp https://atto.videonest.co/332_video_v3.mp4 Should you buy Snapchat stock? (February 2024) Published first at http://www.3minutebreakdowns.com Snapchat stock analysis. Ticker: $SNAP Snapchat reported earnings last week and the stock collapsed 35%. At the latest price, the company has a market cap of 19 billion dollars. Revenue over the last 12 months is 4.6 billion with 162 million of adjusted ebitda. But Snapchat is still unprofitable. Stock based compensation is a staggering 1.3 billion and so net income over the last 12 months is also sharply negative. Even free cash flow is tiny at 35 million. Despite the weak fundamentals, Snapchat was one of the best performing stocks last year and during the last few months of 2023 the stock rallied over 100%. That performance came as investors spotted signs of a turnaround in Snapchat’s performance. Revenue grew 5% in Q3 and Q4 and daily active users continue to advance reaching 414 million. Perhaps more importantly, Snapchat rolled out a number of AI tools and saw promising uptake for its subscription product Snapchat+. The number of subscribers grew 40% in Q4 to 7 million and now management thinks next quarter revenue could climb as much as 15%. So although Snapchat has a history of shareholder destruction there is a path to strong returns, based on the company’s high operating leverage. On the latest conference call, the Snapchat CFO said that incremental revenues are flowing to profits with a high margin of 67%. #investing #stocks #snapstock #3mb 2024-02-13T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/333/should-you-buy-nvidia-stock-february-2024 https://atto.videonest.co/333_horizontal_thumbnail_v3.webp https://atto.videonest.co/333_video_v3.mp4 Should you buy Nvidia stock? (February 2024) Published first at https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: $NVDA Nvidia just reported another blowout quarter sending shares up 9% after hours. At the latest price, the company now has a market cap of 1.83 trillion dollars, making it the third largest company in the US behind only Apple and Microsoft. Based on full year figures, Nvidia has now reported 61 billion of revenue over the last 12 months, 30 billion of net income and 27 billion of free cash flow which means the stock is now valued at 30 times revenue or 61 times earnings. That valuation is understandable considering the company’s staggering growth. Fourth quarter revenue was up 265% year over year with annual revenue up 126%. Gross margins increased to 76% with net income margins advancing to 56%. And Nvidia also provided strong guidance for next quarter where they expect revenue to grow another 10% to 24 billion. On the company conference call, CEO Jensen Huang talked of a tipping point where demand for accelerated computing and AI is surging across all companies, industries and countries. He referred to the emergence of new AI Factories, giant datacenters that are made possible through Nvidia super computing. Looking at the numbers and how the world is shifting towards AI, there’s no doubt that Nvidia’s growth can continue. And the company has bright prospects in automotive, software and robotics. #investing #stocks #nvidiastock #3mb 2024-02-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/334/should-you-buy-netflix-stock https://atto.videonest.co/334_thumbnail_resized.webp https://atto.videonest.co/334_video_v3.mp4 Should you buy Netflix stock? Visit our website for more: https://www.overlookedalpha.com Netflix reported earnings last week and the stock jumped almost 10%. A big reason for the rally was that Netflix said it can bring in $3 billion in free cash flow in 2023, almost double last year's figure of 1.6 billion. Free cash flow is a key metric here because Netflix earnings account for content costs on an amortized basis. In other words the cost of content gets written off over time. That means earnings are reported much higher than free cash flow which records the actual cash spent. So Netflix’s projection for 3 billion is a significant declaration that the company can grow whilst still managing content spend. The news sent shares up to 343 dollars giving the company a market cap of 155 billion. And with 6 billion in cash and 14.4 billion of long term debt, the enterprise value is roughly 163 billion. Revenue over the last 12 months is 31.6 billion and net income was 4.5 billion meaning the company is valued at 5.2 times revenue or 35 times earnings. And based on the company’s guidance, the company is valued at 54 times next year's free cash flow which is a much more reasonable valuation than it was previously. There was also good news on subscriber numbers which jumped to 231 million and positive signs from the introduction of paid ads. Despite this, an investment in Netflix involves some risk. With so many rivals competing for attention, it's still not clear how good a business streaming media is going to be. The recent rally is based on the idea that Netflix can nearly double free cash flow. But the company still needs to execute on that figure. Meanwhile, CEO Reed Hastings just stepped down and is being replaced by the duo of Ted Sarandos and Greg Peters. There aren’t many examples of successful companies being run by dual CEOs. For those reasons I’ve decided to give Netflix a bearish rating. Im not convinced the company has enough growth left to merit the high valuation multiple. But these are my personal opinions, not financial advice. And I hold no position in the stock. #stocks #investing #overlookedalpha #stockmarket #netflixstock 2023-01-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/335/should-you-buy-disney-stock-february-2024 https://atto.videonest.co/335_horizontal_thumbnail_v3.webp https://atto.videonest.co/335_video_v3.mp4 Should you buy Disney stock? (February 2024) Published first at https://www.3minutebreakdowns.com Disney stock analysis. Ticker: $DIS Disney stock is up 24% this year. But shares have been a bumpy ride and are still below the level they reached back in August 2015. At the current price, the company has a market cap of 204 billion dollars. It’s got 10 billion of cash and investments on its balance sheet and 48 billion of debt so the enterprise value is 242 billion. Revenue over the last 12 months is 89 billion, with 3 billion of net income and 8 billion of free cash flow. So Disney stock is valued at 68 times earnings or 30 times free cash flow. However, Disney’s valuation is not as bad as those multiples suggest. The company is still reporting heavy losses from its streaming business in the region of $2.5 billion dollars. So when Disney starts making profits from streaming, its earnings will jump and its valuation will appear much more attractive. There’s a catch, however. Because as people tune in to Disney streaming they tune out of Disney’s TV channels known as linear networks. Last year, Disney’s linear networks saw a 9% drop in revenue and a 21% drop in operating income to 4.1 billion. Meanwhile, Disney’s streaming business grew to 20 billion with an operating loss of 2.5 billion. #disneystock #cheapstocks #investing #3mb 2024-02-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/336/should-you-buy-c3ai-stock-ai-stock-analysis https://atto.videonest.co/336_horizontal_thumbnail_v2.webp https://atto.videonest.co/336_video_v3.mp4 Should you buy C3.ai stock? (AI stock analysis) Join our newsletter: https://www.overlookedalpha.com C3.AI, ticker symbol AI is exploding right now. The stock is up 97% this month and 310% year to date. The stock is clearly benefitting from the AI boom but before we go any further let’s take a look at the fundamentals of the company. At the current share price, AI has a market cap of 5.3 billion dollars. It’s got just over 800 million in cash and investments and zero debt so the enterprise value is roughly 4.5 billion. Revenue over the last 12 months is 267 million but the company is not yet profitable. Net income over the last 12 months was negative 269 million, and free cash flow was negative 186 million. C3’s financial year ends on April 30th and until 2023, it was a company with relatively high growth. Revenue grew 71% in 2020, 17% in 2021, 38% in 2022 but only 6% in 2023. This raises two important questions. First, if this is truly an AI stock, then why did revenue only grow 6% last year? Second, if revenue growth is only 6% why is the stock so expensive at 17 times revenue? One answer might be that C3 growth is only just about to explode. The adoption of AI language models is still fairly recent so maybe the company is on the cusp of a breakout. But that doesn’t seem to be the case because revenue figures already go up to April this year and the company itself is only forecasting 16% growth for the rest of the year.. Compare that to Nvidia which is a trillion dollar company forecasting over 50% growth next quarter. So a more likely answer is that C3 stock is benefitting from AI hype and the company isn’t necessarily going to experience the hypergrowth associated with other AI companies. As noted in the financial times, C3 was originally set up to help companies tackle carbon emissions. It rebranded in 2019 as an AI company and built an AI development platform that allows customers to develop AI applications. So C3 isn’t designing chips and its not developing the next ChatGPT. But it is spending an awful lot of money on sales and marketing. Around 70% of revenue. If this truly is a game changing AI business it would likely be growing faster without the need to spend so much on sales. Of course, it’s possible that C3 beats forecasts and its possible that the company can ride the AI hype train and become a much more profitable business as a result. 2023-06-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/337/should-you-buy-lyft-stock-feb-2023 https://atto.videonest.co/337_thumbnail_resized.webp https://atto.videonest.co/337_video_v3.mp4 Should you buy Lyft stock? Feb 2023 Visit our Substack for more: https://www.overlookedalpha.com Lyft is struggling to prove its business model, as the losses keep mounting and the cash flow continues to be negative. With the current cash balance and (lack of) profitability, the company can continue operating for less than 2 years. Additional funding will be required, whether it comes in the form of debt or equity, but that doesn’t make their path to profitability any easier. Lyft also suffers from questionable leadership. Management has been incredibly slow to cut costs in the face of inflation and has sunk money into unnecessary mapping products. So Lyft is in a tricky spot. It’s unlikely the company can increase its prices because they don’t have pricing power. They also can’t negotiate lower driver fees as they have competition from Uber. . So the only lever that management has is to lower operating expenses, which is a difficult task since operating expenses would need to halve just to break even. Overall, Lyft is up against the scale of Uber and doesn’t look compelling. That’s why I give the stock a bearish rating. But these are my personal opinions not financial advice. And I hold no position in Lyft stock. 2023-02-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/338/should-you-buy-semrush-stock https://atto.videonest.co/338_thumbnail_resized.webp https://atto.videonest.co/338_video_v3.mp4 Should you buy Semrush stock? For more detailed investing ideas visit our website: https://www.overlookedalpha.com Semrush is an online visibility platform. Its software helps businesses find customers online, primarily through social media marketing and search engine optimization tools. Semrush also counts some big corporate customers including IBM, Proctor and Gamble, Samsung, Tesla and Walmart. At today’s share price, Semrush has a market cap just under 1.2 billion. With 247 million in cash and little debt the enterprise value is roughly 926 million. Revenue over the last 12 months is 239 million and net income is negative 24 million. So, Semrush is trading at 3.9 times revenue or 4.9 times gross profit. A key risk to owning Semrush stock is the level of competition in the industry. As a result, Semrush spends more than 40% of its revenue on sales and marketing which explains why the company is not yet turning a consistent profit. Another key risk is Semrush’s reliance on search engines. Search engines like Google could impact Semrush in a number of ways. First, search engine data may become less valuable or harder to capture. Second, Google could provide its own free tools that make Semrush products obsolete.. However, Google is unlikely to create a product that completely nullifies Semrush’s suite of tools. The flagship Semrush product is both powerful and simple to use. Semrush also boasts some compelling key metrics such as gross margins of 78% and a net revenue retention rate of 122%. Revenue has been growing around 30% a year, and stock based compensation makes up just 2.5% of revenue which is a breath of fresh air compared with other tech stocks. Let’s assume that Semrush can grow revenues 15% per year for the next 10 years and let's say the company manages to hit its target for a 20% net income margin. That would put net income in 10 years time at 220 million and a 20 times multiple puts the market cap at around 4.4 billion. That works out to an investment return of just over 14% per annum. That estimate doesn’t seem like a huge hurdle to climb. Semrush has a history of growth and is already forecast to grow 35% next year. The internet is an increasingly crowded place for small businesses so tools like Semrush should continue to see demand. That’s why I give Semrush a bullish rating and I do own shares in the stock. But these are my personal opinions, not financial advice. 2022-12-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/339/should-you-buy-coinbase-stock-2-minute-analysis https://atto.videonest.co/339_horizontal_thumbnail_v3.webp https://atto.videonest.co/339_video_v3.mp4 Should you buy Coinbase stock? 2-minute analysis For more detailed analysis visit our website: https://www.overlookedalpha.com Today it emerged that Sam Bankman-Fried’s crypto exchange FTX was facing a liquidity crisis. The price of the FTX token dropped 85% and rival binance stepped in to bail out the exchange, pending due diligence. This had spillover effects throughout the crypto markets with bitcoin down 5%, ethereum down 9% and Coinbase down 10.8%, at the time of recording. Based on today's share price, Coinbase now has a market cap of 11.5 billion dollars. With 5 billion in cash and 3.4 billion in debt, the enterprise value is roughly 9.9 billion. Even before today’s developments Coinbase, the business, was not doing well. At its peak in the fourth quarter of 2021, Coinbase generated 2.5 billion in revenue and 840 million in net income. In its most recent quarter, revenues had dropped to just 576 million and a net loss of 545 million. In other words the company is not making a profit and is valued at around 2 times trailing twelve month revenue. Meanwhile trading volume on the platform has dropped -70% since 2021, assets on the platform have dropped by 64% but operating expenses have climbed by 12%. Crucially, peak revenues from 2021 show no sign of coming back. The FTX debacle is the latest crisis to hit the crypto markets following the collapse of Luna, Celsius, Voyager and others. These events destroy confidence and cause investors to pull their money out of crypto. Trading losses also reduce the total amount of assets on the platform which Coinbase relies on to generate income. But even if bitcoin stages a dramatic comeback from here, Coinbase is still not a particularly good business. It makes most of its money from trading commissions but huge competition in the industry means that trading commissions will inevitably trend to zero over time squeezing the company’s margins. Other ventures such as NFTs sound interesting but they contribute little to top line revenue and are not enough to base an investment case on. On the positive side, Coinbase doesn’t engage in leveraged trading which makes it a less risky bet than other crypto exchanges. It also earned 102 million in interest income last quarter thanks to higher interest rates. Even so, it will be a while before Coinbase returns to profitability and there appears very little reason to buy the stock. But these are my personal opinions, not financial advice. For more detailed analysis, visit our website. 2022-11-09T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/340/should-you-buy-tesla-stock-2-minute-analysis https://atto.videonest.co/340_horizontal_thumbnail_v2.webp https://atto.videonest.co/340_video_v3.mp4 Should You Buy Tesla Stock? 2-Minute Analysis For more detailed analysis visit our Substack: https://www.overlookedalpha.com What Tesla has been able to do over the last 14 years is remarkable. In 2008, the company produced less than 500 vehicles. Over the last 12 months, they’ve delivered more than 1 million vehicles and made over 67 billion dollars in revenue. Even more impressive, Tesla has been free cash flow positive for the last 9 consecutive quarters and earned 9.5 billion dollars in net income and almost 7 billion in free cash flow over the last 12 months. In tandem with that success, the share price has exploded giving the company an enterprise value of 630 billion with 18.9 billion in cash. That means the company now trades at around 9 times revenue, 66 times earnings and 91 times free cash flow. That high valuation is underpinned by rapid growth. Tesla shareholders can't have wished for much more. The company has built a fantastic brand with great products, grown into a hugely profitable business with superior technology and the potential market for electric vehicles is huge. However, there are some risks to owning Tesla stock. First, at 66 times earnings, the valuation is sky high and requires the company to maintain its rapid growth. Second, a huge amount of competition is finally coming to market. Lucid, Rivian, Polestar, Nio as well as legacy autos like General Motors and Ford. The list goes on and on. Latest numbers from General Motors show strong demand for The Bolt. It may not be a model 3 but GM has a 46 billion market cap in comparison to teslas 600 plus billion. Third, the global economy is showing signs of weakness and autos are typically a bad place to be during a recession. In 2008, for example, General Motors went bankrupt, Ford lost 75%, Volkswagen lost 70% and so did Toyota. It’s hard to see Tesla being immune to a global slowdown. Fourth, there are now short-term pressures on the stock price following Elon Musk's purchase of Twitter as Elon will need to sell down shares to pay for the acquisition. So let’s consider one optimistic scenario where Tesla grows earnings 30% a year over the next 5 years then trades at 25 times earnings in 5 years time. Tesla would then be worth around 882 billion dollars for an investment return of 8.8% per year. That’s fairly low considering how much growth is required to get there. Fundamentally, Tesla is a fantastic business and it will continue to succeed. But that doesn’t mean it’s worth $630 billion and I feel the valuation could easily slip to around 350 or 400 billion in the short term.. That’s why I give Tesla a bearish rating and why I own a small short position in the stock. But remember these are my personal opinions, not financial advice. And if you are trading Tesla bear in mind the company is reporting earnings this Wednesday. #stocks #investing #teslastock #overlookedalpha 2022-10-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/341/3-stocks-im-buying-now-february-2024 https://atto.videonest.co/341_horizontal_thumbnail_v3.webp https://atto.videonest.co/341_video_v3.mp4 3 Stocks I'm Buying Now (February 2024) Published first at https://www.3minutebreakdowns.com 3 stocks I like February 2024. Tickers: $ULTA $TSM $PLTR Number one. Ulta Beauty. MC: 24.6 billion Ulta is the largest beauty retailer in the US. It’s got around 1400 stores and the market cap is just under 25 billion dollars. With 1.2 billion of net income over the last 12 months the stock is valued at about 21 times earnings which is much lower than the historical average. Back in 2017 the PE ratio was above 40. What I like most about Ulta is the company's financial discipline. The company has a history of strong profitability, increasing profit margins and share buybacks that have reduced the share count by almost a quarter. And even during the pandemic, when Ulta had to shut many of its stores, the company still managed to make a profit. Ulta has a growing loyalty program and I think more growth can come from the pop up stores that it’s started doing with retailer Target. But just a modest amount of growth should be enou gh to send the stock higher. Number Two, TSMC. MC: 618 billion TSMC is the world’s largest manufacturer of microchips supplying tech companies like Apple, Nvidia, AMD and many more. It’s no secret that microchips are in huge demand and that demand will only increase with megatrends like AI and electric vehicles. And as the world’s leading manufacturer TSMC has significant pricing power. This can be seen in the company’s strong net income margins of 39%. TSMC’s latest earnings report was also solid. The company revealed increasing uptake for its most advanced 3 nanometre chip. The company also said revenue growth in 2024 should climb above 20%. That takes the forward PE ratio below 20 which seems more than reasonable. Number Three, Palantir. MC: 51.7b Palantir reported earnings this week causing the stock to jump 30%, taking the market cap above 50 billion dollars. At first glance, the stock now looks incredibly expensive at 23 times revenue and 246 times earnings. But the key point with Palantir is that growth seems to be accelerating. US commercial revenue grew 70% in the fourth quarter thanks to demand for its AIP software. And Palantir bootcamps seem to be doing a great job of selling the product. Equally impressive, Palantir’s adjusted free cash flow margin more than doubled to 50%. These kinds of metrics mean that Palantir deserves a high multiple. And although the stock looks expensive, momentum should keep the shares moving higher. #stockstobuy #stocks #investing 2024-02-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/342/should-you-buy-opera-limited-stock https://atto.videonest.co/342_thumbnail_resized.webp https://atto.videonest.co/342_video_v3.mp4 Should you buy Opera Limited stock? For more ideas visit our website: overlookedalpha.com. These are my personal opinions, not financial advice and I hold no position in this stock. Last week, Opera stock gained 13% after announcing a $0.80 per share special dividend. In theory, this makes no sense since the dividend amount will be adjusted out of the share price when the stock goes ex-dividend. But in this case, there is some logic. First, Opera is growing nicely, with expected revenue growth of 29% this year. That makes the shares look good value at the 10 times multiple. Second, investors have long been concerned about the company’s board and its variable interest entity structure. But governance is starting to look better and the company is now returning excess cash to shareholders via the special dividend. The Opera browser isn’t a threat to existing stalwarts like Chrome and Safari. But even so, there should be good demand for a niche, independent web browser and Opera’s recent financials are improving, both in terms of overall growth and margins.. The company is still small and the earnings multiple could easily expand therefore I give the stock a cautious bullish rating. #oprastock #investing #stocks #stockstobuy #overlookedalpha 2023-01-17T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/442/should-you-buy-arm-holdings-stock-february-2024 https://atto.videonest.co/442_horizontal_thumbnail_v3.webp https://atto.videonest.co/442_video_v3.mp4 Should you buy Arm Holdings stock? (February 2024) Published first at https://www.3minutebreakdowns.com ARM Holdings stock analysis. Ticker: $ARM Chip designer Arm Holdings reported earnings last week and the stock soared over 60% taking the market cap to 121 billion dollars. Shares are now up almost 150% since October. Based in the UK, ARM makes money from license fees and royalties for its CPU processors. The recent boom in Artificial intelligence is causing strong demand for ARM’s designs with total revenue in the latest quarter rising 14% to 824 million. The company has now reported 2.9 billion of revenue over the last 12 months, 240 million of ebitda and 720 million of free cash flow. Stock based compensation, however, is high at 900 million and net income is low at only 85 million. So ARM looks incredibly expensive at 41 times revenue and 165 times free cash flow. Even adjusted earnings which are estimated at $1.22 for the full year leads to a sky high PE of 94. That valuation only makes sense if ARM can back it up with spectacular growth and there’s no doubt that the business can grow significantly in the future. Its chips are used in nearly every smartphone and ARM will continue to benefit from the boom in AI. ARM’s Cortex-XR, for example, is enabling generative AI and large language models on the latest mobile devices. The company can also grow market share in cloud computing and self-driving. #stocks #investing #armstock #3mb 2024-02-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/443/should-you-buy-rivian-stock-february-2024 https://atto.videonest.co/443_horizontal_thumbnail_v3.webp https://atto.videonest.co/443_video_v3.mp4 Should you buy Rivian stock? (February 2024) Published first at https://www.3minutebreakdowns.com Rivian stock analysis. Ticker: $RIVN Electric vehicle company Rivian just reported earnings and shares tumbled 26%. The stock is now down 90% from its first day of trading back in 2021. At the latest price, Rivian now has a market cap of 11 billion dollars and an enterprise value of 6.1 billion. Looking at the fundamentals, it’s not hard to see why Rivian has collapsed. Gross margins are negative 46%. In 2023, the company lost more than $43,000 dollars for every car it sold. It burned 5.9 billion of cash for only 4.4 billion of sales. But in a sense those numbers shouldn’t be a surprise. Automobile manufacturing is a capital-intensive effort that requires significant investment and years of losses. Tesla, after all, took 18 years before it could report a full-year of profit. And so Rivian can be expected to burn billions more dollars as it builds out production. Next month, Rivian will be launching an SUV and management thinks it can get to positive gross margins in the fourth quarter. And the company’s biggest advantage is a partnership with Amazon for commercial vans which provides better profit margins than its consumer business. Unfortunately, however, that’s where the good news ends. #stocks #stockstosell #rivianstock #3mb 2024-02-23T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/444/should-you-buy-intel-stock-march-2024 https://atto.videonest.co/444_horizontal_thumbnail_v3.webp https://atto.videonest.co/444_video_v3.mp4 Should you buy Intel stock? (March 2024) Published first at https://www.3minutebreakdowns.com Intel stock analysis. Ticker: $INTC Intel is one of the world’s leading technology companies but over the last 5 years, the stock has returned negative 5%, including dividends. At the latest price, the company has a market cap just under 192 billion. With 7 billion of cash, 24 billion of investments and 49 billion of long term debt the enterprise value is 210 billion. Revenue over the last 12 months comes to 54 billion with 12.5 billion of adjusted ebitda and 1.7 billion of net income but free cash flow is negative 14 billion. So Intel stock is valued at just under 4 times revenue. The story of Intel is one of missed opportunity. After years of success in PCs and servers, the company failed to assert itself in the smartphone market and was slow to adopt EUV technology which stands for extreme ultraviolet lithography. An unwillingness to produce low-margin chips and performance issues for 10 nanometre chips opened the door to competition. Apple began building its own silicon while AMD quickly took market share in servers. Today, Intel has also missed out on the boom in GPUs that has seen Nvidia become one of largest companies in the world. AS you can see in the chart, Intel’s net income has declined dramatically. #stockstowatch #investing #stockmarket #3mb 2024-03-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/445/3-stocks-im-buying-now-march-2024 https://atto.videonest.co/445_horizontal_thumbnail_v3.webp https://atto.videonest.co/445_video_v3.mp4 3 Stocks I'm Buying Now (March 2024) Published first at https://www.3minutebreakdowns.com 3 stocks I'm buying now March 2024. Over the last 12 months the company has reported 793 million of net income and 815 million of free cash flow. So with a market cap of 7.6 billion, the company is valued at under 10 times earnings. That valuation implies little growth and that’s because Investors are concerned about Crox’s acquisition of shoe brand Hey Dude. But Crox deserves more time to get that brand working. If Crox can grow its earnings just 5% this year while maintaining a slightly higher PE multiple of 12 the stock should have about 30% upside from here. Cloud data company Snowflake has fallen 21% over the past month after CEO Frank Slootman resigned and the company gave a fairly weak outlook for 2024. Snowflake forecast 22% revenue growth this year which looks underwhelming especially compared to rival Databricks. However, Snowflake’s guidance doesn’t include any revenue from a number of new products that are set to be released in 2024. And it doesn’t seem to reflect a recent jump in bookings. This is still a very strong business with years of growth ahead. $SNOW $CROX $CHWY 2024-03-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/446/should-you-buy-celsius-holdings-stock-march-2024 https://atto.videonest.co/446_horizontal_thumbnail_v3.webp https://atto.videonest.co/446_video_v3.mp4 Should you buy Celsius Holdings stock? (March 2024) Published first at https://www.3minutebreakdowns.com Celsius stock analysis. Ticker: $CELH Energy drink company Celsius Holdings reported earnings last week and the stock climbed about 26%. At the latest price, the company has a market cap just under 21 billion dollars. With 756 million of cash and no debt, the enterprise value is 19.8 billion. This was an impressive report from Celsius. Revenue in the fourth quarter increased 95% to 347 million and revenue for the full year grew 102% to 1.3 billion dollars. Adjusted EBITDA came in just below 300 million while gross margins advanced by almost 7%. Celsius has done an incredible job of marketing and a partnership with Pepsi has given the company ample distribution in North America. On Amazon, Celsius has become the best selling energy drink with a 19.7% share, that’s ahead of MONSTER at 19.6% share and REDBULL® at 12.3%. The company won 7-Eleven’s supplier of the year award and announced a new sponsorship deal with Ferrari. Celsius CEO John Fieldly said that Celsius is not only taking market share in the energy drink market but it’s also bringing new customers to the industry. He said that Celsius drinks are increasingly being paired with meals which is not something typically seen with other energy drinks. #investing #stocks #stockstobuy #3mb 2024-03-05T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/447/should-you-buy-sea-limited-stock-march-2024 https://atto.videonest.co/447_horizontal_thumbnail_v3.webp https://atto.videonest.co/447_video_v3.mp4 Should you buy Sea Limited stock? (March 2024) Published first at https://www.3minutebreakdowns.com Sea Limited stock analysis. Ticker: $SE Sea Limited reported earnings on Monday and the stock gained about 10% taking the market cap to 33 billion dollars. With 5.3 billion of cash and 3.4 billion of debt, the enterprise value is 31.2 billion. And Sea also has 4 billion of investments that it can access if necessary. Revenue over the last 12 months comes to just over 13 billion dollars with 163 million of net income and 1.2 billion of EBITDA. But to better understand Sea Limited, its useful to look at the company’s individual parts. Because Sea Limited is made up of 3 businesses in one; ecommerce platform Shopee, finance platform SeaMoney and video game developer Garena. Last year, Shopee brought in 9 billion of revenue with minus 214 million of adjusted ebitda. Sea Money brought in 1.8 billion of revenue with 550 million of adjusted EBITDA. And Garena brought in 2.2 billion of revenue with 921 million of adjusted ebitda. In terms of growth, Shopee was up 24%, Sea Money grew 44% while Garena fell 44%. So you can see that SEA operates 3 very different businesses. Shopee brings in the most revenue but it’s also the least profitable. Garena has the highest margin but its seeing negative growth while Sea Money is the smallest, but it's also the fastest growing. One way to value Sea Limited is to apply appropriate multiples for each business. #investing #stocks #stockstobuy #3mb 2024-03-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/448/should-you-buy-lucid-stock-march-2024 https://atto.videonest.co/448_horizontal_thumbnail_v3.webp https://atto.videonest.co/448_video_v3.mp4 Should you buy Lucid stock? (March 2024) Published first at: https://www.3minutebreakdowns.com Lucid Group stock analysis. Ticker: $LCID The Lucid AIr is one of the best electric vehicles on the market. However, the company that makes them isn’t doing so well. Lucid stock is down 95% from its all time and just hit $3.17 a share. At that price, Lucid has a market cap of $7.3 billion dollars. With 4.3 billion of cash and investments and 2 billion of long term debt, the enterprise value is 5 billion. The Lucid CFO said that the company’s cash and investments should carry it into “at least 2025”. But that still leaves the company several years away from profitability. Lucid delivered only 6000 cars in 2023, way below the scale it needs to survive. So Lucid still needs to raise billions of dollars to get to a point where it can generate positive free cash flow. But with such a low stock price, that becomes a problem. The more the stock price falls, the more difficult it is for Lucid to raise capital by selling shares. That’s because investors don't want to buy the stock when they know significant share dilution is coming. And based on the current market cap, Lucid probably needs to dilute shareholders by 100% to get the capital it needs to survive. So the lower stock price also causes a vicious cycle. #investing #stocks #stockstowatch #lucidair #3mb 2024-02-29T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/449/how-much-money-does-onlyfans-make-quick-breakdown https://atto.videonest.co/449_horizontal_thumbnail_v3.webp https://atto.videonest.co/449_video_v3.mp4 How much money does OnlyFans make? (Quick breakdown) Join 10,000 investors: https://www.overlookedalpha.com The parent company of OnlyFans, Fenix International, just released its 2022 accounts and it shows just how much money OnlyFans is making. Over the course of 2022, 5.6 billion dollars passed through the OnlyFans platform. 80% of that was paid out to creators so total revenue for the company came in at 1.1 billion dollars and that was up 17% on the year before. Out of that 1.1 billion, the company reported a total profit before tax of 525 million which was an increase of 21% from the year before. That’s a gross margin of 48%. And as of November 2022, there were 3.2 million creators on the platform, up 47% and 239 million fans, up 27% #stocks #investing #finance #overlookedalpha 2023-08-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/450/should-you-buy-sofi-stock https://atto.videonest.co/450_thumbnail_resized.webp https://atto.videonest.co/450_video_v3.mp4 Should you buy SoFi stock? For more detailed analysis, visit our website https://www.overlookedalpha.com SoFi Technologies is attempting to disrupt the finance industry and its doing so across three main segments. Lending, technology and financial services. All three segments have shown rapid growth over the past few years. In the latest quarter, lending revenues were up 43% to 302 million, technology revenues were up 69% to 85 million and financial services revenues were up 288% to 49m. SoFi banking now offers 3.25% on savings accounts and that’s helping Sofi to take market share from the big banks. As a result, total banking deposits at Sofi were up 86% to $5 billion. All of this growth is set to contribute to top line revenue of around 1.52 billion for the full year with an adjusted ebitda estimate of 117.5 million. With an enterprise value of 7.8 billion that means SOFI stock is now valued at around 5 times revenue or 66 times adjusted EBITDA. That’s perfectly reasonable considering the rewards on offer. And this growth comes despite the moratorium on student loan payments that’s put a dent in SoFi’s student loan business. So far so good. However, when you account for stock based compensation and other expenses, SOFI is not yet a profitable business. Net income over the last 12 months was negative 391 million. And when you put the total value of SoFi bank deposits in context, the $5 billion pales in comparison to rivals. As this chart by Steven Fiorillo shows, even small regional banks have more deposits than SoFi. Of course, this also underlines the growth potential if SoFi can continue to take market share. But, with the US yield curve highly inverted, the probability of a recession next year is sky high. In a recession, loan delinquencies rise, which puts pressure on banks' balance sheets, and banking stocks will come under pressure if they’ve made bad loans. That’s the key risk to fintech stocks right now and explains why SoFi is down so much year to date. Overall, SoFi stock has the potential to be a multibagger. But financial companies are not my area of expertise. That’s why I’d prefer to see how this company navigates a recession before choosing to invest. I’d also like to see an improvement in net income. And that’s why I currently give this stock a neutral rating. But these are my personal opinions, not financial advice and I hold no position in SoFi stock. For more detailed analysis, visit our website. 2022-12-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/451/should-you-buy-weight-watchers-stock-august-2023 https://atto.videonest.co/451_horizontal_thumbnail_v3.webp https://atto.videonest.co/451_video_v3.mp4 Should you buy Weight Watchers stock? (August 2023) Weight Watchers stock analysis. Ticker: WW Join 9000+ investors: https://www.overlookedalpha.com Back in March, Weight Watchers announced it was buying a platform that prescribes weight-loss drugs including Ozempic. That news has pushed the stock up 167% year to date. But the company is not profitable right now and has a lot of debt. So let’s take a closer look… At the current share price just above $10, Weight Watchers has a market cap of 813 million dollars. It’s got 91 million of cash but 1.4 billion of debt so the enterprise value is 2.1 billion. Revenue over the last 12 months is 942 million and adjusted ebitda is 168 million but net income is minus 306 million and free cash flow is only 20 million. That means Weight Watchers is valued at 2.3 times revenue and over 100 times free cash flow. With so much debt on the balance sheet, Weight Watchers is in danger of bankruptcy. And recent trends don’t look good. Revenue for the first six months of fiscal 2023 were $469 million which is a 17 % decrease from the year before. In fact, Weight Watchers revenue has dropped every year since 2018 and the stock price has fallen 90% over that time. #stockstowatch #investing #stocks #overlookedalpha 2023-08-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/452/should-you-buy-uber-stock-2-minute-analysis https://atto.videonest.co/452_thumbnail_resized.webp https://atto.videonest.co/452_video_v3.mp4 Should you buy Uber stock? 2-minute analysis For more detailed analysis visit our website: https://www.overlookedalpha.com Uber reported strong results last week and said that passenger numbers had climbed above pre-pandemic levels. Meanwhile, Lyft spoke of economic headwinds and revealed their passenger numbers were still below pre-pandemic levels. That explains why Lyft stock is down -75% year to date while Uber is only down -35%. And at a share price of $27 dollars Uber now has a market cap of 53 billion. With 4.9 billion of cash and 10 billion of debt the enterprise value is roughly 58 billion. In context, the company made 29 billion dollars in revenue over the last 12 months. But it’s still not profitable, losing -8.8 billion over the last 12 months. However, that loss includes 1.6 billion dollars of stock based compensation and 6.3 billion of losses from Uber’s equity investments. These include its investments in Grab and Chinese ride sharing app Didi Global. Account for those items and the company made an adjusted ebitda profit of 1.1 billion over the last 12 months and it’s been free cash flow positive for the last 2 quarters. That means the company is now valued at 2 times revenue or 52 times adjusted ebitda. That’s expensive but Uber is still growing, revenue was up 72%, and the company has done well to expand its business through Uber Eats, Freight and advertising. It costs almost nothing to add drivers to Uber’s fleet and every trip adds incremental revenue for Uber at little cost. Although Uber isn’t immune to a weakening economy, mass layoffs do expand the pool of potential drivers. Crucially, Uber is making real progress to profitability and taking market share from rivals. Management thinks it can hit 5 billion in ebitda by 2024. An 18 times multiple on that figure gets the enterprise value to 90 billion dollars. That’s about 55% upside in the stock. There’s also optionality from Uber’s investments particularly in Didi Global, if or when China fully opens up. After years of losses it's easy to be pessimistic about Uber stock but there’s a real chance of growth here which is why I rate the stock a cautious buy. But these are my personal opinions, not financial advice. And I do have a long position in Uber stock. 2022-11-10T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/453/should-you-buy-amazon-stock-may-2023 https://atto.videonest.co/453_thumbnail_resized.webp https://atto.videonest.co/453_video_v3.mp4 Should you buy Amazon stock? May 2023 Amazon stock analysis. AMZN stock. Visit our website for more https://www.overlookedalpha.com Revenue from online stores was roughly flat at 51 billion. Physical stores increased 7% to 4.9 billion. 3rd party services increased 18% to 30 billion. Subscription revenue increased 15% to 9.7 billion, advertising increased 21% to 9.5 billion. AWS increased 16% to 21 billion and other bets increased 55% to 1 billion. But despite this growth, the stock has fallen roughly 4% and there’s an obvious reason why. Although AWS is showing year on year growth this was the first time that revenue has dropped against the previous quarter. And AWS operating margin has now fallen from 31% in 2022 to 26% resulting in a quarterly decline in operating income. This is causing investors some concern. AWS is seen as the jewel in Amazon’s crown so a slowdown causes a lot of damage to the Amazon bull case. Looking at the bigger picture, the company is now valued at just over 1 trillion dollars. Trailing twelve month revenue sits at 525 billion, net income is 4.2 billion and adjusted ebitda is 57 billion. So the stock is valued at roughly 2 times revenue, 249 times earnings or 18 times ebitda. Combine the slowdown in AWS and the negative free cash flow and investors are becoming worried about the stock’s valuation. However, Amazon remains a unique company and management’s ability to keep reinvesting profits for growth continues to impress. After all, this remains a difficult economic environment to operate in. Meta grew revenues only 3% this quarter and Alphabet grew less than that. AWS, advertising and 3rd party services continue to look like great businesses. And AWS will get a tailwind from the explosion in artificial intelligence. As Andy Jassy said on the conference call: Few folks appreciate how much new cloud business will happen over the next several years from the pending deluge of machine learning that’s coming. And I think the explosion of AI startups and AI apps bears this out. #amznstock #stocks #investing #stockstobuy 2023-05-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/454/should-you-buy-mongodb-stock https://atto.videonest.co/454_thumbnail_resized.webp https://atto.videonest.co/454_video_v3.mp4 Should you buy MongoDB stock? For actionable investment ideas visit https://www.overlookedalpha.com MongoDB ripped 20% last week after the company reported a solid third quarter. Revenues were up 47% year on year to 334 million. Gross margin increased 2 percentage points to 72% and total customers increased 26% to over 39,000. MongoDB also provided strong guidance. Full year revenue of 1.26 billion represents a 45% compounded growth rate since 2016 which is among the best in the market right now. Analysts were also excited by the fact revenues were up 47% but operating expenses were only up 37%. However, MongoDB is not yet a profitable company. When you account for those operating expenses and a large amount of stock based compensation, net income over the last 12 months is negative 365 million. Also, the stock is expensive. Accounting for cash and debt, the enterprise value works out to around 12.6 billion. That means MongoDB is valued at over 10 times revenue and almost 15 times gross profit. To understand what MongoDB does, I recommend reading this Substack article from Technically.substack.com But basically, MongoDB is a document database that helps organizations store and run queries on data. For example, Mediastream uses MongoDB to help stream the Fifa World cup to 30 million users. And Vodafone uses MongoDB to operate hundreds of cloud-native apps. There’s no doubt that MongoDB is running a quality operation. Enterprise customers continue to grow and the company shows strong trends on analytic platforms like Google search. This company is better placed than many growth stocks but a 10 x sales multiple might still be too much. If you assume MongoDB grows revenues 20% per year for the next 10 years then manages to hit a 20% ebitda margin. Ebitda in 10 years time would be roughly 1.8 billion dollars. A 20 times multiple on that figure gets the enterprise value to 36 billion and that works out to an investment return of just over 11% per year. Considering the company’s strong growth I think MongoDB is worth a deeper investigation. But right now, I give this stock a neutral rating. Because this market continues to sell off growth stocks and 10 x revenue is quite a stretch. #investing101 #investmentadvice #financialfreedom #investmentopportunities #investorsclub #mongodbstock #overlookedalpha 2022-12-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/455/should-you-buy-oatly-stock-2-minute-analysis https://atto.videonest.co/455_thumbnail_resized.webp https://atto.videonest.co/455_video_v3.mp4 Should you buy Oatly stock? 2-minute analysis For more detailed analysis visit our website: https://www.overlookedalpha.com Oatly is a food company from Sweden that produces dairy products from oats. Oat milk is a fast growing trend but Oatly the company has struggled to meet demand for its products. In the third quarter of 2022, Oatly reported revenue of 183 million which was a 7% increase on the previous year. However, net losses more than doubled to 108 million. Even adjusted ebitda was negative at -83 million and net loss over the last 12 months is clocking -347 million . To top it off, gross profit margins dropped to just 2.7% in Q3 from 26% the year before. And Oatly lowered its full year revenue outlook from 800-830 million to just 700-720 million. That implies revenue growth of only 10% for 2022. Unsurprisingly, this news sent the stock down 16% overnight and shares are down 74% year to date. Trading at just over 2 bucks Oatly now has an enterprise value of 1.2 billion which means the company is worth roughly 1.7 times revenue. Oatly’s problems stem from its decision to build its own factories. Building these factories was costly and slow and allowed big rivals like Chobani, Planet Oat and Trader Joes to gain market share. On the Q3 call, management said it would start cost cutting measures, and shift to an asset-light model which will involve outsourcing more of production. This is a much needed move but it could be too late. Consumers now have a plethora of options to choose from when it comes to oat milk and there’s little reason why Oatly should be preferred over other brands. Plus, Oatly is going to need marketing dollars if it’s to win back market share. Low margin, consumer products businesses are notoriously risky investments and Oatly has got its work cut out. Morgan Stanley once gave this stock a $44 price target but this company continues to disappoint so I give it a bearish rating. But these are my personal opinions, not financial advice. 2022-11-17T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/456/should-you-buy-nikola-stock https://atto.videonest.co/456_horizontal_thumbnail_v2.webp https://atto.videonest.co/456_video_v3.mp4 Should you buy Nikola stock? Nikola stock analysis. NKLA stock. Discover under-the-radar stocks: https://www.overlookedalpha.com In July 2021, Nikola founder Trevor Milton was indicted on 3 counts of securities and wire fraud. Milton had said that his Nikola One truck was fully functional. A promo video showed It speeding along a highway. But we found out later the truck was only moving because it was rolling down a hill. Milton resigned but a lot of damage was done. The company’s plan to build out a network of fueling stations was in tatters and the stock collapsed. In fact, since hitting a peak of $93 dollars in 2020 the stock has fallen 98% and is hovering at just over $1.30. That gives the company a current market cap of 916 million dollars. With 121 million of cash on the balance sheet and 300 million of debt, the enterprise value is roughly 1 billion. Revenue over the last 12 months was only 61 million dollars. But after re-organizing its business and embarking on a series of partnerships, revenue should finally start to grow. According to company reports, Nikola expects to deliver almost 500 vehicles in 2023 which could add another $100 million to revenue before embarking on more productive 2024. The problem, however, is that Nikola is nowhere close to profitable. It burned 232 million in the first quarter and over 800 million over the last 12 months. With only 121 million of cash remaining, the company is a clear bankruptcy risk and recent SEC filings contain the so-called “going concern” warning. The only way out for Nikola is to raise more cash by selling equity. But a market cap of only $1 billion makes that difficult because it would crash the stock price even further. And a proposal last week to issue more shares looks like it could fail to get enough votes from shareholders. Even if Nikola cuts staff, sells its inventory, and ramps up fuel cell deliveries, the company needs at least $500 million to get through the next 8 quarters. Delaware legislators could change the corporate law which could potentially allow Nikola to sell more equity but even so the company has a narrow path to survive. That said, at such a low share price and with such a high short interest, it’s not a good idea to short the stock outright. #stocks #investing #nikolastock #stockstowatch 2023-06-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/459/should-you-buy-crowdstrike-stock-may-2023 https://atto.videonest.co/459_horizontal_thumbnail_v3.webp https://atto.videonest.co/459_video_v3.mp4 Should you buy CrowdStrike stock? May 2023 Crowdstrike stock analysis. CRWD stock. Join our newsletter: https://www.overlookedalpha.com Crowdstrike just reported Q1 numbers and the market’s response was, well, not great. Shares are down 11% after hours but it’s not obvious why. On its face, the report looked good. Revenue was up 42% to 693 million, annual recurring revenue was also up 42%, gross margin increased 1% and the company generated 227 million in free cash flow. Looking at the bigger picture that means Crowdstrike has generated 2.4 billion dollars of revenue over the last 12 months, 782 million of free cash flow and negative 151 million of net income. The enterprise value is just under 31 billion so the company is now valued at 13 times revenue and 40 times free cash flow. Crowdstrike also released strong guidance for the rest of the year with revenues forecast to come in at 3 billion so why is the stock down? Perhaps the main reason is that the company is still not showing positive net income. The company is guiding for 580 million of non-gaap net income for the rest of the year and a lot of that gets eaten up by stock based compensation. More generally, Crowdstrike is an expensive stock. It trades at 57 times adjusted net income and 13 times revenue. When expectations are so high, it’s easy for earnings to disappoint investors. And although Crowdstrike continues to grow, its revenue growth rate has dropped every year now since it went public. Considering this year’s growth is expected to come in around 36%, the analyst forecast for above 30% growth for the next few years looks optimistic. So lets consider one hypothetical scenario where Crowdstrike hits 3 billion in revenue this year and then compounds at 25% growth for the four years after that. That would put revenues at 7.3 billion and a 20% net margin puts net income at around 1.5 billion in 5 years time. #stocks #investing #stockstowatch #finance 2023-06-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/460/should-you-buy-crocs-stock-august-2023 https://atto.videonest.co/460_horizontal_thumbnail_v3.webp https://atto.videonest.co/460_video_v3.mp4 Should you buy Crocs stock? (August 2023) Crocs stock analysis. Ticker: CROX. Join 9000+ investors: https://www.overlookedalpha.com Crocs, Inc. is engaged in the design, development, marketing, distribution, and sale of casual lifestyle footwear and accessories for women, men, and children. Its products are sold in more than 85 countries through wholesale and direct-to-consumer channels. Crocs acquired 100% equity of HEYDUDE in February 2022 which was engaged in the business of distributing and selling casual footwear under the brand name “HEYDUDE.” After this strategic acquisition, Crocs legacy, and HEYDUDE have been the two operating segments contributing: • Crocs Brand $2.86 billion (74% of LTM revenue) • HEYDUDE Brand $1.02 billion (26% of LTM revenue) Crocs Brand is further divided into three reportable segments, below is the contribution of each segment in Crocs Brand’s last twelve-month revenue. #stocks #investing #croxstock #overlookedalpha 2023-08-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/461/alphabet-stock-analysis-august-2023 https://atto.videonest.co/461_horizontal_thumbnail_v3.webp https://atto.videonest.co/461_video_v3.mp4 Alphabet Stock Analysis (August 2023) Should you buy Alphabet stock? GOOG/GOOGL Join 9000+ investors: https://www.overlookedalpha.com About 6 months ago, Alphabet reported a sharp increase in operating expenses and a decline in advertising revenue. Some investors worried that ChatGPT was going to be a Google killer and the stock had fallen to under $100 a share. That fear was put to bed last week as the company reported a 7% increase in revenue, a 15% increase in net income and operating margins of 29%. The stock has now recovered by one third giving the company a market cap of 1.67 trillion dollars. With almost $118 billion of cash and investments and 14 billion of long term debt, the enterprise value is roughly 1.57 trillion. That makes Alphabet one of the largest companies in the world and its easy to see why. The company generated 290 billion dollars of revenue over the last 12 months, including 61 billion of net income and 71 billion of free cash flow. Earnings per share has grown 18% a year over the last 10 years. Even so, Alphabet stock is not particularly expensive, it’s valued at 26 times earnings and 22 times free cash flow. Looking at the individual segments, Google search revenue increased 5% to 42.6 billion, YouTube ads increased 4.4% to 7.7 billion and Google cloud revenue increased 28% to 8 billion. Google network dropped 5% but Google other which includes hardware and subscriptions rose 24% to 8.1 billion. And the company also bought back 15 billion dollars worth of stock. #googstock #investing #stockstobuy #overlookedalpha 2023-08-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/462/should-you-buy-zoom-stock https://atto.videonest.co/462_thumbnail_resized.webp https://atto.videonest.co/462_video_v3.mp4 Should you buy Zoom stock? For more detailed analysis visit our website: https://www.overlookedalpha.com Zoom stock analysis. Zoom Video exploded during the pandemic. In 2017, the company reported 61 million dollars in revenue. By 2022 that figure was over 4 billion. However, growth has been slowing down. This year’s revenue growth is only 7%. More worryingly, net income over the last 12 months has dropped 50% to just under 700 million. Unsurprisingly, Zoom stock has fallen sharply in response. In 2020, Zoom’s market cap hit 159 billion. That was clearly unsustainable and the 85% drop in share price means the company now has a market cap of 22 billion. With 5.2 billion dollars of cash, the enterprise value is around 17 billion. That’s a healthy balance sheet but Zoom has now reported 3 disappointing quarters in a row. Operating expenses in Q3 were up 56% year on year to 765 million. R and D cost doubled to 200 million and sales and marketing increased by 45%. Almost a billion dollars has now gone to stock based compensation over the last 12 months. Despite the ramp up in operating expenses, gross profit only increased 7% in Q3 and net income was down 85% year over year to just 48 million dollars. As you can see by the chart, revenue has inched higher over the previous quarters but net income has dropped sharply. Putting these numbers into perspective, Zoom is now valued at 3.9 times trailing twelve month revenue and 32 times earnings. But if net income doesn’t recover that p/e multiple will only expand. The Zoom earnings call tried to paint a pretty picture by using adjusted metrics for free cash flow and net income. And the company did report decent churn and net retention. But the truth is the company has been barely profitable over the last two quarters. Zoom has been investing in new features and marketing but the return on that investment is nowhere to be seen. #stocks #investing #stockmarket #zoomstock #zoomtopia #overlookedalpha #bloomberg 2022-11-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/463/should-you-buy-apple-stock-september-2023 https://atto.videonest.co/463_horizontal_thumbnail_v3.webp https://atto.videonest.co/463_video_v3.mp4 Should you buy Apple stock? (September 2023) Apple stock analysis. Ticker: AAPL Join 10,000 investors: https://www.overlookedalpha.com Apple just released its latest iphone. The IPhone 15 features a brighter screen, a 48 megapixel camera and a titanium body. But the question is, is now a good time to buy Apple stock? Based on the current share price, Apple has a market cap of 2.76 trillion dollars. It’s got 28 billion dollars of cash on the balance sheet as well as 138 billion of investments. With 98 billion of long term debt, the enterprise value is 2.69 trillion. Over the last 12 months, Apple has made 384 billion dollars of revenue, 95 billion of net income and 101 billion of free cash flow. So Apple stock is currently valued at 7 times revenue, 30 times earnings or 27 times free cash flow. And that PE ratio of 30 looks pretty high in comparison to the historical average. Looking over the last 10 years, Apple has grown its revenue on average 8.5% a year and its grown net income roughly 10% a year. #investing #stocks #overlookedalpha 2023-09-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/464/should-you-buy-dollar-general-stock https://atto.videonest.co/464_horizontal_thumbnail_v2.webp https://atto.videonest.co/464_video_v3.mp4 Should you buy Dollar General stock? Dollar General stock analysis. DG stock. Visit our website for overlooked stock ideas: https://www.overlookedalpha.com Dollar General reported earnings recently and the stock dropped over 20%. Shares are now down 38% year to date. On its face, first quarter earnings weren’t too bad. Net sales increased 6.8% to 9.3 billion dollars and same stores sales were up 1.6%. Looking at the recent trends, revenues, profits and margins all seem to be relatively stable. What hurt the stock most was a negative outlook. Management admitted that the economic environment is more challenging than they had anticipated. Instead of a 4-6% increase in earnings this year, they now expect a decrease of as much as 8%. As a result, the company is reducing the number of store openings and halting share buybacks. A key reason for this negative outlook is inflation. Although overall sales are still moving higher, most of the revenue is coming from low margin products like food and not higher margin products like electronics. Dollar General has made a push into these higher margin products at precisely the wrong time. Higher inflation is keeping shoppers away, meanwhile Dollar General’s operating costs and inventories have all increased. Looking at the latest numbers, Dollar General now has a market cap of 34.2 billion. But with 7 billion of long-term debt the enterprise value is over 40 billion. And that debt translates to over 250 million of interest expenses. Revenue over the last 12 months was 38.4 billion with net income of 2.4 billion and adjusted ebitda was 4.1 billion. So the stock is currently valued at 1.1 times revenue, 10 times ebitda and 14 times earnings. Discount stores, with their ultra-low prices are often referred to as recession-proof, so this move in Dollar General will have caught many investors off guard. And, historically, Dollar General has been a solid performer. The current PE multiple sits right at the bottom of its historical average. Let’s assume the stock maintains its historical revenue growth of 8% for the next 10 years and operates with its historical net margin of 6%. That would put net income at roughly 5 billion in 10 years time and a 20 times multiple takes the valuation up to 100 billion dollars. Assuming a slowly increasing dividend and the investment return is close to 10% per year. The problem is, Dollar General doesn’t seem to be on the right path. It should be thriving in this environment. Instead its cutting back stores and halting share buybacks which are a key catalyst for share price gains. For those reasons, it’s best to avoid this stock and wait for a better entry. But these are my own opinions, not financial advice and I have no position in Dollar General stock. #dgstock #stocks #investing #stockmarket 2023-06-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/465/should-you-buy-rivian-stock https://atto.videonest.co/465_thumbnail_resized.webp https://atto.videonest.co/465_video_v3.mp4 Should you buy Rivian stock? For more detailed investing ideas visit our website: https://www.overlookedalpha.com Electric car manufacturer Rivian hit a market cap of $100 billion in 2021. That was peak insanity in the stock market and Rivian shares have fallen 80% since. Today, the company has a market cap of 26.1 billion with 13.3 billion in cash remaining. Revenue over the last 12 months is just over 1 billion and net income was -7.5 billion as the company builds out its production facilities. Although Rivian shares are down 80% the business has performed on target. The number of preorders for Rivians trucks has more than doubled in the first 3 quarters hitting 114,000. That’s on top of a 100,000 pre order from Amazon for Rivians electric delivery vans. To meet those orders, Rivian has produced 15000 vehicles so far and says it can deliver 25,000 by the end of 2022. That’s considerably better than some of Rivian’s rivals. Lucid should deliver 6-7000 this year and Fisker’s production is only just getting started. But, Polestar should deliver 50,000 vehicles this year and Tesla is on track for more than 1.2 million. And of course there are legacy automakers like Ford, General Motors, Volkswagen etc. As you can see from the chart, the Rivian R1 appears to be the 9th most popular electric vehicle in the US this year with just under 12,000 deliveries. Rivian trucks are also getting good reviews, sales are coming without paid advertising and the company recently signed a partnership with Mercedes Benz. In fact, the biggest issue for Rivian right now is keeping up with demand. Supply chain constraints continue to limit production. This is a problem because gross profits won't arrive until Rivian can ramp up volume. And so the battle between electric vehicle makers not only comes down to which cars customers prefer but which companies can source the scarce materials needed for production, particularly batteries. There are numerous electric vehicle companies battling it out and not all of them will survive. If Rivian can scale to 200000 vehicle sales by 2025, with an average purchase price of 80,000 dollars that would bring in revenues of roughly 16 billion. A 3 times sales multiple gets the valuation to just under 50 billion in 3 years time which would give an investor a return around 23% per year. But financial projections are of little use at this early stage as we don’t know how successful Rivian will be long term. In order to outperform, Rivian needs to meet demand from consumers and pull ahead of rivals. So far, it’s executing well but there’s a lot of hard work to be done. It’s best to wait for signs that Rivian is clearly pulling ahead of rivals. Until that time I give this stock a neutral rating. But these are my personal opinions, not financial advice. #investing #stocks #overlookedalpha #rivianstock #stockstobuy #stockstowatch #bloomberg #wallstreet 2022-11-23T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/466/should-you-buy-robinhood-stock-2-minute-analysis https://atto.videonest.co/466_thumbnail_resized.webp https://atto.videonest.co/466_video_v3.mp4 Should you buy Robinhood stock? 2-minute analysis For more detailed analysis visit our Substack: https://www.overlookedalpha.com Based on the latest share price, Robinhood has a market cap of 10.9 billion dollars. With 6.2 billion of cash on the balance sheet and little debt, the enterprise value is around 4.7 billion. Revenue over the last 12 months was 1.34 billion giving a valuation of 3.5 times sales but the company is still not profitable. Taking into account share based compensation of 812 billion the company produced a net loss of 1.29 billion over the last 12 months. That said, Robinhood’s Q3 earnings report emphasized some positive developments and the stock did rally 8%. Compared to Q2, total revenues increased 14%, transaction based revenues were up 3% and adjusted ebitda was positive at 47 million dollars. Zoom out, however, and you get some perspective. Year over year total revenues were down, (-1%) and transaction based revenues dropped 22%. Taking into account share based compensation Robinhood was still not profitable and made a loss of -175 million. To be fair, that figure is a vast improvement from last year’s loss of -1.3 billion. That improvement is being driven by two things. First, Robinhood has laid off more than 20% of its workers. That’s led to a 69% drop in operating expenses. Second, higher interest rates are bringing in more interest income with net interest revenue increasing 103% year on year. With $17 billion in interest generating assets according to Robinhoods CFO, Robinhood could even become profitable for real next year. Plus the $6 billion in cash gives it plenty of time to stage a recovery. But, Robinhood’s brand was seriously tarnished during the GameStop debacle. And its payment for order flow business model doesn’t help, especially when markets are volatile. And this model is not even legal in much of europe. Essentially, all of Robinhood’s improvements can be traced back to cost cutting and higher interest rates, rather than any significant turnaround in the company’s key products or business. In fact, monthly active users dropped again to 12.2 million in Q3 which is a 35% drop from the previous year. Until investors learn to trust Robinhood again, it’s best to avoid this stock. These are personal opinions not financial advice. See the full disclaimer on our website. 2022-11-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/467/should-you-buy-alphabet-stock-may-2023 https://atto.videonest.co/467_thumbnail_resized.webp https://atto.videonest.co/467_video_v3.mp4 Should you buy Alphabet stock? May 2023 Alphabet stock analysis. GOOGL stock. Visit our website for more: https://www.overlookedalpha.com Alphabet or Google stock climbed 11% last week after reporting Q1 earnings. The company now has a market cap of 1.48 trillion dollars. With 26 billion of cash and 14 billion of long-term debt the enterprise value is roughly 1.47 trillion. Q1 results showed a 3% increase in revenue to 69.8 billion but there was an 8% decrease in net income. Over the last 12 months Google has now reported 285 billion of revenue, 55.6 billion of net income and 62 billion of free cash flow. So the company is valued at 5.2 times revenue, 25 times earnings and 24 times free cash flow. As I mentioned, Google’s earnings dropped last quarter but the stock still went up because investors were pleased with the company’s performance in Google Cloud. Cloud is a lucrative and promising business and the 28% increase in revenue was more than recorded by Amazon’s AWS and roughly on a par with Microsoft’s Azure. Market share gains in this segment is a very positive sign. And investors were also encouraged by the company’s progress in AI. When OpenAI introduced ChatGPT, Alphabet stock plummeted by around 15%. But in a conference last week, Google began to take back the AI narrative when it unveiled new features for its own AI tool Bard. Unlike ChatGPT, Bard can access images and internet links, and its training is not cut off in 2021. . ChatGPT is still better at certain tasks but Bard is now holding its own and it’s too early to say who is actually leading the AI race. And even if users do prefer Bard, we still don’t know how Alphabet plans to monetize that product. Let’s consider a scenario where Alphabet grows revenue at 10% per year for the next 10 years then operates with a 20% net margin which is slightly lower than its historical average. That would see the company produce 162 billion of net income in 10 years time. Apply a 25 times multiple to that figure gets us to a market cap of 4 trillion which works out to an investment return of 10.7% per year. #googstock #stockstobuy #stocks #investing #stockmarket 2023-05-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/468/should-you-buy-opendoor-stock https://atto.videonest.co/468_thumbnail_resized.webp https://atto.videonest.co/468_video_v3.mp4 Should you buy Opendoor stock? For more detailed investing ideas join our Substack: https://www.overlookedalpha.com Opendoor Technologies, is a real estate technology company that flips homes based on its own ibuying model. It also has a new marketplace service to connect sellers and buyers. Opendoor stock has been hammered this year, falling 91% and taking the market cap to just 831 million dollars. With 1.3 billion in cash and more than 4 billion in debt the enterprise value is roughly 5.5 billion. Revenue over the last 12 months was 16.5 billion which means the company is valued at ⅓ of revenue. But the company has reported large losses from its ibuying model and has had to write down the value of some of its properties. This led to a huge 928 million loss in Q3 and takes the trailing twelve month loss to 1.14 billion. Opendoor bonds currently trade around 57 suggesting a good chance of bankruptcy. Unsurprisingly, this has led to big changes at Opendoor. The company has laid off 18% of its staff and a shakeup in management means CEO Eric Wu has been replaced by previous CFO Carrie Wheeler. The company has also initiated a new marketplace service,to offset the losses of its ibuying business. With a current short interest of 12% there are still traders out there betting that Opendoor stock has further to fall. However, with 1.3 billion in cash and 6 billion of inventory there’s an argument that Opendoor is trading below its liquidation value. In other words, if Opendoor were to sell all its properties and pay off all its debt, the value might be more than the current market value suggests. But closer inspection suggests that may not be the case. Opendoor finances its properties with variable interest rate debt and also holds a billion in convertible bonds. Property markets are notoriously illiquid and there’s no guarantee that Opendoor’s assets would fetch market price. There’s a chance that Opendoor survives this year. But even if it does, there’s no evidence that its ibuying business model has any merit. Artificial intelligence models may be able to flip thousands of homes for a profit in a boom period but that doesn't mean it can do so during harder economic times. For those reasons I give this stock a neutral rating. It looks too risky to buy but too cheap to short. But these are my own personal opinions not financial advice. 2022-12-10T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/469/netflix-stock-is-down-and-the-worst-is-yet-to-come https://atto.videonest.co/469_horizontal_thumbnail_v3.webp https://atto.videonest.co/469_video_v3.mp4 Netflix Stock Is Down (And The Worst Is Yet To Come) Netflix stock analysis (July 2023) Join 9000+ investors: https://www.overlookedalpha.com 6 million additional subs is encouraging when you consider that Disney Plus lost 4 million in the same quarter. And Netflix continues to publish some of the highest engaging programs. According to Nielsen, Netflix had the top original streaming series in the US for 24 of the first 25 weeks of the year, and the top movie for 21 weeks. But subscriber growth last quarter was mostly due to the company’s crackdown on password sharing. Average revenue per membership actually declined across the board. And once the rollout of paid sharing is complete, the big question is what is going to drive future growth? #netflixstock #investing #overlookedalpha 2023-07-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/470/should-you-buy-airbnb-stock-january-2024 https://atto.videonest.co/470_horizontal_thumbnail_v3.webp https://atto.videonest.co/470_video_v3.mp4 Should you buy Airbnb stock? (January 2024) See more of my work at: https://www.3minutebreakdowns.com Airbnb stock analysis. Ticker: $ABNB Airbnb stock is up 53% over the past year, but its still below its first ever day of trading. At the current price, the company has a market cap of 87 billion dollars. It’s got 11 billion of cash and investments on its balance sheet and 2 billion of debt which means the enterprise value is 78 billion. Over the last 12 months, Airbnb has produced 9.6 billion of revenue, 5.5 billion of net income and 4.2 billion of free cash flow. That means Airbnb stock is trading at 8 times revenue, 16 times earnings and 19 times free cash flow. However, last quarter’s net income was inflated by a one-time tax benefit of $2.8 billion dollars. Account for that benefit and net income is really 2.7 billion which means the stock is really valued at 32 times earnings. #investing #stocks #stockmarket #stockstobuy #airbnb 2024-01-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5485/should-you-buy-hims-and-hers-stock-may-2024 https://atto.videonest.co/5485_horizontal_thumbnail_v2.webp https://atto.videonest.co/5485_video_v3.mp4 Should you buy Hims and Hers stock? (May 2024) Published first at https://www.3minutebreakdowns.com Hims and Hers stock analysis. Ticker: $HIMS Telehealth company HIMS reported earnings last week and the stock jumped 17%. But shares have fallen back taking the company’s market cap to 2.8 billion. Revenue over the last 12 months has grown 56% to 959 million with 76 million of adjusted ebitda and 52 million of free cash flow. Net income is negative 2 million but that shouldn’t be a problem as the company scales. In fact, as a platform business HIMS is capable of strong operating leverage. So when you consider how much the company could be earning in a few years time the stock looks pretty cheap. For example, assume revenue doubles over the next couple of years and adjusted ebitda could swing higher to as much as $380 million. Apply a conservative 15 times multiple to that figure and the market cap gets to 5.7 billion, which is roughly double the current level. In other words, HIMS stock has clear upside if it continues its current trajectory. The question is why the stock isn’t doing better than it is. The main answer is that investors don’t seem to trust the business. HIMS makes a substantial portion of its revenue from selling pills online for erectile dysfunction. There’s a certain stigma attached to these pills but they also face competition from over the counter products. And it’s not yet clear whether HIMS can successfully expand to more mainstream treatments. #himsstock #investing #stockmarket #3mb 2024-05-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5486/should-you-buy-airbnb-stock-may-2024 https://atto.videonest.co/5486_horizontal_thumbnail_v2.webp https://atto.videonest.co/5486_video_v3.mp4 Should you buy Airbnb stock? (May 2024) Published first at https://www.3minutebreakdowns.com Airbnb stock analysis. Ticker: $ABNB Airbnb reported earnings today and the stock dropped 7% taking the company’s market cap to 96 billion dollars. With 11 billion of cash and investments on its balance sheet and 2 billion of long term debt, the enterprise value is 87 billion. Revenue over the last 12 months comes to 10.2 billion with 4.9 billion of net income and 4.2 billion of free cash flow. That means Airbnb stock is valued at just under 20 times earnings and 21 times free cash flow. However, Airbnb’s net income is inflated by a one-off tax benefit in the third quarter of last year. Account for that and net income falls to 2.2 billion, which takes the PE ratio up to 44. All in all, Airbnb delivered a solid first quarter with 18% revenue growth and a 20% increase in free cash flow. Gross booking value on the platform increased 12% while the number of nights and experiences booked increased 10%. The company also bought back $750 million of shares which helps to offset stock based compensation. A new Icons feature allows customers to experience unique stays such as a night at the Ferrari museum or a night in a Pixar Up house. This is a smart feature that should drive word of mouth and further elevate the Airbnb brand. In addition, Airbnb is getting ready for the upcoming olympics and saw a 60% increase in app downloads. Management said this was due to a renewed focus on the app which drives more conversions than the website. #abnbstock #investing #stocks #stockmarket #3mb 2024-05-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5487/should-you-buy-palantir-stock-may-2024 https://atto.videonest.co/5487_horizontal_thumbnail_v2.webp https://atto.videonest.co/5487_video_v3.mp4 Should you buy Palantir stock? (May 2024) Published first at https://www.3minutebreakdowns.com Palantir stock analysis. Ticker: $PLTR Palantir just reported earnings and the stock dropped about 14%. At the latest share price, the company has a market cap of 51.4 billion dollars. With 3.9 billion of cash and investments and no debt the enterprise value is just under 48 billion. Revenue over the last 12 months is 2.3 billion with 300 million of net income and 640 million of free cash flow. So Palantir stock is currently valued at 20 times revenue, 173 times earnings and 74 times free cash flow. Since Palantir went public its had its fair share of critics. Bears initially argued that Palantir was more of a consulting firm than a software company. But Palantir quickly disproved that thesis by growing its gross margins well past 80%. Next, Palantir was accused of being too reliant on government customers which would hit a natural ceiling in the US. And more lately, critics have argued that Palantir is not a real AI company. But once again, Palantir has proven its critics wrong. Commercial revenue growth in the latest quarter accelerated to 40% and the company added 41 new customers. Full year guidance was raised to incorporate a 45% increase in commercial revenue. #palantirstock #stockstobuy #investing #3mb 2024-05-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5488/3-stocks-im-buying-now-may-2024 https://atto.videonest.co/5488_horizontal_thumbnail_v2.webp https://atto.videonest.co/5488_video_v3.mp4 3 Stocks I'm Buying Now (May 2024) Published first at https://www.3minutebreakdowns.com 3 Stocks I'm Buying Now - May 2024 Edition Every month I put together some stocks that I like and this month we have another selection to look at. $DHI $AMZN $WISE.L #stockstobuynow #stockstobuy #stocks #3mb 2024-05-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5489/should-you-buy-photronics-stock-may-2024 https://atto.videonest.co/5489_horizontal_thumbnail_v2.webp https://atto.videonest.co/5489_video_v3.mp4 Should you buy Photronics stock? (May 2024) Published first at https://www.3minutebreakdowns.com Photronics stock analysis. Ticker: $PLAB Photronics is a leading manufacturer of photomasks, which are used to transfer tiny circuit patterns onto semiconductor wafers, often used in flat panel displays. Over the last 12 months Photronics has reported just under 900 million dollars of revenue, 138 million of net income and 173 million of free cash flow. So, with a market cap of 1.8 billion, the valuation looks extremely attractive. The company trades at just 13 times earnings, under 8 times free cash flow and under 4 times ebitda. That’s especially cheap when you consider the high multiples applied to other semiconductor stocks right now. And it’s not like Photronics isn’t growing. Revenue over the last 5 years has grown at a rate of 11% a year with Photronics gaining a 30% share in photomasks. And that market should continue to expand thanks to exploding trends such as AI, electric vehicles and the internet of things. But although 3.8 times ebitda seems incredibly low, it's not actually unusual for Photronics. As you can see from the chart, the company has traded at even lower multiples in the past and that’s largely due to high depreciation charges. Photomasks require a large amount of technical work and capital investment to match customer specifications. As a result, Photronics averages significant capital expenditure, around 17% of revenue. In other words, Photronics needs to keep reinvesting capital just to stay still and that ultimately affects free cash flow generation and earnings. #investing #stockstowatch #stockmarket #3mb 2024-05-07T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5490/should-you-buy-cloudflare-stock-may-2024 https://atto.videonest.co/5490_horizontal_thumbnail_v2.webp https://atto.videonest.co/5490_video_v3.mp4 Should you buy Cloudflare stock? (May 2024) Published first at https://www.3minutebreakdowns.com Cloudflare stock analysis. Ticker: $NET Cloudflare stock plunged 16% on Friday after reporting Q1 earnings. But this wasn’t a bad report. Revenue was up 30% year over year and the company saw a record number of new customers join the platform. So is now a good time to buy the dip? At the latest price, Cloudflare has a market cap of 25 billion dollars with 1.7 billion of cash and investments on its balance sheet and 1.3 billion of debt. Revenue at Cloudflare continues to grow at an impressive rate and now stands at 1.39 billion over the last 12 months. But despite being one of the fastest growing stocks on the market the company is yet to produce a profit. Net income over the last 12 months is negative 181 million and operating income is also negative. Stock based compensation is significant at almost 300 million but free cash flow has at least turned positive. Cloudflare is a cyber security and content delivery network that helps underpin millions of websites. It’s thought that 20% of web traffic flows through Cloudflare and this is clearly a powerful business, generating annualized revenue growth of 45% over the last 5 years. The company continues to acquire large customers and gross margins remain steady at around 77%. Expansion into apps and the sheer size of the cloud market means that Cloudflare likely has a lot more growth in the tank. Management thinks Cloudflare’s addressable market is 164 billion and growing. #stocks #investing #stockmarket #3mb 2024-05-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5491/should-you-buy-amazon-stock-may-2024 https://atto.videonest.co/5491_horizontal_thumbnail_v3.webp https://atto.videonest.co/5491_video_v3.mp4 Should you buy Amazon stock? (May 2024) Published first at https://www.3minutebreakdowns.com Amazon stock analysis. Ticker: $AMZN Since reporting earnings on Tuesday, Amazon stock has gained about 5% taking the company’s market value to 1.92 trillion dollars. With 73 billion of cash on its balance sheet, 13 billion of investments and 58 billion of long term debt, the enterprise value is 1.89 trillion. Revenue over the last 12 months is just under 600 billion with 38 billion of net income and 46 billion of free cash flow. So Amazon stock is now valued at 3.2 times revenue and 51 times earnings. This was another impressive report from Amazon. Revenue from online stores grew 7% and physical stores grew 6%. Third party seller services increased 16%. Advertising grew 24%. Subscription revenue grew 11%. And AWS climbed 17% A focus on profitability helped overall operating margins climb to a new record of 8% and free cash flow continues to ramp higher. And that’s despite significant capital investments into GPUs and AI infrastructure. A key contributor to Amazon’s strong performance is the cloud service AWS. Not only did AWS grow 17% year over year, operating margins for the business climbed to 38%. CEO Andy Jassy said last year that AWS would improve and it turns out he was right all along. Advertising was another bright spot, trailing twelve month revenues are now up to 49 billion and Amazon’s other bets also grew 23%. So Amazon continues to move forward, the question is what price should investors pay for this collection of businesses? 2024-05-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5492/should-you-buy-aehr-test-systems-stock-may-2024 https://atto.videonest.co/5492_horizontal_thumbnail_v3.webp https://atto.videonest.co/5492_video_v3.mp4 Should you buy AEHR Test Systems stock? (May 2024) Published first at https://www.3minutebreakdowns.com AEHR Test Systems stock analysis. Ticker: $AEHR Between July 2021 and July 2023, Aehr Test Systems went up 20 times. Since then, shares have fallen over 75% taking the market cap to just 345 million dollars. Revenue over the last 12 months comes to 72 million with 15 million of net income and just under 5 million of free cash flow. So Aehr stock doesn’t look too expensive at 4 times revenue or 22 times earnings. The huge rally in Aehr stock may seem ridiculous but at the time it made sense. The company provides test solutions for the semiconductor industry and saw revenue soar by over 200% in 2022. With a focus on silicon carbide wafers that are used in electric vehicles, Aehr helps reduce failure rates. Defective chips are identified well before they are placed in vehicles which is obviously hugely important for safety reasons. As the company tripled revenue in just a few years it’s not surprising that investors caught on to the stock. But over the last 8 months, the company has faced some major challenges. Most obvious is that revenue growth has come to an abrupt end going from 206% in 2014 to just 14% over the last 12 months. Management has cut guidance multiple times and warned of pushouts from customers. #stocks #investing #stockstowatch #3mb 2024-05-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5493/should-you-buy-dr-horton-stock-may-2024 https://atto.videonest.co/5493_horizontal_thumbnail_v3.webp https://atto.videonest.co/5493_video_v3.mp4 Should you buy D.R. Horton stock? (May 2024) Published first at https://www.3minutebreakdowns.com D.R. Horton stock analysis. Ticker: $DHI Over the past 10 years, homebuilder DR Horton has gone up over 600%. Despite that impressive run, this is one of the cheapest stocks on the market. Based on the latest share price, DR Horton has a market cap of 48.4 billion dollars with 3 billion of cash and 6 billion of debt. Revenue over the last 12 months comes to 37 billion with 5 billion of net income and 6.5 billion of ebitda. So Horton is valued at under 10 times earnings and under 8 times ebitda. Those kinds of multiples are usually reserved for companies that aren’t growing but Horton is. Revenue has grown 18% per year for the last 10 years, net income has grown an impressive 25% per year. This performance can be attributed to several factors. First, the US is dealing with a massive housing shortage. The 2008 financial crisis led to severe underbuilding that is still being felt today and it’s thought the US is short an estimated 3-4 million homes. Second, high interest rates have caused parts of the housing market to freeze up. For many homebuyers, new builds are their only option. Horton’s CEO admitted in February that he’d never seen such a tight market. Lastly, Horton’s scale and asset-light business model has allowed it to outmaneuver smaller builders. #investing #stocks #drhorton #3mb 2024-04-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5494/should-you-buy-boeing-stock-april-2024 https://atto.videonest.co/5494_horizontal_thumbnail_v3.webp https://atto.videonest.co/5494_video_v3.mp4 Should you buy Boeing stock? (April 2024) Published first at https://www.3minutebreakdowns.com Boeing stock analysis. Ticker: $BA Boeing reported earnings on Wednesday but it wasn’t enough to help the stock which is down 62% since its 2019 peak. At the latest price,the company has a market cap of 103 billion dollars. With 7.5 billion of cash and 57 billion of debt the enterprise value is 152 billion. Revenue over the last 12 months comes to 76 billion with 1.3 billion of free cash flow. But operating margins have fallen to 1% and net income is negative 2.2 billion. In fact, the company hasn’t reported a full year of profit since 2018. Despite the weak fundamentals, investors need to consider whether the worst might be over. Boeing has slowed down production and developed so-called shadow factories in order to fix planes and improve safety. CEO David Calhoun said the company is putting more hours into reworking planes that it did in building them in the first place. But he also said these extra costs are coming to an end. The shadow factories will be closed by the end of the year and that will provide a significant boost to the bottom line. Meanwhile, Boeing’s customers aren’t going anywhere. The company received 125 orders in the latest quarter, mostly from American Airlines and Boeing’s total commercial backlog is now $448 billion dollars. That’s more than 5600 airplanes. 2024-04-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5495/should-you-buy-tesla-stock-april-2024 https://atto.videonest.co/5495_horizontal_thumbnail_v3.webp https://atto.videonest.co/5495_video_v3.mp4 Should you buy Tesla stock? (April 2024) Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla just reported earnings and the stock jumped 10% but shares are still down 42% this year and 60% from their peak. Based on the after hours share price the company now has a market cap of 555 billion dollars with 22 billion of cash on the balance sheet and 2.7 billion of debt. This was a concerning quarter for Tesla with automotive revenues dropping 13%. Unsurprisingly, given the huge cost of auto manufacturing, gross profit fell even further with an 18% decline. Operating margins fell again to just 5.5% which is lower than most legacy automakers, even General Motors. And Tesla’s free cash flow turned negative for the first time since 2019. Of course, Tesla’s decision to cut prices is mostly to blame. But the company is also suffering from high interest rates and softening demand for electric vehicles. Based on trailing twelve month figures, the company is now valued at almost six times revenue, 41 times earnings and almost 400 times free cash flow. In other words, Tesla stock still isn’t cheap despite falling 60%. On the positive side, Elon Musk said on the conference call that total volume for this year would still be higher than the year before. He announced plans for more price cuts and new cheaper models to roll out next year. The company has laid off 10% of staff, postponed a trip to India and will be utilizing existing factories to build new models which will help keep costs down. #teslastock #stockanalysis #investing #stockstobuy 2024-04-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5496/should-you-buy-cava-stock-april-2024 https://atto.videonest.co/5496_horizontal_thumbnail_v3.webp https://atto.videonest.co/5496_video_v3.mp4 Should you buy Cava stock? (April 2024) Published first at https://www.3minutebreakdowns.com Cava stock analysis. Ticker: $CAVA Restaurant business Cava joined the public markets last June and many investors think it could be the next Chipotle. At the current price, Cava has a market cap of 7 billion dollars. It’s got 332 million of cash on its balance sheet and no debt so the enterprise value is 6.7 billion. CAVA opened 72 restaurants last year and grew revenue 29% to 729 million. Net income was 13 million and adjusted ebitda was 74 million. So Cava is now valued at an eye popping 9 times revenue, 500 times earnings and 90 times ebitda. That sounds like a high valuation. But Cava’s Mediterranean fast casual dining is booming. And Cava looks very similar to an early Chipotle, which has been one of the best performing stocks of the last 20 years. Back in 2002, Chipotle operated 222 restaurants, it now has over 3000 with annual revenues of almost 10 billion. Cava currently operates 309 restaurants and plans to get to 1000 by 2032. Back then, Chipotle’s average restaurant, adjusted for inflation, generated roughly 2.1 million dollars in revenue, which is a little less than Cava’s current average. The companies share a similar assembly-line operation and same-restaurant sales growth for the two firms are also very similar. However, the comparison with Chipotle also highlights a major problem for the stock. It’s taken Chipotle 20 years of impressive execution to get to where it is now which is an 80 billion dollar market cap. If Cava does become the next Chipotle, and achieves the same valuation, CAVA stock would only return about 12% annualized over that stretch. Those are obviously good returns — but they require that Cava becomes one of the best restaurant chains in the world. #cavastock #investing #stocks #3mb #stockstosell 2024-04-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5497/should-you-buy-lululemon-stock-april-2024 https://atto.videonest.co/5497_horizontal_thumbnail_v3.webp https://atto.videonest.co/5497_video_v3.mp4 Should you buy Lululemon stock? (April 2024) Published first at https://www.3minutebreakdowns.com Lululemon stock analysis. Ticker: $LULU Lululemon stock has fallen 33% this year taking the share price back to where it was in December 2020. At the current price, the company now has a market value of 42.4 billion dollars. With 2.2 billion of cash on the balance sheet and no debt the enterprise value is just over 40 billion. In the company’s recent annual report, Lululemon reported a 19% increase in revenue to 9.6 billion and a 16% increase in net income to $1.6 billion. International revenue grew 54% and gross margins increased to 58% which is an impressive figure for a retailer. Considering these numbers, there’s a clear argument that the sell off is overdone. After all, the company’s PE ratio of 27 now sits near the bottom of its historical range. However, there are clear reasons that explain why Lululemon stock has come under pressure. The first was contained in the company’s outlook. CEO Calvin McDonald said that there’s been a recent shift in the US consumer leading to a slower start for the year. As a result, Lululemon gave a cautious outlook where it expects revenue to grow 11 to 12% this year. Considering Nike forecast declining sales in the first half of the year, that sort of growth looks pretty good. But it’s still a clear step down from recent levels. After all, Lululemon grew 19% last year, 30% the year before and 42% in 2022. #stocks #investing #stockstobuy #3mb 2024-04-22T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5498/should-you-buy-draftkings-stock-april-2024 https://atto.videonest.co/5498_horizontal_thumbnail_v3.webp https://atto.videonest.co/5498_video_v3.mp4 Should you buy DraftKings stock? (April 2024) Published first at https://www.3minutebreakdowns.com DraftKings stock analysis. Ticker: $DKNG Sports betting business DraftKings is up 138% over the past year taking the company’s market cap to 23.2 billion dollars. But DraftKings financials don’t look particularly attractive. Revenue over the last 12 months grew 64% to 3.7 billion, but net income is negative 800 million and adjusted EBITDA is negative 151 million. Free cash flow is also in the red and the company reports almost 400 million in stock based compensation. However, in DraftKings' case, negative profits are not as bad as they seem. Following the legalization of sports betting in 2018, DraftKings has been in a race to take market share. The company spends money up front to acquire customers then drives substantial profits from those customers over time. So far it seems to be working. In 2019, the company generated revenue of $323 million. The figure last year was more than eleven times as high. And DraftKings appears to be cementing market share. According to this report, the two largest operators are Draftkings and FanDuel with over 60% of the market. Market share has allowed Draftkings to cut back on promotions in order to drive efficiency. Incredibly, while revenues grew 64% last year, sales and marketing cost increased by less than 2%. And management said customer acquisition costs dropped by almost a third. This operating leverage allowed DraftKings to report a huge 570 million swing in adjusted EBITDA. And so it’s not hard to see how DraftKings can quickly get to significant free cash flow. In fact, in the latest shareholder letter, management laid out its expectation for 1.4 billion in adjusted ebitda in 2026 and 2.1 billion by 2028. #stocks #investing #stockmarket #3mb 2024-04-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5499/should-you-buy-peloton-stock-april-2024 https://atto.videonest.co/5499_horizontal_thumbnail_v3.webp https://atto.videonest.co/5499_video_v3.mp4 Should you buy Peloton stock? (April 2024) Published first at https://www.3minutebreakdowns.com Peloton stock analysis. Ticker: $PTON During the pandemic, Peloton hit a peak market cap of almost 50 billion dollars. Today, the company is worth just $1.4 billion. With $1.7 billion of debt on the books, the total enterprise value is 2.3 billion. Fundamentally, Peloton looks like a disaster. Net income over the last 12 months is negative 872 million, free cash flow is negative 250 million. Even adjusted ebitda is minus 126 million. And Peloton lacks not only profits but growth. Revenue fell 22% last year and 11% the year before. The bond market is also pessimistic with Peloton’s convertible bond pricing in a small chance of bankruptcy within the next two years. However, there are some glimmers of hope. CEO Barry McCarthy, who took over in 2022, has revamped the company’s cost structure, outsourced manufacturing and rebuilt customer service. Peloton’s connected fitness products now at least have a positive gross margin. McCarthy expects Peloton to report positive free cash flow in the fourth quarter and if it does so, Peloton will have finally stopped the bleeding. #stocks #investing #stockmarket #3mb 2024-04-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5500/should-you-buy-mobileye-stock-april-2024 https://atto.videonest.co/5500_horizontal_thumbnail_v3.webp https://atto.videonest.co/5500_video_v3.mp4 Should you buy Mobileye stock? (April 2024) Published first at https://www.3minutebreakdowns.com Mobileye stock analysis. Ticker: $MBLY Mobileye produces microchips and systems for autonomous driving. At the current price the company has a market cap of 25 billion dollars. With 1.2 billion of cash on the balance sheet and no debt, the enterprise value is 24 billion. Revenue over the last 12 months comes to 2 billion with almost 300 million of free cash flow. However, net income is negative 27 million owing to a significant amount of stock based compensation. These figures make Mobileye look like an expensive stock particularly when you consider the company’s outlook for 2024. Management thinks revenue will fall 9% with operating income set to plunge 50% and it was this news that sent the stock down by a quarter in January. High levels of short interest indicate that a number of investors are still short the stock. However, it’s important to understand Mobileye’s valuation in the context of its long term strategy. Crucially, Mobileye has a highly profitable driver-assist business that is used by automakers all over the world with operating margins over 50%. But instead of collecting the cash on that business, Mobileye is aggressively reinvesting into self driving. Products include SuperVision, which uses cameras to provide advanced driver assistance and Chaffeur, a full tech stack for autonomous driving. #mobileyestock #investing #stocks #3mb 2024-04-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5501/3-stocks-im-buying-now-april-2024 https://atto.videonest.co/5501_horizontal_thumbnail_v3.webp https://atto.videonest.co/5501_video_v3.mp4 3 stocks I'm buying now (April 2024) Published first at https://www.3minutebreakdowns.com 3 stocks I'm buying now April 2024 edition. Including: $ONON $ORCL $TLT On Holding is a Swiss company that makes the popular On Cloud running shoe. The new cloudmonster design is seeing strong demand and On Holding reported revenue growth last year of 47%. That figure would have been even higher if not for strength in the Swiss franc. Software company Oracle doesn’t have the image of a high growth tech stock. However, last month’s earnings report revealed a 41% increase in remaining performance obligations. These RPOs represent future revenue that is yet to be recognised, and it indicates increasing demand for Oracle’s cloud infrastructure which is being used for generative AI. #stockstobuynow #stockstobuy #investing #3mb 2024-04-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5502/should-you-buy-rocket-lab-stock-april-2024 https://atto.videonest.co/5502_horizontal_thumbnail_v3.webp https://atto.videonest.co/5502_video_v3.mp4 Should you buy Rocket Lab stock? (April 2024) Published first at https://www.3minutebreakdowns.com Rocket Lab stock analysis. Ticker: $RKLB Rocket Lab is an end to end space company that builds and launches rockets, satellites and space systems. Shares have fallen over 60% since the company joined the public markets giving the company a current market value of 1.87 billion. With just over 300 million of cash and investments and 100 million of debt the enterprise value is 1.65 billion. That seems low considering Elon Musk’s SpaceX was recently valued at $180 billion in a private transaction. But Rocket Lab stock is considerably smaller than its rival. Bloomberg thinks SpaceX probably booked 9 billion dollars of revenue last year, a much higher figure than Rocket Lab’s 245 million. And Rocket Lab is also a long way from profitability. Net loss in 2023 was 183 million and free cash flow was negative 154 million. Even adjusted EBITDA, the most favorable metric possible was negative 91 million. Management said on the latest earnings call that adjusted ebitda will continue to be negative throughout 2024 and is unlikely to turn positive until Rocket Lab’s newest rocket Neutron is fully operational. That could happen towards the end of 2024 according to Rocket Lab CEO Peter Beck. Despite the weak fundamentals, Rocket Lab stock clearly presents an intriguing opportunity. The company says its launch services have a total addressable market around 15 billion while its space systems have a tam around 25 billion. The big money, however, is in services. Beck says the vast majority of value will come from providing services from space, similar to what SpaceX is achieving with Starlink. It’s this segment that could one day have a total addressable market in excess of one trillion dollars. #investing #stocks #stockstowatch #3mb 2024-04-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5503/should-you-buy-dutch-bros-stock-april-2024 https://atto.videonest.co/5503_horizontal_thumbnail_v3.webp https://atto.videonest.co/5503_video_v3.mp4 Should you buy Dutch Bros stock? (April 2024) Published first at https://www.3minutebreakdowns.com Dutch Bros stock analysis. Ticker: $BROS Coffee chain Dutch Bros has had a good year but the stock hasn’t kept up. Shares are roughly flat over the last 12 months giving the company a market value of 5.8 billion dollars. With 134 million of cash and 98 million of debt the enterprise value is roughly the same. In 2023, Dutch Bros opened 159 new shops. Revenues grew 31% to 966 million dollars and adjusted EBITDA grew 76% to 161 million. Net income was 10 million and free cash flow was negative but that’s because Dutch Bros is still investing for growth. The company has a long stated goal to reach 4,000 shops over the next 10-15 years. Unlike many restaurant chains, the majority of Dutch Bros are company operated. Since 2017, the company no longer accepts new franchisees, although existing operators are allowed to open new stores. And although Dutch Bros is billed as a coffee company, roughly 80% of its drinks are served cold with significant sales coming in the afternoon. Dutch Bros looks like an intriguing growth story growing revenue 31% this year and 48% the year before. But, nearly all of that growth came from new store openings. As noted in the company’s investor presentation, same store sales growth was only 1.5% in 2023 and 0.6% in 2022. And that growth is mostly coming from price increases because same-store traffic numbers have fallen in both years. #investing #stocks #stockstowatch #3mb 2024-04-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5504/should-you-buy-nike-stock-april-2024 https://atto.videonest.co/5504_horizontal_thumbnail_v3.webp https://atto.videonest.co/5504_video_v3.mp4 Should you buy Nike stock? (April 2024) Published first at https://www.3minutebreakdowns.com Nike stock analysis. Ticker: $NKE Nike stock is down almost 50% from its all time high taking the company’s market cap to 138 billion dollars. Shares are now lower than they were at the beginning of 2020 which is pretty unusual for a company of Nike’s caliber. But there’s a clear reason why. Nike’s revenue on a trailing twelve month basis is up less than 2% while operating income has fallen around 17% since 2021. Profits have also fallen with net income down 13% and net income margin falling to 10%. And company guidance suggests revenue will continue to decline over the next couple of quarters. There are several reasons for this performance. The first is a difficult economic environment with consumers pulling back spending especially in China. However, there’s a sense that Nike also has itself to blame and management admitted the company hasn’t done enough to drive newness or innovation. Competition from the likes of Hoka and On Cloud also seems to be gaining momentum with On Cloud recently hitting 2 billion dollars in annual sales. So Nike is working to improve execution and recoup lost revenue. After years of pushing direct-to-consumer sales, the company is backtracking and planning to lean more heavily into retailers. This is a significant reversal of a DTC strategy that began all the way back in 2017. The launch of Air Max Dn and this year’s olympics can also provide a much needed boost. #nikestock #investing #stockstobuy #3mb 2024-04-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5505/should-you-buy-microstrategy-stock-april-2024 https://atto.videonest.co/5505_horizontal_thumbnail_v3.webp https://atto.videonest.co/5505_video_v3.mp4 Should you buy MicroStrategy stock? (April 2024) Published first at https://www.3minutebreakdowns.com MicroStrategy stock analysis. Ticker: $MSTR Software company MicroStrategy has had an incredible 12 months. Over the past year, the stock has increased in value by 465% and based on the number of shares outstanding the company’s market value is now 33.6 billion. Software revenue over the last 12 months comes to 500 million with 429 million of net income. However, net income was impacted by a one-off tax benefit. Operating income last year was actually negative 45 million and free cash flow was only 10 million. And since the company’s software revenue hasn’t grown in over 10 years, the question is why does the company command such a high valuation? The answer is that in 2020, MicroStrategy embarked on a new strategy where it would use company funds to accumulate bitcoin. And based on latest company filings, the company now owns 214,246 bitcoins. So at the current bitcoin price, just under $66 thousand, the stash is worth just over 14 billion. And incredibly, since bitcoin production is capped at 21 million, the company owns more than 1% of all the bitcoin that will ever be mined. Yet MicroStrategy’s valuation still implies a major disconnect. Because if the company’s bitcoins are worth 14 billion, that implies the software business is worth almost 20 billion or 40 times sales. That valuation doesn’t make sense considering the software business has shown little growth. Even if bitcoin was worth $100.000 dollars the company’s market cap still wouldn’t make a lot of sense. #mstrstock #investing #stockstowatch #bitcoin #3mb 2024-04-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5506/should-you-buy-donald-trumps-new-stock https://atto.videonest.co/5506_horizontal_thumbnail_v3.webp https://atto.videonest.co/5506_video_v3.mp4 Should you buy Donald Trump's new stock? Published first at https://www.3minutebreakdowns.com Trump Media and Technology Group stock analysis. Ticker: $DJT Donald Trump’s Truth Social merged with a Spac on Tuesday forming a company called Trump Media & Technology with the ticker symbol DJT. Based on company documents and accounting for various types of incentives, the company currently has a market cap of around 12.4 billion dollars. According to the Financial Times, Trump’s stake is equal to about 40% or 5 billion dollars. Those funds will be extremely handy since Trump has been ordered to pay more than $500 million on fraud charges. But $12.4 billion dollars seems wildly inappropriate for Truth Social. According to documents filed with the SEC, the social media platform made only 3.4 million dollars of revenue in the first 9 months of 2023. And social tracking data suggests the platform has fewer than 1 million monthly users. Even if Truth Social rolls out a paid subscription model and manages to 10x its revenue, the company would still be trading at over 400 times sales. Reddit by comparison, which is also overvalued, has a current market cap of 8 billion on 800 million of revenue and 73 million users. To be fair, even Trump’s team didn’t expect the valuation to climb quite this high. A presentation shared last year said the company could perhaps be valued at 1.6 billion on the high end of its forecast. That was based on Truth Social growing to 4 million paid users by 2026, and somehow getting to annual revenues of $400 million. #investing #stocks #djtstock #3mb 2024-03-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5507/i-just-bought-this-stock-procore-technologies https://atto.videonest.co/5507_horizontal_thumbnail_v3.webp https://atto.videonest.co/5507_video_v3.mp4 I just bought this stock (Procore Technologies) Published first at https://www.3minutebreakdowns.com Procore Technologies stock analysis. Ticker: $PCOR Procore Technologies provides software for the construction industry and the stock is up 18% year to date. At the current price, the company has a market cap of 12.2 billion dollars. With just under 700 million of cash and no debt, the enterprise value is 11.5 billion. Revenue over the last 12 months comes to 950 million which means the stock is valued at 12 times revenue. That’s an expensive multiple when you consider free cash flow is only 47 million and net income is negative 190 million. And the key risk to Procore is that a high valuation leaves it exposed for when a downturn hits. Cyclical industries like construction usually demand a discount because economic cycles can make it difficult to make long-term investments. However, Procore has said that its customers stay on the platform even during economic weakness. Notably, Procore grew revenue 38% in 2020 even as the pandemic shuttered construction around the world and it grew revenues 32% last year even as interest rates soared above 5%. More broadly, Procore still sees a massive opportunity for growth. Construction is a 10 trillion dollar industry but many contractors still haven’t embraced the digital age. The Procore CEO said recently that half of new customers are still relying on pen and paper and Microsoft Office. Procore’s software enables contractors to better navigate the complexities of construction and the company was ranked one of the best places to work on Glassdoor. More importantly, the company has huge opportunities to expand its market with the recent launch of Procore Pay. Procore Pay is a platform that simplifies payments across the industry which should drive additional revenue and further entrench users within the broader Procore system. #pcorstock #investing #stocks #stockstobuy #3mb 2024-03-28T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5508/should-you-buy-oracle-stock-march-2024 https://atto.videonest.co/5508_horizontal_thumbnail_v3.webp https://atto.videonest.co/5508_video_v3.mp4 Should you buy Oracle stock? (March 2024) Published first at https://www.3minutebreakdowns.com Oracle stock analysis. Ticker: $ORCL Oracle stock is up 20% this year taking the market cap of 356 billion. With 12 billion of cash and 88 billion of debt the enterprise value is 432 billion. Revenue over the last 12 months has grown 9 and a half percent to just under 53 billion with 10.6 billion of net income and almost 20 billion of adjusted ebitda. So Oracle stock is currently valued at 34 times earnings or 22 times ebitda. That valuation doesn’t look too attractive when considering Oracle’s recent history. Revenues between 2015 and 2020 grew by only 2% as companies shifted from on-prem services to cloud providers like AWS. Revenue did grow 18% in 2023 but a large part of that growth came from the acquisition of healthcare business Cerner. Mediocre growth and a large chunk of debt may not sound too compelling but Oracle stock is close to an all-time high because of what it might do in the future not what it’s done in the past. Most importantly, the company is seeing huge demand for cloud infrastructure driven by AI. It’s building data centers at a record pace and recently signed an infrastructure contract with Nvidia. #stockstobuy #stocks #investing #3mb 2024-03-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5509/should-you-buy-reddit-stock-march-2024 https://atto.videonest.co/5509_horizontal_thumbnail_v3.webp https://atto.videonest.co/5509_video_v3.mp4 Should you buy Reddit stock? (March 2024) Published first at https://www.3minutebreakdowns.com Reddit stock analysis. Ticker: $RDDT Reddit joined the public markets last week under the ticker symbol RDDT. At $46 a share, the company is being valued at 8.7 billion dollars. With $1.5 billion of cash the enterprise value is around 7.2 billion. Documents filed with the SEC show that Reddit grew revenues 21% last year to 804 million and the number of daily active users increased 27% to 73.1 million. That’s excellent growth, however, the company is still not profitable. Net income, adjusted ebitda and free cash flow are all negative over the last 12 months. When compared to other social media stocks like Pinterest and Snap, Reddit’s valuation looks reasonable. The company is more expensive compared to sales but it does report higher revenue per user, higher gross margins, and faster growth. And management says the company is still in the early stages of monetization. Revenues should increase as the company scales its advertising model and explores new revenue streams. One of those streams includes licensing its data for the training of large language models like Gemini and ChatGPT. If Reddit continues this recent growth there’s a good chance that it closes the valuation gap with its peers. #investing #stocks #redditstock #3mb 2024-03-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5510/should-you-buy-google-stock-march-2024 https://atto.videonest.co/5510_horizontal_thumbnail_v3.webp https://atto.videonest.co/5510_video_v3.mp4 Should you buy Google stock? (March 2024) Published first at https://www.3minutebreakdowns.com Google stock analysis. Ticker: $GOOG $GOOGL Google stock jumped 5% on Monday on reports that Apple wants to use Google’s Gemini to drive generative AI for its new iphone. Looking at the fundamentals, Google now has a market cap of almost 1.9 trillion dollars. With $24 billion of cash, $118 billion of short term investments and $13 billion of debt, the enterprise value is $1.74 trillion. Revenue over the last 12 months comes to 307 billion with 74 billion of net income and 119 billion of adjusted ebitda. So Google stock is valued at 25 times earnings and just under 15 times EBITDA. This wouldn't be the first time that Apple has joined forces with Google. The original iPhone used Google Maps. And Google has been paying Apple $18 billion a year to be the default search engine on the Safari browser. Apple has so far been quiet on the AI front but a deal with Google could see Gemini being deployed on over 2 billion devices.. As noted by the New York Times, Gemini AI would leapfrog ChatGPT virtually overnight. That said, Apple needs to be confident in the quality of Google’s model. Google’s initial AI launch didn’t go to plan and Gemini has been accused of producing racially biased images. As a result, the company had to turn the feature off. #stocks #investing #stockstobuy #3mb 2024-03-22T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5511/should-you-buy-dlocal-stock-march-2024 https://atto.videonest.co/5511_horizontal_thumbnail_v3.webp https://atto.videonest.co/5511_video_v3.mp4 Should you buy dLocal stock? (March 2024) Published first at https://www.3minutebreakdowns.com dLocal stock analysis. Ticker: $DLO Fintech company dLocal provides payment services in emerging markets like South America and Africa. The stock dropped yesterday as earnings missed expectations by a wide margin. However, looking at full year results, the company is still experiencing rapid growth. Total payment volume over the last 12 months increased 67% to 18 billion dollars and revenues grew 55% to 650 million. Management thinks payment volume will grow another 40-50%this year. In addition, dLocal is highly profitable. Net income of 149 million equates to a margin of 23% while free cash flow margins are an impressive 45%. That kind of performance explains why Dlocal is a favorite among high risk growth investors. At only 13 times free cash flow, Dlocal stock could easily double if it keeps up this performance. The issue for dLocal is that investors don’t trust the company. Back in 2022, respected short seller Muddy Waters accused the company of being a “fraud” which caused the stock to drop 51% the next day. #stocks #investing #stockstowatch #3mb 2024-03-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5512/should-you-buy-adobe-stock-march-2024 https://atto.videonest.co/5512_horizontal_thumbnail_v3.webp https://atto.videonest.co/5512_video_v3.mp4 Should you buy Adobe stock? (March 2024) Published first at https://www.3minutebreakdowns.com Adobe stock analysis. Ticker: $ADBE Adobe reported earnings last week and the stock tumbled 14%. At the latest share price the company has a market cap of 232 billion dollars. With 6.8 billion of cash and investments and 3.6 billion of long term debt, the enterprise value is 228 billion. Revenue over the last 12 months comes to 20 billion with 4.8 billion of net income and 7 billion of free cash flow. So Adobe stock is now trading at around 48 times earnings and 33 times free cash flow. Despite falling 14%, this wasn’t a bad report from Adobe. Revenue increased 11% and adjusted operating income grew 16%. Gross margins increased to 88.6%, among the very best in the world. And Adobe announced a plan to buy back $25 billion dollars worth of stock. That figure is enough to buy back almost 10% of the company at current prices. So why did the stock fall? The obvious answer is that Adobe’s second quarter outlook came in below expectations. The company thinks revenue will grow 9.5% year-over-year with adjusted earnings growth of 12%. And one percent of that should come from stock repurchases. #stocks #investing #adobestock #3mb 2024-03-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5513/should-you-buy-costar-group-stock-march-2024 https://atto.videonest.co/5513_horizontal_thumbnail_v3.webp https://atto.videonest.co/5513_video_v3.mp4 Should you buy CoStar Group stock? (March 2024) Published first at https://www.3minutebreakdowns.com CoStar Group stock analysis. Ticker: $CSGP Real estate company Costar Group climbed 8% on Friday after the national association of realtors agreed to eliminate real estate commissions. Experts think commissions could drop to just 3 or 4 percent with some calling it an earthquake for the industry. Looking at the financials of CoStar, the company now has a market value just under 39 billion dollars with 5.2 billion of cash and 1 billion of debt on the balance sheet. Revenue comes to 2.5 billion over the last 12 months, with 375 million of net income and 492 million of adjusted ebitda. So Costar stock is currently valued at an eye popping 103 times earnings. That’s a steep valuation but CoStar isn’t an ordinary real estate business. Over the past 20 years the company has built up a network of businesses including the CoStar platform, LoopNet, Ten-X, apartments.com, homes.com and BizBuySell. This diverse selection allows the CoStar group to do well during different economic cycles and the numbers back it up. Total revenue at CoStar group has increased for 59 consecutive quarters. #investing #stocks #stockstobuy #realestate 2024-03-18T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5514/should-you-buy-ulta-beauty-stock-march-2024 https://atto.videonest.co/5514_horizontal_thumbnail_v3.webp https://atto.videonest.co/5514_video_v3.mp4 Should you buy Ulta Beauty stock? (March 2024) Published first at https://www.3minutebreakdowns.com Ulta Beauty stock analysis. Ticker: $ULTA Ulta Beauty just reported earnings and the stock dropped 5% taking the market cap to 26 billion dollars. With 767 million of cash on the balance sheet and no debt the enterprise value comes to 25.4 billion. Despite the drop in share price this looks like a decent quarter from Ulta and another solid year. Total revenue increased 9.8% to $11.2 billion with same store sales up 5.7%. Net income increased 12% to 1.29 billion and the company generated just over a billion dollars of free cash flow. That free cash flow is being invested back into new stores with any leftover cash being returned to shareholders. The number of shares outstanding has now declined by 25% over the last 10 years and management just announced another $2 billion of buybacks. If there is an issue with these results it’s company guidance. Ulta thinks that revenue will grow only 5% next year and earnings less than 3%. And that’s despite plans to open 60-65 new stores. The fact that Ulta is doubling the number of new stores this year and only seeing modest growth suggests pressure on margins and weak demand. However, it’s worth noting that Ulta is still dealing with difficult comparisons since the pandemic. And those 60 new stores aren’t going to be built straight away. Management announced plans to expand into Mexico next year so all in all the company could be setting up for a much bigger 2025. #stockstobuy #investing #stocks #3mb 2024-03-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5515/should-you-buy-jd-stock-march-2024 https://atto.videonest.co/5515_horizontal_thumbnail_v3.webp https://atto.videonest.co/5515_video_v3.mp4 Should you buy JD stock? (March 2024) Published first at https://www.3minutebreakdowns.com JD.com stock analysis. Ticker: $JD This is one of the cheapest stocks on the market. Chinese e-commerce company JD.COM has a current market value of $44.5 billion dollars despite doing over $150 billion in annual sales. And JD also has 10 billion of cash and 28 billion of investments on its balance sheet. Account for 11 billion of long term debt and the total enterprise value is under 18 billion. Considering JD reported over 3 billion of net income last year and almost 6 billion of free cash flow, the stock is valued at under 14 times earnings and only 3 times free cash flow. Such a cheap valuation usually only applies to companies in terminal decline but that doesn’t apply to JD. Revenues grew 4% last year and 10% in 2022. Meanwhile, JD management is aggressively returning capital to shareholders. The company declared an annual dividend of 76 cents a share which represents a yield of 2.7%. And the company plans to buy back $3 billion dollars worth of stock. That would reduce shares outstanding by more than 7% and help to boost earnings per share. Of course, there are reasons why JD stock is so cheap. The most obvious relate to China which is experiencing an ongoing property slump. And China’s capital rules mean that investors in Chinese ADR shares don’t actually own shares of the business. Chinese ADR shares represent a holding company, based in the Cayman Islands, which has a contractual right to profits. This raises the risk that the Chinese government could one day cancel that agreement putting shareholders in a desperate position. #stocks #investing #jdstock #3mb #stockstobuy 2024-03-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5516/should-you-buy-on-holding-stock-march-2024 https://atto.videonest.co/5516_horizontal_thumbnail_v3.webp https://atto.videonest.co/5516_video_v3.mp4 Should you buy On Holding stock? (March 2024) Published first at https://www.3minutebreakdowns.com On Holding stock analysis. Ticker: $ONON Shoe company On Holding just reported earnings and the stock dropped by about 9% taking the market cap to 9.75 billion dollars. With almost 600 million in cash the enterprise value is just under 9.2 billion. Revenue in ON’s fourth quarter came in below expectations at 447 million Swiss francs representing growth of 22%. And net income swung to a loss of 16 million. However, fourth quarter results were significantly impacted by strength in the Swiss Franc. Account for currency movements and sales actually increased 31% and net income likely would have been positive. Zooming out to full year results and converting to US dollars, provides some perspective. 2023. revenue grew over 50% on a constant currency basis to 2 billion US dollars. Net income increased to 91 million with 316 million of adjusted ebitda and 211 million of free cash flow. So the stock is currently valued at 4.5 times revenue, 108 times earnings and 29 times ebitda. On’s mission is to become the most premium sportswear brand in the world and it appears to be making progress. #investing #stockstobuy #stockmarket #3mb 2024-03-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5517/should-you-buy-duolingo-stock-march-2024 https://atto.videonest.co/5517_horizontal_thumbnail_v3.webp https://atto.videonest.co/5517_video_v3.mp4 Should you buy Duolingo stock? (March 2024) Published first at https://www.3minutebreakdowns.com Duolingo stock analysis. Ticker: DUOL Duolingo reported earnings last week and the stock jumped by over 20%. However, shares have pulled back since then to just under 214 dollars. At the current share price, Duolingo has a market cap of 10.5 billion with 748 million of cash on its balance sheet and no debt. Revenue over the last 12 months comes to 531 million, with 16 million of net income and 140 million of free cash flow. So Duolingo stock looks expensive at over 18 times revenue and over 100 times adjusted ebitda. Indeed, the idea that a language learning app, centered around a cartoon owl, can be worth 10 billion dollars strikes many investors as evidence of a bubble. But if you take a closer look, Duolingo is a hugely impressive business. Total revenues last year increased by 44%. Monthly active users increased 46% to 88 million and paid subscribers grew 57%. Adjusted EBITDA margin swung 13 percentage points in 2023 to just under 18%. So you can see how quickly Duolingo can move from roughly break even to significant profits. And the company also gave a strong outlook. Revenue is expected to grow another 36% next year and over time, Duolingo thinks it can get to an ebitda margin between 30 and 35%. The company has only recently rolled out new products for maths and music which can offer new avenues for growth. There’s really no reason why Duolingo’s structure can’t accommodate lessons in multiple categories for users around the world. #investing #stocks #stockstobuy #3mb 2024-03-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5518/should-you-buy-beyond-meat-stock-march-2024 https://atto.videonest.co/5518_horizontal_thumbnail_v3.webp https://atto.videonest.co/5518_video_v3.mp4 Should you buy Beyond Meat stock? (March 2024) Published first at https://www.3minutebreakdowns.com Beyond Meat stock analysis. Ticker: $BYND Beyond Meat reported earnings last week and the stock rallied by about 25% taking the market cap to 633 million dollars. With over 1 billion of debt the enterprise value is just under 1.6 billion. Although Beyond Meat went up last week it’s not obvious why. Revenue in 2023 fell 18% to 343 million dollars but the company posted a gross loss of $83 million on those sales. So before the company has spent a dime on research and development, sales and marketing, and other costs, it’s already in the red. The company has tried cutting back but the numbers are simply not working. Even using adjusted EBITDA, the most favorable metric possible, Beyond Meat is nowhere close to profits. The company probably needs to get to $150 million in Adjusted EBITDA to have a chance of refinancing its convertible debt which comes due in March 2027. At that point, if not before, it seems likely the company will have to file for bankruptcy. Bond markets are aware of this pressure. The convertible debt currently trades at just 22 cents on the dollar which suggests the odds of bankruptcy are likely above 80%. To top it off, the company just filed to delay its annual report which is usually considered a red flag. #investing #stocks #3mb 2024-03-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5519/should-you-buy-zoetis-stock-february-2024 https://atto.videonest.co/5519_horizontal_thumbnail_v3.webp https://atto.videonest.co/5519_video_v3.mp4 Should you buy Zoetis stock? (February 2024) Published first at https://www.3minutebreakdowns.com Zoetis stock analysis. Ticker: $ZTS Zoetis is a leading healthcare company that provides medicine for animals. At the current share price, the company has a market cap of just over 91 billion dollars. Revenue over the last 12 months is 8.5 billion with 2.3 billion of net income and 3.5 billion of EBITDA. So the stock is valued at 39 times earnings or 28 times EBITDA. That may sound expensive but for Zoetis, it’s actually below the historical average. Over the last 10 years, Zoetis’s PE ratio has gone as high as 70 and just two years ago it was at 60. There are two key reasons for that high valuation. First, the animal and pet category is extremely resilient. Owners treat their pets as family members and they spend money on them through good times and bad. Second, Zoetis has a near monopoly in the industry and the business has performed incredibly well. Net income has grown every single year for the last 10 years with net income margins also steadily increasing. Current net income margin sits at 27% which means almost a third of revenue is flowing to the bottom line. The company spends a minimal amount on stock based compensation and the number of shares outstanding has fallen by around 8% over the last 10 years. #investing #stocks #stockstobuy #3mb 2024-02-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5520/should-you-buy-block-stock-february-2024 https://atto.videonest.co/5520_horizontal_thumbnail_v3.webp https://atto.videonest.co/5520_video_v3.mp4 Should you buy Block stock? (February 2024) Published first at https://www.3minutebreakdowns.com Block stock analysis. Ticker: $SQ Block is a 46 billon dollar company made up of several businesses; Square, Cash App, Spiral, Tidal and TBD. The company also owns over 8,000 bitcoin which at the current price is worth around $440 million dollars. Chief Block Head Jack Dorsey reported the company’s earnings last week causing the stock to jump around 18%. The company has made almost 22 billion dollars of revenue over the last 12 months, 9.8 million of net income and 1.8 billion of adjusted ebitda. But, Block’s revenue is skewed by bitcoin trading on the Cash App. Because accounting rules require the company to recognise the entire value of a bitcoin transaction, Block’s 9.5 billion of bitcoin revenue provides barely any profits So a better metric to judge Block is gross profit and on this grounds the company has had a strong 12 months. It’s grown 25% to 7.5 billion led primarily by payment processor Square which grew 16% to 3.1 billion and cash app which grew 33% to 4.3 billion. And the company also posted a reassuring outlook. Gross profit this year should climb at least 15% and adjusted ebitda should come in above $2.6 billion which translates to an adjusted ebitda margin of 30%. So, with a current enterprise value of $44 billion the stock is valued at under 17 times adjusted ebitda. #stocks #investing #stockstowatch #3mb 2024-02-27T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5521/should-you-buy-lyft-stock-february-2024 https://atto.videonest.co/5521_horizontal_thumbnail_v3.webp https://atto.videonest.co/5521_video_v3.mp4 Should you buy Lyft stock? (February 2024) Published first at https://www.3minutebreakdowns.com Lyft stock analysis. Ticker: $LYFT Lyft reported earnings recently and the stock soared 60% after hours. But shares pulled back after investors learned of a typo in the earnings statement. The press release said that Lyft’s adjusted EBITDA margins would increase by 500 basis points this year but the correct figure should have been 50 basis points which is only 0.5%. Despite this error, Lyft stock is still sharply higher than where it was before the earnings were released. And with a market cap just over 6 billion, there could be more upside ahead. The nature of a platform business like Lyft is that additional revenue comes at little cost. So the business is all about volume. The more trips that pass through the platform the more profits the company makes. But the reason Lyft stock is still down 77% from its IPO is that revenue growth has slowed down. Uber has continually taken market share from the company while adding new segments like deliveries. Last year, Lyft saw 709 million rides through its platform. Uber, meanwhile, reported 26 million rides a day. #investing #stocks #stockstowatch #3mb 2024-02-26T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5522/should-you-buy-resmed-stock-february-2024 https://atto.videonest.co/5522_horizontal_thumbnail_v3.webp https://atto.videonest.co/5522_video_v3.mp4 Should you buy ResMed stock? (February 2024) Published first at https://www.3minutebreakdowns.com ResMed stock analysis. Ticker: RMD This company may have sold off prematurely. Resmed Inc. provides medical devices that treat sleep apnea and COPD. At the latest share price, the company has a market cap of 26.6 billion dollars. Revenue over the last 12 months comes to 4.5 billion with 890 million of net income and 963 million of free cash flow which means the company is valued at 6 times revenue and 30 times earnings. Resmed occupies a leading position in the treatment of sleep apnea which is said to affect more than 1 billion people worldwide. The company has benefited from a product recall from one of its largest competitors, Philips, and that isn't likely to be resolved for several years. In the meantime, Resmed has continued to expand manufacturing and gain dominant market share. Revenues have grown every single year for the last 10 years, net income margins have increased to 20% and free cash flow has advanced to a record level. But despite such impressive performance, Resmed stock has actually fallen 40% on concerns over GLP-1 weight loss drugs like Wegovy. Because obesity is a leading cause of sleep apnea, investors are concerned that weight loss drugs lead to fewer cases of sleep apnea and less demand for Resmed’s products. The reality, however, may be more nuanced. In its latest earnings call, ResMed presented data on over 500,000 patients which showed patients on GLP-1 drugs actually had a 10% higher likelihood of starting treatment for sleep apnea. And overall cases of sleep apnea may continue to rise due to aging populations. If so, weight loss drugs may actually help Resmed rather than hurt it and if that’s the case Resmed stock can be a big winner. #stocks #investing #stockstobuy #3mb 2024-02-21T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5523/should-you-buy-catl-stock-february-2024 https://atto.videonest.co/5523_horizontal_thumbnail_v3.webp https://atto.videonest.co/5523_video_v3.mp4 Should you buy CATL stock? (February 2024) Published first at https://www.3minutebreakdowns.com Contemporary Amperex Technology Co. $CATL CATL is the world's leading manufacturer of batteries for electric vehicles with a market share of almost 40%. The company supplies numerous big firms including Tesla, Toyota, NIO, Hyundai and many others. But the stock is down 58% since 2021. When converted to US dollars the company has a market cap just under $100 billion and an enterprise value of $72 billion. Revenue over the last 12 months comes to $58 billion with $6.2 billion of net income and $6.8 billion of free cash flow. So right now the stock is valued at roughly 16 times earnings or 11 times free cash flow. That valuation is incredibly cheap when you consider CATL has a dominant market position and is growing at a staggering pace. Total revenues have grown from cn¥866 million to cn¥413 billion in just ten years. Revenue growth was 159% in 2021, 152% in 2022 and this year's revenues are on track for 55% growth. #catl #stockstobuy #chinastocks #3mb 2024-02-10T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5524/should-you-buy-spotify-stock-february-2024 https://atto.videonest.co/5524_horizontal_thumbnail_v3.webp https://atto.videonest.co/5524_video_v3.mp4 Should you buy Spotify stock? (February 2024) Published first at https://www.3minutebreakdowns.com Spotify stock analysis. Ticker: $SPOT Spotify reported earnings this week and the stock jumped by 8% taking the market cap to 48 billion dollars. With 6 billion of cash and investments and 1.3 billion of long term debt, the enterprise value is 43 billion. Revenue over the last 12 months is 14.3 billion representing 13% growth year over year. Free cash flow improved to 726 million but when you include stock based compensation, the company is still not profitable. Net income over the last 12 months was negative 570 million. Spotify’s latest earnings report showed some strong growth. Number of paying subscribers increased 15% to 236 million and the number of ad supported users increased 28% to 379 million. Quarterly revenue increased 16%. But it wasn’t all good news. Spotify has struggled with low gross margins for years because the company has to pay out significant royalties to music labels. Cost of revenue, which includes these royalties, increased by 14%, which helps to explain why the company posted another unprofitable quarter. And high costs to music labels are unlikely to disappear. Last week, TikTok had to mute millions of videos on its platform after it failed to agree terms with Universal Music. Spotify’s response is to promote independent artists and invest heavily into other audio products such as podcasts and audiobooks. A deal with Joe Rogan is reportedly worth up to $250 million dollars. #investing #stockstobuy #spotify #3mb 2024-02-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5525/should-you-buy-ibm-stock-february-2024 https://atto.videonest.co/5525_horizontal_thumbnail_v2.webp https://atto.videonest.co/5525_video_v3.mp4 Should you buy IBM stock? (February 2024) Published first at https://www.3minutebreakdowns.com IBM stock analysis. Ticker: $IBM Enthusiasm for AI has boosted IBM stock with shares up 13% this year. The company now has a market cap of 170 billion dollars, with 13 billion of cash on the balance sheet and 57 billion of long term debt. Revenue over the last 12 months comes to 62 billion with 7.5 billion of net income and 11.2 billion of free cash flow so the stock is currently valued at 23 times earnings or 19 times free cash flow. That sounds reasonable but IBM has long been considered a value trap. Since March 2013, revenues have fallen by more than a third, and the stock has badly underperformed the rest of the market. While the Nasdaq 100 has gained almost 400% in that time, IBM returns are essentially flat. However, recent excitement around generative AI seems to have changed the narrative. Revenue in Q4 grew 4% to over 17 billion and management said its AI business doubled in the quarter. The company talked up its hybrid cloud offering as well as partnerships with some big name players like Meta and AWS. So if IBM has finally found a way to grow its business then it may well be one of the cheapest AI stocks on the market. #investing #stocks #ibmstock #3mb 2024-02-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5526/should-you-buy-first-solar-stock-february-2024 https://atto.videonest.co/5526_horizontal_thumbnail_v2.webp https://atto.videonest.co/5526_video_v3.mp4 Should you buy First Solar stock? (February 2024) Published first at https://www.3minutebreakdowns.com First Solar stock analysis. Ticker: $FSLR First Solar is the largest solar manufacturer in the Western Hemisphere and a leader in thin-film technology. At the latest price, the company has a market cap of 16 billion dollars. With 2 billion of cash and investments and 460 million of long term debt, the enterprise value is 14.5 billion. Over the last 12 months, First Solar has produced 3.2 billion of revenue and 474 million of net income. So the stock is valued at 4.6 times revenue and 39 times earnings. However, First Solar expects to earn around $3 earnings per share in the fourth quarter which would take its PE ratio down below 20. That’s a reasonable valuation considering First Solar’s technical advantages and the amount of growth left in the solar industry. And the majority of First Solar's modules are sold to utility projects like solar farms and solar parks - that protects the company from the volatility of residential solar. #investing #stocks #fslrstock 2024-01-31T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5527/should-you-buy-estee-lauder-stock-january-2024 https://atto.videonest.co/5527_horizontal_thumbnail_v3.webp https://atto.videonest.co/5527_video_v3.mp4 Should you buy Estee Lauder stock? (January 2024) Published first at https://www.3minutebreakdowns.com Estee Lauder stock analysis. Ticker: $EL Estee Lauder used to be one of the best stocks in the market. From 2009 to 2022, shares went up over 2000%. However, the stock has now fallen more than 60% from its all-time high taking the company’s value to 49 billion dollars. The reason for that performance is that Estee Lauder’s results have come under severe pressure. Trailing twelve month revenue has fallen 10% to 15.5 billion. Net income has fallen from over 3 billion in 2022 to only 548 million over the last 12 months. That has caused the PE ratio to explode past 80. Estee Lauder’s poor results are being driven by a number of factors. First, the company has heavy exposure to department stores which have seen weak traffic since COVID. Second, an economic slowdown in China is affecting sales and there are concerns that Estee Lauder is losing share to more modern brands such as ELF cosmetics. Meanwhile, management admitted its supply chain is too long, which has caused forecasting issues for retailers. Perhaps the biggest issue, however, is Estee Lauder’s duty-free and travel retail business which contributed to a 27% drop in sales in the most recent quarter. This weakness is being driven by a slower than expected recovery in Asia travel as well as new regulations on duty-free shopping, particularly in Korea. #investing #stocks 2024-01-30T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5528/should-you-buy-tesla-stock-january-2024 https://atto.videonest.co/5528_horizontal_thumbnail_v3.webp https://atto.videonest.co/5528_video_v3.mp4 Should you buy Tesla stock? (January 2024) Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla reported earnings last week and the stock dropped around 12% giving the company a market value of $640 billion dollars. With $29 billion of cash on its balance sheet and 5 billion of debt, the enterprise value is $616 billion. Not long before this announcement, some people were talking up the prospect of Tesla becoming a $10 trillion dollar company, helped by a rollout of humanoid bots and artificial intelligence. Those predictions now look poorly timed because this was a disappointing earnings report from Tesla. Automotive revenues rose less than 2% year over year and profit margins have tanked. Gross margin in the latest quarter was 17.6%, down from 24% one year ago and operating margins fell 47% to 8.2%. That’s now lower than legacy automaker Toyota Motors. Company outlook was also disappointing. Tesla said that vehicle growth would slow again this year and on the company conference call Elon Musk said that without tariffs, Chinese manufacturers would “pretty much demolish most other car companies in the world”. Long time Tesla bull Dan Ives called the Tesla call a train wreck. #teslastock #investing #stockstowatch 2024-01-29T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5529/should-you-buy-asml-stock-january-2024 https://atto.videonest.co/5529_horizontal_thumbnail_v3.webp https://atto.videonest.co/5529_video_v3.mp4 Should you buy ASML stock? (January 2024) Published first at https://www.3minutebreakdowns.com ASML stock analysis. Ticker: $ASML ASML makes lithography machines that are used to produce microchips. The company just reported earnings and the stock jumped 10% giving the company a market value of 338 billion dollars. With 8.7 billion of cash and investments and just under 4 billion of debt, the enterprise value is 333 billion. ASML’s machines are highly complex and sell for hundreds of millions of dollars. But they are also an integral part of the semiconductor industry and the company has a near monopoly in the space. Revenues over the last year increased by 30% to 30 billion US dollars, with net income increasing 44% to 8.7 billion. Gross margins also moved above 51%. Despite the jump in share price, ASML’s guidance for 2024 looks rather weak. The company thinks next quarter revenue could drop 20% and full year revenue is likely to be flat. A major reason is that export controls with China could affect 10-15% of sales. So if revenue isn’t going to grow this year why is the stock so expensive at 11 times revenue, and 40 times earnings? #investing #asmlstock #stockstobuy #stockstobuynow 2024-01-27T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5530/should-you-buy-netflix-stock-january-2024 https://atto.videonest.co/5530_horizontal_thumbnail_v3.webp https://atto.videonest.co/5530_video_v3.mp4 Should you buy Netflix stock? (January 2024) Published first at https://www.3minutebreakdowns.com Netflix stock analysis. Ticker: $NFLX Netflix just reported earnings and the stock jumped 11% to 545 dollars a share. That gives the company a current market cap of 242 billion. There’s 7 billion of cash on the balance sheet and 15 billion of debt so the enterprise value is just under 250 billion. There’s no denying that this was an excellent earnings report from Netflix. Paid memberships increased by 13% to 260 million which was 4 million more than expected. Growth was seen across all regions including North America and total revenue increased 12 and a half percent to 8.8 billion.The company also gave an optimistic forecast. Revenue is expected to grow another 13% next quarter and Netflix’s operating margin should climb to a record 26%. Over the last 12 months, the company has generated 34 billion of revenue, 5.4 billion of net income and almost 7 billion of free cash flow. So the stock is now valued at 44 times earnings or 36 times free cash flow. Reading this report, there isn’t much to criticize. There’s growth across the board and the company’s journey into paid advertising is going well. #netflixstock #investing #stockstobuy #3mb 2024-01-25T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5531/should-you-buy-smci-stock-january-2024 https://atto.videonest.co/5531_horizontal_thumbnail_v3.webp https://atto.videonest.co/5531_video_v3.mp4 Should you buy SMCI stock? (January 2024) Published first at https://www.3minutebreakdowns.com Super Micro Company stock analysis. Ticker: $SMCI Super Micro Computer made a surprise announcement last week, raising its revenue guidance by 30%. The company initially thought revenue would increase 50% in the second quarter to 2.8 billion. It now expects revenue of 3.6 billion which is an increase of 100%. Unsurprisingly, this news sent the stock soaring and now the company has a market valuation of 26.2 billion dollars. Super Micro sells hardware systems that are used to build data servers and storage systems. Demand for Nvidia’s GPU systems has been the primary growth driver for SMCI over the last couple of quarters as customers race to build out their platforms for generative AI. Trailing twelve month revenue comes to 7.4 billion with net income of 600 million. But those figures don’t incorporate the latest guidance. Account for guidance and next year revenue could easily hit 15 billion with net income potentially coming in at 1.2 billion. So Super Micro stock is more realistically valued at around 22 times next year's earnings. Compared to many growth stocks that may sound cheap but for a hardware company it isn’t particularly attractive. Cisco, for example, trades at 16 times earnings and Hewlett Packard around 10 times earnings. #investing #stocks #stockstobuy #smcistock 2024-01-24T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5532/should-you-buy-apple-stock-january-2024 https://atto.videonest.co/5532_horizontal_thumbnail_v3.webp https://atto.videonest.co/5532_video_v3.mp4 Should you buy Apple stock? (January 2024) Published first at https://www.3minutebreakdowns.com Apple stock analysis. Ticker: $AAPL Apple is one of the largest companies in the world with.a market cap just above 3 trillion dollars. With 162 billion of cash and investments on its balance sheet and 95 billion of debt, the enterprise value is 2.95 trillion. Meanwhile, Apple has reported 383 billion of revenue over the last 12 months, 97 billion of net income and 99 billion of free cash flow. So Apple stock is currently valued at almost 8 times revenue and 31 times earnings. Despite the high valuation Apple’s performance in recent years should give investors some concern. The market for smartphones is maturing and last year global sales fell by 5%. Apple’s last 4 quarters have all seen lower sales than the year prior and the latest iPhone 15 has failed to reverse that trend. Meanwhile, the company is facing investigations from regulators and its new product Apple vision Pro is likely to be a flop. The gadget may have cutting edge tech but VR headsets lack the convenience of a smartphone and they give users motion sickness. According to Circana, sales of VR headsets and AR glasses tanked 40% last year. Another risk worth mentioning is China. Not only does China play a part in manufacturing but it also generates 20% of Apple revenue. And recently, there were reports that Apple was discounting its products there. #applestock #investing #stocks #stockstobuy 2024-01-23T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5533/should-you-buy-wayfair-stock-january-2024 https://atto.videonest.co/5533_horizontal_thumbnail_v3.webp https://atto.videonest.co/5533_video_v3.mp4 Should you buy Wayfair stock? (January 2024) Published first at https://www.3minutebreakdowns.com Wayfair stock analysis. Ticker: $W Furniture company Wayfair is an extremely volatile stock. Shares popped 10% on Friday on news of job cuts but the stock is still down more than 80% from its 2021 peak. At the current price, the company has a market cap of 6.6 billion dollars. It's got 1.3 billion of cash on the balance sheet and 3.2 billion of long term debt. So the enterprise value is 8.5 billion. Wayfair went public in October 2014 and five months later, short interest cleared 10%. Since then, the figure has been consistently in the double-digits and right now 24% of Wayfair’s float is sold short. In other words, there are a lot of investors betting against Wayfair and it’s not difficult to see why. The company was founded more than 20 years ago but it’s still nowhere close to profitability. Net losses over the past four quarters near a billion dollars. In fact, 2020 is the company’s only profitable year since its IPO. Adjusted EBITDA is at least positive, but add back stock-based compensation and Wayfair is still sharply in the red. #investing #wayfair #stockstotrade #3mb 2024-01-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5534/should-you-buy-coupang-stock-january-2024 https://atto.videonest.co/5534_horizontal_thumbnail_v3.webp https://atto.videonest.co/5534_video_v3.mp4 Should you buy Coupang stock? (January 2024) Published first on https://www.3minutebreakdowns.com Coupang stock analysis. Ticker: $CPNG Coupang is often called the Amazon of South Korea. But the stock has performed poorly, falling 75% since its IPO. At the latest share price the company has a market cap of 27 billion. Account for cash and debt and the enterprise value is 22.8 billion. That’s less than the company’s annual revenue which totals 23 billion over the last 12 months. Adjusted EBITDA over the same period is 991 million and free cash flow is 1.8 billion. So Coupang stock looks cheap at under 1 times revenue and only 12 times free cash flow. Amazon by comparison trades at 3 times revenue and 100 times free cash flow. However, Coupang deserves a lower multiple to Amazon because Coupang lacks Amazon’s high margin segments like Cloud and 3rd party services. Also, Coupang’s free cash flow is inflated this year due to working capital moves that are a one-off. Free cash flow should converge with adjusted ebitda over time so the true multiple is closer to 22/23. That valuation, however, is still reasonable. After all, Coupang has gone from zero revenues to over $23 billion in only 14 years, even faster than Amazon. And this year’s revenues are up 14% despite a difficult economic environment. #investing #stocks #stockstowatch #coupang 2024-01-18T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5535/should-you-buy-ulta-beauty-stock-january-2024 https://atto.videonest.co/5535_horizontal_thumbnail_v3.webp https://atto.videonest.co/5535_video_v3.mp4 Should you buy Ulta Beauty stock? (January 2024) Newsletter subs get it first: https://www.3minutebreakdowns.com Ulta stock analysis. Ticker: $ULTA Ulta Beauty is the largest beauty retailer in the US with around 1400 stores. At the current price, the company has a market cap of 23 billion dollars with 122 million of cash on its balance sheet and no debt. Revenue over the last 12 months totals 11 billion, with 1.2 billion of net income and 1.9 billion of ebitda. So Ulta stock is now valued at just over 2 times revenue, and 19 times earnings. That valuation seems reasonable but there are signs that the business is slowing down. Revenue growth should come in at 9% this year which is half last year’s figure and in May the stock dropped 28% after the company posted lower profit margins. Inflation has clearly hurt consumer demand with the average sale per customer dropping by 1.5% in the first quarter. However, it’s worth putting those numbers into perspective. Skin care and beauty products saw huge demand following the pandemic. ULTA grew its revenues 40% in 2022 and 18% in 2023. So some normalization is to be expected. #investing #3mb #stockstobuy #stockstobuynow 2024-01-17T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5536/should-you-buy-boeing-stock-january-2024 https://atto.videonest.co/5536_horizontal_thumbnail_v3.webp https://atto.videonest.co/5536_video_v3.mp4 Should you buy Boeing stock? (January 2024) Newsletter subs got this before the open: https://www.3minutebreakdowns.com Boeing stock analysis. Ticker: $BA Boeing stock dropped 13% last week after a 737 MAX 9 flown by Alaska Airlines saw its door plug blow out at 16,000 feet. Three passengers were injured but fortunately, there were no fatalities. Had the plane been a few thousand feet higher, the outcome could have been very different. At the latest share price, Boeing has a market cap of 134 billion dollars. Account for cash, investments and debt and the enterprise value is 171 billion. And based on trailing twelve month figures the stock is now valued at 2.3 times revenue or 37 times free cash flow. The latest incident will have repercussions for Boeing. Passengers on the flight are already suing the company and the MAX 9 fleet has been grounded until further notice. The MAX already had a shaky reputation after two crashes in 2018 and 2019 led to another grounding. That caused significant production delays and Boeing's revenue dropped by almost a quarter. Then the pandemic happened and Boeing took another big hit to its business. #stocks #investing #stockstowatch 2024-01-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5537/palantir-stock-analysis-january-2024 https://atto.videonest.co/5537_horizontal_thumbnail_v3.webp https://atto.videonest.co/5537_video_v3.mp4 Palantir Stock Analysis (January 2024) See more at https://www.3minutebreakdowns.com Should you buy Palantir stock? Ticker: $PLTR Palantir stock jumped last quarter but shares have fallen around 20% since. At the latest price the company has a market cap of 39 billion dollars. With 3 billion of cash and investments and no debt, the enterprise value is 35.6 billion. Revenue over the last 12 months comes to just over 2.1 billion with 154 million of net income and 475 million of free cash flow. So Palantir stock is valued at 17 times revenue, 250 times earnings and 75 times free cash flow. That’s an expensive valuation but it’s not out of line with other software businesses. ServiceNow, for example, trades at 18 times revenue while DataDog trades at 20 times revenue. The difference, however, is that both those companies have stronger revenue growth, margins and retention. Trailing revenue growth at Palantir, for example, has decelerated to 16% while ServiceNow is 23% and DataDog is 31%. And while Palantir reports a net dollar retention rate of 106%, Datadog and Servicenow both report retention metrics over 120%. #investing #stocks #stockstobuy #palantirstock 2024-01-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5538/3-stocks-to-avoid-in-2024 https://atto.videonest.co/5538_horizontal_thumbnail_v3.webp https://atto.videonest.co/5538_video_v3.mp4 3 Stocks To Avoid In 2024 See more of my work at https://www.3minutebreakdowns.com 3 stocks to avoid in 2024. January edition. $NIO $OMI $SNAP #investing #stocks #stockstowatch #3mb 2024-01-13T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5539/should-you-buy-paypal-stock-january-2024 https://atto.videonest.co/5539_horizontal_thumbnail_v3.webp https://atto.videonest.co/5539_video_v3.mp4 Should you buy PayPal stock? (January 2024) See more of my work at https://www.3minutebreakdowns.com PayPal stock analysis. Ticker: $PYPL PayPal stock is up 20% since November but shares are still down 80% from their 2021 peak. At the current price, PayPal has a market cap of 68 billion dollars. Account for cash, investments and debt and the enterprise value is 63 billion. With net income of 3.8 billion over the last 12 months, the company is trading at just 18 times earnings. Although PayPal is an impressive business, the decline in Paypal stock does make sense. Growth in ecommerce has normalized since the pandemic and that has led to a slowdown in revenue growth. More importantly, increased competition in the payments space is impeding on PayPal’s market share and causing a race to the bottom in pricing. Storefront competition comes from the likes of Google Shop and Apple Pay while backend competitors include Stripe, Adyen and Worldpay. The result of this competition is lower pricing and PayPal has seen its take rate decline consistently over the last few years. Lower take rates mean lower profits with Paypal’s net income margin falling to under 9% in 2022, its lowest reading since 2014. Net margin has recovered this year to 13% but that isn’t because the company has reversed profit growth. Rather, its because the company has taken an axe to spending. Sales and marketing expense is down 22% while technology and development cost is down almost 10%. #investing #stockstobuy #paypalstock 2024-01-10T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5540/should-you-buy-redfin-stock-january-2024 https://atto.videonest.co/5540_horizontal_thumbnail_v3.webp https://atto.videonest.co/5540_video_v3.mp4 Should you buy Redfin stock? (January 2024) See more of my work at: https://www.3minutebreakdowns.com Redfin stock analysis. Ticker: $RDFN Real estate brokerage Redfin has seen its stock collapse 90% over the last few years. But shares are up 22% over the past month raising hopes of a turnaround. At the latest share price, Redfin has a market cap just over 1 billion dollars. With 174 million of cash and investments and 932 million of debt, the enterprise value is 1.8 billion. The fundamentals of Redfin stock are not particularly impressive. Net income is negative 169 million and even on an adjusted basis, Redfin is unprofitable. The one positive metric is free cash flow. But free cash flow is only in the black because Redfin last year ended its ‘iBuying’ business. The company liquidated its ibuying inventory for just over $300 million over the last 4 quarters. Excluding that benefit, free cash flow would also be negative. In that context, it’s not surprising that 17% of Redfin’s float is sold short — even with the stock down 90%. #investing #stocks #stockstowatch #redfin 2024-01-09T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5541/toast-inc-stock-analysis-january-2024 https://atto.videonest.co/5541_horizontal_thumbnail_v3.webp https://atto.videonest.co/5541_video_v3.mp4 Toast Inc Stock Analysis (January 2024) See more of my work at: https://www.3minutebreakdowns.com Should you buy Toast stock? Ticker: $TOST Toast provides point of sale and management systems for restaurants and the company has seen incredible growth. Revenue grew 107% in 2021, 60% in 2022 and 45% over the last 12 months and that growth is expected to continue for at least the next few years. Based on the current share price the company has a market cap of $9.6 billion with just over a billion of cash and investments on its balance sheet. Revenue over the last 12 months totals $3.6 billion but the company is not yet profitable with negative $310 million of net income. Toast can be best described as an operating system for restaurants. The company sells subscriptions, hardware and services that allows restaurants to manage everything from orders and inventory to payroll and pickups. #investing #toaststock #stocks #stockstobuy 2024-01-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5542/should-you-buy-doordash-stock-january-2024 https://atto.videonest.co/5542_horizontal_thumbnail_v3.webp https://atto.videonest.co/5542_video_v3.mp4 Should you buy DoorDash stock? (January 2024) See more at https://www.3minutebreakdowns.com DoorDash stock analysis. Ticker: $DASH Food delivery company Doordash has had a promising 12 months. The stock has advanced by 92% taking the market cap to 38 billion dollars. Revenue over the last 12 months has increased 34% to 8.2 billion and free cash flow has jumped to 900 million. But a significant amount of stock based compensation means the company is still not profitable with a net loss of roughly 1 billion dollars. Losing money is understandable since Doordash is attempting to outpace rivals. There is enormous competition in this space from Uber Eats, Instacart, Deliveroo, Just East and Delivery Hero. In the latest quarter, Deliveroo grew total orders by 3%, Instacart grew 6% and Just Eat saw a 7% decline. Meanwhile, total orders on Doordash grew 24% and Uber delivery grew 18%. So Doordash’s strategy is working and a duopoly appears to be developing alongside Uber. For a platform business like DoorDash, revenue growth is extremely important because each dollar of additional revenue leads to a higher increase in profit. This can be seen in the financials. For example, in the latest quarter, revenue grew 27% but EBITDA increased at a much higher rate, almost 300%. #investing #stocks #stockstobuy 2024-01-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5543/should-you-buy-nike-stock-january-2024 https://atto.videonest.co/5543_horizontal_thumbnail_v3.webp https://atto.videonest.co/5543_video_v3.mp4 Should you buy Nike stock? (January 2024) See more of my work at https://www.3minutebreakdowns.com Nike stock analysis. Ticker: $NKE Since reporting earnings last month, Nike stock has fallen 13% and its down 40% since its 2021 peak. At the latest price, the company has a market cap of 163 billion dollars and the enterprise value is roughly the same. Revenue over the last 12 months is 51.5 billion, with 5.3 billion of net income and 4.5 billion of free cash flow. So the company is now valued at 31 times earnings and 36 times free cash flow. Historically, Nike has been an excellent investment. Since its 1980 IPO the stock has generated total returns over 60,000%. However, recent results have been mixed. Second quarter revenue increased by just half a percent year over year and North American sales fell by 4%. But comparisons to last year don't tell the whole story. Revenue in the year ago quarter grew by 27%, so simply keeping sales at this level isn’t such a bad result. In addition, net income actually increased 19% thanks to robust pricing. #nikestockanalysis #investing #stocks 2024-01-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5544/should-you-buy-moderna-stock-january-2024 https://atto.videonest.co/5544_horizontal_thumbnail_v3.webp https://atto.videonest.co/5544_video_v3.mp4 Should you buy Moderna stock? (January 2024) See more of my work at: https://www.3minutebreakdowns.com Moderna stock analysis. Ticker: $MRNA Moderna recently gave an update on its new cancer vaccine. When combined with the drug Keytruda, it cut the chance of late stage skin cancer from returning (after 3 years) by 49%. Since the news was announced, Moderna's stock has gained about 24%, taking the market cap to $38 billion. Despite that, shares are still down 44% over the past year. The fall in share price is hardly surprising since demand for Moderna's COVID vaccine (it's only commercial product) has collapsed. You can see that revenue grew from $60 million in 2019 to $19 billion in 2021, but it's fallen below $10 billion this year and management expects next year's revenue to be only $4 billion. On the plus side, Moderna has held on to lots of the cash it made during the pandemic. #modernastock #stockmarket #investing 2024-01-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5545/four-top-etfs-for-2024 https://atto.videonest.co/5545_horizontal_thumbnail_v3.webp https://atto.videonest.co/5545_video_v3.mp4 Four Top ETFs For 2024 See more of my work at https://www.3minutebreakdowns.com 4 ETFs for 2024 including $VB $SCHD $URA $EWY Some of these ETFs could be good choices for 2024. Please remember this are my personal opinions not financial advice. #inveating #stocks #etfs #etfstobuy 2023-12-29T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5546/six-stocks-for-2024-part-two https://atto.videonest.co/5546_horizontal_thumbnail_v3.webp https://atto.videonest.co/5546_video_v3.mp4 Six Stocks For 2024 (Part Two) See more of my work at: https://www.3minutebreakdowns.com Six stocks for 2024 Part Two featuring: $UBER, $UL, $CELH Part Two of the year end series with some stocks that could do well. Please remember these are my personal opinions not financial advice. #stockstobuy2024 #stockstobuynow #investing 2023-12-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5547/six-stocks-for-2024-part-one https://atto.videonest.co/5547_horizontal_thumbnail_v3.webp https://atto.videonest.co/5547_video_v3.mp4 Six Stocks For 2024 (Part One) See more of my work at: https://www.3minutebreakdowns.com Six stocks for 2024 featuring $TTWO $GOOG $GOOGL $Z $ZG Stocks for 2024, stay tuned for part two, and remember these are my personal opinions not financial advice. #stockstobuy #stockstobuynow #stockstobuy2024 2023-12-27T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5548/should-you-buy-fedex-stock-december-2023 https://atto.videonest.co/5548_horizontal_thumbnail_v3.webp https://atto.videonest.co/5548_video_v3.mp4 Should you buy FedEx stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com FedEx stock analysis. Ticker: $FDX Fedex just reported earnings and the stock dropped by 12%. At the latest share price the company has a market cap of 63 billion dollars. With 6.7 billion of cash and 21 billion of debt the enterprise value is 76.4 billion. And the company also pays a dividend of about 2%. Fedex has reported 88 billion of revenue over the last 12 months, 4.3 billion of net income and just over 10 billion of EBITDA. As a result, the stock looks cheap trading at under 15 times earnings and under 8 times EBITDA. By comparison, UPS is trading at 16 times earnings and almost 10 times ebitda. However, that discount seems justified. Fedex has been losing market share and in terms of deliveries now sits in fourth place behind the United States Postal Service, Amazon and UPS. Based on the company's own outlook for 2024 that doesn’t look likely to change. The clear upstart here is Amazon. The retail giant has quickly overtaken rivals and should deliver 5.9 billion packages this year. The most worrying aspect for Fedex is is that the gap shows no sign of slowing down. #investing #stocks #fedex #stockstowatch 2023-12-23T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5549/should-you-buy-sunrun-stock-december-2023 https://atto.videonest.co/5549_horizontal_thumbnail_v3.webp https://atto.videonest.co/5549_video_v3.mp4 Should you buy Sunrun stock? (December 2023) See it here first: https://www.3minutebreakdowns.com Sunrun stock analysis. Ticker: $RUN Solar power company Sunrun is down 82% from its all-time high but the stock has more than doubled since November. At the current price, Sunrun has a market cap of 4 billion dollars. Account for cash and debt and the enterprise value is 4.6 billion. Revenue over the last 12 months is 2.4 billion but the company is not currently profitable. Net income over the last 12 months is minus 1.2 billion and free cash flow is minus 380 million. The bull case for companies like Sunrun is relatively simple. Demand for solar power should have years, if not decades, of growth ahead. Meanwhile, government subsidies are providing a raft of tax credits and cheap financing. It’s this combination that has helped Sunrun grow its revenues from 500 million in 2016 to 2.3 billion today. However, a typical rooftop solar system can cost between 25 to 45,000 dollars. This high cost usually requires financing so higher interest rates this year have caused a significant decrease in demand for residential solar. #runstock #investing #stocks #3mb 2023-12-21T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5550/amd-stock-analysis-december-2023 https://atto.videonest.co/5550_horizontal_thumbnail_v2.webp https://atto.videonest.co/5550_video_v3.mp4 AMD Stock Analysis (December 2023) Published first at: https://www.3minutebreakdowns.com Should you buy AMD stock? Ticker: $AMD AMD has launched a new chip that it hopes can compete with market leader Nvidia. The MI300X has been called the most advanced AI accelerator on the market and this news has helped AMD stock to a new 52-week high. That gives the company a market cap of 228 billion dollars. Revenue over the last 12 months is 22 billion with 5.4 billion of adjusted EBITDA, but net income is only 208 million. That means AMD stock is valued at 10 times revenue, 41 times EBITDA and over 1000 times earnings. That may seem expensive but AMD’s new chip allows it to participate in the generative AI boom, a market which AMD thinks can hit $400 billion dollars by 2027. And the MI300X chip seems to be the real deal. According to SemiAnalysis, the GPU has better latency, memory and performance than Nvidia’s H100. And the Financial Times reported that Open AI, the startup behind ChatGPT, will be incorporating AMD’s new chips into its software. #stocks #amdstock #investing #stockstowatch 2023-12-20T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5551/should-you-buy-zillow-stock-december-2023 https://atto.videonest.co/5551_horizontal_thumbnail_v2.webp https://atto.videonest.co/5551_video_v3.mp4 Should you buy Zillow stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Zillow stock analysis. Ticker: $Z $ZG Zillow stock gained 23% last week but nothing about the business really changed. The company didn’t issue any press releases or make any new filings with the SEC. Rather, what happened was that the Federal Reserve indicated it would make 3 interest rate cuts next year. Those rate cuts will bring mortgage rates down which should help home sales and that should help Zillow which is now the most visited real estate website in the U.S. The rally in the stock means that Zillow now has a market cap of 13.5 billion dollars. Account for cash, investments and debt and the enterprise value is just under 12 billion. But at 6 times revenue and 54 times free cash flow, some caution seems warranted. After all, 30-year mortgage rates still sit around 7 and a half percent. Dropping that figure to something like 6 and a half percent still leaves millions of homeowners holding mortgages at 3% or less. Those homeowners don’t want to move because they don’t want to give up low-rate mortgages and so there remains a clear lack of supply in the marketplace. In fact, existing home sales are near their lowest levels since the 2008 financial crisis. #investing #stockstobuy #stockmarket 2023-12-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5552/should-you-buy-chewy-stock-december-2023 https://atto.videonest.co/5552_horizontal_thumbnail_v2.webp https://atto.videonest.co/5552_video_v3.mp4 Should you buy Chewy stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Chewy stock analysis. Ticker: $CHWY Chewy stock is down 80% since the pandemic as customers cut back on their pets. At the current price, the company has a market cap of 9 billion dollars. Revenue over the last 12 months is 11 billion with 371 billion of adjusted EBITDA. But net income is only 11 million owing to a large chunk of stock based compensation. At the current price, Chewy stock is valued at 22 times EBITDA and 25 times free cash flow. That’s not bad for such a young company. Chewy was founded in 2011 and since its IPO in 2019 the company has performed extremely well. Sales have more than tripled, the number of active customers has doubled and revenue per active customer has increased by 60%. from $334 to $543 dollars. However, since the pandemic Chewy has struggled to grow its base. Revenue has been helped by inflation but chewy’s customer base at 20.3 million is actually down from where it was in 2021. #stockstobuy #investing #stockmarket 2023-12-18T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5553/should-you-buy-docusign-stock-december-2023 https://atto.videonest.co/5553_horizontal_thumbnail_v2.webp https://atto.videonest.co/5553_video_v3.mp4 Should you buy DocuSign stock? (December 2023) Never miss another post: https://www.3minutebreakdowns.com DocuSign stock analysis. Ticker: $DOCU Docusign stock is down more than 80% since the pandemic but shares may have hit bottom. They’re up 47% since the beginning of November after the company posted better than expected earnings. At the latest share price, the company has a market cap of 11.7 billion dollars. Account for cash, debt and investments and the enterprise value is 10.7 billion. Revenue over the last 12 months has grown 11% to 2.7 billion and net income is positive at 52 million. At 14 times free cash flow, the stock looks extremely reasonable. However, 80% of that free cash flow comes from stock-based compensation, which is excluded from free cash flow as it’s a non-cash expense. Adjust for that and DocuSign is really trading at 70 times free cash flow. #stocks #investing #docustock #stockstowatch 2023-12-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5554/should-you-buy-google-stock-december-2023 https://atto.videonest.co/5554_horizontal_thumbnail_v2.webp https://atto.videonest.co/5554_video_v3.mp4 Should you buy Google stock? (December 2023) Visit my website for more: https://www.3minutebreakdowns.com Alphabet/Google stock analysis. Ticker: $GOOG $GOOGL Google released its latest AI model Gemini last week which appeared to blow ChatGPT out of the water. However, people quickly pointed out that the demonstration was grossly misleading and not achieved in real time. This caused the stock to drop by about 3%. At the latest price, the company has a market cap just under 1.7 trillion dollars. With 120 billion dollars of cash and investments, the enterprise value is 1.56 trillion. Although Google stock doesn’t look too expensive at 16 times EBITDA, investors are starting to wonder if the company can maintain its dominance. AI tools like ChatGPT are growing in popularity and can hurt Google’s business in two significant ways. First, they can answer questions quickly and efficiently, which means users have less need for search engines. Second, publishers can use AI to pump out content at seemingly little cost. Google search results then become filled with AI content that increasingly includes hallucinations and results in a poor experience for the end user. #stocks #investing #googlestock #stockstobuy 2023-12-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5555/should-you-buy-dollar-general-stock-december-2023 https://atto.videonest.co/5555_horizontal_thumbnail_v2.webp https://atto.videonest.co/5555_video_v3.mp4 Should you buy Dollar General stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Dollar General stock analysis. Ticker $DG Dollar General stock has crashed 50% this year. That’s not only the company’s worst ever performance since its 2009 IPO, it will be the stock’s first ever year of negative returns. At the current price, the company has a market cap of 27 billion dollars. It’s got 7 billion of long term debt taking the enterprise value to 34 billion. Revenue over the last 12 months totals 39 billion with almost 2 billion of net income and 3.6 billion of ebitda. So the stock looks cheap at only 14 times earnings. Historically, Dollar General has been an excellent investment. Shares have returned over 600% since the IPO, that’s even including this year’s dreadful performance. But that poor performance appears justified. Same-store sales in the latest quarter declined 1.3% and are now flat over the last 9 months. Net income is down almost 20% from the same time last year and management expects more declines to come. A key question then, is why growth has slowed so dramatically for a business that went over a decade without an issue? The answer is a combination of execution missteps and inflation. #investing #stocks #stockstobuy #3mb 2023-12-13T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5556/should-you-buy-ast-spacemobile-stock-december-2023 https://atto.videonest.co/5556_horizontal_thumbnail_v2.webp https://atto.videonest.co/5556_video_v3.mp4 Should you buy AST SpaceMobile stock? December 2023 See my website for more: https://www.3minutebreakdowns.com AST SpaceMobile stock analysis. Ticker: $ASTS AST Spacemobile is building out a network of satellites for mobile broadband. The total addressable market is estimated to be over 1 trillion dollars so if successful AST stock has huge upside ahead. It’s a tantalizing prospect. Unlike other satellite services, AST can connect directly to existing smartphones. The company has already connected 5G international calls via its BlueWalker 3 satellite and has signed partnerships with the likes of AT&T and Vodafone. And the company said its initial launch of 5 satellites is fully funded. And yet AST is one of the most-shorted stocks in the market with a short float of 23%. And there are some obvious reasons for caution. The first is valuation. AST closed Q3 with about 90 million shares outstanding. But the publicly-traded company, AST SpaceMobile, only owns about 41% of the operating business, AST LLC. The remainder belongs to investors who control units in AST LLC; those investors will, over time, gradually convert their units into the common stock. So while some data sources report AST having a market cap around $500 million, in fact the equity value of the entire business is well past $1 billion. #investing #stocks #astsstock #3mb 2023-12-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5557/should-you-buy-ferrari-stock-december-2023 https://atto.videonest.co/5557_horizontal_thumbnail_v2.webp https://atto.videonest.co/5557_video_v3.mp4 Should you buy Ferrari stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Ferrari stock analysis. Ticker: $RACE Ferrari is one of the most valuable car brands and the stock is near an all time high. At the current price, the company has a market value of €62 billion. Revenue over the last 12 months is almost €6 billion, with €1.2 billion of net income and €2.2 billion of EBITDA. That means the stock is valued at almost 11 times revenue, 52 times earnings and 29 times EBITDA. #ferrari #investing #stocks #3mb 2023-12-11T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5558/should-you-buy-carnival-stock-december-2023 https://atto.videonest.co/5558_horizontal_thumbnail_v2.webp https://atto.videonest.co/5558_video_v3.mp4 Should you buy Carnival stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Carnival Corporation stock analysis. Ticker: $CCL Cruise ship operator Carnival is one of the most volatile stocks on the market. Shares are up 122% year to date yet the stock is still down 66% from its 2019 peak. That seems a bit strange. After all, travel demand has roared back following the pandemic and Carnival is posting record numbers. Revenue has doubled this year to 20 billion and occupancy rate in the third quarter was 109%. That’s only a little bit below the 113% print in the third quarter of 2019. Clearly, the pandemic didn’t put people off cruising and this looks as good a business as it was 4 years go. So why has the stock fallen by two thirds? The obvious answer is that the pandemic has had a staggering impact on Carnival’s financial position. Free cash flow in 2020 was negative 10 billion dollars and over the next two years the company burned through another $14 billion. #cclstock #cruisestocks #investing #3mb 2023-12-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5559/should-you-buy-nio-stock-december-2023 https://atto.videonest.co/5559_horizontal_thumbnail_v2.webp https://atto.videonest.co/5559_video_v3.mp4 Should you buy Nio stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Nio stock analysis. Ticker: $NIO Nio doesn’t report free cash flow or EBITDA but trailing twelve month revenue is 7.7 billion and net income is negative 3 billion. Despite posting sharp losses, it’s not hard to be tempted by Nio. At 1.5 times revenue, the company trades at a clear discount to rivals, like Li Auto and Xpeng which is valued at over 3 times revenue. And Nio is starting to look like a good business. Revenue rose 47% in the latest period as the company delivered a record 55,000 vehicles. That’s an increase of 136% from the previous quarter. Earnings per share was also above expectations. More importantly, Nio’s growth plan appears to be on track. The company has two different partnerships to push its battery swap plans forward. Battery swapping technology, in theory, can allow Nio to use less capital building out its network, while increasing network effects for its vehicles at the same time. #investing #stocks #niostockanalysis 2023-12-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5560/should-you-buy-pfizer-stock-december-2023 https://atto.videonest.co/5560_horizontal_thumbnail_v2.webp https://atto.videonest.co/5560_video_v3.mp4 Should you buy Pfizer stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Pfizer stock analysis. Ticker: $PFE Pfizer stock has plunged over 50% taking the market cap to under 170 billion. Total returns, including dividends, are now only 39% over the last 10 years. That’s one fifth the return of the S&P 500. Yet, Pfizer is supposed to be a defensive investment. Populations across the world are aging which drives up demand for prescription drugs. Pfizer will bring in 11 billion of net income this year and based on those numbers, the stock looks like good value at under 16 times earnings. The problem for Pfizer is that more than 50% of revenues are coming from COVID treatments which are falling off a cliff. COVID drug Paxlovid saw almost zero sales in the last quarter. And 27% of Q3 revenue came from drugs that are expiring over the next 5 years. 25 years ago Pfizer launched Viagra, an impotence treatment that became one of the biggest blockbusters of all time. After the patent expired it was bundled up and spun off into a new business that merged with Mylan. Today, Pfizer needs another blockbuster and it’s certainly trying to find one. #pfestock #pfizerstock #investing #stockstowatch 2023-12-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5561/should-you-buy-fiverr-stock-december-2023 https://atto.videonest.co/5561_horizontal_thumbnail_v2.webp https://atto.videonest.co/5561_video_v3.mp4 Should you buy Fiverr stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Fiverr stock analysis. Ticker: $FVRR Fiverr is the second largest platform for freelancers with over 4 million active buyers. Right now the company has a market cap. Revenue is $353 million over the last 12 months. With $64 million of free cash flow, net income is more or less break-even as the company moves closer to profitability. If you take a look at revenue growth, you can see why investors got so excited about Fiverr. Revenue surged 42% in 2019, 77% in 2020, and 57% in 2021. However, since the pandemic, growth has slowed. Revenue grew only 13% in 2022, and this year's revenue is up only 6%. #fiverrstock #investing #stocks 2023-12-05T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5562/3-stocks-im-buying-now-december-2023 https://atto.videonest.co/5562_horizontal_thumbnail_v2.webp https://atto.videonest.co/5562_video_v3.mp4 3 Stocks I'm Buying Now (December 2023) See more of my work at https://www.3minutebreakdowns.com These are three stocks that I like for the month of December and I own shares in all of these companies. But these are my personal opinions, not financial advice. Make sure to visit my website for more and thank you for watching. ASML, STLA, CROX #stocks #investing #stockstobuy #stockstobuynow 2023-12-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5563/sofi-stock-analysis-december-2023 https://atto.videonest.co/5563_horizontal_thumbnail_v2.webp https://atto.videonest.co/5563_video_v3.mp4 SoFi Stock Analysis (December 2023) See more of my work: https://www.3minutebreakdowns.com Should you buy SoFi stock? Ticker: $SOFI SOFI Technologies is attempting to disrupt the banking industry. The stock has gained 70% this year but it's still well below its all time high. At the current price, the company has a market cap of 7 billion dollars but it’s running at a net loss. Net income over the last 12 months is minus 400 million and an EV to EBITDA multiple of 32 isn’t particularly attractive. However, SOFI is growing at a rapid pace. This is a company that was founded barely 10 years ago and it’s now doing 2 billion in annual revenues. And interest income has more than tripled this year. Obviously, higher interest rates are a factor, but SOFI’s deposit base now sits at $15 billion dollars. That suggests SOFI is taking legitimate market share from the big banks. And with the student loan repayment moratorium at an end, there’s a real opportunity for student loan refinancings to drive more growth going forward. Despite that growth, SOFI stock trades at only 1.3 times its book value. That’s less than JP Morgan Chase and only slightly below Bank of America. Fellow fintech stock Upstart trades at 3.5 times its book value. In other words, SOFI stock isn’t expensive. And if growth is real, the stock has a path to enormous upside. #sofistock #investing #finance #stocks 2023-12-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5564/should-you-buy-shopify-stock-december-2023 https://atto.videonest.co/5564_horizontal_thumbnail_v2.webp https://atto.videonest.co/5564_video_v3.mp4 Should you buy Shopify stock? (December 2023) See more of my work at https://www.3minutebreakdowns.com Shopify stock analysis. Ticker: $SHOP Since reporting earnings last month, Shopify stock has rallied 52% adding 32 billion dollars of market value. That gives the company a current market cap just under 94 billion. Account for cash and debt and the enterprise value is roughly 90 billion. Revenue over the last 12 months totals 6.7 billion with 549 million of free cash flow but net income is still negative at minus 1.2 billion. Despite making a loss over the last 12 months, this was an impressive quarter from Shopify. Top line revenue increased 25% year over year, gross merchandise value grew 22% and free cash flow margin hit 16%. The company is moving closer to profitability. In fact, the latest quarter showed 718 million of positive net income. In addition, Shopify has made several positive developments. The company is partnering with Amazon Buy with Prime, Intuit and WPP and launching new AI products such as Sidekick. International expansion is now a priority with the launch of Shopify Markets Pro and the company expects to continue to drive top line growth next quarter while decreasing operating expenses. 2023-12-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5565/should-you-buy-pinduoduo-stock-december-2023 https://atto.videonest.co/5565_horizontal_thumbnail_v2.webp https://atto.videonest.co/5565_video_v3.mp4 Should you buy Pinduoduo stock? (December 2023) See more of my work: https://www.3minutebreakdowns.com PDD stock analysis. Ticker: $PDD Pinduoduo reported earnings on Tuesday and the stock jumped 18%.The company crushed expectations with revenue increasing 94% year over year and earnings up 47%. That top line revenue was 2 billion more than analysts were expecting. Pinduoduo stock has now gained 635% since its IPO. Over that same period, Alibaba has declined 61% and JD.com is down 24%. At the latest share price, the company now has a market cap bigger than Alibaba at roughly 204 billion dollars. Looking at the latest 12 month figures, the company has reported 38 billion of revenue and 6.4 billion of net income which means the stock is valued at 32 times earnings. Bear in mind that revenue represents only a small share of sales executed on the platform. In 2021, Gross Merchandise Value was more than 25x the company’s revenue. That means $700 billion dollars could be moving through the Pinduoduo platform. #pddstock #investing #pinduoduostock 2023-11-30T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5566/should-you-buy-3d-systems-stock-november-2023 https://atto.videonest.co/5566_horizontal_thumbnail_v2.webp https://atto.videonest.co/5566_video_v3.mp4 Should you buy 3D Systems stock? (November 2023) See more of my work here: https://www.3minutebreakdowns.com 3D Systems stock analysis. Ticker: $DDD This stock just jumped 20%. 3D Systems, ticker symbol, DDD is a 3d printing company that has been around since 1986. At the current share price, the company has a market value of 718 million dollars. Account for cash and debt and the enterprise value is roughly the same. Revenue over the last 12 months is 506 million representing a 9% decline year-over-year, gross margins are just over 40% but net income over the last 12 months is negative 100 million. In theory, the 3D printing industry should be ripe for growth. The technology can be used to cheaply print medical devices, industrial parts, prototypes and all sorts of things. In fact, the industry is estimated to grow 21% annually over the next 5 to 7 years creating an $80 billion dollar market. It’s this outlook that allowed 3d Systems stock to almost 10x in value in 2013. Since then, however, the company has been a disappointment. Revenue of $506 million is below the $513 million reported 10 years ago. Gross margin has decreased from 52% to 41% and operating margin has turned negative. #3dsystems #investing #stockstowatch #investment 2023-11-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5567/should-you-buy-stellantis-stock-november-2023 https://atto.videonest.co/5567_horizontal_thumbnail_v2.webp https://atto.videonest.co/5567_video_v3.mp4 Should you buy Stellantis stock? (November 2023) See more of my work: https://www.3minutebreakdowns.com Stellantis stock analysis. Ticker: $STLA Michael Burry just bought more of this stock and it’s now his biggest holding. Stellantis, ticker symbol STLA is a giant automaker that was formed from the merger between Fiat Chrysler and PSA group and it owns 14 brands including Jeep, Peugeot, Citroen, Ram and Maserati. Based on the latest share price, Stellantis now has a market cap of 59 billion euros. But the company also has 49 billion euros of cash on the balance sheet. Account for debt and investments and the enterprise value is around 29 billion. Meanwhile, the company has reported 190 billion euros of revenue over the last 12 months, 20 billion of net income and 14 billion of free cash flow with gross margins of 20%. That makes the company one of the cheapest stocks on the market trading at only 3 times earnings and two times free cash flow. And the stock pays a dividend of over 7%. Looking at these numbers, the obvious question is: where’s the catch? #michaelburry #stlastock #stockstobuy 2023-11-27T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5568/should-you-buy-nvidia-stock-november-2023 https://atto.videonest.co/5568_horizontal_thumbnail_v3.webp https://atto.videonest.co/5568_video_v3.mp4 Should you buy Nvidia stock? (November 2023) See more of my work: https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: $NVDA Nvidia just reported another record quarter. Revenue more than tripled to 18 billion and gross margins increased 20% year over year to 70%. Despite the impressive quarter, Nvidia stock actually fell and is down 4% on the week. That means Nvidia now has a market cap just under 1.2 trillion dollars. It’s got 18 billion dollars of cash on the balance sheet and 11 billion of long term debt. Revenue over the last 12 months is now 45 billion dollars, that’s 64% higher than at the same time last year. And net income is running at 19 billion, roughly 200% higher. So why did the stock drop? #nvidiastock #investing #stockstobuy 2023-11-26T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5569/should-you-buy-datadog-stock-november-2023 https://atto.videonest.co/5569_horizontal_thumbnail_v3.webp https://atto.videonest.co/5569_video_v3.mp4 Should you buy Datadog stock? (November 2023) See more of my work: https://www.3minutebreakdowns.com Datadog stock analysis: $DDOG Datadog provides a platform that helps companies transition to the cloud. At the current share price, the company has a market cap of 39 billion dollars. It’s got 2.3 billion of cash and no debt so the enterprise value is 37.6 billion. Revenue over the last 12 months is 2 billion with just under 500 million of free cash flow. Net income, however, is minus 35 million due to a significant amount of stock based compensation. Despite those losses, Datadog is one of the most expensive stocks on the market. It trades at almost 19 times revenue and 76 times free cash flow. A quick look at Datadog’s investor presentation shows why investors are so willing to pay up for the stock. Revenue has increased at a rate of 66% a year over the last six years and the number of customers have risen by a multiple of 5. Dollar spent per customer has almost quadrupled to $75k and the company boasts an impressive net dollar retention rate just under 120%. #datadog #investing #stockstowatch 2023-11-24T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5570/should-you-buy-sphere-entertainment-stock-november-2023 https://atto.videonest.co/5570_horizontal_thumbnail_v3.webp https://atto.videonest.co/5570_video_v3.mp4 Should you buy Sphere Entertainment stock? (November 2023) See more of my work: https://www.3minutebreakdowns.com Sphere stock analysis. Ticker: $SPHR Sphere Entertainment spent over $2 billion dollars building a huge orb with a gigantic dome-shaped screen. The inside of the Sphere can be used for live entertainment while the outside can be used to project art and advertising At the latest share price, Sphere has a market cap of 1.2 billion dollars. It’s got 450 million of cash and 1.2 billion of debt for an enterprise value just under 2 billion. And the company has reported 570 million of revenue over the last 12 months. However, analyzing the financials of Sphere doesn’t provide much value for two reasons. First, financials at this point mostly come from a segment that Sphere owns called MSG Networks. This is a declining media business that owns Madison Square Gardens and has around 900 million of debt. #sphere #investing #stockstowatch 2023-11-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5571/should-you-buy-hims-and-hers-stock-november-2023 https://atto.videonest.co/5571_horizontal_thumbnail_v3.webp https://atto.videonest.co/5571_video_v3.mp4 Should you buy Hims & Hers stock? (November 2023) I've started something new: https://www.3minutebreakdowns.com Hims & Hers stock analysis. Ticker: $HIMS This company provides treatments for erectile dysfunction and hair loss and it's one of the fastest growing stocks on the market! Hims and Hers Health provides products through a digital telehealth service. The company grew revenues 83% in 2021, 94% in 2022 and this years revenue should grow 65% to roughly 870 million. Total subscribers grew 56% in the latest quarter to 1.4 million and gross margins have increased to an impressive 81%. Despite such impressive growth, HIMS stock trades at only 2 times revenue and 42 times adjusted EBITDA. That’s extremely cheap for such rapid growth. #himsstock #investing #stockstowatch 2023-11-21T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5572/should-you-buy-diageo-stock-november-2023 https://atto.videonest.co/5572_horizontal_thumbnail_v3.webp https://atto.videonest.co/5572_video_v3.mp4 Should you buy Diageo stock? (November 2023) Join my newsletter: https://www.3minutebreakdowns.com Diageo stock analysis. Ticker: DEO. At the current share price, Diageo has a market valuation of 63 billion pounds. It’s got 1.4 billion of cash on the balance sheet and almost 16 billion of debt for an enterprise value of 77 billion. Over the last 12 months the company has produced 17 billion of revenue and 3.7 billion of net income which means the stock is valued at 5 times revenue and 17 times earnings, well below the historical average. 17 times earnings is cheap considering that Diageo is one of the largest drinks companies in the world. In fact, the company owns the number one brands across whisky, scotch, vodka, rum, tequila and gin. Drinks like whiskey and Tequila can take 10 or 20 years to produce. That gives Diageo an edge since it takes new entrants a long time to get started. In a recent event, Diageo management gave an optimistic forecast for the years ahead. According to management, the alcoholic drinks market should grow by 4% a year and spirits should be the fastest growing category ahead of beer and wine. As a result, Diageo thinks it can drive annual revenue growth in the region of 5-7% a year. #stocks #investing #diageo #deostock 2023-11-20T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5573/celsius-stock-analysis-november-2023 https://atto.videonest.co/5573_horizontal_thumbnail_v3.webp https://atto.videonest.co/5573_video_v3.mp4 Celsius Stock Analysis (November 2023) Join the group: https://www.3minutebreakdowns.com Is Celsius the new coffee? Over the past decade, the best stock in the market has also been an energy drink company. But it’s not Monster Beverage, it’s Celsius Holdings which has already gained over 37,000%. Obviously, Celsius isn’t going to post that same performance over the next ten years. With a valuation of 12 billion dollars the stock already trades at over 70 times earnings. But Celsius is growing at a rate that suits that kind of multiple. Revenue over the last 12 months has doubled to over 1 billion. And over the last 14 weeks, Celsius has become the best-selling energy drink on Amazon with a 21.4% share, overtaking Monster and Red Bull. #celsiusenergy #stocks #investing 2023-11-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5574/should-you-buy-alibaba-stock-november-2023 https://atto.videonest.co/5574_horizontal_thumbnail_v3.webp https://atto.videonest.co/5574_video_v3.mp4 Should you buy Alibaba stock? (November 2023) See my portfolio: https://www.3minutebreakdowns.com Alibaba stock analysis. Ticker: BABA Alibaba just reported earnings and the stock took another dive. Shares are now down 75% from their all-time high and the stock is lower than its first ever day of trading, back in 2014. Based on the latest share price, the company has a market value of 203 billion dollars. It’s got 33 billion of cash and 23 billion of debt so the enterprise value is 193 billion. Meanwhile, the company has reported 126 billion of revenue over the last 12 months, 19 billion of net income and 27 billion of free cash flow. That means the stock is valued at 11 times earnings and 7 times free cash flow. To put that in perspective, if you bought the whole company today you’d get your money back in cash in only 7 years. But Alibaba also has 79 billion dollars of investments on its balance sheet. Take those into account and the valuation drops even further to 114 billion which means the stock is valued at under 4 times free cash flow. Whatever way you look at it, Alibaba stock is extremely cheap. #investing #stocks #stockstobuy #alibabastock 2023-11-18T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5575/should-you-buy-the-trade-desk-stock-november-2023 https://atto.videonest.co/5575_horizontal_thumbnail_v3.webp https://atto.videonest.co/5575_video_v3.mp4 Should you buy The Trade Desk stock? (November 2023) I've started something new: https://www.3minutebreakdowns.com The Trade Desk stock analysis. Ticker: TTD Trade Desk is a technology company that allows customers to purchase advertisements across the web. Over the past 7 years, the company has been an incredible performer. Revenue has increased from 45 million in 2014 to 1.8 billion over the last 12 months and the stock has gained over 3000 percent. However, shares are currently down 45% from their all-time high. So is now a good time to buy the dip? At the latest share price, the Trade Desk has a market cap of 34 billion dollars. With 1.5 billion of cash and investments the enterprise value is 32.4 billion. Net income over the last 12 months is 611 million and free cash flow is 602 million. However, those figures are adjusted for almost 500 million of stock based compensation. Add that back and net income is actually 153 million giving the stock a PE ratio over 200. That may be expensive but this is an extremely healthy business. Revenue growth is currently tracking at 24% and adjusted earnings should double this year. #ttdstock #thetradedesk #investing #stockstowatch 2023-11-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5576/should-you-buy-palantir-stock-november-2023 https://atto.videonest.co/5576_horizontal_thumbnail_v3.webp https://atto.videonest.co/5576_video_v3.mp4 Should you buy Palantir stock? (November 2023) See more of my work: https://www.3minutebreakdowns.com Palantir stock analysis. Ticker: PLTR. Palantir reported earnings last week and the stock jumped by 20%. Shares are now up over 200% year to date. At the latest share price, Palantir has a market cap of 43 billion dollars. With 3.3 billion of cash and no debt, the enterprise value is 39.5 billion. This was an impressive quarter from Palantir. Total revenue grew 17% year over year to $558 million driven by a 37% increase in US commercial customers. So while government revenue only grew by 10% US commercial revenue grew by 33%. Even more impressive, this growth was achieved while operating expenses actually declined. Sales and marketing cost fell 20% to 39 million. And G&A cost fell 19% to 45 million. Gross margin increased to 81% and adjusted free cash flow margin increased to 25%. So Palantir appears to be benefiting from acceptance of its new AI product AIP and its new boot camp strategy is shortening the sales cycle allowing for faster onboarding of new customers. Zooming out, Palantir has now produced 2.1 billion of revenue over the last 12 months, 150 million of net income and 500 million of free cash flow. So at 19 times revenue and 80 times free cash flow the stock isn’t cheap. In fact, at 19 times revenue its the 7th most expensive stock with a market cap over $10 billion. 2023-11-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5577/should-you-buy-disney-stock-november-2023 https://atto.videonest.co/5577_horizontal_thumbnail_v3.webp https://atto.videonest.co/5577_video_v3.mp4 Should you buy Disney stock? (November 2023) Disney stock analysis. Ticker: DIS I've started something new: https://www.3minutebreakdowns.com Disney reported earnings last week and the stock jumped by 7%. At the current share price, the company has a market value of 164 billion dollars. With 17 billion of cash and investments and 46 billion of long term debt, the enterprise value is 194 billion. Disney revenue over the last 12 months is 89 billion with 8 billion of adjusted net income and 5 billion of free cash flow. Based on those figures, Disney is valued at just over 2 times revenue, 24 times earnings and 40 times free cash flow. That doesn’t sound particularly cheap but there’s one thing to bear in mind. Disney’s streaming business is still growing and not yet turning a profit. When streaming turns profitable that will eventually provide a boost to Disney’s future earnings. And with 22 billion of streaming revenue this year, that boost could be significant. Assume a 3 times multiple to that 22 billion and you get 66 billion which would take Disney’s enterprise value down to just 128 billion. In other words, taking into account future profits from streaming, Disney is potentially valued at only 8 times EBITDA which is extremely cheap for a company like Disney. And Netflix, by comparison, is valued at 6 times revenue not 3. #stocks #investing #stockmarket #disneystock 2023-11-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5578/should-you-buy-uber-stock-november-2023 https://atto.videonest.co/5578_horizontal_thumbnail_v3.webp https://atto.videonest.co/5578_video_v3.mp4 Should you buy Uber stock? (November 2023) Uber stock analysis. Ticker: UBER Join my newsletter: https://www.3minutebreakdowns.com Uber just reported earnings and the stock jumped by 4%. Shares are now up 100% year-to-date making it one of the best performing stocks of 2023. At the latest share price, Uber has a market cap of 105 billion dollars. The balance sheet includes 5.2 billion of unrestricted cash as well as 5 billion of investments mostly in Chinese ride-hailing company Didi and Asian super-app Grab. It’s also got 9 billion of debt taking the enterprise value to 104 billion. Although Uber is performing well this year, if you zoom out you’ll see the stock is only up 11% from its 2019 IPO. That shows just how overvalued the company was when it came to the public market. Looking at the fundamentals, Uber is in a much better position now than it was then. In 2019, Uber posted an operating loss of $8.6 billion. That metric turned positive in the second quarter of this year. Free cash flow in 2019 was negative $5 billion. This year, Uber should generate well past $3 billion in cash. And total revenue has increased from 13 billion in 2019 to 36 billion over the last 12 months. #stocks #investing #uberstock #stockstobuy 2023-11-10T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5579/should-you-buy-pinterest-stock-november-2023 https://atto.videonest.co/5579_horizontal_thumbnail_v3.webp https://atto.videonest.co/5579_video_v3.mp4 Should you buy Pinterest stock? (November 2023) I've started something new: https://www.3minutebreakdowns.com Pinterest stock analysis. Ticker: PINS Pinterest, ticker symbol PINS, reported earnings last week causing the stock to jump by 20%. At the current share price, the company has a market cap of 21 billion dollars. It’s got 1.2 billion of cash on its balance sheet and 1 billion of investments so the enterprise value is 18.9 billion. Pinterest’s latest earnings report was a good one. Q3 revenue grew by 11% to $763 million. Monthly active users grew 8% to 482 million and adjusted ebitda came in at $185 million. The company has now generated $3 billion of revenue over the last 12 months and $400 million of free cash flow. However, net income is still negative, mostly due to stock-based compensation. So right now, Pinterest stock is valued at 6 times revenue or 44 times free cash flow. Pinterest has been criticized in the past for moving too slowly. After all, the company has spent 3.5 billion dollars over the last 4 years on R&D and doesn’t seem to have much to show for it. However, new CEO Bill Ready is making some clever moves. A focus on better curation is improving engagement for the Pinterest app and providing a better shopping experience. The business is less reliant on SEO and is partnering with third parties like Amazon, which allow Amazon ads to show on Pinterest. #stocks #investing #stockmarket #pinsstock #pinterest 2023-11-09T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5580/should-you-buy-match-group-stock-november-2023 https://atto.videonest.co/5580_horizontal_thumbnail_v3.webp https://atto.videonest.co/5580_video_v3.mp4 Should you buy Match Group stock? (November 2023) I've started something new: https://www.3minutebreakdowns.com Match Group stock analysis. Ticker: MTCH Match Group owns dating apps Tinder and Hinge. Last week, the company reported earrings but investors were not impressed. Shares plunged 15% and are now 83% below their all-time high. After the drop, Match now has a current market cap of 8.7 billion dollars. The company has made 500 million of net income over the last 12 months and almost 800 million of free cash flow which means the stock is valued at 17 times earnings and 11 times free cash flow. That looks far too cheap for a business that is still growing. In the third quarter, revenue increased 9% year-over-year and earnings per share jumped 30%. So why did the stock drop? The main concern comes from the company’s biggest asset Tinder which makes up 60% of total revenue. While Tinder revenue increased 9% in Q3, that increase came entirely from higher prices. The number of paying users on the app actually declined by 6%. That’s a problem for a couple of reasons. First, Match can’t keep raising prices forever. When it stops raising prices, revenue growth will stall. Second, the nature of network effects means that fewer users on the platform means fewer matches and a worse experience all round. #mtchstock #investing #stockstowatch #stocks 2023-11-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5581/should-you-buy-generac-stock-november-2023 https://atto.videonest.co/5581_horizontal_thumbnail_v3.webp https://atto.videonest.co/5581_video_v3.mp4 Should you buy Generac stock? (November 2023) Generac stock analysis. Ticker: GNRC I've started something new: https://www.3minutebreakdowns.com Michael Burry bought this energy company and he might be regretting it. Generac Holdings provides back up power generators and solar power storage that help people retain power during extreme weather events and blackouts. Revenues soared during the pandemic as people stayed at home with a number of power outages occurring particularly in Texas and California. However, revenue growth has slowed from 50% in 2021 to negative 10% over the last 12 months and the stock has crashed 80%. Despite that, Generac is consistently profitable and reasonably valued. With an enterprise value of 7.2 billion dollars, the stock is trading at around 12 times ebitda. And net income at 189 million will benefit from the removal of a one-time expense of roughly $100 million. Furthermore, the effects of climate change and a fragile power grid should keep demand for backup power generators and storage in a strong upward trend. Not only is climate change creating more extreme weather events, the switch to renewable energy sources will put more pressure on local power grids. According to Fortune magazine, two thirds of the country are at risk of power outages and there’s been a clear increase over the last 20 years. #michaelburry #investing #stockmarket #generac 2023-11-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5582/should-you-buy-mcdonalds-stock-november-2023 https://atto.videonest.co/5582_horizontal_thumbnail_v3.webp https://atto.videonest.co/5582_video_v3.mp4 Should you buy McDonalds stock? (November 2023) I've started something new: https://www.3minutebreakdowns.com McDonalds stock analysis. Ticker MCD McDonalds reported earnings last week and the company blew past expectations. Total revenues were up 14% to 6.7 billion, net income grew 17% to 2.3 billion and same stores sales grew 9%. That means McDonalds has made 25 billion dollars of revenue and 8.3 billion of net income over the last 12 months. So based on the current market cap of 194 billion, the company is valued at around 24 times earnings. And that is at the bottom of its historical range. Just 6 months ago, the PE was well over 30. These days 95% of McDonalds revenue comes from its franchise business. Typically, McDonalds buys the land and the building and the franchise owner takes care of the rest. That’s why people often call McDonalds more of a real estate company than a restaurant business. And this is visible from the financials. McDonalds has $42 billion worth of property on its balance sheet which is more than most real estate investment trusts. And McDonalds loves the franchise model because it gives the company higher margins and lower risk. McDonalds captures a percentage of franchise sales and with over 40,000 restaurants worldwide, the revenue really stacks up. This business model has helped McDonalds become one of the best performing stocks of all time. #mcdstock #mcdonalds #investing #stocks 2023-11-05T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5583/has-paypal-stock-finally-hit-bottom-november-2023 https://atto.videonest.co/5583_horizontal_thumbnail_v3.webp https://atto.videonest.co/5583_video_v3.mp4 Has PayPal stock finally hit bottom? (November 2023) I've started something new: https://www.3minutebreakdowns.com The stock price of PayPal is down almost 85% from its all-time high back in July 2021. Although the price at the high might have been exaggerated, the price today seems quite low based on all the metrics. But before we look at the valuation, here is some important information about the company and its business. PayPal earned over $29 billion in revenue during the last twelve months (ending September 2023). As a leading technology platform that enables digital payments, and simplifies commerce experience, 90% of all the revenue comes in the form of transaction revenue. Therefore, there is a lot of attention on the transaction margin, and rightfully so. Based on the latest earnings report, the transaction margin was 45.4% during Q3-2023, which is also why the share price took a significant hit over the last few years. Here’s how their transaction margin decreased over time #paypalstock #investing #stockmarket #stocks 2023-11-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5584/the-rollercoaster-ride-of-teladoc-stock-november-2023 https://atto.videonest.co/5584_horizontal_thumbnail_v3.webp https://atto.videonest.co/5584_video_v3.mp4 The Rollercoaster Ride Of Teladoc Stock (November 2023) I've started something new: https://www.3minutebreakdowns.com Teladoc stock analysis. Ticker: TDOC 2023-11-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5585/should-you-buy-take-two-interactive-stock-october-2023 https://atto.videonest.co/5585_horizontal_thumbnail_v3.webp https://atto.videonest.co/5585_video_v3.mp4 Should you buy Take-Two Interactive Stock? (October 2023) I've started something new: https://www.3minutebreakdowns.com Take-Two Interactive Stock Analysis. Ticker: TTWO Take-Two Interactive owns the rights to big video games such as Grand Theft Auto, BioShock, Borderlands and NBA 2K. And it’s been one of the best stocks in the market. Over the last 10 years, the stock has generated annualized returns of over 20%. Right now, the company has a market cap of 23 billion dollars. It’s got 900 million of cash and investments and 2.7 billion of long term debt which means the enterprise value is 24.6 billion. The company generated $5.5 billion in revenue over the last 12 months with a gross margin of 42% but this wasn’t enough to cover all of the operating expenses. As a result, Take Two’s net income over the last 12 months is negative 1.2 billion with minus 288 million of free cash flow. #investing #stockmarket #taketwointeractive 2023-10-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5586/amazon-stock-analysis-october-2023 https://atto.videonest.co/5586_horizontal_thumbnail_v3.webp https://atto.videonest.co/5586_video_v3.mp4 Amazon Stock Analysis (October 2023) I've started something new: https://www.3minutebreakdowns.com Should you buy Amazon stock? Ticker: AMZN Amazon has now produced 554 billion dollars in revenue over the last 12 months, 24 billion of operating income and 20 billion of net income. And that means the stock is valued at 2.4 times revenue or 67 times earnings. That sounds expensive but Amazon is still investing for the future. Earlier this year, the company moved from one single fulfillment network in the US to 8 separate regions. This allows faster shipping and in turn drives customer loyalty. CEO Andy Jassy said the move had gone much better than expected and its helping to drive growth in consumables and everyday items. So when you account for interest, taxes, depreciation and amortization Amazon’s earnings are up to 74 billion which represents an EV to EBITDA ratio of only 18. Of course, it isn’t all good news. The company faces a lawsuit from the FTC which could take years to play out. And AWS growth at 12% is disappointing when compared to the 31% growth of Microsoft Azure and 22% of Google Cloud. But, management said that AWS is picking up with the company closing more deal volume in September than for the whole of Q3. Meanwhile, this was Amazon’s second best ever quarter in terms of operating margin. #amznstock #investing #stockmarket 2023-10-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5587/googles-latest-earnings-report-was-perfectly-fine-october-2023 https://atto.videonest.co/5587_horizontal_thumbnail_v3.webp https://atto.videonest.co/5587_video_v3.mp4 Google's latest earnings report was perfectly fine (October 2023) Should you buy Google/Alphabet stock? I've started something new: https://www.3minutebreakdowns.com Google just reported earnings and the stock dropped 10% taking the company’s valuation down to 1.58 trillion dollars. But this was a perfectly fine earnings update from Google. In fact, quarterly revenue hit a new record of 77 billion dollars which was 11% higher than the year before. Net income was also up, by 7% on the previous quarter and the company generated almost 23 billion dollars of free cash flow. There was also strong growth in YouTube ads, up 12% and Google cloud, up 22%. That means Google has now reported almost 300 billion in revenue over the last 12 months, 67 billion of net income and 93 billion of EBITDA. And that means the stock is currently valued at 5 times revenue, 24 times earnings and 16 times EBITDA. #googlestock #investing #stockmarket #stockstobuy 2023-10-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5588/should-you-buy-asml-stock-october-2023 https://atto.videonest.co/5588_thumbnail_resized.webp https://atto.videonest.co/5588_video_v3.mp4 Should you buy ASML stock? (October 2023) Don't miss another video, join my new website: https://www.3minutebreakdowns.com This company’s machines make some of the world’s most advanced computer chips and it’s the only company in the world that can do it. ASML is a dutch firm that has become the most valuable tech company in Europe. At the current share price, the company has a valuation of 215 billion euros. Microchips are made by building up tiny, complex patterns of transistors and switches on silicon wafer, layer by layer. And ASML’s technology can work at incredibly small scale. It’s revenue over the last 12 months was 27 billion with 7.6 billion of net income and 10 billion of ebitda. That means the stock is valued at 8 times revenue, 22 times ebitda or 28 times earnings. That’s expensive but that’s because ASML’s products are highly sought after by chipmakers all over the world. And ASML’s share price increase has been underpinned by strong growth in electronic devices and the explosion in artificial intelligence. Revenue has almost tripled from 9 billion in 2017. But revenue growth is not the only thing that ASML has going for it. During the same period, gross margins have increased from 45% to 51%, which is a great indicator of ASML’s pricing power. The operating margin of 33% is also outstanding for a manufacturing company. #asmlstock #investing #stockmarket #stocks 2023-10-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5589/tesla-stock-analysis-october-2023 https://atto.videonest.co/5589_horizontal_thumbnail_v3.webp https://atto.videonest.co/5589_video_v3.mp4 Tesla Stock Analysis (October 2023) Join the newsletter: https://www.overlookedalpha.com Should you buy Tesla stock? Ticker: TSLA Total revenue fell 6% from the previous quarter. Free cash flow was down 74% year over year and operating income fell 52%. Tesla bulls have long claimed that Tesla’s incredible operating margins prove it’s no ordinary carmaker. But the latest operating margin was only 7.6% which is lower than both Toyota and Stellantis. And these poor results are not only down to Tesla lowering prices. Total vehicle deliveries were also down, by 7% on the quarter. So it’s clear that Tesla sales are being impacted by a decrease in demand as well. This clearly has a lot to do with higher interest rates which significantly affect the affordability of new vehicles. But it could also highlight the impact of competition from the likes of BYD and all the other automakers vying for market share. Even Tesla’s energy segment was a disappointment with revenue increasing by only 3% against the previous quarter. On the positive side, Tesla is still on track for 100 billion dollars of revenue this year and the company now has 26 billion dollars of cash on the balance sheet. There is also a huge amount of demand for the Cybertruck and deliveries should start to ramp up any day now. Meanwhile, the Tesla’s investments in supercharging, AI, self driving and robots give the company a number of advantages. #investing #stocks #stockstowatch #teslastock #tesla 2023-10-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5590/should-you-buy-netflix-stock-october-2023 https://atto.videonest.co/5590_horizontal_thumbnail_v3.webp https://atto.videonest.co/5590_video_v3.mp4 Should you buy Netflix stock? (October 2023) Netflix stock analysis. Ticker: $NFLX Join our newsletter: https://www.overlookedalpha.com In the US, Netflix had the most watched original TV series for 37 out of the first 38 weeks of the year. Suits proved to be a big hit and the company has more content in store such as the final season of The Crown and a new Squid game. The company is even rolling out physical destinations which it’s calling the Netflix House. And Netflix management has also bought back an impressive number of shares, about 3.5 billion dollars worth over the last year. However, it’s not all good news. Netflix’s revenue growth has been helped by the clamping down on password sharing within households. Once this rollout is completed, that boost to revenue will die down. Second, Netflix’s free cash flow was helped by a 1 billion dollar reduction in content spend, a direct result of the actor strikes going on in hollywood. Spendings should increase from 13 billion to 17 billion next year once the strikes are resolved. And that is going to have a huge impact on free cash flow. Meanwhile, data from Nielsen shows that Netflix’s percentage share of TV viewing in the US dropped by 4 percentage points with YouTube and Amazon Prime making strong headway. #netflixstock #investing #overlookedalpha 2023-10-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5591/should-you-buy-evgo-stock-october-2023 https://atto.videonest.co/5591_horizontal_thumbnail_v3.webp https://atto.videonest.co/5591_video_v3.mp4 Should you buy EVgo stock? (October 2023) EVgo stock analysis. Ticker: EVGO Join 10,000 investors: https://www.overlookedalpha.com Evgo is also well positioned for ESG investors because it’s charging network is 100% powered by renewable energy, thanks to its purchase of renewable energy certificates. But, EVGo’s balance sheet isn’t as healthy as it looks. The company is burning roughly $60 million of cash a quarter which means it’s got less than two years before it runs out. It’s going to have to raise more capital by selling shares and that’s going to dilute shareholders. Meanwhile, the company is facing huge competition from Tesla and Volkswagen-backed Electrify America. Both companies are rolling out charging networks and have huge resources at their disposal. That puts EVGo in a difficult position. To be fair, other charging stocks like Blink Charging and ChargePoint face exactly the same problem. It’s not clear how profitable these businesses can be. Gas stations, after all, make hardly any money on fuel, the majority comes from conveniences #evgo #stocks #investing #stockstowatch #overlookedalpha 2023-10-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5592/shopify-stock-analysis-october-2023 https://atto.videonest.co/5592_horizontal_thumbnail_v3.webp https://atto.videonest.co/5592_video_v3.mp4 Shopify stock analysis (October 2023) Should you buy Shopify stock? Ticker: SHOP Join 10,000 investors: https://www.overlookedalpha.com/youtube At the current share price, Shopify has a market cap of 69 billion dollars. It’s got 7.9 billion of cash and investments and 900 million of debt so the enterprise value is 62 billion. Revenue over the last 12 months comes to 6.3 billion but the company is still not profitable. Adjusted ebitda is negative 1.6 billion and net income was minus 2 billion. Some of those losses come from a significant amount of stock based compensation – around 700 million over the last 12 months. And that will continue to dilute value going forward. So Shopify stock is currently valued at 10 times revenue, 500 times free cash flow and we can’t measure the PE ratio because the company is producing negative earnings. Does this mean Shopify’s business model is broken? Well no. 20% of revenue is being spent on sales and marketing and 40% on R and D. So Shopify is still investing for future growth, and it’s had a lot of success in doing so. Revenue grew 86% in 2020, 57% in 2021 and 21% last year and there’s plenty more room to expand. However, to stay competitive Shopify needs quick delivery times. Its 2 billion investment in fulfilment network Delivver was a failure and had to be sold at a loss. Instead, Shopify is partnering with Amazon’s fulfillment network by allowing the Buy with Prime button across the Shopify network. #shopifystock #stocks #investing #stockstowatch #overlookedalpha 2023-10-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5593/robinhood-stock-analysis-october-2023 https://atto.videonest.co/5593_horizontal_thumbnail_v3.webp https://atto.videonest.co/5593_video_v3.mp4 Robinhood stock analysis (October 2023) Should you buy Robinhood stock? Ticker: HOOD Join 10,000 investors here: https://www.overlookedalpha.com Adjusted Ebitda over the last 12 months is also positive at 395 million which gives the company a valuation of only 8 times EBITDA. But Robinhood stock is not quite as cheap as it sounds. The company has 5.2 billion of cash, but it needs to safeguard some of that in case something goes wrong. After all, a lack of collateral almost destroyed the business during the GameStop short squeeze in 2021. The company had to find around 3.7 billion dollars to stay in business. So let’s assume Robinhood actually has around 1.5 billion of excess cash. That means the stock is more realistically valued at 4.1 times revenue or 18 times EBITDA. Meanwhile, annual revenues are still 8% below their 2021 peak and monthly active users have more than halved. #hood #stocks #investing #overlookedalpha 2023-10-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5594/should-you-buy-celsius-holdings-stock-october-2023 https://atto.videonest.co/5594_horizontal_thumbnail_v3.webp https://atto.videonest.co/5594_video_v3.mp4 Should you buy Celsius Holdings stock? (October 2023) Celsius stock analysis. Ticker: CELH Special offer for YouTube viewers: https://www.overlookedalpha.com/youtube Celsius Holdings, ticker symbol CELH, is up 4000% over the last 5 years causing a lot of excitement among investors. At the current share price, the company has a market cap of 12.2 billion dollars. With 680 million of cash and 800 million of debt the enterprise value is 12.3 billion. Revenue growth at Celsius has been incredible, increasing from 14 million in 2014 to almost one billion dollars over the last 12 months. That growth has really ramped in recent years, it was 140% in 2021 and 108% last year. However, Celsius is not yet profitable. Net income was minus 142 million over the last 12 months. That’s not surprising as the company continues to invest in growth. #investing #overlookedalpha 2023-10-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5595/the-truth-about-stock-buybacks https://atto.videonest.co/5595_thumbnail_resized.webp https://atto.videonest.co/5595_video_v3.mp4 The Truth About Stock Buybacks Discover new investing ideas, join our newsletter: https://www.overlookedalpha.com/youtube This was meant to be a longer form video but I ended up cutting it back down to only 4 minutes. Guess I like those quick bites. ... In the current environment, the US treasury provides a better yield than 90% of large cap dividend stocks, so in many cases, it doesn’t make sense to buy a stock just for its dividend. But there’s another very important point to be aware of. Over long periods, dividend stocks have underperformed. Over the past 10 years, for example, the Vanguard Dividend Appreciation ETF, has returned 186%, while the S&P 500 has returned 219% The Nasdaq 100 has done even better, with a gain over 400%. In fact, studies have shown that the way to get the largest returns is actually to reinvest your dividends, which amusingly, is what a buyback does. It’s just a fact of life that many of the best businesses choose to initiate stock buybacks instead of paying out dividends. Warren Buffett’s Berkshire Hathaway is a prime example. The company has never paid a dividend but it has initiated plenty of buybacks. In fact, Buffett has been very clear on his stance towards dividends. He thinks dividends are useful only when a company has no better use for that cash. And as for his stance on buybacks: He said that those people against buybacks are either an “economic illiterate or a silver-tongued demagogue”. So it’s clear there is a lot of confusion around stock buybacks and a lot of political rhetoric. #investing #stocks #buybacks #overlookedalpha 2023-10-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5596/should-you-buy-coca-cola-stock-october-2023 https://atto.videonest.co/5596_horizontal_thumbnail_v3.webp https://atto.videonest.co/5596_video_v3.mp4 Should you buy Coca Cola stock? (October 2023) Coca Cola stock analysis. Ticker: KO. Join 10,000 investors: https://www.overlookedalpha.com Coca-Cola is one of the most well-known companies in the world. It’s also one of the best investments by the great Warren Buffett when he first started buying the stock, back in 1988, and Buffett still owns the stock to this day, with around 400 million shares. At the current share price, the company has a market cap of 247 billion dollars. It’s got 35 billion of cash and investments and 36 billion of debt so the enterprise value is roughly the same. Coca Cola has been around since 1892 and it now owns hundreds of other brands including Fanta, Sprite, Dasani, Powerade and many more. It makes money In two ways. Concentrated operations, is the selling of concentrate and syrups to bottling operators. This makes up 57% of revenue. And finished product operations which is the selling of finished drinks and makes up the remaining 43%. Coca Cola makes a lot of money. Revenue over the last 12 months totals 44 billion, with 11 billion of net income and 10 billion of free cash flow. So the stock is currently valued at 24 times earnings and 26 times free cash flow. And it also pays a dividend of 3.2%. #investing #stocks #stockstobuy #overlookedalpha 2023-10-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5597/3-stocks-im-buying-now-october-2023 https://atto.videonest.co/5597_horizontal_thumbnail_v3.webp https://atto.videonest.co/5597_video_v3.mp4 3 stocks I'm buying now (October 2023) Join 10,000 investors: https://www.overlookedalpha.com Three stocks I like which I have bought roughly at current prices. For information purposes only, not financial advice. 2023-10-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5598/amazon-just-got-sued-whats-next-for-the-stock-september-2023 https://atto.videonest.co/5598_horizontal_thumbnail_v3.webp https://atto.videonest.co/5598_video_v3.mp4 Amazon Just Got Sued - What's Next For The Stock? (September 2023) Join 10,000 investors: https://www.overlookedalpha.com Amazon is also accused of coercing third-party sellers into using its own fulfillment and delivery services. This gets more products into the Amazon Prime ecosystem, and again, increases overall prices while blocking competition. Although Amazon stock dropped on the news, this lawsuit should not come as a surprise since it’s been in the pipeline for several years. It’s going to take some time to play out but its arguments seem rather thin. After all, Amazon has got where it is today by giving consumers the most value possible. It’s enabled thousands of small businesses to easily sell their products online. And Amazon has invested billions of dollars into fulfillment and delivery services. This is not a low risk thing to do but it’s been done to improve delivery speeds for millions of customers. #investing #overlookedalpha #stockmarket #stocks 2023-09-28T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5599/should-you-buy-chewy-stock-september-2023 https://atto.videonest.co/5599_horizontal_thumbnail_v3.webp https://atto.videonest.co/5599_video_v3.mp4 Should you buy Chewy stock? (September 2023) Chewy stock analysis. Ticker: CHWY Join 10,000 investors: https://www.overlookedalpha.com Chewy is an online retailer for pet products that was founded by Ryan Cohen. But the stock price has been crushed. Today, the company has a market cap of 7.9 billion dollars. It’s got 900 million of cash and no debt so the enterprise value is just 7 billion. Chewy delivers pet food straight to your door and over the last 12 months it’s made almost 11 billion dollars in sales. The company is also profitable with 50 million of net income and 340 million of free cash flow. So Chewy stock is valued at 0.6 times revenue, 156 times net income but just 21 times free cash flow. That’s not bad when you consider Chewy is still growing. Revenue has grown from just 3.5 billion in 2018 and its expected to grow another 14% this year to 11.4 billion. That growth is significantly better than Petco and Chewy has room to expand further. The company is moving into Canada and it’s rolling out sponsored ads which should enhance profits. #stocks #investing #overlookedalpha 2023-09-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5600/polestar-stock-analysis-september-2023 https://atto.videonest.co/5600_horizontal_thumbnail_v3.webp https://atto.videonest.co/5600_video_v3.mp4 Polestar Stock Analysis (September 2023) Should you buy Polestar stock? Ticker: PSNY. Join 10,000 investors: https://www.overlookedalpha.com Polestar contracts out its manufacturing to Chinese firm Geely. This helps on costs and should allow Polestar to ramp production quicker than rivals. Second, Polestar has already built up an impressive lineup of new cars. They look sleek and they’re well received with ranges up to 600 kilometers. The company delivered 52000 vehicles in 2022 and should deliver between 60-70000 this year. On the negative side, Polestar missed revenue estimates in the latest quarter and not all of Polestar’s models are eligible for US tax credits. This makes them more expensive than the competition. That’s important since a report from the New York Times claims that China is flooding the market with cheap electric vehicles. This is leading to falling prices across the board. According to reports, Chinese car exports were up 86% this year surpassing Japan. Another complicating factor is that Polestar’s manufacturer Geely also builds cars for Volvo, Lotus and Zeekr which is rumored to be seeking an IPO. Geely is clearly spreading its risk and its worth wondering if investors should do the same. #psnystock #stocks #investing #overlookedalpha 2023-09-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5601/should-you-buy-amd-stock-september-2023 https://atto.videonest.co/5601_horizontal_thumbnail_v3.webp https://atto.videonest.co/5601_video_v3.mp4 Should you buy AMD stock? (September 2023) AMD stock analysis. Ticker: AMD Join 10,000 investors: https://www.overlookedalpha.com AMD is what’s known as a fabless semiconductor company. It designs and tests powerful computer chips then outsources the manufacturing to TSMC. At the current share price, AMD has a market cap of 155 billion dollars making it the third largest semiconductor company in the US. The company has 6.3 billion of cash and investments on the balance sheet and 1.7 billion of long-term debt so the enterprise value is 151 billion. Despite the boom in artificial intelligence, AMD recently reported an 18% fall in revenue taking its 12 month total to 22 billion. Net income over the last 12 months has also turned negative at minus 25 million. The main reason is that AMD designs a lot of CPU chips used in computers instead of the GPU chips that are used in AI. Looking at the table you can see that AMD revenue is split fairly evenly across 4 segments; data center, client, gaming and embedded. Data center, client and gaming revenue was all down in the first half of the year. Managements explanation for this was a weak PC market and lower consumers sales. #amdstock #investing #overlookedalpha #stockmarket 2023-09-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5602/novo-nordisk-stock-analysis-september-2023 https://atto.videonest.co/5602_horizontal_thumbnail_v3.webp https://atto.videonest.co/5602_video_v3.mp4 Novo Nordisk Stock Analysis (September 2023) Should you buy Novo Nordisk stock? Join 10,000 investors: https://www.overlookedalpha.com Weight loss drugs Ozempic and Wegovy are booming right now and that has sent manufacturer Novo Nordisk stock up 80% over the last 12 months. At the current share price, the company is valued at 430 billion US dollars making it one of the largest companies in Europe. Taking into account cash, investments and long-term debt the enterprise value is 404 billion. Meanwhile, Novo Nordisk has made 29 billion of revenue over the last 12 months, 9.6 billion of net income and 14 billion of adjusted ebitda. That means the stock is valued at 14 times revenue, 45 times earning and Novo Nordisk also pays a dividend of 0.9%. Novo Nordisk’s PE ratio is the highest its been in 20 years and its not hard to see why. Sales of GLP1 weight loss drugs are rising so fast that suppliers are struggling to keep up. Prices are high too. Wegovy costs over $1300 for a 28-day supply. It’s even having an significant effect on the Danish economy. Novo Nordisk raised its revenue outlook for the full year implying 30% growth. If that growth continues into next year, revenues could top 43 billion and net income could hit 14 billion. So Novo Nordisk is probably trading at about 31 times next years earnings. #stockstowatch #investing #stocks #overlookedalpha 2023-09-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5603/adyen-stock-analysis-september-2023 https://atto.videonest.co/5603_horizontal_thumbnail_v3.webp https://atto.videonest.co/5603_video_v3.mp4 Adyen Stock Analysis (September 2023) Join 10,000 investors: https://www.overlookedalpha.com Adyen is one of the largest payment processors in the world. But the stock has dropped over 70% taking the share price to 674 euros a share. That gives the company a market cap of 21 billion. With 2 billion of cash on the balance sheet, the enterprise value is 19 billion. Adyen recently changed the way it reports revenue, so net revenue for the last 12 months was just under 1.5 billion euros. Meanwhile, net income was 564 million, with 692 million of ebitda and 849 million of free cash flow. That means Adyen is now valued at 13 times net revenue, 37 times earnings and 27 times ebitda. That figure is below the recent average. In 2021, the stock was trading at over 150 times ebitda. That valuation was clearly unsustainable. Even so, it’s worth looking at why Adyen stock has fallen so sharply. The main reason is slowing growth. Volume growth has fallen by roughly half in Adyen’s Digital, Unified commerce and platforms segments. Platform growth is particularly concerning, it grew only 3% and this could indicate pricing pressure from rivals like Paypal and Stripe. #adyenstock #stockstobuy #stockstobuynow 2023-09-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5604/should-you-buy-pinduoduo-pdd-stock-september-2023 https://atto.videonest.co/5604_horizontal_thumbnail_v3.webp https://atto.videonest.co/5604_video_v3.mp4 Should you buy Pinduoduo (PDD) stock? (September 2023) Pinduoduo stock analysis. Ticker: PDD. Join 10,000 investors: https://www.overlookedalpha.com At the current share price, PDD has a market cap of 133 billion dollars. It’s got 32 billion of cash and investments and 200 million of long term debt so the enterprise value is 101 billion. The company is also nicely profitable. Net income over the last 12 months was 5.8 billion which translates to a net income margin of 25%. The company made 7 billion of adjusted ebitda and an estimated 8.8 billion of free cash flow. So PDD stock is valued at 4.4 times revenue, 23 times earnings and 11 times free cash flow. #investing #stocks #overlookedalpha #pddstock 2023-09-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5605/should-you-buy-align-technology-stock-september-2023 https://atto.videonest.co/5605_horizontal_thumbnail_v3.webp https://atto.videonest.co/5605_video_v3.mp4 Should you buy Align Technology stock? (September 2023) Align Technology stock analysis. Ticker: ALGN Join 10,000 investors: https://www.overlookedalpha.com This company makes products for the treatment of misaligned teeth and it makes 3.7 billion of revenue a year. Align Technology ticker symbol ALGN, was founded in 1997, its famous for its Invisalign system and today, the company has a market cap of 26.1 billion dollar. It’s got 1 billion of cash and investments and no debt which means the enterprise value is 25.1 billion. Net income over the last 12 months was 314 million with 843 million of adjusted ebitda and 612 million of free cash flow. So Align stock is valued at just under 7 times revenue, 30 times ebitda or 83 times earnings. Although Align stock is up 59% year to date, shares are actually down more than 50% from their 2021 peak. And the best way to explain the decline is to look at revenue growth rates: As you can see from the table, revenue growth has slowed down in recent years, it fell 6% in 2022 and its forecast to increase only 7% this year. #stocks #investing #stockstowatch 2023-09-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5606/should-you-buy-crowdstrike-stock-september-2023 https://atto.videonest.co/5606_horizontal_thumbnail_v3.webp https://atto.videonest.co/5606_video_v3.mp4 Should you buy CrowdStrike stock? (September 2023) CrowdStrike stock analysis. Ticker: CRWD Join 10,000 investors: https://www.overlookedalpha.com Cyber security firm CrowdStrike is one of the fastest growing companies on the market. Revenue has grown from roughly $120 million in 2018 to over $2.6 billion over the last 12 months. And that has taken the company to a valuation today of 39.7 billion dollars. With 3.2 billion of cash on the balance sheet and 740 million of debt, the enterprise value is 37 billion. This is clearly a well-run business operating in a resilient industry. CrowdStrike has generated 551 million of ebitda and 842 million of free cash flow over the last 12 months. Annual recurring revenue shows a trend that any business would be envious of. The company also boasts a net retention rate of 125% and strong gross margins of 74%. Those margins have improved steadily over time. Based on company guidance, CrowdStrike should clear 3 billion in revenue in fiscal 2024 which is 35% more than last year. However, the year before that, growth was 54% so you can see by this table, revenue growth has been declining steadily. And CrowdStrike is yet to produce a full year of profits. When you adjust for a large amount of stock- based compensation (almost 600 million), net income over the last 12 months is negative 93 million. #crowdstrikestock #investing #stockmarket #overlookedalpha 2023-09-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5607/should-you-buy-expedia-stock-september-2023 https://atto.videonest.co/5607_horizontal_thumbnail_v3.webp https://atto.videonest.co/5607_video_v3.mp4 Should you buy Expedia stock? (September 2023) Expedia stock analysis. Ticker: EXPE Join 10,000 investors: https://www.overlookedalpha.com The Big Short investor Michael Burry just picked up 100,000 shares of this travel stock. Expedia, ticker symbol EXPE, has a current market cap of 15.5 billion dollars. It’s got 7.5 billion of cash and investments and 6.2 billion of long term debt, so the enterprise value is 14.2 billion. Expedia has made 12.3 billion dollars of revenue over the last 12 months, 900 million in net income and 2.3 billion of free cash flow. So the company is valued at 1.2 times revenue, 18 times earnings and just 6 times free cash flow. That’s cheap and the company also has excellent gross margins of 86%. If you look at a chart, you can see that Expedia’s revenue has now fully recovered from the pandemic. Earnings has also hit a new high, but the stock price hasn’t recovered. That’s partly because Expedia has taken on a lot of debt. This debt was used to buy a number of brands including Airbnb clone vrbo, Trivago and hotels.com. Right now Expedia owns more than 20 brands and 200 websites connecting travellers across the world. And healthy free cash flow means it was able to pay down some debt putting the company in a more stable position. #stocks #investing #stockstobuy #stockstowatch 2023-09-07T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5608/vinfast-auto-stock-analysis-september-2023 https://atto.videonest.co/5608_horizontal_thumbnail_v3.webp https://atto.videonest.co/5608_video_v3.mp4 VinFast Auto Stock Analysis (September 2023) Vinfast Auto stock. Ticker: VFS Join 10,000 investors: https://www.overlookedalpha.com Vietnamese electric vehicle company VinFast Auto joined the stock market last month via a SPAC and shares soared 800% giving the company a market cap over $200 billion dollars. Shares have quickly reversed but the company still has a steep valuation of roughly 68 billion. That makes VinFast Auto the third largest car company trading in the US, with only Tesla and Toyota ahead of it. But VinFast sold only 7,400 vehicles last year and according to the Financial Times only 137 vehicles have been registered in the US since June. Even if VinFast is able to hit its target of 50,000 in sales this year that still puts it well below other car manufacturers. For comparison, Tesla delivered 1.3 million vehicles last year and Chinese car company Nio delivered 122,000. Not surprisingly, VinFast is also an unprofitable company. Based on figures from the company presentation which have been converted into US dollars, VinFast lost 2.3 billion over the last 12 months with negative free cash flow of almost 3 billion. But 540 million dollars of revenue means the company is valued at a staggering 130 times sales. #overlookedalpha #stocks #stockstosell #stockmarket 2023-09-05T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5609/should-you-buy-alibaba-stock-september-2023 https://atto.videonest.co/5609_horizontal_thumbnail_v3.webp https://atto.videonest.co/5609_video_v3.mp4 Should you buy Alibaba stock? (September 2023) Alibaba stock analysis. Ticker: BABA Join 10,000 investors: https://www.overlookedalpha.com Alibaba stock has fallen two thirds from the peak it set back in 2020. At the current price, the company has a valuation of 245 billion dollars. It’s got 31.2 billion of cash on the balance sheet plus 39 billion of short-term investments. It’s also got 22 billion of long-term debt, so the enterprise value is roughly 192 billion. Revenue over the last 12 months is 124 billion with 11.6 billion of net income, 23.5 billion of adjusted ebitda and 26 billion of free cash flow. So right now Alibaba is valued at 21 times earnings, 8.1 times ebitda and 7.3 times free cash flow. #stocks #investing #overlookedalpha #alibabastock #stockstobuy 2023-09-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5610/should-you-buy-unilever-stock-september-2023 https://atto.videonest.co/5610_horizontal_thumbnail_v3.webp https://atto.videonest.co/5610_video_v3.mp4 Should you buy Unilever stock? (September 2023) Unilever stock analysis. Ticker: UL. Join 10,000 investors: https://www.overlookedalpha.com Unilever is one of the world's largest consumer goods companies with over 400 brands, used by 3.4 billion people. These brands include Axe, Ben & Jerry's, Comfort, Dove, Hellmann's and many more. Historically, Unilever has been a reliable investment, however, the stock has underperformed recently, falling around 5% over the last 3 years. That’s in sharp contrast to Procter & Gamble which has risen over 20%. Today, Unilever has a valuation of 118.7 billion euros. It’s got 7.6 billion of cash and 24 billion of long-term debt so the enterprise value is 135 billion. Revenue over the last 12 months was 61 billion with 8.3 billion of net income and 6.2 billion of free cash flow. So Unilever stock is valued at 14 times earnings and 22 times free cash flow. And the company also pays out an attractive dividend of 3.65%. So based on the financials, Unilever looks good. It’s got healthy free cash flow and strong operating margins of 19%. And Unilever’s revenue is well diversified across various segments; beauty and wellbeing, personal care, home care, nutrition and ice cream. Many of these products, like food, shampoo and detergent are essential items or used on a daily basis. That’s why even during the pandemic, the company’s revenue was down only 2%. And because people need these products, Unilever is able to raise prices during periods of inflation. So the question is why has Unilever underperformed? One of the reasons is that Unilever is simply a mature company that is not growing as fast as it did in the past. Net income over the last 10 years has grown at only 6% a year. #stocks #investing #unileverstock #stockstobuy 2023-09-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5611/should-you-buy-peloton-stock-august-2023 https://atto.videonest.co/5611_horizontal_thumbnail_v3.webp https://atto.videonest.co/5611_video_v3.mp4 Should you buy Peloton stock? (August 2023) Peloton stock analysis. Ticker: PTON Join 10,000 investors: https://www.overlookedalpha.com Peloton stock is down 10% since it published its latest quarterly report and 96% since its 2021 peak. The company’s valuation has fallen from $45 billion to 2.2 billion today. This illustrates Peloton’s strategy. Sell hardware products at a loss, and profit over time from subscriptions. However, the company is not growing as fast as it in the past. In fact, now the pandemic has ended, it’s been losing revenue. As you can see, revenue exploded to 4 billion dollars in 2021. But in 2022 revenues declined 10% and this year revenue has fallen 22% to 2.8 billion. #investing #stocks #pelotonstock #overlookedalpha 2023-08-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5612/should-you-buy-airbnb-stock-august-2023 https://atto.videonest.co/5612_horizontal_thumbnail_v3.webp https://atto.videonest.co/5612_video_v3.mp4 Should you buy Airbnb stock? (August 2023) Airbnb stock analysis. Ticker: ABNB Join 10,000 investors: https://www.overlookedalpha.com Airbnb stock has fallen 13% this month taking the stock down to $132 a share. At that price, the company has a market cap of 85.6 billion dollars. It’s got 10.3 billion of cash and investments and 2 billion of long-term debt. So the enterprise value is 77.3 billion. Revenue over the last 12 months has grown by 23% to 9.1 billion and net income has increased by 41% to 2.3 billion. The company has also reported 3.9 billion of free cash flow. So AirBnb is operating with a gross margin of 82% and a free cash flow margin of 43%. These are impressive financials, and they explain why the stock is expensive at 37 times earnings or 20 times free cash flow. AirBnb is a company that IPO’d during the worst period for travel in 100 years. The company had to adapt and a series of cost-cutting measures has made it a much leaner business. #stocks #investing #abnbstock #stockstobuy 2023-08-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5613/should-you-buy-enphase-stock-august-2023 https://atto.videonest.co/5613_horizontal_thumbnail_v3.webp https://atto.videonest.co/5613_video_v3.mp4 Should you buy Enphase stock? (August 2023) Enphase Energy stock analysis. Ticker: ENPH Join 10,000 investors: https://www.overlookedalpha.com Solar power company Enphase Energy used to be one of the best stocks in the whole market. From 2017 to 2022, the stock went up almost 48,000 percent! But this year Enphase has plunged, taking shares to just 124 dollars and making it the worst performing stock in the S&P 500. That drop means the company now has a valuation of 16.9 billion. It’s got 1.8 billion of cash and investments and 1.2 billion of debt on the balance sheet, so the enterprise value is 16.3 billion. Revenue over the last 12 months is 2.8 billion with 573 million of net income, and 865 million of free cash flow. That means Enphase stock is now valued at 5.8 times revenue, 30 times earnings or 19 times free cash flow. That’s not too expensive when you look at the growth of the company. Revenue growth over the last 4 years has averaged 67%. And based on forward guidance, the stock is valued at around 19x next years earnings. So why has Enphase stock fallen so sharply? #enphstock #stocks #investing #overlookedalpha 2023-08-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5614/should-you-buy-nvidia-stock-august-2023 https://atto.videonest.co/5614_horizontal_thumbnail_v3.webp https://atto.videonest.co/5614_video_v3.mp4 Should you buy Nvidia stock? (August 2023) Nvidia stock update. Ticker: NVDA Join 10,000 investors: https://www.overlookedalpha.com Nvidia just reported another blowout earnings! Revenue for the second quarter came in at 13.5 billion, which was up 88% on the previous quarter, 100% up year over year and 22% higher than company guidance. Gross margins increased more than 5 percentage points to over 70% and net income tripled to 6.2 billion. And the company gave another impressive outlook. Revenue is expected to grow another 19% next quarter to 16 billion. Whatever way you look at it, this was another stunning report from the company which, based on the latest share price, now has a market cap of 1.17 trillion. So what’s the valuation? Based on the trailing twelve-month revenue of 33 billion and earnings per share of 4.2 dollars, the stock now looks incredibly expensive at 36 times revenue and 113 times earnings. However, looking at those trailing metrics makes no sense because Nvidia is growing at a rate of knots. Based on company guidance, next quarters earnings per share should come in around $3.30 so we’re looking at roughly $6 earnings per share for the first half of the year, which is already more than the trailing twelve-month figure. #stocks #investing #nvdastock #overlookedalpha 2023-08-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5615/should-you-buy-palantir-stock-august-2023 https://atto.videonest.co/5615_horizontal_thumbnail_v3.webp https://atto.videonest.co/5615_video_v3.mp4 Should you buy Palantir stock? (August 2023) Palantir stock analysis. Ticker: PLTR Join 10,000 investors: https://www.overlookedalpha.com Palantir reported earnings two weeks ago. Since then, the stock has fallen around 18% to below $15 a share. That means Palantir has a current valuation of 31.5 billion dollars. It’s got 3.1 billion of cash and investments and no debt so the enterprise value is 28.4 billion. Revenue in the latest quarter rose 13% taking the trailing 12 month total past 2 billion. Net income was positive in the quarter but the trailing twelve-month total is still negative at minus 43 million but free cash flow is positive at 375 million. So right now, Palantir stock is valued at 14 times revenue or 76 times free cash flow. That’s an expensive multiple but Palantir is growing consistently and it’s got solid free cash flow margins of 27%. In other words, the company is able to convert almost a third of its top line revenue to free cash flow. As a result Palantir’s cash pile continues to climb and that’s a good sign for such a young, growing company. #pltrstock #investing #stocks #overlookedalpha 2023-08-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5616/should-you-buy-sea-limited-stock-august-2023 https://atto.videonest.co/5616_horizontal_thumbnail_v3.webp https://atto.videonest.co/5616_video_v3.mp4 Should you buy Sea Limited stock? (August 2023) Sea Limited stock analysis. Ticker: SE. Join 10,000 investors: https://www.overlookedalpha.com Sea Limited used to be called the Amazon of south east Asia. But the company reported earnings last week and the stock collapsed by 33%. What’s interesting is that the company posted adjusted profits in all segments and that’s largely due to the company massively cutting costs. Sales and marketing was been cut by over 50% to $400 million in the quarter. So why did Sea Limited take such a sharp tumble? It’s hard to pin down the exact reason but there are a couple of explanations. #stocks #investing #overlookedalpha 2023-08-22T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5617/5-stocks-i-like-right-now-august-2023 https://atto.videonest.co/5617_horizontal_thumbnail_v3.webp https://atto.videonest.co/5617_video_v3.mp4 5 Stocks I Like Right Now (August 2023) 5 stocks I like right now. Join 10,000 investors: https://www.overlookedalpha.com #investing #stocks #overlookedalpha #stockstobuy 2023-08-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5618/should-you-buy-uber-stock-august-2023 https://atto.videonest.co/5618_horizontal_thumbnail_v3.webp https://atto.videonest.co/5618_video_v3.mp4 Should you buy Uber stock? (August 2023) Uber stock analysis. Ticker: UBER. Join 10,000 investors: https://www.overlookedalpha.com Since the company was founded, Uber has been consistently unprofitable, building up losses of over $30 billion dollars. That all changed this month as the company reported its first ever operating profit of $326 million. And that progress has pushed Uber’s stock price up 77% year to date. Looking at the latest share price, the company is now valued at 90 billion dollars. It’s got 8.5 billion of cash on the balance sheet, 7.5 billion of investments and 9.3 billion of long-term debt so the enterprise value is 83 billion. Gross bookings in the latest quarter were up 18% year over year to 34 billion (33.6) and total revenue increased by 14% to 9.2 billion. Net income came in at 394 million, Adjusted ebitda more than doubled to 916 million and free cash flow climbed to 1.1 billion. That means Uber has now delivered more than 1.7 billion of free cash flow over the last 12 months. In fact, this was a hugely impressive quarter from Uber. Number of trips on the platform, gross bookings, number of active drivers, adjusted ebitda and monthly platform users all hit record highs. #investing #stocks #stockstowatch #overlookedalpha 2023-08-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5619/should-you-buy-etsy-stock-august-2023 https://atto.videonest.co/5619_horizontal_thumbnail_v3.webp https://atto.videonest.co/5619_video_v3.mp4 Should you buy Etsy stock? (August 2023) Etsy stock analysis. Ticker: ETSY Join 9000+ investors: https://www.overlookedalpha.com At the latest share price, the company has a valuation of 9.4 billion dollars. It’s got 1.2 billion of cash on the balance sheet and 2.3 billion of long term debt so the enterprise value is 10.5 billion. Revenue over the last 12 months is 2.7 billion with 731 million of adjusted ebitda and 660 million of free cash flow. Net income at minus 717 million has been impacted by stock based compensation and increased spending in product development. So ETSY is valued at 3.4 times revenue, 14 times ebitda and 16 times free cash flow. The story at Etsy is really about growth going forward. The pandemic pulled forward demand and that is clearly seen in the flattening growth rates across the board. Gross merchandise sales across the company dropped 0.6% year over year, revenue increased by 7.5% but adjusted ebitda still dipped by 1%. In fact ebitda margins have fallen from 28.3% to 26.4% and that’s despite the company raising seller fees. Bulls might argue that Etsy is showing signs of its business stabilizing since gross merchandise sales are falling at a slower rate than in previous quarters. They might also point to stabilizing repeat buyers and a 3% increase in total active buyers to 91 million. #investing #stocks #overlookedalpha 2023-08-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5620/should-you-buy-amazon-stock-august-2023 https://atto.videonest.co/5620_horizontal_thumbnail_v3.webp https://atto.videonest.co/5620_video_v3.mp4 Should you buy Amazon stock? (August 2023) Amazon stock analysis. Ticker: AMZN. Join 9000+ investors: https://www.overlookedalpha.com Amazon stock is up 65% this year taking shares up to $138. At that price the company has a market cap of 1.42 trillion. The balance sheet has 54 billion of cash and 18 billion of investments as well as 67 billion of debt so the enterprise value is also 1.42 trillion. Revenue over the last 12 months is 538 billion, with 13.1 billion of net income, 63 billion of adjusted ebitda and 3.2 billion of free cash flow. So Amazon stock is valued at 2.6 times revenue, 22 times ebitda and 101 times earnings. Valuing the stock based on these company-wide metrics isn’t that useful, however, for two reasons. First, Amazon continues to reinvest its profits back into the business and that skews its price to earnings ratio. Second, Amazon is made up of several different businesses and each one has different profit margins and growth rates. It’s online stores segment includes product sales such as books, videos, games, music and software. This segment contributes the most amount of revenue, 222 billion over the last 12 months but it’s also the least profitable and it grew only 4% in the latest quarter. It’s third-party seller service includes product and fulfilment fees and contributes 127 billion of revenue at a growth rate of 18% year over year. We don’t know precisely what the profit margins are but 3rd party services is clearly a strong business. Unit volume was up 60% over the quarter and Amazon fulfillment has been taking share from traditional carriers like Fedex and UPS. Amazon Web services provides on-demand cloud computing and is Amazon’s most profitable segment with operating margins of 24% in the latest quarter. This segment grew 12% to 85 billion of annual revenue. #amznstock #stockstobuy #investing #overlookedalpha 2023-08-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5621/should-you-buy-starbucks-stock-august-2023 https://atto.videonest.co/5621_horizontal_thumbnail_v3.webp https://atto.videonest.co/5621_video_v3.mp4 Should you buy Starbucks stock? (August 2023) Starbucks stock analysis. Ticker: SBUX. Join 9000+ investors: https://www.overlookedalpha.com Starbucks stock is now valued at 3.6 times revenue, 30 times earnings and 43 times free cash flow. And the stock also pays a dividend of 2.1%. 30 times earnings might seem expensive, but Starbucks has been a reliable performer. Revenue has grown at roughly 9% per year over the last 10 years with earnings per share increasing by roughly 12% a year. That said, net income is yet to regain its 2019 peak and gross margins have fallen from almost 30% in 2017 to 27% today. With a market cap of 125 billion and over 37,000 stores worldwide, it’s understandable to wonder how much more Starbucks can grow. But the company has at least 4 options for growth: Despite already having 16,000 stores in the US, Starbucks still has room to open new stores in smaller cities as well as smaller format stores in bigger cities. And in a recent presentation, Starbucks said it expects to deliver 7-9% annual revenue growth and 15-20% earnings growth over the next few years. #stocks #investing #stockstobuy #overlookedalpha 2023-08-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5622/should-you-buy-symbotic-stock-august-2023 https://atto.videonest.co/5622_horizontal_thumbnail_v3.webp https://atto.videonest.co/5622_video_v3.mp4 Should you buy Symbotic stock? (August 2023) Symbotic stock analysis. Ticker: SYM. Join 9000+ investors: https://www.overlookedalpha.com Symbotic, ticker symbol SYM, uses robots to automate warehouse supply chains. The stock jumped 50% after earnings last week and it’s up 500% since it came to the market via a SPAC last year. At the current share price, the company has a valuation of 28 billion dollars. It’s got 500 million of cash and investments and no debt so the enterprise value is 27.3 billion. Symbotic’s technology sounds futuristic and it’s revenue growth is equally impressive. Revenue in the latest quarter surged by 78% to 312 million taking the twelve month total to over 1 billion and that’s ten times more than it produced in 2019. However, the company is not profitable. Net income over the last 12 months is negative 216 million. With 149 million of stock based compensation free cash flow, however, is positive at 107 million. Symbotic’s autonomous robots can travel up to 25 miles per hour and are controlled by AI. This addresses 3 fundamental problems for companies. 1. It reduces the need for warehouse workers such as forklift drivers. 3 2. It helps companies more quickly adapt their warehousing strategies and 3. It better suits the huge increase in individual items of stock known as SKUs. This is a huge market and Symbotic already has relationships with large customers such as Walmart, Albertsons, Target and Giant Tiger. Plus, a joint venture with Softbank means the company can begin to adapt the technology for smaller customers as well. #overlookedalpha #stocks #investing #stockstowatch 2023-08-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5623/should-you-buy-paypal-stock-august-2023 https://atto.videonest.co/5623_horizontal_thumbnail_v3.webp https://atto.videonest.co/5623_video_v3.mp4 Should you buy PayPal stock? (August 2023) PayPal stock analysis. PYPL. Join 9000+ investors: https://www.overlookedalpha.com Paypal reported earnings last week and the stock collapsed 15%. Shares are down 80% since its all-time high which means the company has lost more than 270 billion dollars in value. Right now, the company has a market cap of 70.8 billion dollars. Adjust for cash, investments and debt and the enterprise value is 67 billion. Revenue over the last 12 months is 28.6 billion, net income is 4.1 billion and free cash flow is 3.6 billion. So Paypal is currently valued at 2.3 times revenue, 17 times earnings and under 19 times free cash flow. That looks cheap. In fact, Paypal hasn’t been this cheap since 2017. And in 2017 the business was producing significantly less: For example, revenue in 2017 was only 13 billion versus 28 billion today. And net income in 2017 was only 1.8 billion versus over 4 billion today. So what’s going on? The key issue is that Paypal is experiencing slowing growth. Revenue growth has slowed from 20% in 2017 to just 8% over the last 12 months. And investors are concerned about a large number of competitive threats. #paypalstock #stocks #investing #stockstobuy #overlookedalpha 2023-08-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5624/should-you-buy-uranium-stocks-august-2023 https://atto.videonest.co/5624_horizontal_thumbnail_v3.webp https://atto.videonest.co/5624_video_v3.mp4 Should you buy Uranium stocks? (August 2023) How to invest in nuclear energy through uranium stocks. Join 9,000+ investors: https://www.overlookedalpha.com To combat climate change, we need to stop relying on fossil fuels. Renewable energy sources are great but they suffer from intermittency issues. Solar power needs the sun to shine and wind turbines need the wind to blow. Batteries aren’t yet good enough to store all the energy they create. A clear solution to this is nuclear power. Nuclear has low operating costs and its 8,000 times more efficient than fossil fuels. It’s also clean. According to the World Nuclear Association, during its life cycle, nuclear energy produces about the same amount of CO2 per unit of electricity as wind, and even less than solar. Of course, nuclear power has problems too. Reactors cost a lot to build, nuclear waste is radioactive and accidents happen. The progress of nuclear power hit a major setback after the 2011 disaster at Fukushima. That said, the scale of the challenge facing humanity is so great that we’re going to need some help from nuclear power in order to meet carbon targets. And this progress is starting to happen. Right now there are at least 57 nuclear reactors being built worldwide. And according to the International Energy Association, 8GW of new nuclear capacity came online last year. #uraniumstocks #investing #stockmarket #stockstobuy 2023-08-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5625/should-you-buy-roku-stock-august-2023 https://atto.videonest.co/5625_horizontal_thumbnail_v3.webp https://atto.videonest.co/5625_video_v3.mp4 Should you buy Roku stock? (August 2023) Roku stock analysis. Join 9000+ investors: https://www.overlookedalpha.com Roku reported earnings last week and the stock soared by over 30%. Shares are now up 124% year to date. At the latest share price, the company has a market cap of 12.9 billion dollars. It’s got 1.8 billion of cash and no debt, so the enterprise value is 11.1 billion. The latest earnings report revealed a 16% increase in active accounts to 74 million and an 11% increase in total revenue. That takes revenue up to 3.2 billion over the last 12 months roughly 7% more than this time last year. However, Roku’s bottom line is still in the red. Net income over the last 12 months is negative 661 million and free cash flow is negative 166 million. Stock based compensation at 389 million is roughly 12% of revenue. Roku’s business model can be organized into two parts. The platform segment generates revenue from the sale of digital advertising and content distribution. This segment generated 87% of revenue with a gross margin of 54%. The device segment includes the sale of streaming players and Roku-branded TVs as well as some other smart products. This segment contributes the remaining 13% of revenue with negative gross margins of -17%. So this segment is what’s known as a loss leader. By selling its devices at a loss, Roku can grow its user base and then monetise those users with advertising. #rokustock #investing #stocks #overlookedalpha 2023-08-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5626/should-you-buy-workhorse-stock-july-2023 https://atto.videonest.co/5626_horizontal_thumbnail_v3.webp https://atto.videonest.co/5626_video_v3.mp4 Should you buy Workhorse stock? (July 2023) Workhorse stock analysis. WKHS Join 9000+ investors: https://www.overlookedalpha.com In 2021, Workhorse stock soared to over $40 a share on optimism that it would win a $6 billion dollar contract with the United States Postal Service. However, the manufacturer of electric trucks lost out to a company called OshKosh. As a result, the share price collapsed and today Workhorse has a valuation of 216 million dollars. With 89 million of cash and investments and no debt, the enterprise value is only 127 million. The issue is that electric vehicles are costly to make and Workhorse is nowhere near to making money. It produced only $7 million in revenue over the last 12 months while reporting a net loss of 120 million and negative free cash flow to the tune of 115 million. The company burned through $38 million in the first quarter so with only 79 million of cash left Workhorse is dangerously close to bankruptcy. To survive, the company needs to raise more capital. But with a market cap below $300 million it’s hard to raise enough money without further tanking the stock. The company did raise $19 million in Q1 but that just doesn’t seem enough when the company is losing almost double that. And this has been an incredibly unreliable company. It entered the EV market back in 2007 and between 2007 and 2019 it delivered only 365 vehicles. There were also allegations of fraud and insider trading. #wkhsstock #stocks #investing 2023-07-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5627/i-was-wrong-about-meta-stock-july-2023 https://atto.videonest.co/5627_horizontal_thumbnail_v3.webp https://atto.videonest.co/5627_video_v3.mp4 I was wrong about Meta stock (July 2023) Should you buy Meta stock? Join 9000+ investors: https://www.overlookedalpha.com About 9 months ago I released a video on Meta criticizing the company’s brand and cost control and I gave the stock a neutral rating. Turns out I couldn’t have been more wrong. Since that video, the stock has rallied over 100% and it's almost back to the level it was when the company changed its name from Facebook. At the latest share price, the company has a valuation of 810 billion. It’s got 54 billion of cash and investments and 18.4 billion of long term debt so the enterprise value is 775 billion. Taking into account the latest quarter, revenue over the last 12 months is 121 billion, Net income is 22.5 billion and free cash flow is 24.1 billion. That means the stock is now valued at 6.4 times revenue, 36 times earnings and 32 times free cash flow. The turnaround in Meta’s valuation can be explained by Mark Zuckerberg getting real about the company’s position. Zuckerberg has got to work cutting costs and doubling down on the things that have previously made Meta such a success. Headcount at Meta was cut by 14% and capital expenditure decreased by 18%. The company rolled out a new platform Threads, started monetising WhatsApp business users and its Advantage ads program is delivering significantly more value to advertisers. In addition, the company bought back 793 million dollars of stock. As a result of all this, Meta’s numbers increased across the board. Revenue was up 11%, net income was up 16% and daily active users were up 7% to 3.07 billion. #metastock #stockmarket #investing #stocks 2023-07-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5628/the-big-threat-to-spotify-stock-july-2023 https://atto.videonest.co/5628_horizontal_thumbnail_v3.webp https://atto.videonest.co/5628_video_v3.mp4 The Big Threat To Spotify Stock (July 2023) Spotify stock analysis Join 9000+ investors: https://www.overlookedalpha.com Spotify stock dropped 14% yesterday after it reported a quarterly loss of €300 million. This was more than double the 125 million loss it made one year ago. At the latest share price, the company now has a market cap of $29 billion. It's got 4.9 billion of cash and investments and 1.3 billion of debt. So the enterprise value is roughly 25 billion. Taking into account the latest quarter, Spotify has made a net loss of almost €1 billion over the last 12 months. 410 million of that is coming from stock based compensation. Free cash flow has also dropped substantially from 280 million in 2021 to just 28 million over the last 12 months. There are two key reasons for this poor performance. #stockstowatch #stockstobuy #spotifystock 2023-07-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5629/tsmc-is-reporting-lower-revenue-but-it-still-looks-like-a-buy https://atto.videonest.co/5629_horizontal_thumbnail_v3.webp https://atto.videonest.co/5629_video_v3.mp4 TSMC Is Reporting Lower Revenue But It Still Looks Like A Buy TSMC stock analysis. Join 9000+ investors: https://www.overlookedalpha.com Taiwan Semiconductor Manufacturing released earnings last week and the stock dropped around 3%. At the latest share price, the company has a market cap of 520 billion dollars. It’s got 51 billion of cash and investments and 29 billion of long term debt so the enterprise value is 498 billion. Revenue over the last 12 months is 72.6 billion with net income of 31.5 billion and adjusted ebitda of 49 billion. That means the stock is valued at 7 times revenue, 17 times earnings and 10 times ebitda. The company also pays a dividend of around 1.8%. Although TSMC has grown revenues consistently over the last 10 years, the company reported a 23% drop in net profit in the second quarter and management gave a pessimistic guidance. They now think that revenue will be down 10% for the year with operating margins declining to 38%. The main reason is that consumers are buying fewer goods in the face of inflation. When fewer products are bought, companies order less stock and when companies order less stock, TSMC gets fewer orders, leading to lower revenue. However, more than half of TSMC’s revenue comes from chips of 7 nanometres or less. These advanced chips power the high-performance computers and smartphones that we’ve come to rely on. Once the cycle bottoms out and company inventory starts depleting, TSMC is expected to bounce back. Analysts expect 2024 revenue to rebound 20% to 80 billion. #stockstobuy #stockstowatch #tsmcstock #overlookedalpha 2023-07-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5630/tesla-is-still-showing-incredible-growth https://atto.videonest.co/5630_horizontal_thumbnail_v3.webp https://atto.videonest.co/5630_video_v3.mp4 Tesla Is Still Showing Incredible Growth Tesla stock analysis, July 2023. Join 9000+ investors: https://www.overlookedalpha.com Tesla famously doesn’t spend on advertising, so their operating expenses are below 10% of revenue (R&D and SG&A). Despite what might seem like a high valuation, there’s a chance that Tesla does extremely well from here onwards. They are still ramping up manufacturing capacity, which will lead to future growth, their network with 45,000+ superchargers can be used to earn fees from other car manufacturers, the energy generation and storage segment is still in its early phase, and there is a lot of hype and hope around FSD (Full self-driving) capability. #teslastock #stocks #investing #overlookedalpha 2023-07-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5631/ionq-is-a-very-risky-stock https://atto.videonest.co/5631_horizontal_thumbnail_v3.webp https://atto.videonest.co/5631_video_v3.mp4 IonQ Is A Very Risky Stock IONQ stock analysis. Join 9,000+ investors: https://www.overlookedalpha.com Quantum computing company IonQ is up 350% year to date. #ionqstock #stocks #investing #overlookedalpha 2023-07-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5632/delta-airlines-stock-is-cheap https://atto.videonest.co/5632_horizontal_thumbnail_v3.webp https://atto.videonest.co/5632_video_v3.mp4 Delta Airlines Stock Is Cheap Delta Airlines stock analysis. Discover under-the-radar stock ideas: https://www.overlookedalpha.com The travel industry is booming right now. Airline passenger numbers have returned to pre-pandemic levels. Last week, Delta Airlines reported record revenues of 15.6 billion for the quarter and the stock is up 42% year to date. At the current share price, Delta has a market cap of 30 billion. It’s got 8.5 billion of cash and investments and 18 billion of debt. So the enterprise value is just under 40 billion. Revenue over the last 12 months is 55.8 billion which is almost 20% above the 2019 peak. Net income, however, at 3 billion is still 37% below the peak. One reason is that Delta had to take on a lot of debt during the pandemic and that is costing the company almost a billion dollars a year in interest payments. But Delta is optimistic it can pay the debt off over time. And management gave an encouraging outlook. It thinks revenue will grow between 17-20% this year with an operating margin above 12%. Free cash flow is expected to cruise above 4 billion in 2024. That means Delta stock is now valued at only 8 times next years free cash flow. A key part of the investment case for Delta is its diversified revenue streams in particular its SkyMiles partnership with American Express. In an interview on CNBC, JP Morgan analyst Jamie Baker said that close to 1% of US GDP is now being charged on co-branded Delta American Express credit cards. This is a lucrative venture for Delta and could contribute almost 7 billion in revenue this year. That’s 63% growth since 2019. #deltaairlinesstock #stockstobuy #stocks #overlookedalpha 2023-07-18T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5633/should-you-buy-mattel-stock-july-2023 https://atto.videonest.co/5633_horizontal_thumbnail_v3.webp https://atto.videonest.co/5633_video_v3.mp4 Should you buy Mattel stock? (July 2023) Mattel stock analysis. MAT stock. Visit our website for new ideas: https://www.overlookedalpha.com Shares in Toy company Mattel have risen 20% this year as the stock rides the hype from the new Barbie movie which comes out this week. At the latest share price, the company has a market cap of 7.6 billion. It’s got 462 million in cash and 2.3 billion in long term debt so the enterprise value is 9.5 billion. Revenue over the last 12 months is 5.2 billion, net income is 266 million and free cash flow is 187 million. So Mattel stock is valued at 1.8 times revenue, 29 times earnings and 51 times free cash flow with a net income margin of 5.1%. Mattel makes money from a large variety of toys but there are three brands that stand out. Fisher-Price which makes up 17% of revenue, Hot Wheels which makes up 21% and Barbie which makes up 25%. The Barbie movie which comes out this week is tipped to be a blockbuster with an estimated 100m box office and it’s just the first of 17 other films in the pipeline that feature Mattel products. Social media mentions and early reviews all point to this being a massive hit and google search volume for the term ‘barbie doll’ is already at a 5 year high. Although we don’t know how much Mattel will make from box office receipts, the company has signed over 100 brand collaborations so its likely that the Barbie movie is going to provide a significant boost to this year’s revenue. #mattelstock #investing #stockstotwatch #overlookedalpha 2023-07-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5634/should-you-buy-meta-stock-july-2023 https://atto.videonest.co/5634_horizontal_thumbnail_v3.webp https://atto.videonest.co/5634_video_v3.mp4 Should you buy Meta Stock? (July 2023) Meta stock analysis. Discover under-the-radar stock ideas: https://www.overlookedalpha.com Two weeks ago, Meta unveiled a new social media platform called Threads. The platform hit 100 million users in less than 5 days surpassing ChatGPT as the fastest growing product of all time. The question is, will it have a material impact on Meta stock? At the latest share price, Meta has a valuation of 800 billion dollars. It’s got 11.6 billion of cash on the balance sheet and 10 billion of long term debt so the enterprise value is 797 billion. Revenue based on the last 12 months is 117 billion, with net income of 21.4 billion and free cash flow of 17.6 billion. That means Meta stock is valued at 6.8 times revenue, 37 times earnings and 45 times free cash flow. That’s an expensive price to pay. But it’s easy to see why Meta is valued at a premium. It’s family of apps are used by more than 3 billion people around the world, it has excellent gross margins of 80% and a good chunk of revenue flows straight to the bottom line. In other words, Meta is an extremely profitable business. However, after a 160% rally year to date, some caution may be needed. Trailing twelve month revenue is flat and net income is still down 45% from its peak after the company started to invest heavily in the metaverse and AI. As for threads, the reason it’s grown so quickly is because users have simply been ported over from Instagram. In other words, it’s not organic growth. And CNBC reported yesterday that, after some initial excitement, time spent on the app is already down 50%. #metastock #stocks #investing #stockstowatch 2023-07-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5635/should-you-buy-enovix-stock https://atto.videonest.co/5635_horizontal_thumbnail_v3.webp https://atto.videonest.co/5635_video_v3.mp4 Should you buy Enovix stock? Enovix stock analysis. Discover under-the-radar stocks: https://www.overlookedalpha.com The processing power of smartphones is growing at a rate of 10 to 40% a year but batteries are improving at only 4% a year. So manufacturers like Apple need a battery that can keep up. Enovix, ticker symbol ENVX, thinks it has the answer. By introducing silicon into its batteries and replacing the so-called “jelly roll” architecture, the company thinks it can produce batteries that outperform lithium-ion batteries by as much as 80%. And if Enovix is successful, the potential market is huge. The market for smartphone batteries alone is over 20 billion. And Enovix’s batteries could one day be used in larger applications like electric vehicles. Based on the latest share price, Enovix has a market cap of just over 3 billion dollars. The company has 294 million of cash on the balance sheet and no debt so the enterprise value is 2.87 billion. Going through the rest of the financials at this stage adds little value since the company is yet to start production and its made only 6 million in revenue over the last 12 months. So an investment in Enovix relies on whether you think its battery technology is going to succeed and there are strong arguments on both sides. For bulls, Enovix’s batteries have the potential to transform the industry. A Forbes article from April this year cited numerous experts who all argued that Enovix’s technology is the real thing. And Enovix has a number of high-profile backers including Marc Cohodes and Stanley Druckenmiller. Executive chairman TJ Rodgers also has a history of success including an investment in Enphase Energy which increased by more than 150 times and CEO Raj Talluri has 30-years experience in the semiconductor industry. #enovixstock #stocks #investing #stockstowatch 2023-07-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5636/should-you-buy-nike-stock-july-2023 https://atto.videonest.co/5636_horizontal_thumbnail_v3.webp https://atto.videonest.co/5636_video_v3.mp4 Should you buy Nike stock? (July 2023) Nike stock analysis. Join 8000 other investors: https://www.overlookedalpha.com Nike reported earnings last week and the stock dropped about 2%. Shares are now down 40% since hitting a peak in 2021. That means Nike is now valued at 168 billion dollars. It’s got 10.6 billion of cash and investments and 8.9 billion of long-term debt so the enterprise value is roughly 166 billion. In its latest report, Nike reported 51.2 billion in revenue for the latest fiscal year which was an increase of 10%. That’s decent growth but bottom-line earnings are suffering from inflation. Nike’s cost of sales increased by 14.6%, driven by an increase in raw materials and labor costs, so bottom line net income shrunk by 16% to 5.1 billion. That means Nike stock is currently valued at 3.2 times revenue and 33 times earnings. Looking at a historical chart, both ratios are near the bottom of their historical range though they’re not necessarily low enough to signal a buying opportunity. Looking ahead, Nike retains a dominant position in what is a highly competitive market. 65% of its revenue comes from footwear, of which there are no shortage of rivals, from established brands like Adidas to new upstarts like On Cloud. So the key to Nike’s future will be it’s ability to expand globally and on this front, there was good news. The latest report revealed that sales in China grew 16% in Q4 with a 22% increase in apparel sales. That compares to only a 5% increase in the North American market. This is a good sign that Nike will benefit from China’s post-pandemic recovery. In fact, earnings from the Chinese segment was up a whopping 70% on the quarter while all other areas were down. #stocks #investing #nikestock #stockstobuy 2023-07-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5637/should-you-buy-servicenow-stock-july-2023 https://atto.videonest.co/5637_horizontal_thumbnail_v3.webp https://atto.videonest.co/5637_video_v3.mp4 Should you buy ServiceNow stock? (July 2023) ServiceNow stock analysis. Visit our website for more: https://www.overlookedalpha.com Back in 2003, entrepreneur Fred Luddy felt there was a disconnect between business teams and IT departments. Luddy set up ServiceNow to bridge that gap. It’s software helps businesses streamline and ultimately replace IT systems. The business has been an incredible success and today the company is valued at 115 billion dollars. With 7.2 billion of cash and investments and 1.5 billion of debt, the enterprise value is 109 billion. Revenue over the last 12 months is 7.6 billion, net income is 400 million with 2.1 billion of free cash flow. 96% of ServiceNow revenue comes through recurring subscriptions and the company has strong gross margins of 78%. And ServiceNow boasts several other attractive qualities. Its products are used by 80% of the Fortune 500, with a 98% renewal rate and 125% net expansion rate. As seen by the chart, ServiceNow does an excellent job of keeping customers and generating incremental revenue from each one. In addition, ServiceNow stock has been outstanding, providing almost 35% annualized returns over the last 5 years. Software investors often talk about the rule of 40 but ServiceNow claims it occupies the rule of 60 since it previously posted 30% revenue growth and 32% free cash flow margin. To be fair, last year’s revenue growth dropped to 23% and revenue growth rates have been declining steadily over time. But ServiceNow management is optimistic. Its revenue target for 2026 was upgraded from 15 billion to 16 billion and management believes its software can now be expanded across other company departments such as sales, legal and human resources. In addition, ServiceNow has plans to grow in international markets. #servicenowstock #investing #stocks #stockstobuy 2023-07-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5638/should-you-buy-lucid-stock-july-2023 https://atto.videonest.co/5638_horizontal_thumbnail_v2.webp https://atto.videonest.co/5638_video_v3.mp4 Should you buy Lucid stock? (July 2023) Visit our website here: https://www.overlookedalpha.com Shares in electric vehicle company Lucid soared 40% in January after news that the Saudi Arabian public wealth fund wanted to buy out the company. The rally fizzled out and Lucid now trades at under 8 dollars a share. That gives the automaker a current market cap of 13.6 billion dollars. It’s got 3.4 billion of cash and investments and 2 billion of long-term debt so the enterprise value is 12.2 billion. Over the last 12 months, Lucid has delivered 5,400 vehicles bringing in 700 million dollars of revenue. But vehicle production is expensive, net income over the last 12 months is negative 2 billion and the company has burned through roughly 3.7 billion in free cash flow. But Lucid does make good cars. The Lucid Air is widely regarded as one of the best electric vehicles on the market. The Sapphire model can reach 60 miles an hour in under 2.0 seconds while the Grand Touring has a range of over 500 miles. In April, the Lucid Air won the 2023 world luxury car of the year. Despite that, Lucid is seeing underwhelming demand. Deliveries are up year-over-year, but last quarters deliveries were actually down 27% from the previous quarter. And Lucid has started to offer discounts to slow down customer cancellations. A major problem is that the Lucid Air is expensive. The pure model has a starting price of $87,400 and Sapphire starts at $249,000. That’s a difficult sell in a tight economy and the luxury sedan market is highly competitive. Lucid CEO Peter Rawlinson admitted the company has done a poor job of marketing. On the latest earnings call he said: “We’ve got what I believe to be the very best product in the world. We’ve just too few people are aware of not just the car but even the company.” Vehicle deliveries are much lower than rivals and the truth is, at the current rate of cash burn, Lucid is a strong bankruptcy case. That’s why you see the company searching for partnerships with other automakers like Aston Martin and why it’s putting its faith into a new SUV called Gravity. SUVs are extremely popular and Lucid probably should have started with this vehicle first. #stocks #investing #lucidstock #stockstowatch 2023-07-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5639/should-you-buy-plug-power-stock-july-2023 https://atto.videonest.co/5639_horizontal_thumbnail_v2.webp https://atto.videonest.co/5639_video_v3.mp4 Should you buy Plug Power stock? (July 2023) Plug Power develops hydrogen fuel cell systems. These have the potential to replace conventional batteries, both in equipment and in vehicles. While electric batteries work great over short distances, clean hydrogen could be used to power longer distance trucking as well as for big cargo ships and aeroplanes. At the latest market price, Plug Power has a market cap of 6.2 billion dollars. It’s got 1.7 billion in cash and investments and 500 million of long-term debt, so the enterprise value is roughly 5 billion. Over the last twelve months, the company generated $771 million in revenue. But management expects this number to increase to $5 billion in 2026 and over $20 billion in 2030. That represents compounded annual growth of over 40%! Of course, Plug Power today is not profitable. Net income over the last 12 months was -774 million and free cash flow was negative 1.5 billion. Gross margins are also negative at -30%. But, again, management has optimistic expectations. In a recent analyst day, management said operating profit margins could hit 17% by 2026 and be above 20% in 2030. According to these estimates, Plug Power would be generating 4 billion dollars in operating profit by 2030. Apply a 20 times multiple to that figure gets the valuation to 80 billion dollars. In other words, if Plug Power can hit its targets, the stock could more than 10x in value in less than 7 years. The problem is, Plug Power has a long history of underperforming. The company was founded 26 years ago and CEO Andy Marsh spent the whole of the 2010s promising positive EBITDA. That finally came in 2019 after many years of missed targets. Meanwhile, next year’s target of $200 million adjusted EBITDA doesn’t look like it will be hit and the company now admits gross profit could even decline this year. In other words, it’s extremely hard to trust this company and that’s why the stock is a favorite among short sellers with a short interest of over 22%. Shorting the stock, however, is dangerous. It requires technical expertise about the capabilities of hydrogen, its future as a clean energy source and an understanding of regulatory risks and incentives. #stocks #plugstock #investing #plugpower 2023-07-05T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5640/should-you-buy-disney-stock-july-2023 https://atto.videonest.co/5640_horizontal_thumbnail_v2.webp https://atto.videonest.co/5640_video_v3.mp4 Should you buy Disney stock? (July 2023) Disney stock analysis. DIS stock. Discover under-the-radar stocks: https://www.overlookedalpha.com Disney is one of the world’s most valuable brands but the stock is down over 50% from its all-time high. At the current share price the company has a valuation of 162 billion dollars. It’s got almost 14 billion in cash and 45 billion of debt so the enterprise value is 194 billion. Revenue over the last 12 months is 87 billion, net income is 4.1 billion, while adjusted ebitda is 12.5 billion. So Disney stock is valued at 2.2 times revenue, 16 times ebitda and 40 times earnings. Looking at a historical chart, Disney appears undervalued when compared to revenue but overvalued when compared to earnings. And there’s an obvious reason why. While Disney’s top line revenue has continued to grow in recent years, it’s profits have fallen. Disney revenue, for example, is up 47% since 2018 but net income has fallen 67%. The main reason is that Disney’s costs have almost doubled. After launching Disney+ in 2019, significant amounts of free cash flow had to be poured into content creation. It’s not called the streaming wars for nothing as Disney is competing not only with channels like Netflix but social media platforms like YouTube and TikTok. Even with significant investment, Disney + subscribers declined 2% in the latest quarter. Meanwhile, the shift to online streaming means that Disney has started to lose revenue from its highly profitable linear networks segment. To top it off, Disney park admissions could be nearing a post-pandemic peak. But Disney remains a valuable franchise and the stock is already pricing in a lot of weakness. Returning CEO Bob Iger could sell some assets and if margins improve the stock has room for upside. But it’s worth remembering that it was Iger who decided to pay over 70 billion dollars for Twentieth Century Fox in 2018, a deal that saddled the company with significant debt. That debt is now costing the company billions of dollars a year in interest payments. #stocks #investing #disneystock #stockstowatch 2023-07-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5641/should-you-buy-zoom-stock-july-2023 https://atto.videonest.co/5641_horizontal_thumbnail_v2.webp https://atto.videonest.co/5641_video_v3.mp4 Should you buy Zoom stock? (July 2023) Zoom stock analysis. ZM stock. Give us a try: https://www.overlookedalpha.com Zoom Video was one of the biggest beneficiaries of the pandemic. Between 2020 and 2021, revenue grew over 300% and the stock soared more than 600% taking the market cap to 160 billion. Since then, however, revenue growth has slowed to single digits and the stock price has come back to earth. Today, the company has a valuation just over 20 billion. With 6 billion of cash and investments, and zero debt, the enterprise value is roughly 14 billion. Revenue for the rest of the year is expected to come in at 4.47 billion which represents less than 2% annual growth. Free cash flow looks good at just over a billion but net income has collapsed from a peak of 1.4 billion in 2022 to just 5.5 million over the last 12 months. That means Zoom stock is now valued at 3.2 times revenue, 13 times free cash flow and over 4000 times earnings. So why is the company reporting such a huge drop in net income? A major reason is stock based compensation which totals almost 1.4 billion over the last 12 months. That figure is now 30% of revenue. A second reason is that the company has seen a significant increase in operating expenses. Looking at the table you can see that R&D makes up 19% of revenue and G&A is 15% of revenue. Nothing strange there, but what is strange is that Zoom is spending 1.8 billion dollars on sales and marketing (40% of revenue) and it’s only achieving modest growth. In fact, sales and marketing spend was up 55% in the first quarter while revenue increased only 3%. This suggests Zoom is spending a lot of money to keep existing customers on the platform and it’s a worrying sign when combined with the growth outlook. #zoomstock #stocks #stockstowatch #investing 2023-07-02T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5642/should-you-buy-chargepoint-stock https://atto.videonest.co/5642_horizontal_thumbnail_v2.webp https://atto.videonest.co/5642_video_v3.mp4 Should you buy ChargePoint stock? Give us a try: https://www.overlookedalpha.com ChargePoint stock analysis. CHPT stock. As the world transitions to electric vehicles, electric charging company ChargePoint is showing rapid growth. Revenue increased 97% in 2022 and is now almost 10 times higher than in 2018. The business is currently valued at 3 billion dollars. With 283 million of cash and 295 million of debt the enterprise value is roughly the same. But the company is not yet profitable. ChargePoint has made a loss of 337 million over the last 12 months and has reported negative free cash flow to the tune of 322 million. Furthermore, Stock based compensation at 102 million is roughly 20% of revenue. ChargePoint makes money in 3 main ways. Hardware sales make up 73% of revenue, cloud services contributes 19% and maintenance services adds up to 8%. The company is expanding in Europe and gross margins, which dipped to 18% last year have recovered to over 20%. With more than 240,000 ports, ChargePoint is the leading electric vehicle charging network. But ChargePoint is operating in a competitive and difficult industry. Its main competitors include Blink charging, EVGo, Electrify America and Tesla. Although Tesla has fewer charging stations, it’s DC chargers are considerably faster and more reliable than ChargePoint’s AC chargers. And partly in response to government funding, Tesla recently made its supercharger network available to vehicles from Ford, General Motors, Volvo and Rivian and more partnerships are highly likely. That said, ChargePoint’s AC chargers are cheaper and they’re perfectly suitable for charging vehicles at parking lots and other longer term stays. A bigger problem for ChargePoint is it’s hardware-based business model which is notoriously low margin and subject to commoditization. Even high growth markets can see a race to the bottom in hardware that can lead to razor thin profit margins. #chptstock #stocks #investing #evstocks 2023-06-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5643/should-you-buy-mastercard-stock https://atto.videonest.co/5643_horizontal_thumbnail_v2.webp https://atto.videonest.co/5643_video_v3.mp4 Should you buy Mastercard stock? Mastercard stock analysis. MA stock. Discover under-the-radar stocks: https://www.overlookedalpha.com Mastercard has been of the best performing stocks over the last 20 years. Since its IPO back in 2006, its share price has risen almost 8000%. And the company also pays out a steadily increasing dividend. At the current price, Mastercard has a market cap of 358 billion dollars. It’s got 7 billion of cash and investments and 15.3 billion of long term debt which means the enterprise value is 367 billion. Revenue over the last 12 months was almost 23 billion. That might seem a little low compared to the market cap but Mastercard has an incredibly high and consistent operating margin of 55% and a net margin of 42%. As a result, net income over the last 12 months is 11 billion with roughly the same in free cash flow and 13.2 billion in ebitda. So right now Mastercard is valued at 16 times revenue, 37 times earnings and 28 times ebitda. That’s slightly above the long-term average of 30 times earnings. In addition, Mastercard doesn’t require a lot of capital to be reinvested, capex is between $200-$400 million a year. With so much free cash flow being generated, Mastercard is able to pay a small dividend and buy back a decent amount of shares. Over the last decade, the number of shares outstanding has reduced by 20% as management has bought back shares every year even 2008. So Mastercard is clearly a premium stock but with that comes a premium valuation. Let’s assume the company grows its revenue at the historical average of 12% for the next 10 years then operates with a 40% net income margin. Net income in 10 years time would be roughly 28 billion and a 30 times multiple would put the valuation at 840 billion. Include dividends and the investment return is a little over 9%. #mastercardstock #investing #stockstobuy #stockmarket 2023-06-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5644/should-you-buy-rivian-stock-june-2023 https://atto.videonest.co/5644_horizontal_thumbnail_v2.webp https://atto.videonest.co/5644_video_v3.mp4 Should you buy Rivian stock? (June 2023) Rivian stock analysis. RIVN stock. Join our newsletter: https://www.overlookedalpha.com In 2021, electric truck maker Rivian hit a peak market cap of 127 billion dollars. That marked the top of the bubble and today the market cap is just 13.1 billion. With 11.2 billion of cash and 2.7 billion of debt the enterprise value is only 4.6 billion. Meanwhile the company produced 24,000 vehicles last year and it made 2.2 billion in revenue over the last 12 months. That means the stock is valued at just over 2 times revenue. Although Rivian has a good chunk of cash on the balance sheet, it needs it because the company is losing a lot of money. Adjusted EBITDA was negative 5 billion last year and free cash flow is negative 6.8 billion over the last 12 months. There’s no way around that in the automotive business. But Rivian is making progress. It hopes to deliver 50,000 vehicles this year and hit 4 billion in revenue. It’s guiding for a loss of 4.3 billion EBITDA in 2023 which would be almost 1 billion better than last year. And the company’s vehicles are well received. The R1T was named motor trend truck of the year in 2021, the R1S has also received good reviews. On the commercial side, Rivian still has an agreement with Amazon to produce 100,000 delivery vehicles. That agreement is what helped spark the initial enthusiasm for Rivian stock. And Amazon still owns 17% of the company. That said, it’s difficult to value a company that isn’t expected to make a profit until 2028. Even with 11 billion dollars of cash, Rivian will at some point start to run out and need to tap markets for additional funds. And Rivian still has a market cap one-fourth the size of Ford which will be a strong competitor in this market. But if Rivian can meet its targets this year, it sets up a potentially critical 2024. #rivianstock #stocks #investing #stockstowatch 2023-06-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5645/should-you-buy-rocket-lab-stock https://atto.videonest.co/5645_horizontal_thumbnail_v2.webp https://atto.videonest.co/5645_video_v3.mp4 Should you buy Rocket Lab stock? Rocket Lab stock analysis. RKLB stock. Join our newsletter: https://www.overlookedalpha.com Rocket Lab stock is down roughly 44% since it went public. Today, the company has a market cap of 2.7 billion dollars. With 446 million of cash and 100 million of debt, the enterprise value is 2.3 billion. Rocket lab makes money in two main ways. It launches small satellites into orbit for multinational companies and organizations. And its space systems division designs and manufactures satellites and spacecraft components. The company also provides orbit management, so Rocket Lab does a bit of everything. Rocket Lab has launched over 30 rockets and 150 satellites but it’s the space systems division that contributes the most amount of revenue - around 65% of the total. And companies choose to launch satellites for a number of reasons; communication, defense, navigation, research and more. The launch market is expected to reach 35 billion by 2030 while the overall space market could hit over a trillion. What makes Rocket Lab unique is its focus on smaller payloads. To launch one of its Elektron rockets costs just 6 million dollars. Compare that with Spacex’s Falcon 9 which takes larger payloads and costs around 62 million dollars per launch. That’s helped Rocket Lab generate 225 million in revenue over the past 12 months which is an increase of almost 350% over 4 years. #rklbstock #stocks #investing #stockstowatch 2023-06-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5646/should-you-buy-nio-stock-june-2023 https://atto.videonest.co/5646_horizontal_thumbnail_v2.webp https://atto.videonest.co/5646_video_v3.mp4 Should you buy Nio stock? (June 2023) Nio stock analysis. NIO stock. Discover under-the-radar stocks: https://www.overlookedalpha.com Electric vehicle maker Nio has a market cap of 14.7 billion dollars. With 4.8 billion of cash and 3.7 billion of debt, the enterprise value is 13.6 billion. The company has delivered 127,000 vehicles over the last 12 months and generated 7.3 billion dollars of revenue. However, Nio is not profitable. The company lost 2.5 billion dollars over the past 12 months with an average gross margin of 7.8%. Nio makes good cars but before we go any further we have to discuss Nio’s first quarter earnings. As you can see, first quarter revenue at Nio was up 7.7% to 1.6 billion and the company delivered just over 31000 vehicles. But this number was below target and revenue was in fact down a third from the previous quarter. More importantly, Nio barely made any profit in the first quarter. Gross profit in Q1 collapsed 89% and the company lost 744 million dollars. That's a 133% increase year over year. The gross margin was only 1.5% versus almost 15% year over year. So what’s going on? Well, Nio’s production costs have increased but the company isn’t selling enough cars. And the company can no longer rely on government subsidies. The ET5 is arguably Nio’s most important car but according to the Electric Viking, preorder times for the ET5 have gone from 3 months to just two weeks. That suggests decreasing demand. Meanwhile, the company has been burning cash on battery swapping stations and implementing its auto driving stack. Despite this bad news, Nio stock is actually up 18% since it reported earnings. And that’s because Nio has finally recognised the trouble it’s in. Management is cutting back on R and D and its cutting prices on its cars. Its ending its free battery-swapping service and it will soon be selling its cars across Europe and later the US. And Nio really needs to do this. Because at the current burn rate, the company could run out of cash within the next two years. #niostockanalysis #niostockanalysistoday #stocks #investing 2023-06-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5647/should-you-buy-snowflake-stock-june-2023 https://atto.videonest.co/5647_horizontal_thumbnail_v2.webp https://atto.videonest.co/5647_video_v3.mp4 Should you buy Snowflake stock? (June 2023) Snowflake stock analysis. SNOW stock. Find under-the-radar stocks: https://www.overlookedalpha.com At 22 times revenue, Snowflake is one of the most expensive stocks on the public markets. The reason for that is rapid growth. It was the fastest company in history to hit 1 billion in revenue. And last years revenue growth was close to 70%. To understand Snowflake, imagine you are a multinational corporation that has thousands, even millions of different datasets covering all different aspects of your business. Snowflake provides the software to organize all that data and then analyze it in the cloud. And it does this with artificial intelligence and machine learning. Snowflake also has a unique pricing method whereby companies only pay for the amount of storage and computing power that they use. This means there are no upfront costs or long-term commitments. Based on the latest share price, Snowflake is valued at 55.1 billion dollars. With 5.1 billion of cash and investments, and zero debt, the enterprise value is 50 billion. Revenue over the last 12 months climbed to 2.3 billion and free cash flow was 636 million. But because the company is still investing for the future and because of stock-based compensation of almost a billion dollars, net income was negative 858 million. But it’s also worth mentioning that Snowflake has remaining performance obligations of 3.4 billion, the majority of this should be recognized as revenue within the next two years. That means the price to sales multiple is maybe not as high as the numbers suggest. And aside from rapid revenue growth, Snowflake boasts a number of impressive metrics. Net revenue retention in Q1 was 151%, gross margins were 77% and adjusted free cash flow hit 46% of revenue. And Snowflake is also a benefficiary of the AI boom. Large language models are built on vast amounts of data and Snowflake can help organizations run such models on their own data and help to structure not text-forms of data. Moreover Snowflake is integrated with all 3 of the fast growing cloud platforms, AWS, Google Cloud and Azure. On the Q1 earnings call CEO Frank Slootman said that Data science, machine learning and AI use cases on Snowflake are growing every day. In Q1, more than 1,500 customers leveraged Snowflake for one of these workloads, up 91% year-over-year. Interestingly, Snowflake dropped 11% after earnings due to a cut in guidance but it took investors less than 5 trading sessions to recoup those losses. #snowflakestock #stocks #investing #stockstobuy 2023-06-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5648/should-you-buy-palantir-stock-june-2023 https://atto.videonest.co/5648_horizontal_thumbnail_v2.webp https://atto.videonest.co/5648_video_v3.mp4 Should you buy Palantir stock? (June 2023) Palantir stock analysis. PLTR stock. Discover our research: https://www.overlookedalpha.com When Palantir reported earnings last month, the stock jumped over 20%. That rally continued and the stock is now up 129% year to date. That means the company is now valued at 31 billion dollars. With 2.9 billion of cash and investments and zero long-term debt, the enterprise value is 28.2 billion. Palantir’s rally can be explained by 3 main factors. Continuing top line growth, another quarter of profitability and excitement for its generative AI platform. Revenue in Q1 increased 18% to 525 million taking the total over the last 12 months to 2 billion and net income was positive for the second quarter in a row. But you can see that net income over the last 12 months is still negative at minus 250 million. With ¼ of all expenses being paid in stock-based compensation, the company does have positive free cash flow to the tune of 346 million. Growth at Palantir is still impressive with average revenue growth of 37% over the last few years and the company appears to be winning new contracts with governments on a regular basis. However, the revenue growth rate does seem to be declining and this is still an expensive stock trading at 14 times revenue and almost 82 times free cash flow. In addition, stock-based compensation remains significant. Back in December 2020, there were 1.8 billion shares outstanding, at the end of March 2023, that number has risen above 2.1 billion. A short sellers report last week claimed that Palantir is more of a consulting firm than a software company. It claimed Palantir invested in a number of SPACs on the basis that they would then purchase Palantir’s software. It seems that Palantir offers founders generous exit strategies so it can acquire companies and convert them to Palantir’s products. #pltrstock #palantirstock #stocks #investing 2023-06-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5649/should-you-buy-adobe-stock-june-2023 https://atto.videonest.co/5649_horizontal_thumbnail_v2.webp https://atto.videonest.co/5649_video_v3.mp4 Should you buy Adobe stock? (June 2023) Adobe stock analysis. ADBE stock. Our newsletter: https://www.overlookedalpha.com Adobe has been one of the market’s best stocks since its IPO back in 1986. Right now, the company has a market cap of 195 billion dollars. With 5.7 billion of cash and investments and 3.6 billion of long term debt the enterprise value is 193 billion. Revenue over the last 12 months is 18 billion, net income is 4.7 billion and free cash flow is 7.3 billion. So the company is valued at 11 times revenue, 41 times earnings and 26 times free cash flow. This is an expensive valuation and that’s because Adobe is a consistent performer. The company has grown revenues every year since 2012 and it operates with incredible gross margins of 88%. Part of Adobe’s success has been a seamless transition to subscription products which now make up 93% of total revenues. Adobe’s long list of products including Photoshop, Illustrator, Fresco, Premiere Pro, Acrobat and more are all tied to the booming creator economy and these products are perfectly suited to the subscription model. However, Adobe came under pressure last year following its planned acquisition of Figma for 20 billion dollars. Investors felt the price paid for Figma was way too high. Others said it showed how much competition Adobe is facing. Upstarts like Figma and Canva and AI tools like MLRunway and Midjourney can do the same things as many Adobe products and in some cases do them better. However, since that collapse the stock has rebounded and Adobe has announced its own contribution to the AI race. In a company presentation last week, Adobe unveiled generative tools for Photoshop that wowed users with the ability to quickly enhance and expand images through AI. This has caused a real buzz and no doubt more AI tools are on the way for all of Adobe’s other products. #adbestock #stocks #investing #stockstowatch 2023-06-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5650/should-you-buy-marvell-technology-stock https://atto.videonest.co/5650_horizontal_thumbnail_v2.webp https://atto.videonest.co/5650_video_v3.mp4 Should you buy Marvell Technology stock? Marvell Technology stock analysis. MRVL Stock. Join our newsletter: https://www.overlookedalpha.com Marvell Technology is a fabless semiconductor company that creates products used in data centers, enterprise servers, the Internet of Things (IoT), smartphones, and storage systems. The company went public in 2000 and until 2018, the return to shareholders – excluding dividends - was only 10%. That’s significantly worse than the S&P 500. Since 2019, however, the stock has taken off gaining 300% and that’s because Marvel is directly benefiting from the boom in data centers and artificial intelligence. This can be seen in top line revenue which grew 50% in 2021 and another 33% last year. At the current share price, Marvel has a market cap of 52 billion. It’s got 1 billion in cash and 3.2 billion of debt so the enterprise value is around 54 billion. Revenue over the last 12 months is 5.8 billion with 1 billion in free cash flow. But net income is negative at minus 167 million. That means Marvel stock is valued just over 9 times revenue and 54 times free cash flow. Meanwhile, the company pays a dividend of 0.4% and has gross margins just over 48% If we look at the company’s revenue mix, you can see that Marvel derives 38% of revenue from datacenters, 25% from enterprise networking, 19% from carriers, 11% from consumer products and 7% from automotive and industrial. #investing #stocks #stockstowatch #overlookedalpha 2023-06-07T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5651/should-you-buy-ryanair-stock https://atto.videonest.co/5651_horizontal_thumbnail_v2.webp https://atto.videonest.co/5651_video_v3.mp4 Should you buy Ryanair stock? Ryanair stock analysis. RYAAY stock. Discover under-the-radar-stocks: https://www.overlookedalpha.com Ryanair is a low-cost airline that serves short-haul routes across Europe and North Africa. While Ryanair isn’t known for quality, it is cheap and cheap is what many customers look for when travelling. This has helped the company to grow revenues from 5 billion euros in 2014 to almost 11 billion over the last 12 months. The business is profitable too. Except for two years around Covid, the company has had impressive operating margins between 13 and 24%. And it’s been able to derive a third of its revenues from ancillary services like in-flight food and drink. At the current share price, Ryanair has a market cap of 19.5 billion euros. With 4.7 billion of cash and 2.9 billion of long term debt the enterprise value is 17.7 billion. Free cash flow over the last 12 months was 2 billion and net income was 1.3 billion so the stock is valued at 1.6 times revenue, 9 times free cash flow and just under 15 times earnings. Looking at the chart you can see the stock is up 40% so far this year thanks to record travel numbers and a 30% drop in the oil price. However, shares are still below their 2021 peak and that has a lot to do with increasing labor costs. According to Moody’s, airline labour costs will increase 19% this year and another 8% in 2024. This will no doubt impact Ryanair’s earnings. Looking at the revenue mix below you can see that staff costs make up at least 11% of revenue while fuel and oil costs make up 37%. Despite this, Ryanair has big plans for the future. It has ordered another 300 jets from Boeing and plans to hire another 10,000 people. #ryanairstock #stocks #investing #stockstowatch 2023-06-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5652/should-you-buy-micron-stock-may-2023 https://atto.videonest.co/5652_horizontal_thumbnail_v3.webp https://atto.videonest.co/5652_video_v3.mp4 Should you buy Micron stock? (May 2023) Micron stock analysis. MU Stock. Join our newsletter for under-the-radar stocks: https://www.overlookedalpha.com Micron Technology supplies memory and storage hardware to some of the world’s largest companies. Its DRAM products help to power iPhones, smart vehicles, datacenters and more. While NAND flash and SSD drives are used for storage. Based on the latest share price, Micron has a market cap of 81 billion dollars. With 12 billion of cash and investments and 12 billion of long-term debt, the enterprise value is roughly the same. Meanwhile, the company has produced 23 billion in revenue over the last 12 months, 9.6 billion of EBITDA but only 1.6 billion of net income. So Micron is valued at 3.5 times revenue, 8.4 times EBITDA and 51 times earnings. Micron is a tricky company to value. On the one hand the company should be well positioned as a beneficiary of huge trends like artificial intelligence, 5g and electric vehicles. On the other hand, Micron is a cyclical stock that has seen wild swings in revenue. Revenue collapsed 23% in 2016, 23% in 2019 and this year looks like it will see a similar decline. Even worse, margins collapsed in the last quarter, with the company posting a negative gross margin of -33% and a record loss of 2.31 billion. The Micron CEO said that “The semiconductor memory and storage industry is facing its worst downturn in the last 13 years with an exceptionally weak pricing environment” And Micron’s figures were published before news that China is to ban sales of Micron’s memory chips. Micron derives more than 10% of its revenue from China so this news should be significant. And yet Micron stock is up almost 8% since the news broke. So what’s going on? The main reason is the blowout earnings from Nvidia which is providing a tailwind to semiconductor and memory stocks across the board. Datacenters and large language models require large amounts of memory so Micron is seen as another AI play and Micron’s products are in high demand. #stocks #investing #stockstobuy #micronstock 2023-05-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5653/should-you-buy-apple-stock-may-2023 https://atto.videonest.co/5653_horizontal_thumbnail_v3.webp https://atto.videonest.co/5653_video_v3.mp4 Should you buy Apple stock? (May 2023) Apple stock analysis. AAPL stock. Join our newsletter for more: https://www.overlookedalpha.com With a 2.7 trillion market cap, Apple is most likely the largest company in the world and the stock is up more than 60,000 since its IPO back in the 1980s. The company also has 25 billion dollars in cash, 141 billion of short-term investments and 97 billion of long term debt. Which means the enterprise value is 2.63 trillion. Revenue over the last 12 months equals 385 billion with 94 billion of net income and 98 billion of free cash flow. So based on recent figures, the company is valued at 6.8 times revenue, 29 times earnings and 27 times free cash flow. That PE ratio has come down from its peak but it’s still a bit higher than the historical average. Prior to 2020, Apple’s PE ratio typically sat in the 10x to 20x range. Looking at recent trends, you can see a company with modest growth, but improving margins. Despite a year over year drop of 2%, revenue has grown roughly 68% since 2017. Meanwhile, operating profit has increased 83% and net income has grown 95%. To understand this margin expansion, we can have a look at Apple’s changing revenue mix. In 2017, Apple revenue was 87% derived from products like iPhones, iPads etc and 13% was derived from services like advertising and content). Today, products has shrunk to 79% of total revenue and services has grown to 21% of the total. Very simply, services are higher margin, so Apple’s growth in this area contributes to a much leaner business. Apple has also proven an ability to raise prices. Warren Buffett recently said that customers would rather give up their second car than give up their iphone. #aaplstock #stocks #investing #stockstowatch 2023-05-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5654/should-you-buy-rolls-royce-stock https://atto.videonest.co/5654_horizontal_thumbnail_v3.webp https://atto.videonest.co/5654_video_v3.mp4 Should you buy Rolls Royce stock? (Only just realized YouTube accepts vertical videos 🤦‍♂️) Rolls Royce stock analysis. RR.L stock. Join the newsletter: https://www.overlookedalpha.com When someone mentions “Rolls-Royce” the first thing that springs to mind is the brand of British luxury cars. However, Rolls-Royce Holdings, the public company that trades on the London Stock Exchange, is predominantly an aerospace and defense company. It’s the world’s second-largest manufacturer of aircraft engines, after General Electric. And it operates across 4 key segments. Civil Aerospace- this includes the development and production of commercial aircraft. Defense includes the development of military aircraft and nuclear submarines. Power systems including on-site power and propulsion systems. And New markets which includes the manufacture of small modular reactors and new electric power solutions. Currently, civil aerospace contributes 45% to the company’s total revenue, defense is 29% and power systems is 26%. The new markets segment is currently small and doesn’t produce much revenue at all. The defense sector is the most profitable one, accounting for 60% of the operating profit, followed by power systems for the remaining 40%. Civil aerospace, the largest segment by revenue, contributes only 20% of profit. Currently, Rolls Royce has a market cap of 13.1 billion pounds. With 3.1 billion of cash and investments and 5.6 billion of debt, the enterprise value is 15.6 billion. From an operating point of view, the company looks healthy with £900m in operating profit. The trouble is what lies below that line in the income statement. Taking into account £12b in contract liabilities Rolls Royce net financing cost for 2022 was a staggering £2.4 billion. This is not a fair representation, because £1.9b was related to losses on foreign currency contracts. Still, even after the adjustment, significant debt obligations put the company at risk. And so we have negative net income to the tune of 1.2 billion and low gross margins of 20%. Reducing the level of debt has to be the #1 priority of the management, especially in an environment where the interest rates are rising. Rolls-Royce operates in a very complex environment, and its financials aren’t simple either. This doesn’t give a lot of confidence in the eyes of the investors, so the share price decline of almost 50% in the last 5 years doesn’t come as a surprise. #stocks #investing #stockmarket #stockstowatch 2023-05-28T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5655/should-you-buy-block-stock https://atto.videonest.co/5655_thumbnail_resized.webp https://atto.videonest.co/5655_video_v3.mp4 Should you buy Block stock? Block stock analysis. SQ stock. I've started a newsletter to find overlooked, actionable stock ideas: https://www.overlookedalpha.com Block (formerly known as Square) has caught the attention of investors for a number of reasons. Number one, it’s seen incredible revenue growth as it attempts to disrupt the lucrative payments industry. Number two, its CEO is Jack Dorsey, the co-founder of Twitter. And number three the stock has been exceptionally volatile. It’s crashed 80% since its all-time high but its still up more than 350% since its IPO back in 2015. That share price gives Block a market cap of 36 billion dollars. With 6.5 billion of cash and investments and 4.1 billion of long-term debt, the enterprise value is roughly 34 billion. Revenue at Block had been growing at a rapid rate of over 50% a year but last year saw an unexpected drop of 1% coming in at 18.6 billion for the last 12 months. And the company is not yet profitable. EBITDA was negative 40 million and net income was minus 365 million. A lot of that is due to heavy stock-based compensation which comes in at 1.1 billion. Revenue at Block is split out into 4 buckets: ● Bitcoin revenue, linked to Block’s Cash App totaled $7.5b and makes up 40% of the total ● Transaction-based revenue was $5.9b, 32% of the total ● Subscription and services made $5b (27% of the total) ● And hardware was $0.2b (1% of the total) Although revenue is impressive it’s important to consider profitability. Subscriptions is the most profitable segment with 80% gross margins and transaction-based revenues has a 37% gross margin. But bitcoin revenue, despite being the largest revenue driver has a gross margin of 0.02%, meaning it barely contributes any profits, and the final segment hardware, has a negative gross margin. But let’s assume that Block can return to growth and lets assume its transaction and subscription revenues can compound at 10% a year for the next 10 years. If it can operate at a similar net margin as PayPal of 15% that would see the company produce 4.2 billion of net income in 10 years time. A 25 times multiple on that figure gets us to a market cap of 105 billion which works out to an investment return of 11.3%. #stocks #investing #stockstowatch #blockstock 2023-05-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5656/should-you-buy-cloudflare-stock https://atto.videonest.co/5656_thumbnail_resized.webp https://atto.videonest.co/5656_video_v3.mp4 Should you buy Cloudflare stock? Cloudflare stock analysis. NET stock. Visit our Substack for more: https://www.overlookedalpha.com If you’re looking for a company with impressive top-line growth, then Cloudflare fits the bill. Its revenue grew from $85m back in 2016 to almost $1.1 billion for the last twelve months. That’s an impressive annual growth of about 50%! The company is a content delivery network which provides some of the plumbing behind the internet. When you visit a website that uses Cloudflare, your computer talks to Cloudflare's servers first which then talks to the website's servers. This helps to make websites load faster and also helps to protect your computer from malware and other threats. The significance of Cloudflare can be seen whenever the service goes down as it takes many of the world’s largest websites with it. Today, the company has a market cap of 16.6 billion dollars with 1.4 billion of long term debt and 256 million of cash. That gives the company an enterprise value of 17.7 billion. Revenue over the last 12 months was 1.1 billion, and free cash flow was 59 million. But net income was negative 190 million. Part of that stems from significant stock-based compensation which comes in at 226 million. But it’s also due to Cloudflare continuing to spend -- on research and development and sales and marketing. All this means that the company is valued at an incredibly steep 16 times revenue or 300 times free cash flow. However, as Cloudflare grows these multiples will come down and management believes it can hit $5 billion in revenues by the end of 2027. Management also thinks it can reduce sales and marketing expenses by 14% over the next few years and SGA costs by 3% and by doing so get to 20% operating margins from just 7% today. Let’s assume that Cloudflare can hit 5 billion in revenue by 2028 with a 20% operating margin. That would put operating income at around 1 billion. A 30 times multiple puts the valuation at 30 billion in 5 years time which works out to an investment return of 11% per year. So as you can see, a great deal of growth is already baked into the share price. That said, Cloudflare is investing in new products and revenue should be supported by the current boom in artificial intelligence. On the latest earnings call, CEO Matthew Prince said “revenue that’s coming from AI companies have substantial growth north of 20% quarter over quarter”. #netstock #cloudflarestock #stocks #investing #stockstobuy 2023-05-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5657/should-you-buy-dutch-bros-stock https://atto.videonest.co/5657_thumbnail_resized.webp https://atto.videonest.co/5657_video_v3.mp4 Should you buy Dutch Bros stock? Dutch Bros stock analysis. BROS stock. Join our newsletter for more ideas: https://www.overlookedalpha.com By the end of March 2023, this number had increased to 716 (with 278 franchised shops & 438 that are company-operated). And management has ambitious plans for growth, it wants 1000 shops by 2025 and 4000 shops in 10-15 years time. Looking at the latest financials, the company has a market cap of 5.3 billion dollars with 14 million of cash and 96 million of long term debt. Revenue over the last 12 months is 784 million, adjusted ebitda is 47 million but the company recorded negative net income and negative free cash flow. So the company is valued at 6.6 times revenue or 113 times ebitda with gross margins around 25%. As a beverage drive-thru, Dutch Bros revenue is divided into 3 segments: • Coffee makes up 50% • Energy drinks including their own Blue Rebel brand makes up 25% • And the other 25% is from teas, sodas and smoothies The challenge with this impressive growth is continuing to find profitable locations and Dutch Bros margins cause some concern. Their operating margin in 2019 was close to 13% but its fallen to zero over the last twelve months. This was mainly due to an increase in rent and in the prices of raw materials, particularly coffee beans. A key consideration for investors is whether the decrease in margins is a warning signal for things to come. On one hand, the drop in margins may be part of the company’s strategy. Affordable prices and memberships are a good way to develop customer loyalty and drive growth which can be monetized down the road. On the other hand, if Dutch Bros is unable to pass costs to the final customer, it means the company’s profits are too dependent on raw materials and management can do very little to impact margins. #dutchbros #stockstowatch #stocks #investing 2023-05-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5658/should-you-buy-enphase-stock https://atto.videonest.co/5658_thumbnail_resized.webp https://atto.videonest.co/5658_video_v3.mp4 Should you buy Enphase stock? Enphase stock analysis. ENPH stock. Visit our website for more: https://www.overlookedalpha.com Enphase Energy produces batteries and microinverters for solar power and its been one of the strongest stocks of the last 10 years. Based on the recent share price, the company has a market cap of 21.3 billion. With 1.8 billion of cash on the balance sheet and 1.2 billion of debt the enterprise value is 20.7 billion. Enphase revenue really started to take off in 2018. Sales have grown from $316m in 2018 to $2.6 billion over the last 12 months. Over the same period, operating margin has improved from 0% to 21%, generating an operating profit of $554 million today. Meanwhile, net income was 492 million and free cash flow was 832 million. That means the company is currently valued at 8 times revenue, 43 times earnings or 25 times free cash flow. The company also pays out a reasonable chunk of stock-based compensation, around 229 million. But Enphase’s high valuation multiple is underpinned by strong growth. As you can see from the table, Enphase experienced barely any growth pre 2018 but since then we’ve seen annual growth in the region of 50% which is extremely impressive. And based on analyst estimates that growth should continue. Analysis expect Enphase to grow 25% per year for the next few years and increase operating margin to 28%. This would lead to an operating profit of 1.3 billion and close to 1 billion in net income in less than 3 years. #stockstowatch #investing #stocks #overlookedalpha 2023-05-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5659/should-you-buy-meta-stock-may-2023 https://atto.videonest.co/5659_thumbnail_resized.webp https://atto.videonest.co/5659_video_v3.mp4 Should you buy Meta stock? (May 2023) Meta stock analysis. META. Visit our website for more: https://www.overlookedalpha.com Meta currently has a market cap of 617 billion dollars. It’s got 11.6 billion of cash on the balance sheet and 10 billion of debt so the enterprise value is 615 billion. Over the last 12 months, the company has made 117 billion dollars of revenue, 21 billion of net income and 17.6 billion of free cash flow. That means the stock is valued at 5 times revenue, 29 times earnings or 35 times free cash flow. Those multiples are not cheap, especially when you consider stalling growth. Q1 revenue increased by only 3% and net income fell by 24%. On the plus side, daily active people increased 5% to 3.02 billion so bulls say the company has plenty of levers to pull. Looking at the stock chart, Meta is a great example of a company that in a short period of time changed priorities multiple times, all thanks to Mark Zuckerberg’s vision. Meta has dual-class shares, and due to this structure, Mark owns almost 60% of the voting rights, despite owning a lot less of the company. This gives him the ability to exercise significant influence in which direction the company is going. After introducing the metaverse, and changing the company name from to Meta, a lot of uncertainty arose. The company started investing tens of billions into a new segment called Reality Labs. The shareholders weren’t comfortable with this decision and the share price declined by 75%. Sentiment changed significantly and Meta was no longer seen as a company with a strong portfolio of cash-generating apps. Instead, it was seen as a company taking risky bets. Although Zuckerberg has the majority of the voting rights, this could not be ignored and Meta had to make a change. Instead of going all in on the metaverse, the focus shifted to improving operating efficiency, which also resulted in reducing the number of employees. This decision, was welcomed by the market, the sentiment changed again, and the share price has since increased by over 160% to $240 in less than 6 months. #metastock #stocks #investing #stockmarket 2023-05-09T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5660/should-you-buy-lululemon-stock-may-2023 https://atto.videonest.co/5660_thumbnail_resized.webp https://atto.videonest.co/5660_video_v3.mp4 Should you buy Lululemon stock? May 2023 Lululemon stock analysis. LULU stock. Visit our website for more: https://www.overlookedalpha.com Lululemon has provided great returns for shareholders since its IPO back in 2007. Its share price is up more than 2,500%. And the stock jumped 20% last month after reporting another strong earnings report. That takes the company up to a valuation of 48 billion dollars. With 1.2 billion of cash and little debt the enterprise value is 47 billion. Revenue over the last 12 months is 8.1 billion, with 855 million of net income and 328 million of free cash flow. So the business is valued at almost six times revenue and 57 times earnings. That’s expensive but Lululemon has grown its top line revenue every year in the last decade and its maintained strong gross margins of 55% with net income margins around 11%. It’s also useful to see how the company has grown its retail footprint. Over the last fiscal year, the company has opened another 81 stores, with the majority in the US and China. And it’s had to close only 6 stores which, statistically, isn’t bad. In fact, revenue increased by almost 30% in the last year (from $6.3b to $8.1b), which is even higher than the increase in stores. The company also compares favorably against its peers. Its operating margin at 16.4%, is more than adidas (which plunged to 3% last year) and Nike which sits at 14.3%. • Adidas 3.0% (down from 9.3% in 2021) • Nike 14.3% (down from 15.6% in 2021) This shows the brand strength of the business and at the company investor day, management said it wanted to double revenue in 5 years time and quadruple international growth. Despite all these positives, the price of Lululemon stock does provide some risk to investors. The company’s ecommerce segment benefited greatly from the pandemic and it wouldn’t be a surprise to see some slowdown in top line revenue. #stocks #stockstowatch #investing #lululemonstock 2023-05-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5661/six-stocks-that-could-reasonably-10x https://atto.videonest.co/5661_thumbnail_resized.webp https://atto.videonest.co/5661_video_v3.mp4 Six Stocks That Could Reasonably 10x Join our next discussion at https://www.overlookedalpha.com Enovix has a market cap of 1.7 billion and they've designed a new type of high-capacity lithium battery. Revenue is tiny at the moment but if companies like Samsung start using this battery then the stock could go a lot higher. And Marc Cohodes is bullish on this as well. Tom A recommended Kooth plc which trades on the London market. Kooth has developed a digital platform that tackles mental health. The company sells the platform to governments and private institutions and recently won a contract in California. This company has a market cap of only 83 million with roughly 19 million of recurring annual revenue so there’s huge potential for upside, and it’s tackling an important problem as well. AC Sterling highlighted Duolingo which trades on the Nasdaq and has a market cap around 5 billion. Although the company is expensive at 13 times revenue, the business is growing at over 40% a year and it’s not facing an awful lot of competition. I did another video on Duolingo a few days ago so make sure to check that out for more details on the stock.. Chris deMuth volunteered Nam Tai Property Inc, ticker symbol NTPIF. This is an obscure hong kong real estate company that is involved in a complex legal battle. So this is a real high risk trade, it could go to zero but if it wins its case Chris thinks it could also be a 10x. Vince Martin called out Vintage Wine Estates which trades on the Nasdaq. This company owns a large number of wine brands and vineyards but the business has been crushed by declining margins and it’s got a large amount of debt. However, the company doesn’t need to pay off its debt until 2027. So the big thing here is that the company has plenty of time to turnaround and if it does, the stock is bound to go a lot higher. Finally, Poster recommended a company called Pagaya Technologies.which is a fintech company based out of Israel. Pagaya uses AI to price consumer loans and it did almost 700 million of revenue last year. There are a host of red flags with this company but the stock has got so cheap and there’s 300 million of cash on the balance sheet. A 10x move would get the company only back to its merger price so there’s definitely a path there to real upside. #overlookedalpha #stocks #investing #stockstobuy 2023-05-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5662/should-you-buy-duolingo-stock https://atto.videonest.co/5662_thumbnail_resized.webp https://atto.videonest.co/5662_video_v3.mp4 Should you buy Duolingo stock? Duolingo stock analysis. DUOL stock. Visit our website for more: https://www.overlookedalpha.com I think it’s worth taking a look at Duolingo because its one of the best performing stocks this year, gaining over 90%. The company helps people learn languages through its app and its got a successful marketing strategy via social media channels like Instagram and TikTok where it has over 6 million followers. Based on the current share price, the company has a market cap of 5.6 billion dollars. With 600 million of cash and no debt the enterprise value is roughly 5 billion. Revenue sits at 370 million over the last 12 months but the company is not yet profitable reporting minus 60 million in net income. Free cash flow is positive at 48 million and stock based compensation is also significant at 20% of sales. However, the story with Duolingo is rapid revenue growth. Revenues have grown from just 71 million in 2019 to 370 million today, an increase of 5x. Gross margins are good too, increasing from 71% in 2019 to 73% today. Duolingo can also be proud of the positive impact it’s having. The app has over 500 million users, 37 million of which pay to improve their language skills. Compare that to Pinterest which has a similar audience and is valued at 18 billion. Key to the success of Duolingo is it’s gamified approach to learning. And there’s no doubt the company can expand its offering to incorporate more subjects such as mathematics, physics and more. #stocks #investing #stockstobuy #finance #overlookedalpha 2023-04-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5663/should-you-buy-buzzfeed-stock-apr-2023 https://atto.videonest.co/5663_thumbnail_resized.webp https://atto.videonest.co/5663_video_v3.mp4 Should you buy Buzzfeed stock? (Apr 2023) Visit our website for more: https://www.overlookedalpha.com If you are looking for a depressing stock chart, then BuzzFeed would do great. Since its public debut through a SPAC (special purpose acquisition company), its share price is down more than 90%. Unlike its competitors, BuzzFeed is focusing most of its content on Gen Z and Millennial audiences by creating content in short forms. The management puts a lot of attention to metrics that relate to the # of Reels and Shorts views, as well as the output of short form vertical videos on TikTok, Instagram, and YouTube. Other than its flagship BuzzFeed brand, the company owns the food brand Tasty, HuffPost (which was acquired in February 2021), as well as Complex Networks (acquired in December 2021). Although all of this might sound great, if we take a closer look at the financials, it seems that BuzzFeed is struggling to meet ends. Its revenue keeps growing ($321m in 2020  $437m in 2022), but the operating profit (excluding impairment expense as a one-off) decreased from positive $12m to negative $80 million. This represents a negative operating margin of -18%! What has changed over these few years? One of the main reasons for this decline is the drop in their gross margin, from 56% to 40%. The gross profit that the company is generating is not sufficient to cover the Sales and Marketing and the General and Administrative expenses. #investing #stocks #stockstowatch #finance 2023-04-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5664/should-you-buy-millerknoll-stock https://atto.videonest.co/5664_thumbnail_resized.webp https://atto.videonest.co/5664_video_v3.mp4 Should you buy MillerKnoll stock? MillerKnoll stock analysis. MLKN stock. Visit our Substack for more: https://www.overlookedalpha.com Furniture company MillerKnoll was created in 2021 from the combination of Herman Miller and Knoll. The combined business includes many high end office furniture brands. The business has had a difficult couple of years dealing first with COVID and then supply chain disruptions. The pandemic caused a shift in work-from-home trends which is not ideal for an office furniture company like MillerKnoll. More recently, companies have been laying off workers and there’s concern about the commercial real estate sector. Neither are good for office furniture sales. As you can see from the latest sales trends, orders are not showing much sign of growth and gross margins at 35% remain below pre pandemic levels. Right now, the company has a market cap of 1.3 billion. But with 1.4 billion of debt, the enterprise value is roughly 2.5 billion. Revenue over the last 12 months got a boost from the Knoll acquisition and sits at 4.2 billion. Meanwhile, net income was 68 million. So Millerknoll is currently valued at 0.6 times revenue or 15 times earnings. Long term debt of 1.4 billion is 2.6 times ebitda so the company not only needs to manage sales but keep up with debt repayments. And CEO Andi Owen came under pressure last week after a leaked Zoom call showed her telling employees to forget about bonuses and to leave ‘pity city’. This is not a good look and signals potential mismanagement. However, the valuation applied to MillerKnoll looks too cheap. You can see that the stock is only just above its COVID lows and the price to sales ratio is below the bottom of its historical average. #stocks #investing #stockstobuy #overlookedalpha 2023-04-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5665/how-to-follow-superinvestors-like-warren-buffett-free-tool https://atto.videonest.co/5665_thumbnail_resized.webp https://atto.videonest.co/5665_video_v3.mp4 How to follow superinvestors like Warren Buffett (free tool) Join our newsletter: https://www.overlookedalpha.com I came across this great website that lets you track the portfolios of famous investors for free. It’s called dataroma and you can find it at dataroma.com So this is the homepage, and you’ve got all the latest updates on the left. So there’s an update from Guy Spier, Charlie Munger, Howard Marks. Let’s click this update from Warren Buffett. And you can see that Buffett’s fund, Berkshire Hathaway, bought some more Apple stock and Paramount stock. And they sold a sliver of Chevron and a big chunk of Activision Blizzard. And if you click into any of these stocks, you get a page that shows you what other hedge funds are holding the stock. For example, if we take a look at General Motors, you can see that Greenhaven associates has a 11% stake in the company and Bill Miller likes it too. Let’s go back to the homepage. On the right hand side you can see which stocks are the most heavily owned by superinvestors. So here you can see that Google and Microsoft are the most owned stocks by these big funds. And then down below these are the top big bets. And you can see that Micron is owned by 11 superinvestor funds and one fund has as much as 77% of their portfolio in Micron. And that is actually Mohnish Pabrai. One thing I like to do on this website is to look for some of the smaller cap stocks that superinvestors are buying. Lots of funds are invested in Google and Apple but if you can find a smaller company that superinvestors are buying, that’s usually a good sign to look further into that company. 2023-04-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5666/should-you-buy-costco-stock https://atto.videonest.co/5666_thumbnail_resized.webp https://atto.videonest.co/5666_video_v3.mp4 Should you buy Costco stock? Costco stock analysis. COST stock. April 2023 Visit our Substack for more: https://www.overlookedalpha.com Legendary investor Charlie Munger has shared that he’s addicted to Costco. His friend, Warren Buffett, had a position in the company until the end of 2020. And it’s been one of the best performing stocks of the last 30 years. Today the company is worth 217 billion dollars so what makes Costco such a good business? For one, it takes care of its stakeholders. Employees are fairly compensated, and even though Costco is the 3rd biggest retailer behind Walmart and Amazon, they provide superior experience through a commitment to affordable prices. A great example is the Costco hot dog. Despite rampant inflation, a Costco hot dog and soda costs the same as it did back in 1985 at just $1.50. Another example is Costco’s rotiserrie chickens which sell for only 4.99. These products are known as loss leaders. They lose Costco money individually, but the low prices get customers in the door and also drive memberships. And Costco owns its own poultry farms in order to keep its prices low. Costco’s financial performance has been remarkably consistent. Their revenue has more than doubled from $113 billion back in 2014 to $234 billion over the last twelve months. Analysts are projecting growth of around 6-7% for the next 3 years, which is still impressive considering the size of the business. As mentioned, memberships have proven to be incredibly good for Costco’s business, not only attracting new customers but also ensuring they continue to shop in their stores. But, due to the nature of the business, their operating margin is fairly low at around 3%. This translates to around $8 billion in operating profit for the last twelve months and 6.1 billion in net income. #stocks #investing #stockmarket #stockstobuy 2023-04-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5667/should-you-buy-zim-stock https://atto.videonest.co/5667_thumbnail_resized.webp https://atto.videonest.co/5667_video_v3.mp4 Should you buy ZIM stock? ZIM stock analysis. Zim Integrated Shipping Services. Visit our Substack for more: https://www.overlookedalpha.com In 2022, the operating profit of ZIM was $6.1 billion and net income was 4.6 billion, which is significantly higher than today’s market cap. The company also has $3.2 billion in cash and investments and $2.5 billion in lease liabilities. So looking purely at the financials and the balance sheet ZIM looks undervalued. The business is valued at half last years earnings and incredibly, has more cash on its balance sheet than its current market cap. However, it’s worth mentioning the company pays interest on 2.7 billion of lease liabilities. And looking at the P/E ratio is meaningless in this case because the coming years are going to be very challenging for ZIM. The high freight rates that we saw during lockdowns are a thing of the past and demand is being crushed by inflation. So the most likely outcome is a reduction in freight rates to pre-pandemic levels. Shipping is intensely competitive and low margin so ZIM will see significant pressure to its bottom line. In fact, based on analyst estimates, earnings per share will turn negative in 2023, and stay there. In other words, ZIM has several years of losses ahead and that’s going to eat up cash from the balance sheet. Moreover, management typically pays 30-50% of net income in the form of dividends but if net income turns negative then investors can expect the dividend to be significantly reduced. And a reduced dividend is going to frustrate investors and put further pressure on the stock. ZIM has cash to play with and perhaps it could scale down part of its business or move into something higher margin. But these types of stocks are notoriously boom or bust and depend very much on macro conditions. And it’s worth nothing that ZIM has a high short interest of over 20%. Overall, there may be some reasons to buy ZIM stock but shipping stocks are best left to industry experts and I see too many red flags to warrant an investment. I therefore give this stock a neutral rating. But these are my personal opinions not financial advice. #stocks #investing #zimstock #stockstowatch 2023-04-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5668/should-you-buy-nvidia-stock-april-2023 https://atto.videonest.co/5668_thumbnail_resized.webp https://atto.videonest.co/5668_video_v3.mp4 Should you buy Nvidia stock? April 2023 Nvidia stock analysis. NVDA stock. Visit our Substack for more: https://www.overlookedalpha.com Nvidia is probably the hottest stock on the market right now. In fact, shares are up more than 30,000% since its IPO back in January 1999. And it’s not hard to see why. Nvidia’s products are used in some of the fastest growing industries in the world like gaming and artificial intelligence. Right now, the company has a market cap of 681 billion dollars. With 9.7 billion of long term debt and 3.4 billion of cash, the enterprise value is 687.5 billion. Revenue over the last 12 months was 27 billion, net income was 4.4 billion and free cash flow was 5.2 billion. So Nvidia stock is valued at an incredible 25 times revenue and 156 times earnings. To be sure, that makes Nvidia one of the most expensive stocks on the market as well. At the moment, Nvidia reports its results in two operating segments: - Compute & Networking (this includes their Data Center products, networking, automotive AI, crypto and much more). And - Graphics (this includes all of their GPU products)) These established brands allow the company to charge premium prices for premium quality. What’s interesting is that the Compute & Networking segment grew 36% YoY while their Graphics segment decreased by 25% (This was mainly due to lower prices to reduce inventory levels and coming off the boom in 2021). But overall, product innovation at Nvidia has been first class and has allowed the company to grow revenues almost 180% over the last 5 years. However, it’s not all good news. Hardware is still a volatile business and Nvidia’s operating margin has decreased from 33% to 21% over the last five years. So the company is clearly not immune to increasing competition or market cycles. #stocks #investing #nvdastock #stockstowatch 2023-04-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5669/should-you-buy-allbirds-stock https://atto.videonest.co/5669_thumbnail_resized.webp https://atto.videonest.co/5669_video_v3.mp4 Should you buy Allbirds stock? Allbirds stock analysis. BIRD stock. Join our Substack for more: https://www.overlookedalpha.com Founded in 2015, it didn't take long for Allbirds to be called “Silicon Valley’s favorite sneaker,” The shoes were flying off the shelves, the company expanded into 30 countries and last year generated almost $300 million in sales. However, Allbirds is actually in a precarious position right now with its share price dropping to just $1.15. That gives the company a market cap of 170 million on yearly revenues of 298 million. So revenue has more than doubled over the last four years but the company’s earnings have turned sharply negative. Adjusted ebitda was negative 1.3 million in 2019 but last year the loss ballooned to over 60 million. That’s a big issue because the company;s cash balance is only 167 million and Allbirds is expected to keep burning cash over the next few quarters. The big problem for Allbirds is that the company tried to expand too quickly. It opened up more than 50 retail stores over the last 4 years. Meanwhile supply chain issues and inflation have ramped up costs just like for every other retailer. In hindsight, that expansion was far too aggressive and now the stock is a risky bet. Sales are expected to fall by 20% this year as well and, again, after burning $122 million of cash in 2022, the company has only $167 million of cash left. But, there is potentially a way out for Allbirds if it can manage to steady the ship and survive just a little bit longer. After all, the product is still in demand and the company still makes over 250 million dollars in sales. At such a low market valuation, the company might be an interesting acquisition for a larger footwear business like Deckers. Deckers has a history of buying other brands and they might like to get Allbirds on the cheap. And that would likely see the Allbirds share price move sharply higher. #stocks #investing #stockmarket #stockstowatch 2023-04-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5670/should-you-buy-on-holding-stock-huge-growth https://atto.videonest.co/5670_thumbnail_resized.webp https://atto.videonest.co/5670_video_v3.mp4 Should you buy On Holding stock? (Huge growth) On Holding stock analysis. ONON stock. Visit our Substack for more: https://www.overlookedalpha.com ON Holding sells the popular on cloud running shoes that have taken the world by storm. Right now, the company is valued at roughly 7.8 billion swiss francs. Revenue over the last 12 months was 1.2 billion, net income was 58 million and adjusted ebitda was 165 million. That means the company is valued at 6.4 times revenue, 139 times earnings or 47 times EBITDA. That’s a steep valuation and the reason is that On is seeing exceptional growth. Revenue for 2022 was 69% higher than 2021. And the company expects to grow another 39% this year. That’s some of the strongest growth in the market right now and this growth is backed up by positive product reviews and strong google search data. On top of that, On reports strong gross margins of 56% which are higher than both Nike and Lululemon. The company is clearly building a strong brand with an additional focus on sustainability. Its latest shoe, for example, contains 44% recycled materials. On the other hand, rapid growth costs money and On’s negative cash flow stems from expansion in China and opening up stores. With only 371 million in cash on the balance sheet there’s a reasonable chance the company will need to raise more capital to pay for growth. There’s no doubt that On running will be a bigger business in the future. The question is what type of returns are on offer from the stock. Let’s assume that On grows revenue 40% this year, 30% the following year and then continues to compound at 20%. In that scenario, On would hit revenues of 11.5 billion by 2033. Apply a 10% net margin similar to Nike and we get 1.2 billion of net income in 10 years time. #stocks #investing #stockstowatch #ONONstock 2023-04-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5671/is-bed-bath-and-beyond-stock-better-than-a-lottery-ticket https://atto.videonest.co/5671_thumbnail_resized.webp https://atto.videonest.co/5671_video_v3.mp4 Is Bed Bath & Beyond stock better than a lottery ticket? Bed Bath and Beyond stock analysis. BBBY stock. Visit our Substack for more: https://www.overlookedalpha.com Bed Bath and Beyond is in bad shape right now and the stock has dropped to just 45 cents. The company files its annual report on April 26th so it has about 3 weeks to raise enough cash to avoid bankruptcy. But a deal with hedge fund Hudson Bay wasn’t enough and an attempt to raise $300 million dollars from selling shares didn’t work either. Right now, the best chance Bed Bath and Beyond has of surviving is if meme traders pile into the stock and give the company one last chance to raise capital. There’s not much sign of that happening as the stock keeps sinking towards zero. But is Bed Bath and Beyond stock a better bet than a lottery ticket? Let’s put the probability of Bed Bath and Beyond avoiding bankruptcy at 5% and let's say if that happens the stock goes to 5 bucks. Under that scenario you’d make a return of 1150% if you bought the shares at 45 cents which sounds like a great return. But we can calculate the expected value of that bet by multiplying the probability of it happening by the payoff. And the expected value of that bet is around 50 cents. That means for every $1 you invest in Bed Bath and Beyond you’d be expected to lose 50 cents on average. Meanwhile, the expected value of US powerball is 32 cents which means that for every $2 ticket you buy you can expect to lose 1.68 on average. And that works out to an expected value of 16 cents for every 1 dollar invested. So in that scenario Bed Bath and Beyond stock is a better bet than powerball. However, let’s say the chance of Bed Bath and Beyond avoiding bankruptcy is only 1%. In that scenario, the expected value drops to only 10 cents which means you’d be better off playing powerball than buying Bed Bath and Beyond stock. So it really depends on what you think the probabilities are. But neither odds for Bed Bath and Beyond stock or US powerball look very appealing which is why I won't be buying either. #stocks #investing #stockstowatch #bbbystock 2023-04-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5672/should-you-buy-alibaba-stock-march-2023 https://atto.videonest.co/5672_thumbnail_resized.webp https://atto.videonest.co/5672_video_v3.mp4 Should you buy Alibaba stock? March 2023 Alibaba stock analysis. BABA. Visit our Substack for more: https://www.overlookedalpha.com When Alibaba was listed on the New York Stock Exchange back in 2014, it was the largest IPO in world history, with a market cap of $231 billion. Today, 5 years later, the market cap is $215 billion. Let’s dive a bit deeper into its performance and try to better understand Alibaba. The company is involved in a conglomerate of businesses, involved in Commerce, e-Payment, Shopping search engines as well as cloud computing. The biggest revenue source, accounting for roughly 2/3rd of total revenue, is the China commerce segment. Not only it is the largest, but it is also the only profitable segment, with an operating margin of around 30%. #alibabastock #babastock #investing #stocks 2023-03-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5673/should-you-buy-salesforce-stock https://atto.videonest.co/5673_thumbnail_resized.webp https://atto.videonest.co/5673_video_v3.mp4 Should you buy Salesforce stock? Salesforce stock analysis. CRM stock. Visit our Substack for more: https://www.overlookedalpha.com The company’s market cap is around $183 billion, and once we adjust for the cash of $7 billion and long-term debt of $9,4 billion, the enterprise value is roughly $185 billion. This puts quite a high multiple if we compare this to the operating profit mentioned above. The growth ahead is expected to be above 10%, which is still impressive, but the company is likely to focus more on expanding the margin by cutting the marketing & sales as the large expenses will be less and less justified as the company grows larger. If we take a look at other companies that are selling software, such as Adobe, Autodesk, and Oracle, we can expect operating margins between 20% and 30%, which is a significant increase from the current levels. Historically, the majority of the cash flow has been used to acquire new companies that could broaden the offering and add value. However, recently the company started returning part of the excess cash to the shareholders via share buybacks, which indicates that the management believes the company is undervalued. Whether that is the case or not, depends on the company’s ability to improve the margins in the coming years. #stocks #investing #overlookedalpha #stockstowatch 2023-03-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5674/should-you-buy-gamestop-stock https://atto.videonest.co/5674_thumbnail_resized.webp https://atto.videonest.co/5674_video_v3.mp4 Should you buy GameStop stock? GameStop stock analysis. GME. Visit our Substack for more: https://www.overlookedalpha.com GameStop stock jumped 40% yesterday after reporting its first quarterly profit in two years. However, the stock may not be a buy just yet. At current prices, Gamestop has a market cap just over 7 billion dollars. The short squeeze allowed GameStop to pay off a lot of debt, and so the company now has net cash of 1.3 billion giving the company an enterprise value of roughly 5.7 billion. In their latest quarter, Gamestop reported an impressive reduction in operating expenses. Cost of sales fell by 8% to 1.7 billion and SGA expenses dropped around 16%. This led to 48 million of net profit in the quarter, its first profitable quarter since 2021. . However, it’s not all good news. Revenue dropped 1% to 2.2 billion and if we look at the figures for the whole year the company is doing much worse. Net income for the whole of 2022 was negative 313 million and adjusted ebitda was negative 192 million with free cash flow of 52 million. So Gamestop is valued at just under 1 times revenue or 109 times free cash flow. Gamestop may have gone the way of Blockbuster if it wasn’t for the pandemic short squeeze that allowed the company to pay off billions of debt. #stocks #investing #gamestopstock 2023-03-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5675/should-you-buy-intel-stock https://atto.videonest.co/5675_thumbnail_resized.webp https://atto.videonest.co/5675_video_v3.mp4 Should you buy Intel stock? See our Substack for more: https://www.overlookedalpha.com Intel stock analysis. Two minute analysis INTC stock.. Over the last decade, Intel had steady growth of revenue of roughly 5% per year. But revenue dropped 20% in 2022 lead by poor sales of PC and server chips and higher competition. Every quarter of 2022 brought a decline in revenue versus the same quarter in 2021: Q1: -6.7% Q2: -22.0% Q3: -20.1% Q4: -31.6% This is also reflected in the share price which is down roughly 50%. Intel has responded to this trouble in 3 main ways. 1. It’s cut its dividend by 66% to just 13 cents. 2. It’s cutting costs. Even the CEO’s salary has been reduced by 25%. 3. It’s reinvesting any excess cash into areas that will lead to the creation of long-term value Making the decision to cut dividends is a tough one, but its necessary when considering the slowdown in growth and the significant debt pile. Gross profit margin reduced from 55% to 43% in 2022 and gross profit dropped to $26,8 billion in vs. $43,8 billion in 2021. If we exclude the restructuring expenses that the company had (as they’re not recurring), there are two main types of expenses that the company incurs: - Research and development – that increased to $17,5 billion in 2022 (vs. $15,2 billion in 2021) - And Marketing, general and administrative – that increased to $7 billion in 2022 (vs. 6,5 billion in 2021) This leads to an operating profit of only $2,3 billion (vs. 22,1 billion in 2021). So what we’re looking at is a decrease in demand for Intel’s products combined with high inflation having an impact on the company’s fixed costs. #stocks #investing #overlookedalpha 2023-03-22T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5676/should-you-buy-monster-beverage-stock https://atto.videonest.co/5676_thumbnail_resized.webp https://atto.videonest.co/5676_video_v3.mp4 Should you buy Monster Beverage stock? Our Substack: https://www.overlookedalpha.com Monster Beverage stock analysis MNST. Monster has higher valuation ratios than Anheuser-Busch InBev, Heineken, and even PepsiCo and The Coca-Cola Company. The current FCF yield (FCF / EV) is 1.3%. Of course, this is distorted as the last year’s performance was much lower than the years before. However, even if we take a year when the margins were much higher and imply 2x higher FCF, it still doesn’t justify the current valuation. Based on the analysts’ estimates, the growth ahead is expected to be slightly above 10% per year, implying that the growth isn’t expected to slow down. The business itself is great, and the management has done outstanding job, but there is no way to justify the current market cap. The investors seem to continue seeing Monster as a defensive company that will continue to do well in good and bad times, but that might not be completely true, especially based on the performance during 2022. #stocks #investing #mnststock 2023-03-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5677/should-you-buy-apple-stock-march-2023 https://atto.videonest.co/5677_thumbnail_resized.webp https://atto.videonest.co/5677_video_v3.mp4 Should you buy Apple stock? March 2023 Our Substack: https://www.overlookedalpha.com Although 25 times earnings is lower than the 40 times PE that Apple stock traded at in 2020, it’s still quite high and around 30% above the long term average. Looking at the revenue mix, Apple now drives 80% of its revenue from products and 20% from services. But the iPhone is still the main driver, representing 50% of total revenue. Naturally, Apple products have a lower gross margin than services. But Apple’s powerful brand means the company is able to charge higher prices for its products that its competitors. And Services brings a fast growing and high margin segment into the company’s revenue mix. The last couple of years have been difficult for hardware companies and Apple has faced cost inflation and a number of significant supply chain issues. Trade tensions with China and COVID lockdowns have affected Apple’s production lines and caused the company to move some of its manufacturing to Vietnam with the help of Taiwanese supplier Foxconn. Despite these headwinds, Apple’s production and revenue has been relatively stable with revenue falling only 2% last year and net income dropping only 5%. In fact, gross margins even increased from 38% in 2020 to 43% in 2022. This performance is testament to the strong management of the company and its powerful brand. It’s this kind of solid performance that led to Warren Buffett’s Berkshire Hathaway accumulating almost 16 billion shares of the company. The 2.4 trillion valuation of Apple stock is supported by healthy free cash flow, a dividend of 90 cents and significant share buybacks which inflate the earnings per share. However, Apple’s size inevitably affects growth. 5 year revenue growth is now clocking 10% and net income clocking 13%. If you assume Apple can continue to grow earnings at 15% per year for the next 10 years and then trades at 20 times earnings that would put the company at a valuation of 7.7 trillion. 2023-03-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5678/should-you-buy-ford-stock-march-2023 https://atto.videonest.co/5678_thumbnail_resized.webp https://atto.videonest.co/5678_video_v3.mp4 Should you buy Ford stock? March 2023 Visit our Substack for more: https://www.overlookedalpha.com Historically, automakers have been notoriously risky investments due to the cyclical nature of the industry and the slim profit margins of products. The rise of electric vehicles means the high level of competition in the industry is only going to continue. And recent data suggests a likely reduction in spending power amongst consumers. One of the main challenges that Ford is facing is a low gross margin of 11%, which leads on to the low operating margin. Such a low margin doesn’t provide much room for discounts and price cuts, something that other companies (such as Tesla) have been doing to increase market share. However, Ford does produce in demand products. The Ford F-Series has been America’s best selling truck 46 years in a row, and Fords 150 lightning has been America’s best selling EV truck since launch. Overall, Ford appears to be making progress and the stock provides an attractive dividend for investors. However, the company operates in a difficult industry, has high costs as well as entrenched issues with labor unions. The next year or so maybe tricky for Ford, as higher interest rates make auto loans more expensive and consumers cut back on discretionary spending. For these reasons I give the stock a neutral rating. But these are my personal opinions not financial advice and I have no position in Ford stock. For more detailed investing ideas, visit our website overlookedalpha.com. 2023-03-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5679/should-you-buy-coinbase-stock-march-2023 https://atto.videonest.co/5679_thumbnail_resized.webp https://atto.videonest.co/5679_video_v3.mp4 Should you buy Coinbase stock? March 2023 For the entire 2022, the company had an operating loss of over $2.7 billion. For comparison, in 2021, the company managed to bring in more than $3 billion in operating profit. This means the entire future of the company is dependent on how the cryptocurrencies are priced. The company has cash of over $4.4 billion with almost $3.4 billion in long-term debt. With the current liquidity, it is very difficult for the company to survive. Not only that, but there’s not much the management can do as they cannot (legally) influence the prices of cryptocurrencies. The recent scandals, especially FTX, do not help the company at all as the trust in the crypto exchanges has significantly decreased. The only action that the management can take is to reduce the operating expenses. In order to break even, they need to be halved! This begs the question, is Coinbase worth the $15 billion market cap? This answer is difficult to answer as Coinbase cannot be valued using any traditional valuation model. Its valuation is dependent on the prices of the cryptocurrencies. If the prices of cryptocurrencies remain at this level, Coinbase could be bankrupt in less than 2 years. How is investing in Coinbase different than investing in Bitcoin? At this moment, it isn’t significantly different. Coinbase could be seen as a diversified bet on cryptocurrencies as its transaction fees come from all of the cryptocurrencies, not only Bitcoin. 2023-03-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5680/should-you-buy-beyond-meat-stock-mar-2023 https://atto.videonest.co/5680_thumbnail_resized.webp https://atto.videonest.co/5680_video_v3.mp4 Should you buy Beyond Meat stock? Mar 2023 Visit our Substack for more: https://www.overlookedalpha.com There is no doubt that the consumer taste changes over time and plant-based meat is becoming more popular. Beyond Meat is a plant-based meat company to go public back in May 2019. Its share price has had a lot of fluctuation, reaching a high of over $230/share within 2 months of the IPO. Today, its share price is around $18/share, representing a drop of over 90% from its all-time high. To better understand this, it is best to look at the financials. Although it was founded back in 2009, Beyond Meat is yet to reach profitability. There are a couple of red flags that are worth discussing: Gross margin decreases for 3rd year in a row and is now negative This means it costs Beyond Meat more to manufacture a product than they get paid for. One of the ways to significantly improve this is to increase production volume, which would reduce the cost per product. However, that doesn’t seem to be going well. In an environment with high inflation, the revenue in 2022 was almost 10% lower than it was in 2021. The loss from operations in 2022 was $343 million, which is over 80% of the revenue! This is primarily caused by the high SG&A expenses of almost $240m for 2022 (increased compared to the 2021 amount of $209m). The company has a total debt position (including leases) of almost $1.2 billion with $310 million in cash. All of this combined, begs the question, can Beyond Meat finds its way to profitability on time, or is the company on a highway to bankruptcy? 2023-03-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5681/should-you-buy-upstart-stock-feb-2023 https://atto.videonest.co/5681_thumbnail_resized.webp https://atto.videonest.co/5681_video_v3.mp4 Should you buy Upstart stock? Feb 2023 Fintech company Upstart uses artificial intelligence to more efficiently price loans.The stock got the attention of retail investors in 2020 and in less than a year, the share price went up almost 20 times. However, the stock has come back to earth and right now, the company is worth around $1,5 billion. Revenue over the last 12 months is 842 million and net income is minus 108.7 million. One explanation for the volatile share price is a sharp deceleration in growth. Revenue grew 27% in 2020, 253% in 2021 but was flat in 2022. But while revenue was flat, operating costs increased 30%. So profits collapsed and gross margins declined from 86% to 78%. Essentially, higher interest rates have caused lenders to stop originating many of its loans which sends less business Upstarts way. At the same time, there’s been an uptick in loan delinquencies. Some analysts see revenue declining by another 30% in 2023 and CFO Sanjay Datta said on the conference call that in 2022 “macro exceeded our most wildly bearish expectations.” Despite these negative developments, management insists that the statistical models at the heart of its business are performing well and continue to offer a significant upgrade to legacy FICO models. And Upstart continues to add new partners to its platform. But a bigger issue is the company’s balance sheet. The company added another $300 million of loans to its book in the latest quarter taking total borrowings to almost 1 billion. With its current rate of cash burn the company could run out of cash in just a couple of quarters and be forced to liquidate its book. The poor state of the balance sheet gives the company little room to maneuver and explains why the company is one of the most shorted companies right now with a short float of over 40%. The decision to buy back more shares is another questionable move by management as it really should be reserving cash in this environment. With a market cap of 1.5 billion, there is tremendous upside available to Upstart if it can survive this cycle and get back to its previous levels of profitability. The problem is that tight financial conditions are unlikely to improve any time soon. In fact, consumer weakness may only get worse from here. And Upstart’s inability to forecast such a scenario calls into question the supposed superiority of its models and competence of management. From the outside, it looks like Upstart got caught up its own wave of hype. The stock is now a bet on the company’s survival. But it’s also difficult to know what the company actually has on its books. I give the stock a neutral rating as it’s too risky to buy and too risky to short. 2023-03-02T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5682/should-you-buy-roblox-stock-feb-2023 https://atto.videonest.co/5682_thumbnail_resized.webp https://atto.videonest.co/5682_video_v3.mp4 Should you buy Roblox stock? Feb 2023 Link to our Substack: https://www.overlookedalpha.com Roblox has been public for less than 3 years and its share price performance since the IPO has been quite disappointing. The IPO price was set at $70/share and today, the price is down around 40%. As a video game company, Roblox attracts almost 60m Daily Active Users (DAUs) with almost 45% of them being under the age of 13. It also attracts developers who contribute on the platform and get paid for their efforts. The growth of Roblox through the lens of revenue has been nothing but impressive, growing from $325 million back in 2018 to $2.2 billion for the full year 2022. However, revenue growth is clearly slowing down. Revenues grew 82%, in 2020, 108% in 2021 but only 16% in 2022. The company did make over 500 million in free cash flow in 2021 but it’s clear now that the company was a major beneficiary of the pandemic. Also, during the same period, gross margin has decreased from 23% to 16% and share-based compensation in 2022 was $589m, which is almost a quarter of annual revenue. That aside, Roblox’s passionate user base and technology does give the company some leverage. It gets high levels of engagement and could well be an acquisition target for a larger tech company looking to gain a footing in the metaverse. But, the 20 billion enterprise value means the company is valued at 9 times revenue or 58 times ebitda which would be a steep price to pay for any company. And the company is still several years away from profitability. Combined with mediocre margins, Roblox doesn’t look like a compelling investment on its own. That’s why I give the stock a bearish rating. 2023-03-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5683/should-you-buy-palantir-stock-feb-2023 https://atto.videonest.co/5683_thumbnail_resized.webp https://atto.videonest.co/5683_video_v3.mp4 Should you buy Palantir stock? Feb 2023 Visit our Substack: https://www.overlookedalpha.com What most people don’t know is that Palantir is actually older than Facebook as it was founded back in 2003. But the company has been public for less than 3 years and its share price has been quite volatile. Right now the company has a market cap of $19.1 billion. It’s got $2.6 billion in cash and no debt which translates to an enterprise value of roughly $16.5 billion. Revenue over the last 12 months is 1.9 billion, free cash flow is 184 million and net income is negative 371 million. That means the company is valued at 8.7 times revenue or 90 times free cash flow. Although the company has negative 12 month net income, it did post its first profitable quarter in Q4 and this led to a 20% rally in the stock. However, that gain has reversed over the last few days. One reason Palantir has been able to operate at a loss for so long is share based compensation. During 2022, it amounted to $565m, which was 30% of annual revenue. And between December 2020 to December 2022, shares outstanding increased by 14%. That said, Palantir appears to be moving in the right direction. 2022 revenue was up 24% year over year with growth in both government and commercial segments. Gross margins have increased from 68% back in 2020 to 79% last year and operating expenses have actually decreased from 1.9 billion in 2020 to below 1.7 billion in 2022. That’s something not many other companies have been able to achieve in this inflationary environment. Based on their CEO, Alex Karp, Palantir can generate at least $4.5 billion in revenue by 2025, which is more than double last year’s figure. 2023-03-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5684/should-you-buy-amazon-stock-feb-2023 https://atto.videonest.co/5684_thumbnail_resized.webp https://atto.videonest.co/5684_video_v3.mp4 Should you buy Amazon stock? Feb 2023 Visit our Substack for more: https://www.overlookedalpha.com Right now, Amazon is the 5th largest company in the world with a market cap of 1 trillion dollars and over 1.5 million employees. With 54 billion in cash and equivalents and 67 billion in long term debt, the enterprise value is 1.03 trillion. Meanwhile, revenue over the last 12 months was 514 billion. Net income was negative 2.7 billion and free cash flow was minus 17 billion. Adjusted Ebitda was 54 billion so we can value the company at 2 times revenue or 19 times adjusted ebitda. One year of negative earnings is not a dealbreaker for Amazon because the company is known for re-investing all of its profits and free cash flow into new products. And when you buy Amazon stock you’re not only investing in an online store. An investment in Amazon includes several powerful businesses rolled into one. Stores, third party services, subscriptions, advertising and cloud. And last year was the first time that revenue generated by Amazon services surpassed the revenue generated from product sales. Such progress can not only be seen in total revenue growth but in gross margins which have improved to 44%, from 35% back in 2016. The jewel in Amazons crown is AWS which grew operating income another 23% last year to 22.8 billion. If you assume AWS can grow 15% per year for the next 10 years then trade at a 25 times multiple that would make AWS on its own worth 2.3 trillion which results in an investment return of 8.3% per year. Crucially that’s without taking into account any of Amazon’s other businesses. 2023-02-27T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5685/should-you-buy-airbnb-stock-feb-2023 https://atto.videonest.co/5685_thumbnail_resized.webp https://atto.videonest.co/5685_video_v3.mp4 Should you buy Airbnb stock (Feb 2023) Visit our website for more: https://www.overlookedalpha.com Should you buy Airbnb stock? Airbnb produced a strong earnings report yesterday and the stock jumped over 10%. That takes the market cap of the company to $84 billion. With 9.6 billion of cash and 2 billion in debt the enterprise value is just over 76 billion. Highlights from the report was a 40% increase in revenue to 8.4 billion, a net income of 1.9 billion, which represents a net margin of 23% and the company's first full year of GAAP profits. But Airbnb retains one key advantage which is that its properties are being used not just for vacation purposes but for working trips and longer stays. The company is also being managed effectively and continues to improve the product. Moreover, the shareholder letter hinted at some ‘big ideas’ that could potentially expand the company’s core product. Let’s assume Airbnb can grow net income 20% per year for the next 10 years. That would bring net income to around 12 billion. A 25 times multiple on that figure would give the company a valuation of 300 billion which works out to an investment return of 14.7% per year. So as you can see, investors are already pricing in significant future growth. But it's hard to bet against another set of record results which is why I continue to give the stock a bullish rating. 2023-02-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5686/should-you-buy-alphabet-stock-feb-2023 https://atto.videonest.co/5686_thumbnail_resized.webp https://atto.videonest.co/5686_video_v3.mp4 Should you buy Alphabet stock? (Feb 2023) Visit our website for more: https://www.overlookedalpha.com Alphabet or Google stock is down almost 13% since reporting earnings on the second February. That earnings report revealed a 4% decrease in advertising revenue in the fourth quarter. More importantly, a sharp increase in operating expenses meant that earnings shrunk by 17% year over year. With a share price just below 95 dollars that means the company has a market cap of 1.2 trillion and a cash-rich balance sheet means the enterprise value is around 1.1 trillion. Although Alphabet earnings were disappointing, they’re not the only reason the share price has fallen. Last week, Microsoft announced the integration of ChatGPT into it’s Bing search engine. This prompted Google to announce its own AI offering known as Bard. These announcements led to speculation that Bing could eat into Google’s lead as the world’s most popular search engine. There’s also a question whether search engines are even necessary in a world of conversational AI. The irony behind these developments is that Alphabet has long been one of the pioneers in artificial intelligence. It’s AlphaGo program was victorious back in 2017, In fact, artificial intelligence and deep learning are fundamental to all of Alphabets business segments. Taking a look at the numbers you can see the company looks reasonably valued after the selloff. Enterprise value to EBITDA is under 13 times and enterprise value to free cash flow is under 19 times. In other words, if you bought Alphabet today, for 1.1 trillion dollars, you’d be paid back in cash in less than 20 years, that’s assuming earnings remains flat. But Alphabet has a long and consistent history of growth. Revenue has compounded 20% over the last 10 years and earnings have compounded 19%. Microsoft may be able to gain some market share and regulators pose a risk. But yhe fact is that online advertising continues to be dominated by Google and Meta. Furthermore, Alphabet has a huge cash pile which it can put to work in various ways. Assume that Alphabet can grow earnings 10% a year for the next 10 years (half the historical average) and then it trades at 20 times those earnings in 10 years time. That would give the company a market cap of 3.1 trillion and works out to an investment return of 9.9% a year. 2023-02-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5687/should-you-buy-disney-stock-feb-2023 https://atto.videonest.co/5687_thumbnail_resized.webp https://atto.videonest.co/5687_video_v3.mp4 Should you buy Disney stock (Feb 2023) For more detailed investing ideas visit: https://www.overlookedalpha.com Despite an aggressive push into streaming, a recent price hike has cost the company subscribers. As of last quarter, total number of Disney Plus subscribers had fallen 1% to 161.8 million and the segment posted a 1-billion-dollar loss. Meanwhile, linear networks, saw a 16% decrease in profits to 1.26 billion. That decline is not surprising as consumers turn to online streaming services and under returning CEO Bob Iger, Disney plans to “transform its business” by reducing costs, cutting jobs and restructuring its business model. Right now, the company is valued around 3 times revenue or 21 times EBITDA. That multiple would be acceptable if Disney’s streaming service was showing growth. Even at break even it would add an extra billion dollars to bottom line earnings. However, the online streaming industry, is fiercely competitive and the high cost of content means it may not be as profitable as once thought. Overall, Disney is a quality brand and an attractive opportunity at the right price. But the price right now isn’t low enough. That’s why I give the stock a neutral rating. But these are my personal opinions not financial advice and I do own a small amount of Disney stock. For more detailed investing ideas visit our website overlookedalpha.com 2023-02-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5688/should-you-buy-uber-stock-feb-2023 https://atto.videonest.co/5688_thumbnail_resized.webp https://atto.videonest.co/5688_video_v3.mp4 Should you buy Uber stock? (Feb 2023) For more detailed analysis visit our website: https://www.overlookedalpha.com Uber reported fourth quarter earnings last week and the stock jumped around 7%. Based on the latest share price the company now has a market cap of 71 billion dollars. With 4.2 billion of cash and 10 billion of debt the enterprise value is roughly 77 billion. Revenue over the last 12 months was 31.9 billion, and the company reported 1.7 billion in adjusted ebitda and 390 million in free cash flow. However, net income was negative 9.1 billion which was impacted by a fall in Uber’s equity investments. As a result, Uber is now valued at 2.4 times annual revenue, 45 times ebitda and almost 200 times free cash flow. Uber’s financials are complicated by its investments in startups such as Didi,Grab, Joby, Lime and Aurora, as well as its many business segments. But these assets also give the company strong optionality. Its mobility segment grew 31% last year and that growth is expected to continue into 2023. Its delivery segment grew 6%, (with more than a 50% impact from currency headwinds) and its freight segment grew 42%. Intertwined in all this Uber is making progress with advertising, subscriptions, its travel app and car sharing. As well, Uber is partnering with Hertz to help grow its fleet of electric vehicles and the company wants to be emission free in big cities by 2030. All in all, Uber is growing fast and has numerous levers to pull. Its success is in stark contrast to the performance of rival Lyft whose stock collapsed more than 30%. #stocks #investing #overlookedalpha #finance #uberstock 2023-02-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5689/should-you-buy-pinterest-stock https://atto.videonest.co/5689_thumbnail_resized.webp https://atto.videonest.co/5689_video_v3.mp4 Should you buy Pinterest stock? Visit our website for more: https://www.overlookedalpha.com For Pinterest to increase its profitability (and also its valuation), the company needs to focus on monetizing the users that are outside of the US and Canada and it did manage to increase average revenues per user in the rest of the world by 50%. But they’re still low at only 43 cents per user. The company could be an acquisition target because of its large user base. In the past, there were rumors that both Google and PayPal were interested in acquiring the company. But that was back when interest rates were low and capital was flowing freely. Let’s assume Pinterest can get to 400 million in net income and then grow at 15% per year for the next 10 years. The company would be worth around 35 billion in ten years’ time based on 25 times multiple. And that works out to an investment return of just under 9% per annum. But I’m not convinced that growth is possible. US numbers are flat and the platform is heavily reliant on traffic from Google which seems risky. A digital pin board just doesn’t seem like a compelling business right now, particularly at this valuation. So I give this stock a bearish rating. But these are my personal opinions, not financial advice. And I have no position in Pinterest stock. For more detailed investing ideas, visit our website overlookedalpha.com #stocks #investing #stockstowatch #overlookedalpha 2023-02-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5690/should-you-buy-peloton-stock https://atto.videonest.co/5690_thumbnail_resized.webp https://atto.videonest.co/5690_video_v3.mp4 Should you buy Peloton stock? For more detailed ideas visit our Substack: https://wwww.overlookedalpha.com Peloton stock is up 98% in 2023 taking the market cap of the company to 5.5 billion dollars. With 871 million of cash and 1.7 billion in debt, the enterprise value is roughly 6.3 billion. Peloton’s recent earnings report revealed the company made 3 billion in revenue last year. However, the company is still not profitable, posting negative net income as well as negative adjusted ebitda and free cash flow. So the company is unprofitable and valued at two times revenue. One reason the stock has rallied is that the company has made steps to cut costs, manage debt and move the company towards profitability. New CEO Barry McCarthy has outsourced the manufacturing of Peloton products, cut headcount by over 50% and is positioning the company towards higher margin subscriptions. Peloton units like bikes are loss leaders and as you can see, Peloton subscriptions now drive more revenue than Peloton hardware products. Importantly, in the most recent quarter, Peloton reported minus 94 million in free cash flow which is a huge improvement from the previous year’s minus 747 million. In fact, if you strip out one time costs, free cash flow for the quarter would have been just about positive. The focus on costs and the raising of new debt means the company should avoid bankruptcy. But despite these improvements, an investment in Peloton still has risks. Notably, membership growth is flat over a quarterly and yearly basis. And subscription revenues didn’t increase in the recent quarter. Furthermore, management expects only a 2% increase in subscriptions for next quarter. So we’re not seeing an awful lot of growth. #stocks #investing #stockstowatch #overlookedalpha 2023-02-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5691/should-you-buy-meta-stock-feb-2023 https://atto.videonest.co/5691_thumbnail_resized.webp https://atto.videonest.co/5691_video_v3.mp4 Should you buy Meta stock? Feb 2023 Our Substack: https://www.overlookedalpha.com Meta just released Q4 earnings causing the stock to jump by 22%. The rise in share price means the company is now valued at 494 billion dollars. With 41 billion in cash and 10 billion in debt the enterprise value is roughly 463 billion. Revenue for the fourth quarter came in at 32.1 billion which was a 4% decrease on the year before and net income dropped 55% to 4.7 billion. Looking at the yearly numbers, full year revenue was 117 billion, a 1% decrease year over year and net income dropped 41% to 23.2 billion. A 23% increase in costs and expenses sent Meta operating margins to just 25%, down from 40% the previous year. These numbers don’t look great, so why did the stock rally? A few reasons. First, expectations coming into this report were low and analysts were expecting worse numbers than what we got. Second, although headline numbers were weak there were some promising signs elsewhere. Ad impressions in the fourth quarter increased by 23% despite the average price per ad falling by 22%. This suggests Meta is still providing value with its ad network which could lead to higher revenues down the track. Third, and most importantly, CEO Mark Zuckerberg signaled an increased willingness to drive down costs and provide value to shareholders. Zuckerberg used the word efficiency 31 times on the earnings call and announced another 40 billion dollars available for stock buybacks. On the negative side, there appeared to be little impact from the Quest Pro headset and losses from the Metaverse segment should still head above 13 billion this year. So looking at the valuation, Meta is now valued at 4 times revenue, 21 times earnings and 25 times free cash flow. But there are still questions over growth. If we assume the company, with the help of share buybacks, can grow earnings at 15% per year for the next 10 years and then trade at 25 times earnings. Under that basic scenario, the company would be worth 2.4 trillion in 10 years time for an investment return of 14.8%. #stocks #investing #metastock #overlookedalpha 2023-02-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5692/should-you-buy-visa-stock https://atto.videonest.co/5692_thumbnail_resized.webp https://atto.videonest.co/5692_video_v3.mp4 Should you buy Visa stock? Visit our Substack: https://www.overlookedalpha.com Revenue over the last 12 months was 30 billion and net income was 15 billion with just over 7 dollars earnings per share. That means the company is valued at 14 times revenue or 32 times earnings. That high PE ratio is understandable since Visa is one of the best businesses in the world. The company has grown revenues around 11% a year over the past 10 years and earnings around 20% a year. It handles 150 million transactions every day with 50% of Visa’s top line revenue heading straight to net income. Last year, 59% of transactions were made with cash, down from 72% in 2019. So Visa still has plenty of growth ahead as cash continues to be displaced. Let’s assume Visa grows earnings at 15% per year for the next 10 years (lower than the historical average) and then trades at 25 times earnings. That would give the company a market cap of 1.5 trillion. Include dividends and the investment return sits right around 15% per annum. However, it’s not all good news. A federal bill in the US called the Credit Card Competition Act is seeking to drive down credit card transaction fees and jump start competition in the space. The bill specifically targets the Visa and Mastercard duopoly, whose swipe fees have climbed above 2.2%. It gives merchants more choice over which payment networks to use and highlights the political risk against the two companies. The bill may not get through congress but if it does it would impact the roughly 80 billion dollars in transaction fees that flows to banks and payment networks like Visa. It’s a clear risk but it could also present a buying opportunity. The long term prospects for Visa should stay intact and Visa’s PE multiple is already trading at the low end of its historical range. On balance, I continue to give the stock a bullish rating. #stocks #investing #stockstobuy #stockmarket #overlookedalpha 2023-02-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5693/should-you-buy-snapchat-stock https://atto.videonest.co/5693_thumbnail_resized.webp https://atto.videonest.co/5693_video_v3.mp4 Should you buy Snapchat stock? Our website: https://www.overlookedalpha.com Snapchat just posted earnings and the stock cratered 15%. Based on the latest share price, the company has a valuation around 15.5 billion dollars. Looking at the recent figures, it’s easy to see why the stock dropped. Total revenue came in at 4.6 billion for 2022, which was 12% more than the previous year. But revenue for the latest quarter was flat at 1.3 billion. More importantly, the company recorded another quarterly loss, that means the company has lost 1.4 billion dollars over the last 12 months. Even adjusted EBITDA was down 39% to 378 million and free cash flow collapsed 75% to 55 million. That means the company is now valued at 3.4 times revenue, 41 times EBITDA and 282 times free cash flow. Those are not attractive multiples for a company that is no longer showing signs of profitability or growth. And to top things off, management believes revenues could drop as much as 10% next quarter. In fact, pretty much the only thing that went up in Snapchat’s latest report were operating expenses and stock based compensation. Operating expenses grew 25% to six billion dollars. This includes a whopping 35% increase in R & D costs??? Meanwhile stock based compensation increased 28% to 1.4 billion for the year. And it was up 51% on the quarter. So at least executives are making money even if shareholders aren’t. Snapchat appears to be investing heavily in its product with a focus towards augmented reality. But back in the real world, the company appears to be off track. With a market cap above 15 billion this stock is still a sell. But these are my personal opinions, not financial advice. And I have no position in Snapchat stock. #stocks #investing #overlookedalpha #stockstowatch 2023-02-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5694/should-you-buy-tesla-stock https://atto.videonest.co/5694_thumbnail_resized.webp https://atto.videonest.co/5694_video_v3.mp4 Should you buy Tesla stock? Visit our website for more: https://www.overlookedalpha.com Tesla just reported earnings for Q4 and 2022. Full year revenues increased 51% to 81.5 billion, net income more than doubled to 12.6 billion and free cash flow rose 51% to 7.6 billion. The news sent the stock up more than 10%, giving the company a market cap of 506 billion dollars. With 22 billion in cash and 6.9 billion in debt, the enterprise value is 491 billion. That means the company is valued at 6 times revenue, 65 times free cash flow or 40 times earnings. A 40 times earnings multiple is not cheap but it's certainly more reasonable than the 100 times earnings that we saw last year. Especially when you consider a revenue growth rate of over 50%. So the important question for Tesla shareholders is whether the company can continue that growth going forward while maintaining its strong profit margins. A big deal was made recently about Tesla cutting prices on the Model 3 and Model Y with videos showing angry customers in China protesting and requesting refunds. Price cuts are often an indicator of slowing demand and a need to shift product. And that poses questions for the upcoming quarters. However, the Tesla shareholder letter explains that “prices have been on a downward trend for years and are necessary for the company to become a multi-million vehicle producer.” Later, Musk said on the earnings call that demand in January had been the strongest ever. As long as Tesla’s brand and margins remain intact, dropping prices allows the company to reach greater scale, which can further cement its position as market leader. But with legacy automakers slowly getting their act together, it wouldn’t be a surprise to see Tesla’s margins and influence come under at least some pressure. Combine that with a difficult economic environment and there are still major headwinds to Tesla stock while it trades at this valuation. We published a TikTok last year arguing that Tesla was overvalued at 100 times earnings and I gave it a bearish rating. But at 40 times earnings it’s much harder to make that case. Recent events have painted Tesla in a negative light but the numbers from the company don’t yet show material weakness. Even so, 40 times earnings is too rich to buy the stock. For these reasons, I currently give the stock a neutral rating. But these are my personal opinions not financial advice and I do own a small amount of Tesla stock. 2023-01-30T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5695/should-you-buy-microsoft-stock https://atto.videonest.co/5695_thumbnail_resized.webp https://atto.videonest.co/5695_video_v3.mp4 Should you buy Microsoft stock? Our Substack: https://www.overlookedalpha.com Microsoft just reported second quarter earnings. Revenue increased 2% to 52.7 billion year over year while net income decreased 12% to 16.4 billion. Based on the latest share price Microsoft has a market cap of 1.8 trillion. With 100 billion of cash and 44 billion of long term debt the enterprise value is roughly 1.74 trillion. Revenue over the last 12 months is 204 billion with net income of 67 billion and 9 dollars earnings per share. That gives the company an expensive valuation of 8.5 times revenue or 27 times earnings. Historical revenue growth, meanwhile, is clocking 11% over the past ten years and EPS growth is roughly 18%. Breaking out the earnings report you can see that the real bright spot is Microsoft cloud. Cloud revenue was up 22% to 27.1 billion meaning cloud run rate revenues are now over $100 billion a year and the most important part of Microsoft's business. But again, we are seeing deceleration in some areas. And here’s an interesting chart which shows how slowing growth has been gradually spreading across segments over the last few quarters. None of this is surprising, of course. Microsoft is exposed to higher operating costs like almost everyone else so it will face the same pressures on growth. On the plus side, the company has a staggering amount of cash and its invested at least 10 billion in OpenAI, the company behind Chat GPT. This is no doubt a smart move and could help the business gain market share in online search and cloud computing. But, trading at the multiple of 8 times revenue and 27 times earnings, Microsoft is already pricing in a significant amount of growth. #stocks #investing #microsoftstock #valueinvesting 2023-01-26T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5696/should-you-buy-crocs-stock https://atto.videonest.co/5696_thumbnail_resized.webp https://atto.videonest.co/5696_video_v3.mp4 Should you buy Crocs stock? Visit our website for more: https://www.overlookedalpha.com Ugly shoe company Crocs has a current market cap of 7.9 billion. After the acquisition of fellow shoe brand Hey Dude the company holds 2.6 billion in long term debt and 143 million in cash. That gives the company an enterprise value of 10.4 billion. Revenue over the last 12 months is 3.2 billion dollars, with net income of 557 million with just over 9 dollars earnings per share. And the company recently raised guidance to 3.55 billion for the full year. Which means the company is valued at 3.3 times revenue or 14 times earnings. That makes Crocs reasonably cheap when you consider the company has grown earnings 18% per year over the last 10 years and grown revenues 10% per year. One reason for the lower multiple is that the company used to be a flop. From 2012 to 2018, revenues went nowhere and earnings per share was often negative. A lot of credit goes to Andrew Rees who became CEO of Crocs in 2017. Rees set in motion a turnaround by refocusing the brand, updating the product and beginning a series of celebrity collaborations. Two years after Rees took over, revenues grew 13% year over year while net income surged by 140%. But the real boost came during the pandemic. In 2021, revenue jumped by 67% and net income surged to 726 million. Another reason for the lowish multiple is skepticism over the Hey Dude acquisition. The shoes could be a fad and the 2.5 billion dollar purchase resulted in a credit downgrade from rating agencies. However, Crocs debt doesn’t mature until 2029 giving the company plenty of time to deleverage. And Hey Dude is expected to add an additional $1 billion to Crocs top line revenue at an operating margin of 26%. The brand fits like a glove and also provides diversification for the company. Let’s assume Crocs can grow earnings per share by 15% per year over the next 10 years then trade at 15 times earnings. That would put the market cap at roughly 34 billion in 10 years time which works out to an investment return of 15.7%. In hindsight, Crocs at $50 last year looks like a steal. But the stock still looks like good value and I’ll probably buy the stock on a dip. But these are my personal opinions, not financial advice. For more detailed investing ideas visit our website overlookedalpha.com #stocks #investing #stockstobuy #stockmarket #valueinvesting 2023-01-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5697/should-you-buy-paypal-stock https://atto.videonest.co/5697_thumbnail_resized.webp https://atto.videonest.co/5697_video_v3.mp4 Should you buy Paypal stock? Join our Substack for more: https://www.overlookedalpha.com Payments platform Paypal hit a peak market cap over 350 billion in 2021. But a sharp fall in the share price means the company is now valued around 92 billion. With 10.9 billion in cash and investments and almost the same in debt, the enterprise value is 91.3 billion. Revenues over the last 12 months total 27 billion dollars with 2.3 billion in net income and 2 dollars earnings per share. That means the stock is now valued at 3.4 times revenue or 40 times earnings. And the stock also generates significant free cash flow, almost six billion dollars over the past year. So why has Paypal stock fallen so sharply? The simple answer is that the stock got too expensive. Historically, Paypal has traded at a PE ratio around 45. In late 2021, the stock was trading at over 87 times earnings. Then in the second quarter of 2022, the company posted its first quarterly loss since going public. Historically, Paypal has grown revenues around 18% per year and earnings per share 36% per year. But based on guidance, revenue growth this year will slow to 8.5% and earnings per share will fall back to 2019 levels. The decline in performance prompted a $2 billion investment from activist investor Elliott Management, and the company is now working on reducing costs and buying back shares. This slowdown is partly a result of consumers returning to physical stores rather than shopping online. But it’s also a result of intense competition. For example, in 2021, Ebay officially ditched Paypal as its payments partner, preferring dutch rival Adyen. And there’s no shortage of other competitors in the form of Square, Stripe, Skrill, Google Pay, Apple Pay etc. Paypal started as a safe way to make payments online. But in 2023 it's just as secure and easy to use your credit card as it is to use Paypal. #stocks #investing #stockstobuy #stockstowatch #overlookedalpha 2023-01-18T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5698/nike-stock-analysis https://atto.videonest.co/5698_thumbnail_resized.webp https://atto.videonest.co/5698_video_v3.mp4 Nike Stock Analysis Visit our Substack for more: https://www.overlookedalpha.com At a share price of 124, Nike stock has a market cap of 195.7 billion dollars. With 10.6 billion of cash, including short term investments, and 8.9 billion of long term debt the enterprise value is around 194 billion. That’s the rough figure you’d have to pay if you wanted to buy the company outright. Over the last 12 months, Nike has made just over 49 billion dollars in revenue and earned 5.6 billion dollars in net income. That means Nike stock is currently valued at 3.9 times revenue or 35 times earnings. And Nike stock also pays a dividend of just over 1%. Looking at a historical chart, Nike typically trades between 20-30 times earnings. So the current 35 times earnings multiple is not cheap, particularly as we move into a higher interest rate environment. But investors like to pay up for quality stocks in uncertain times. And Nike is certainly a quality company. Earnings have grown at a remarkably consistent rate over the past 15 years, just over 11% compounded. And free cash flow has grown around 9.2% as well. 2023-01-09T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5699/should-you-buy-moderna-stock https://atto.videonest.co/5699_thumbnail_resized.webp https://atto.videonest.co/5699_video_v3.mp4 Should you buy Moderna stock? Visit our Substack for more: https://www.overlookedalpha.com With 17 billion dollars in cash and investments, vaccine pioneer Moderna has a current enterprise value around 57 billion dollars. Revenue over the last 12 months was 21.4 billion and net income was 11.8 billion. That means the company is valued around 2.7 times revenue or 6.2 times earnings. That sounds cheap but Moderna’s revenue is forecast to fall significantly over the next few years as demand for its COVID-19 vaccine declines. According to Standard and Poors revenue should fall to 8 billion by 2025 and net income to around 2.5 billion. That means right now Moderna is valued at 30 times 2025 earnings. But, Moderna has lots of cash and the endemic COVID market is expected to be larger than the flu. Annual COVID vaccines should provide the company with a steady flow of revenue for years to come. More importantly, a few weeks ago Moderna published results of its skin cancer vaccine, which, combined with immunotherapy, cut the risk of recurrence or death in high risk patients by 44%. According to the Financial Times, a late stage melanoma vaccine, if successful, could add 5 billion dollars to Moderna’s top line revenue. Assuming similar margins, that could get net income back up to roughly 5 billion by 2026 and that brings the valuation down to 15 times 2026 earnings. Of course, that’s a big assumption and the vaccine still has to get through the next phase of trials. But Moderna’s MRNA technology has now proven its worth and the company does have a large pipeline filled with potential. #stocks #investing #stockstobuy #modernastock #overlookedalpha 2023-01-06T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5700/5-stocks-facing-a-huge-2023 https://atto.videonest.co/5700_thumbnail_resized.webp https://atto.videonest.co/5700_video_v3.mp4 5 Stocks Facing A Huge 2023 For more detailed investing ideas visit our Substack: https://www.overlookedalpha.com At its peak in October 2021, MATCH traded at around 50 times Adjusted EBITDA. Fast forward to today, and that multiple, based on guidance, is only 14 times and the stock has dropped 70% Much of that multiple compression can be attributed to a drastic cut in profit growth to only 5%. And an unofficial outlook puts revenue growth at only 5-10% for 2023. That’s a significant reduction in growth and some of Match’s legacy brands like Plenty of Fish appear to be in decline. But Hinge is still growing and Match continues to drive margins over 70%. Straddle pricing in the options market suggests a move of over 40% in 2023. So whatever happens, it looks like Match Group has a big year ahead. 2022 was a banner year for theme parks but Six Flags badly underperformed. A lot of this stems from a change in business strategy. New CEO Selim Bassoul said the parks had become day centers for teenagers. Some customers have literally been making TikToks on how to live off the Six Flags dining pass. So Bassoul created a new premiumization strategy in which Six Flags gets fewer guests paying higher prices and in theory a better experience. But customers, and employees, are up in arms about the changes with complaints flooding in. And with activist investor Land & Buildings entering the fray it's easy to see the potential for movement in Six Flags stock. This is a crucial year where Six Flags simply needs to show progress towards its goals. When Shopify reported first quarter results in May last year the stock dropped 30%. But the stock has traded sideways since and that suggests the market hasn’t quite figured out what comes next. After all, how many small and medium sized businesses on the Shopify platform are going to survive over the coming year? And can Shopify’s expansion into international markets take hold? In Q3, Shopify discussed a merchant list that included Panasonic, Cole Haan, Converse and Greenies Pet Treats, hardly blue chip names. And can Shopify really compete with Amazon, particularly on logistics? It’s a huge task but Shopify occupies a growing niche and a good brand. Whatever happens it’s going to be a huge year for Shopify. The options market implies a move of more than 50% by January 2024 and that sounds about right. THESE ARE PERSONAL OPINIONS NOT FINANCIAL ADVICE. I OWN SHARES IN SIX STOCK. #stocks #investing #overlookedalpha #stockstobuy #stockstowatch #finance #stockmarket 2023-01-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5701/should-you-buy-nvdia-stock https://atto.videonest.co/5701_thumbnail_resized.webp https://atto.videonest.co/5701_video_v3.mp4 Should you buy Nvdia stock? For more detailed analysis visit our website https://www.overlookedalpha.com Nvidia is a leader in microchips, graphical processing units (GPUs) and software. The company has been one of the biggest success stories of the last decade with the stock hitting a peak of $346 dollars in 2021. However, shares have lost over half their value and currently change hands for $158 dollars. That gives the company a market cap of 389 billion. With 13.1 billion of cash on the balance sheet, including marketable securities, and 11.5 billion in debt, the enterprise value is roughly 388 billion. Meanwhile, revenue over the last 12 months is 28.5 billion, operating expenses were 10.6 billion and net income was just under 6 billion. This gives Nvidia a valuation around 13.6 times revenue or 65 times earnings. Nvidia’s business can be broken down into 4 segments. Its data center segment provides hardware and software that enables artificial intelligence and high performance computing for multiple organizations. Its gaming segment accounts for the sale of graphical processing units used in computer games and more recently cryptocurrency mining. Nvidia’s visualization segment provides various solutions for 3D rendering and other computing tasks. Meanwhile, the company's automotive segment is providing supercomputing hardware and software for autonomous driving. As you can see, recent results have been a mixed bag. The data center segment brought in 3.83 billion of revenue in q3 which was a year on year increase of 31%. However, gaming revenue declined 51% year on year to 1.57 billion. The visualization segment also declined, posting revenues of 200 million, a 65% decrease. But the automotive segment grew 86% with revenues of 251 million. There’s no doubt that Nvidia is a powerful company but the business is suffering from at least two major headwinds right now. First, an international chip ban has stopped the company from exporting its most powerful chips to China. This is intended to stop China from gaining an advantage in artificial intelligence and could cost the company around $400 million of quarterly revenue. Second, the industries that Nvidia operates in are inherently cyclical. When demand for microchips is high, production lines get increased, more supply comes to market and prices drop. Combined with decreasing margins you get an inevitable hit to bottom line profits. So Nvidia is coming off the top of the cycle and right now it’s also facing fierce competition from AMD. To be fair, boom/bust cycles are nothing new to Nvidia. The company has seen declining profits in the past, most notably in 2013 and 2019. Nvidia has a history of reinventing itself and has one of the best employee satisfaction records in the business. Let's assume a basic scenario where Nvidia grows revenue 15% per year for the next 10 years, then trades at a 25 times multiple to earnings, with a 35% net income margin, earnings would be roughly 40 billion and the company would be worth around 1 trillion in 10 years time which works out to an investment return of 10% per annum. But that’s not a great return for such an optimistic scenario. The problem is that Nvidia stock has rebounded 46% over the past few weeks taking the p/e multiple past 60. And that’s simply too expensive right now at this point in the cycle. But these are my personal opinions, not financial advice. #stocks #investing #stockmarket #overlookedalpha #nvidiastock 2022-12-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5702/should-you-buy-coupang-stock https://atto.videonest.co/5702_thumbnail_resized.webp https://atto.videonest.co/5702_video_v3.mp4 Should you buy Coupang stock? For more detailed analysis, visit our website https://www.overlookedalpha.com Founded in 2010, ecommerce business Coupang is known as the Amazon of South Korea. However, shares have fallen sharply this year taking the company’s market cap to 35 billion dollars. With 2.9 billion of cash the enterprise value is roughly 33 billion. Revenue over the last 12 months is 20.4 billion, net income is negative 600 million and adjusted ebitda is negative 115 million. That means the stock is valued at around 1.6 times revenue and is not profitable on a trailing twelve month basis. However, Coupang did post a profit in its latest quarter with 90.7 million of net income and 195 million in adjusted ebitda in Q3 for an ebitda margin of 3.8%. The company is also growing fast. Revenues have compounded at more than 50% over the last 4 years and were up 10% in Q3 after currency conversion. Active customers were also up 7% to 18 million. Like Amazon, Coupang is a dominant force in ecommerce. The company has over 20% market share in South Korea. It’s built out its own fulfillment network and invested in last-mile logistics. The company also offers deliveries via Coupang Eats and streaming content via Coupang Play. But unlike Amazon, Coupang doesn’t have a lucrative cloud business. Amazon's AWS segment is hugely profitable and a key reason why its stock commands such a premium. As a result, Coupang’s profit margins are a lot smaller. In truth, Coupang looks like a solid business and it offers exposure to South Korea which is a stable and prosperous country. However, the valuation isn’t quite there. If you assume Coupang can grow revenues at 10% a year for the next 10 years and then hit 10% ebitda margins, ebitda in 10 years time would be roughly 5.2 billion dollars. A 20 times multiple on that figure gets us to an enterprise value of 104 billion for an investment return of roughly 12% per year. That’s not a great return when you consider 10% ebitda margins are at the top of management targets. And its worth noting that South Korea is one sixth the size of the US with a slowing population. The company will also find it hard to expand internationally because there are already big competitors in most of Asia. For those reasons, I give Coupang a neutral rating and I hold no position in this stock. But these are my personal opinions, not financial advice. #stockstobuynow #stockstowatch #investing #overlookedalpha #wallstreetbets #stockmarketinvesting 2022-11-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5703/should-you-buy-sea-limited-stock-2-minute-analysis https://atto.videonest.co/5703_thumbnail_resized.webp https://atto.videonest.co/5703_video_v3.mp4 Should you buy Sea Limited stock? 2-minute analysis For more detailed analysis visit our website: https://www.overlookedalpha.com Sea Limited is a tech company from Singapore, often referred to as the Amazon of South East Asia. Barely a year ago Sea had a market cap near $200 billion. After an 82% drop in share price, the company now has an enterprise value of 28.7 billion with 7.3 billion of cash and 4.15 billion of debt. Sea makes money in 3 main ways; Its digital entertainment arm (Garena) distributes games like Fifa Online 3 and should see profits in the range of 1.5 billion dollars in 2022. Its ecommerce platform Shopee is not profitable but is driving around 7 billion in revenue. And its financial arm SeaMoney provides services like payment processing and mobile wallet products. Revenues should hit 1.2 billion or so this year. A 7 or 8 times multiple on the games segment gets the valuation here to around $10-12 billion. Ecommerce, meanwhile, did roughly 40% of the gross merchandise value of Shopify. Give ecommerce half the multiple of Shopify and the segment is worth around $8 billion. The financial arm is growing at an impressive rate with 147% growth in Q3. If we give that business a multiple of 5 times revenue we get a valuation of $6 billion. Add it all up, plus 3 billion in net cash, and we get a sum of the parts valuation of around 28 billion against the current valuation of 29bn. In other words, Sea Limited is beginning to look a lot more reasonable at these price levels. And SEA revenue continues to grow strongly clocking over 20% a year. On the other hand, the company still isn’t profitable. When you add back stock based compensation, the company has lost almost 3 billion dollars over the last 12 months. And it’s SEA’s only profitable division (gaming) that is performing the worst. Adjusted ebitda for games dropped 59% in q3 and user numbers also fell by 8% The announcement by League of Legends creator Riot Games that it will no longer publish major titles through Garena is another blow. With these questions over digital entertainment, we’d like to see a lower share price before investing in SEA. If the stock moves back below $50 it would start to look like a tempting long term trade. But these are my personal opinions, not financial advice and I hold no position in this stock. For more detailed analysis, visit our website. #investing #stocks #stockstobuy #stockstowatch #overlookedalpha #stockmarket #bloomberg #finance 2022-11-22T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5704/should-you-buy-tsmc-stock-2-minute-analysis https://atto.videonest.co/5704_thumbnail_resized.webp https://atto.videonest.co/5704_video_v3.mp4 Should you buy TSMC stock? 2-minute analysis For more detailed analysis join our Substack: https://www.overlookedalpha.com Warren Buffett just bought shares in TSMC and that news sent the stock up more than 10%. Looking at the fundamentals, it’s easy to see why Buffett likes this manufacturer of microchips. Microchips are essential to the modern economy. And they’re only going to become more important with the rise of electric vehicles and other technologies. And TSMC manufactures more than 90% of the world's most advanced microchips. With 13.1 billion in net cash, TSMC has an enterprise value of 410 billion and the company made 71.7 billion dollars of revenue over the last 12 months. Operating margins close to 50% mean the company brought in 34 billion in operating income and 30.6 billion after tax. That means TSMC is valued around 5.7 times revenue and just under 14 times earnings. That’s pretty cheap for a company that has grown revenue 14% a year over the past 10 years and earnings per share mor e than 18% per year. Margins have grown steadily too. Operating margins have increased over 10% since 2012 and they’re 4 times bigger than Intel There’s no doubt that Buffett’s stake in Apple will have influenced this purchase in TSMC. The company makes chips for Apple’s products and Buffett will have first hand information about the company’s importance to the economy. A key risk investing in TSMC is if China continues hostilities towards Taiwan. The company relies on parts made in mainland China and TSMC could end up in the middle of a tit for tat between the US and China. The microchip industry is also inherently cyclical. Demand for smartphones has been slowing down while the supply of microchips has been increasing. That’s another reason why TSMC stock is down -34% year to date. But TSMC’s position outside of the US and China could provide some benefits and the company is simply too important to boycott. In fact, the NSA puts the economic consequences from the loss of TSMC at more than $1 trillion dollars. Buffett clearly thinks the company is indispensable and at 14 times earnings the stock looks like good value. If TSMC grows earnings at 15% a year for 10 years then trades at 20 times those earnings, the company would be worth around 2.5 trillion in 10 years time and that would mean an investment return of 19.7% a year. So I rate this company a buy and I do own shares in the stock. But these are my personal opinions, not financial advice. #shorts #overlookedalpha #stocks #investing #stockmarket #finance #theeconomist #financialtimes #investingideas #stockstobuy 2022-11-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5705/should-you-buy-disney-stock-3-minute-analysis https://atto.videonest.co/5705_thumbnail_resized.webp https://atto.videonest.co/5705_video_v3.mp4 Should you buy Disney stock? 3-minute analysis For more detailed analysis, visit our website: https://www.overlookedalpha.com Disney is an iconic company that has multiple revenue streams. In 2022, the company made 28.7 billion dollars in revenue from its parks, experiences and products. And 55 billion in revenue from its media and entertainment segment. That media and entertainment segment can be further broken down into linear networks, direct-to-consumer and content/licensing. Linear networks includes a long list of TV and cable channels, direct to consumer accounts for Disney’s streaming services and content/licensing represents the sale of content to third party providers. As you can see, Disney parks brought in 7.9 billion of operating income in 2022, linear networks generated 8.5 billion, streaming produced a loss of 4 billion and content/licensing lost 287 million. Add it all up and deduct total costs and expenses and net income over the last months was only 3.1 billion on total revenues of 84 billion. Compare that to 2019 when Disney earned 10.4 billion dollars of net income on revenues of only 70 (69.6) billion. In other words, Disney revenues have grown 19% in 3 years while net income has dropped 81%. Meanwhile, Disney has a current enterprise value of roughly 220 billion which means its valued at 2.7 times sales and 86 times earnings. These numbers are so skewed because Disney is investing heavily in its streaming services. The company spent $25 billion on content alone in 2021 and should spend 33 billion in 2022. Overall, costs and expenses are a third higher than in 2019. To be fair, heavy investment in streaming is the right move and Disney is seeing some success. Disney’s 235 million subscribers recently overtook Netflix's 223 million. And management said the service should generate meaningful profits by 2024. If we assume streaming can grow 10% a year for the next 5 years then become profitable with an 18% margin, that segment could add 6 billion in earnings in 5 years time. Let’s assume that parks and streaming grow 10% a year for the next five years, linear shrinks to 5 billion in revenue and content/licensing grows to 10 billion. Total revenue in that scenario would be around 93 billion, and a 20% ebitda margin gets us to about 19 billion in ebitda in 5 years time. Apply a 20 times multiple to that figure and we get an enterprise value of 380 billion which works out to an investment return of 11.5% per year. Disney could do better than that if its streaming services are a hit and margins get back to 25 or even 30%. But streaming is highly competitive and there are some questions over management. Disney also has a fair amount of debt thanks to its 2019 acquisition of Twentieth Century Fox. Disney is approaching its centenary year with the stock price back to 2015 levels and it does look like a decent time to buy. But the upside doesn’t look large enough, which is why I give the stock a neutral rating. But these are my personal opinions, not financial advice. And I do own some shares in Disney. 2022-11-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5706/should-you-buy-rovr-stock-2-minute-analysis https://atto.videonest.co/5706_thumbnail_resized.webp https://atto.videonest.co/5706_video_v3.mp4 Should you buy ROVR stock? 2-minute analysis For more detailed analysis, join our newsletter: https://www.overlookedalpha.com Founded in 2011, Rover operates an online platform that allows providers to offer boarding, pet sitting, and dog walking services. Think Uber but for pets. This company came to the public markets last year via a SPAC. Shares fell heavily following the merger but are currently 60% above their lows. Right now, Rover has a market cap of $1 billion. Net cash of $235 million gives an enterprise value of $754 million dollars Based on full year guidance, revenue this year should come in between 171 to 173 million and adjusted EBITDA is expected to come in between 16-18 million. That means Rover currently trades at roughly 4.3 times revenue and over 40 times adjusted ebitda. That’s steep but pets are big business in America and Rover has been growing nicely. Full year revenue is expected to increase 57% this year and average booking value is up roughly 40%.. Also, Rover’s platform business model means it doesn't need to spend much to generate incremental profits. But, Rover’s platform model suffers when customers go direct to providers instead of using the platform. And that seems to be what’s happening. Figures from the last two years suggest the average user is making only one booking a quarter. And the company said that net retention rate was around 80%. Both of these metrics are particularly low and suggest a lack of brand loyalty. Another key issue is that Rover is heavily exposed to travel. According to management, 85 to 87 percent of the company’s gross booking value is related to non-business travel. In other words, pet owners most often use Rover when they go on trips. So the dramatic increase in revenue and average booking value this year is largely thanks to the rebound in travel, since the pandemic. That rebound is likely to slow down in the coming year. But at 40x EBITDA and 4 times revenue, Rover stock is still pricing in significant growth. A risk to shorting Rover is that the company is a potential takeover target for a larger business like Petco or Chewy. But whatever the chances of that, Rover stock looks expensive thats why i give it a bearish rating and I may start a short position on Monday morning. But these are my personal opinions, not financial advice. 2022-11-14T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5707/should-you-buy-apple-stock-3-minute-analysis https://atto.videonest.co/5707_horizontal_thumbnail_v3.webp https://atto.videonest.co/5707_video_v3.mp4 Should you buy Apple stock? 3-minute analysis For more detailed analysis visit our Substack: https://www.overlookedalpha.com So far in 2022, Apple stock has outperformed its rivals. Shares are down only 15% YTD, while Alphabet is down 37%, Amazon is down 42% and Meta is down 72%. Right now, the company has a market cap of 2.43 trillion dollars with 48 billion of cash including 25 billion in marketable securities. For perspective, Apple’s market cap is bigger than the GDP of Canada. Over the last 12 months, the company made 394.3 billion in revenue, 99.8 billion in net income and $6.11 cents earnings per share. Revenue was up 7.8% year over year. Net income was up 5.4% and thanks to a strong buyback scheme, earnings per share increased 9%. That means Apple stock is now valued at 6.4 times revenue and 25 times earnings. The company also pays a dividend of 0.6% and it repurchased $89.4 billion of its own stock in 2022. In last week’s annual report Apple showed healthy product sales for 2022:: Iphone sales were up 7.2% to 206 billion Mac sales were up 14% to 40 billion Wearables were up 7.3% to 41 billion Services were up 14% to 78 billion And Ipad sales were down -8% to 29 billion. Considering Apple’s dominance it's not surprising to see its stock outperform. Apple is also seen as a relative safe haven versus volatile growth stocks, bonds and foreign markets. However, there are also risks to owning Apple stock. US-China trade relations are disrupting Apple’s manufacturing. In one example the company has had to halt its plan to use China’s YMTC memory chips and tensions like these show no sign of easing. Also, Apple’s PE ratio at 25, is still 30-40% above its long term average. That would be ok if Apple was growing quickly but as we saw Apple grew revenue only 7% in 2022 and net income only 5%. Apple will find it difficult to grow fast because of its size and new projects like electric cars seem risky. Furthermore, Apple’s sheer dominance will draw the attention of regulators. That said, Apple maintains a strong brand and its earnings per share is supported by share buybacks. 2022-11-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5708/should-you-buy-amazon-stock-3-minute-analysis https://atto.videonest.co/5708_horizontal_thumbnail_v3.webp https://atto.videonest.co/5708_video_v3.mp4 Should you buy Amazon stock? 3-minute analysis For more detailed analysis visit our Substack: https://www.overlookedalpha.com Amazon stock dropped 13% last week after reporting Q3 earnings. That takes shares down 38% year to date and close to levels last seen in 2018. Accounting for cash and debt, that gives an enterprise value of roughly 1.08 trillion dollars. On its face, Q3 earnings didn’t look too bad. Revenue for all of Amazon’s businesses increased year on year. Ecommerce revenue was up 7%, physical stores was up 10%, 3rd party seller services was up 18%, subscriptions was up 9%, Advertising was up 25% and AWS was up 27%. As you can see from the chart, all these businesses contribute a significant amount of top line revenue. The problem, however, was a sharp increase in expenses and a pessimistic guidance for the fourth quarter (typically Amazon’s strongest). To be fair, Bezos did warn us about this when he tweeted: "Yep, the probabilities in this economy tell you to batten down the hatches." Crucially, operating income for Amazon Web Services was up only 11% year on year despite the 27% ramp in revenue. with operating margins dropping to 26%. AWS is a cash machine and the jewel in Amazon’s crown so a deceleration in profitability affects the long-term valuation of Amazon’s stock. For example, let’s say AWS revenue grows 15% a year for the next 10 years. An operating margin of 25% gets us to 77 billion in operating income in 10 years time. When you apply a 25 x multiple to those earnings we are almost at 2 trillion for AWS alone which is an investment return of exactly 6% a year. But that is a conservative estimate for AWS growth and crucially that doesn’t include any of Amazon’s other big businesses, ecommerce, 3rd party services, subscriptions and advertising. These are all powerful, multi-billion dollar businesses which benefit from Amazon’s impressive infrastructure and economies of scale. In other words, Amazon stock may not look cheap, but it has built a strong moat that the competition will find hard to replicate. This is a business that is still investing for growth has multiple opportunities to become even more powerful. 2022-11-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5709/should-you-buy-meta-stock-3-minute-analysis https://atto.videonest.co/5709_horizontal_thumbnail_v3.webp https://atto.videonest.co/5709_video_v3.mp4 Should you buy Meta stock? 3-minute analysis For more detailed analysis visit our Substack: https://www.overlookedalpha.com Meta stock tanked 25% yesterday after reporting Q3 earnings. The stock is now down 71% year to date and 67% since it changed its name from Facebook. As a result, Meta now has a market cap of $260 billion. With 41.8 billion of cash on the balance sheet and 9.9 billion of long term debt, the enterprise value is roughly 228.1 billion. Key highlights from the Q3 earnings was a 19% increase in costs and expenses to 22 billion. This took operating margins for the quarter down 16 percentage points to 20% and net income dropped 52% year on year to 4.4 billion. Capital expenditures also increased dramatically to 9.5 billion, meaning free cash flow tanked to just 173 million. In this chart you can see how net income, free cash flow and operating margins have decreased dramatically from the fourth quarter of 2021. To top things off, Meta provided no indication that costs would slow down with next year's expenses expected to come in at around $100 billion dollars. These figures mean that trailing twelve month revenue is at 118 billion, net income is 28.8 billion and free cash flow is 25.7 billion. That makes the stock pretty cheap on paper. At this point a key question for shareholders is what Meta is spending all this money on? Unlike people seem to think, this money is not all going on the metaverse. The META CFO said on the conference call that increasing AI capacity is driving substantially all our capital expenditure. In other words, Meta is investing in AI to fight Apple’s app tracking policies and to fend off competition like TikTok. What’s most worrying about this is that Meta has ramped up spending but only seen an incremental 4% increase in total revenues. But despite all the negativity, Meta still has levers to pull. Its family of apps reaches 2.93 billion people on a daily basis and the company is just starting to monetize Whatsapp. Let’s assume Meta can grow revenues just 5% a year for the next 10 years and get operating margins back up to 30%. Under that scenario, earnings in 10 years time would be roughly 57 billion. A 16 times multiple on those earnings leads to an enterprise value of 912 billion for an investment return of just under 15% per year. However, Meta’s brand has significantly deteriorated in recent years and if more people move away from Meta’s family of apps, even low revenue growth is not guaranteed. One thing’s for sure, Meta won’t throw in the towel without a fight and a lot of money spent. Lack of discipline in cost control is the key issue right now for investors. Meta could still turn out to be a good investment but I’m personally not ready to buy it. These are my own opinions, not financial advice. For more detailed analysis visit our website. 2022-10-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5710/should-you-buy-snapchat-stock-2-minute-analysis https://atto.videonest.co/5710_horizontal_thumbnail_v2.webp https://atto.videonest.co/5710_video_v3.mp4 Should you buy Snapchat stock? 2 minute analysis For more detailed analysis visit our website: https://www.overlookedalpha.com Snapchat just reported second quarter earnings that disappointed the market and the shares tanked 25% in after hours trading. Based on the after hours share price of $8 that means Snapchat now has a market cap of 13.6 billion dollars. With 4.4 billion of cash on the balance sheet (including 2.5 billion marketable securities) and 3.7 billion in debt that means the enterprise value is roughly 12.9 billion dollars. Over the last 12 months the company has made 4.6 billion dollars in revenue, 471 million in adjusted ebitda and 138 million in free cash flow. However, stock based compensation was over a billion dollars, add that back and net income was -1.1 billion dollars over the last 12 months. That means the company is currently valued around 2.8 times revenue, 27 times adjusted ebitda and 94 times free cash flow. In their latest earnings report, Snapchat made some promising remarks. Daily active users of the app increased 19% year on year to 363 million. And total revenue increased 6%. The company also announced a $500 million share buyback plan. However, the growth in users came mainly from overseas and the average revenue per user dropped 11% to $3.11. Combined with a 25% increase in costs and expenses the company reported a much wider loss of 360 million in the third quarter compared to 2021. They also reported a 64% drop in free cash flow to 18 million. Furthermore, that 6% increase in revenue represents the slowest quarterly growth in the company’s history. And to top things off, management failed to provide any guidance for the fourth quarter due to the uncertain economic environment. – Overall, Snapchat has done well to increase its users. It’s developed many new features for the app and its trying to improve its product. But the company is up against huge competition from the likes of TikTok, Youtube, Instagram and others. Snapchat has been spending more on marketing and development to drive growth but it’s just not working. Meanwhile advertising rates are coming down because of the economy and that is sending snapchat further into the red. At 94 times free cash flow, with huge competition, this is a stock to avoid. But these are my personal opinions, not financial advice. For more detailed analysis visit our website. 2022-10-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5711/this-small-cap-is-only-2x-earnings https://atto.videonest.co/5711_horizontal_thumbnail_v2.webp https://atto.videonest.co/5711_video_v3.mp4 This Small Cap Is Only 2x Earnings For more detailed analysis visit our website: https://www.overlookedalpha.com Lincoln Educational Services has been around for 75 years and provides training programs for skilled trades like auto mechanics, welders, machiners as well as healthcare jobs like nursing and hospitality jobs like cooking. Recently the company signed an agreement with Tesla to train technicians for electric vehicles. Fundamentally, Lincoln stock is extremely cheap. With a market cap of $133.7 million plus $67 million of cash on the balance sheet, Lincoln now has an enterprise value of roughly $66.7 million. But Lincoln is also selling one of its campuses for $34 million. Take that into consideration and the enterprise value drops to only $33 million. Sure, the company will need to build another campus but withholding $15-20 million for the new campus, enterprise value still doesn’t push much past above $60 million. Meanwhile, the company made $335 million in revenue last year and is guiding for $25-$30 million in adjusted EBITDA for 2022 and $10-$15 million in net income.. In other words, Lincoln is now trading around 2 times adjusted ebitda and roughly 5 times net income. But this isn’t actually a terrible business. Revenue has grown 30% gross since 2018 and adjusted EBITDA has more than doubled. To be fair, Lincoln’s performance before that was weak. Revenue flatlined between 2012 to 2017 and the stock pretty much went nowhere. Part of the problem was the economy. When the economy is booming, unemployment drops and Lincoln sees fewer students taking up its courses. As a result, Lincoln had to initiate a turnaround, cutting costs and closing campuses. Those changes seem to be working. Profit margins have climbed 8% since 2017 and student enrolments are trending higher. Now the economy is weakening, demand for Lincoln’s courses could increase dramatically. To be blunt, when people are laid off, one of the things they tend to do is re-train. And there are shortages of auto mechanics, electricians, welders, and nurses. Those programs account for more than half of Lincoln students and approximately 90% of Lincoln graduates are deemed as essential workers. So Lincoln is a stock that offers defensive properties during a difficult economy. Let’s assume a scenario where Lincoln manages to hit 35 million in ebitda in 4 years time (a growth rate of around 10%) and then assume the stock trades at 5x those earnings. That would put enterprise value at around $175 million for an investment return of roughly 27% per year. That’s without taking into account the forthcoming campus sale. So this isn’t a sexy business like Apple or Tesla. But cash on the balance sheet and the counter cyclical nature of Lincoln’s services make this an intriguing investment case. Which is why I do own a position in this stock. But remember these are just my opinions and this is a very small company which are often riskier than large caps. So this is for information purposes only. 2022-10-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/5712/the-stock-market-bubble-has-burst-but-the-party-hasnt-stopped https://atto.videonest.co/5712_thumbnail_resized.webp https://atto.videonest.co/5712_video_v3.mp4 The Stock Market Bubble Has Burst, But The Party Hasn't Stopped Originally posted on our newsletter: https://www.overlookedalpha.com It was obvious in the fourth quarter of 2020 and the first quarter of 2021 that retail-favorite growth stocks had become disconnected from reality and valuation. In retrospect, it might have been the official announcement on Feb. 23, 2021 of the merger between Churchill Capital IV and Lucid Motors (LCID) that marked the top. The rally in what was then CCIV stock, which followed accurate reporting on the merger valuation, was best explained, and likely only explained, by the fact that buyers that day literally didn’t understand how SPAC mergers worked. In some respects, the bubble that started in Q4 2020 has popped. In many others, it’s still going. The fundamental errors across the market (to be fair, hardly limited to retail investors) stem from rather garden-variety bubble behavior. But the last two years have added something else — a staggering sense of arrogance and importance. Investors in the 1999 equity market or the 2005 real estate market thought making money was easy — but not necessarily that they were smarter than the professionals. (To be fair, in both cases many of the professionals were egging them on.) To coin a phrase, this time has been different. A struggling, unprofitable movie theater chain has roughly 4 million retail shareholders based on a conspiracy theory that is insane by the standards of conspiracy theories. Assume that base is roughly two-thirds US (and the figure is probably higher); that means that more than 2% of US households own AMC stock despite there being literally zero fundamental case of any kind. So committed are the ‘apes’ that AMC is now renting out its meme-ness. There are, still, thousands of Twitter accounts dedicated to "trading" the market, based on at best a perfunctory understanding of that market. Combined, those accounts have probably three years of professional experience, $3 million in total bankroll, and somehow millions of unique followers. Reddit’s investing forums are a staggering cesspool of ignorance and groupthink (the platform’s algorithms literally keep contrarian views out), yet those forums have become so powerful that institutions actually are tracking them. Crypto enthusiasts and Tesla ‘stans’ aren't just content to make money. They need to claim to be a part of a world-changing mission at the same time. NFTs are the apotheosis of the "greater fool theory," and almost proudly so. Web3 not only is looking to normalize Ponzi schemes, but to turn customers into owners. Across the board, there is a staggering sense of entitlement. Early adopter of an online platform? Well, not only should you get to enjoy the service you've found, but you should get paid for your time (and your ‘likes’). Read about Bitcoin on a Reddit forum? You're set to profit. Your stock goes up? Tell your Twitter followers you're a genius. It goes down? Must have been hedge fund manipulation. After all, whether it's equities, crypto, options, or just using a product, the profits should be easy. 2022-04-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/7999/should-you-buy-catana-group-stock-may-2024 https://atto.videonest.co/7999_horizontal_thumbnail_v3.webp https://atto.videonest.co/7999_video_v3_360.mp4 Should you buy Catana Group stock? (May 2024) Published first at https://www.3minutebreakdowns.com Catana Group stock analysis. Ticker: $CATG French business Catana Group manufactures the popular Bali Catamaran. This is a small, family owned business that has little analyst coverage. At the latest share price, Catana stock has a market cap of 163 million euros. The company has a healthy balance sheet with 63 million of cash taking the enterprise value to 131 million. Since launching its Bali Catamaran back in 2014, Catana has seen consistent growth of 20% a year. Last year's sales increased 40% to 207 million euros. Net income increased to 19.4 million and ebitda increased to 30.5 million which means Catana is now valued at 8.4 times earnings and only 4.3 times ebitda. That valuation is near the bottom of Catana’s historical range. In fact, before the pandemic, Catana traded as high as 20 times earnings. That multiple was no doubt too high for Catana. After all, boating is a capital intensive and reasonably low growth business. But Catana does look to be holding its own. Half of its revenue comes from cruise operators, net income has increased steadily over time and the company returns cash in the form of dividends and buybacks. #investing #stocks #stockstobuy #3mb 2024-05-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8000/should-you-buy-perion-network-stock-may-2024 https://atto.videonest.co/8000_horizontal_thumbnail_v3.webp https://atto.videonest.co/8000_video_v3.mp4 Should you buy Perion Network stock? (May 2024) Published first at https://www.3minutebreakdowns.com Perion Network stock analysis. Ticker: $PERI Perion Network is an adtech business with a wild past. During the pandemic the stock went up 20x but shares are now down 70% from those highs. At the latest price, the company has a market cap of 595 million dollars. With 480 million of cash and investments on its balance sheet and 90 million of debt the enterprise value is 205 million. Revenue over the last 12 months comes to 756 million with 105 million of net income and 158 million of adjusted ebitda. So Perion stock is now valued at under 6 times earnings. And when you realize that two thirds of the market cap is in cash, the enterprise value to ebitda ratio is only 1.3 times. That makes Perion one of the cheapest companies in the whole market and it’s worth understanding why. When Perion came to the public markets in 2006 it didn’t have much of a business. The business grew over time but it’s downloadable IncrediMail product was criticized in 2013 for hijacking users' browsers. Browsers were reset in order to generate advertising revenue and the product was said to be virtually impossible to uninstall. When Google changed its policies in 2013/2014, Perion ended up tanking 95%. What's interesting is that a similar scenario is playing out now. #investing #stocks #3mb #perion 2024-05-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8001/should-you-buy-nvidia-stock-may-2024 https://atto.videonest.co/8001_horizontal_thumbnail_v3.webp https://atto.videonest.co/8001_video_v3.mp4 Should you buy Nvidia stock? (May 2024) Published first at https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: $NVDA Nvidia reported earnings last week and the stock jumped again taking the company’s market value to 2.65 trillion dollars. With 31 billion of cash on the balance sheet and 9.7 billion of debt, the enterprise value is 2.63 trillion. Over the last 12 months, Nvidia has now reported 80 billion dollars of revenue, 43 billion of net income and 39 billion of free cash flow so the stock is valued at roughly 33 times revenue and 62 times earnings. This was another strong earnings report from Nvidia. Revenue increased 260%, gross profit quadrupled and free cash flow grew to $15 billion, a free cash flow margin of about 58%. Ever since the company reported Q1 earnings a year ago, Nvidia has continued to defy expectations. The explosive growth of generative AI and the need for Nvidia’s GPUs has produced one of the most consequential stock market rallies in history. The company has added 1.8 trillion dollars in market cap over that time, roughly the same size as one Amazon. Of course, investing is about looking forward, not back. And at 62 times earnings there are some obvious questions about Nvidia. The first is slowing growth. Starting in the second quarter, Nvidia’s growth is going to slow dramatically. Yearly comparisons will now include the huge spike from one year ago, giving the company a progressively higher bar to clear. The rate of revenue growth looks set to decline for the fourth quarter in a row. #nvdastock #stocks #investing #3mb 2024-05-28T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8002/should-you-buy-droneshield-stock-may-2024 https://atto.videonest.co/8002_horizontal_thumbnail_v3.webp https://atto.videonest.co/8002_video_v3_360.mp4 Should you buy DroneShield stock? (May 2024) Published first at https://www.3minutebreakdowns.com DroneShield stock analysis. Ticker: $DRO.AX Australian defense company DroneShield manufactures products that detect and neutralize drones. After gaining 240% over the past year the company now has a market cap around 769 million Australian dollars. After a recent capital raise, the company should have $150 million of cash on the balance sheet which means the enterprise value should be 615 million. Meanwhile, DroneShield is experiencing excellent growth. Revenue increased 226% last year to 55 million dollars and Q1 revenue showed a 10x improvement on the prior year. The company also reported 9.3 million of net income and 7.7 million of free cash flow which means the stock is valued at around 11 times revenue and 83 times earnings. The war in Ukraine has seen large scale use of drones on both sides and this has led to products being developed to neutralize the threat. DroneShield’s products use radio-waves and AI to jam drones and bring them to the ground without force. And these products are not only reserved for the battlefield. They can also be used to protect airports, stadiums and government buildings. DroneShield has reported revenue in these areas but 70 does currently come from the military. The company won a $33 million dollar contract with the US government last year and recently secured a procurement agreement with Nato. Additional smaller deals and a contracted backlog of $27 million suggest DroneShield is setting up for another record year. And the company recently moved to a larger site in Australia that will allow it to meet a projected pipeline of over $400 million. So based on a healthy pipeline and recent contract wins with the US government, DroneShield has momentum and looks to be worth backing. However, there are some risks to consider. #stocks #investing #3mb 2024-05-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8003/should-you-buy-zoom-stock-may-2024 https://atto.videonest.co/8003_horizontal_thumbnail_v3.webp https://atto.videonest.co/8003_video_v3_360.mp4 Should you buy Zoom stock? (May 2024) Published first at https://www.3minutebreakdowns.com Zoom Video Communications stock analysis. Ticker: $ZM Zoom reported earnings on Monday but the stock barely moved and is down 2% on the week. At the latest price the company has a market cap of 19.6 billion dollars. But Zoom also has nearly 8 billion of cash on its balance sheet and no debt which means the enterprise value is less than 12 billion. Revenue over the last 12 months comes to 4.6 billion, with 838 million of net income and 1.6 billion of free cash flow. So with a healthy cash balance and decent gross margins, Zoom looks cheap at only 6 times ebitda and 7 times free cash flow. That valuation is a far cry from the days of the pandemic when Zoom soared to over 100 times sales! What’s interesting is that Zoom now trades below where it was before the pandemic started, despite the company seeing a huge boom in users over that time. And that underperformance is clearly rooted in the fundamentals. Zoom revenues grew 88% in 2020, and over 300% in 2021. But growth in 2023 was only 7% and last year was even slower. Forward guidance is also a concern with Zoom guiding for 2% growth this year. That kind of growth isn’t enough, especially when you consider stock based compensation. Add that figure back to free cash flow and the enterprise value to free cash flow multiple increases to 18. Based on a discounted cash flow valuation, Zoom really needs to get growth up to around 10% a year for the stock to produce an adequate return. #investing #stocks #zoomstock #3mb 2024-05-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8004/should-you-buy-amc-stock-may-2024 https://atto.videonest.co/8004_horizontal_thumbnail_v2.webp https://atto.videonest.co/8004_video_v3.mp4 Should you buy AMC stock? (May 2024) Published first at https://www.3minutebreakdowns.com AMC stock analysis. Ticker: AMC AMC stock soared 300% last week after Roaring Kitty reignited meme stocks. Shares have dropped back but are still up 36% on the month. At the latest price, AMC has a market cap of just under 1.5 billion. With 632 million of cash and 4.5 billion of long term debt, the enterprise value is 5.4 billion. AMC is still the largest movie theater owner in the world with revenues of 4.8 billion over the last 12 months. 2023 was a good year for AMC with revenue growing 23% and adjusted ebitda has climbed to almost 400 million. However, even under $5 a share there are some big problems investing in AMC. The first is debt. AMC finished the first quarter with net debt of $3.9 billion which gives it a leverage ratio of over 10 times adjusted ebitda. To put that into context, a leverage ratio over six usually signals a company in significant distress. And AMC’s figure doesn’t even include the impact of operating lease liabilities which amounts to another 4.4 billion. In theory, AMC could still be worth something if it has a path to growth but that highlights the second issue with AMC. Sales are still below where they were before the pandemic. The problem is AMC’s fixed-cost model. AMC needs a certain number of moviegoers coming through the door before it starts to earn a profit. Once it hits that number, the business becomes quickly profitable. But people simply aren’t going to the movies like they used to. #amcstock #investing #stockmarket #3mb 2024-05-22T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8005/should-you-buy-oddity-technology-stock-may-2024 https://atto.videonest.co/8005_horizontal_thumbnail_v2.webp https://atto.videonest.co/8005_video_v3_360.mp4 Should you buy Oddity Technology stock? (May 2024) published first at https://www.3minutebreakdowns.com Oddity Technology stock analysis. Ticker: $ODD Israeli company Oddity Technology is responsible for two fast growing beauty brands Il Makiage and SpoiledChild. In the company’s annual report, Oddity says it uses data science, machine learning, and computer vision to deliver science-based beauty products. And it seems to be working. Oddity’s revenues have grown from $111 million in 2020 to $555 million over the last 12 months, taking the company’s market value past 2.6 billion dollars. The business is also nicely profitable with net income of 72 million and just over 100 million of free cash flow. So at 22 times free cash flow the stock doesn’t look too expensive. However, not everyone is bullish on Oddity stock as witnessed by a short interest of 22%. And there are a couple of reasons why. The first is that beauty products have a reputation for turning into fads. Popular hair company Olaplex which went public in 2021 at a valuation of nearly $14 billion is a good example. Less than 3 years later, Olaplex stock is down 90% with sales plunging 35% last year. With the exception of ELF it’s usually safer to bet on the more established brands. The second concern relates to management. A quick trip to Oddity’s website provides an unusual experience. Instead of photos of models and makeup we get a slew of buzz words such as artificial intelligence, data science and machine learning. It’s clear that Oddity is not a beauty company but a tech firm that uses data to develop and promote new products. And there’s no doubt that Oddity takes an aggressive approach. Customers complain about too many ads on social media and overpriced products. Others say that they got stuck into auto renewals without realizing. Clearly not everyone is a fan of the company. In addition, an investigation by The Bear Cave found some red flags about management with ties to other poor performing businesses like The Honest Company and Better Mortgage. #investing #stocks #oddity #3mb 2024-05-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8006/should-you-buy-symbotic-stock-may-2024 https://atto.videonest.co/8006_horizontal_thumbnail_v2.webp https://atto.videonest.co/8006_video_v3_360.mp4 Should you buy Symbotic stock? (May 2024) Published first at https://www.3minutebreakdowns.com Symbotic stock analysis. Ticker: $SYM This is one of the fastest growing stocks on the market. Symbotic makes systems for the automation of warehouses. The company uses AI to control proprietary robots which can travel 20 miles an hour and carry payloads of 250 pounds. These systems costs hundreds of million of dollars to install and allow companies like Walmart to more efficiently run their warehouses. In 2023, Walmart accounted for 88% of Symbotics revenue. At the latest price, Symbotic has a market cap of 25.7 billion with almost a billion dollars of cash on its balance sheet. Revenue over the last 12 months is 1.5 billion with 47 million of adjusted EBITDA and 75 million of free cash flow. So Symbotic is valued at over 17 times revenue. That’s an enormous multiple considering gross margins are just 15% and it means Symbotic is trading at about 100 times gross profit. That valuation, however, is supported by staggering growth. Revenue has climbed from just 100 million in 2019 to almost 1.5 billion today. And there’s no sign of that growth coming to an end. The current backlog for Symbotic’s systems stands at 23 billion and CEO Rick Cohen said that this would be “the slowest sales year this company has for the next 50 years”. A huge TAM and a growing partnership with Walmart proves the potential of Symbotics offering even if does point to concentration risk. There’s also a joint venture with Softbank known as Greenbox which gives Symbotic the opportunity to tap into a lucrative warehouse as a service opportunity. However, not everyone is bullish on Symbotic as the stock has a high short interest of nearly 30%. Crucially, Symbotic’s high capital requirements lead to low profit margins. The build out of a Symbotic system is a one time event that takes significant investment and time. #symbotic #investing #stockstowatch #3mb 2024-05-18T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8007/should-you-buy-gigacloud-technology-stock-may-2024 https://atto.videonest.co/8007_horizontal_thumbnail_v2.webp https://atto.videonest.co/8007_video_v3_360.mp4 Should you buy GigaCloud Technology stock? (May 2024) Published first at https://www.3minutebreakdowns.com GigaCloud stock analysis. Ticker: $GCT GigaCloud Technologies operates a marketplace for the drop shipping of large merchandise like furniture and fitness equipment. Buyers list their products on ecommerce websites like Rakuten, Amazon, Walmart or Wayfair. Once a sale takes place, they order the product on Gigacloud who then ships it direct to the customer from one of its many warehouses. And based on latest figures GigaCloud looks like one of the best stocks in the market. Revenue over the last 12 months has grown 64% to 827 million and more than tripled since 2020. Net income is positive at 105 million and free cash flow has grown to 120 million. So with a market cap of 1.45 billion and enterprise value of 1.25 billion the company is trading at under 14 times earnings and only 10 times free cash flow. That valuation is incredibly cheap considering the company’s growth. Since 2021, active third-party sellers have increased 126% and the average spend per buyer has jumped to almost $160,000. Dropshipping large merchandise helps brands with inventory risk and takes the pressure of their supply chains. Meanwhile GigaCloud’s decision to lease warehouses, instead of owning them outright, means the company already reports high returns on capital. Those returns should improve as GigaCloud grows and net income margins of 13% can expand further as well. So the big question is why the stock is so cheap? A short report published last year by Culper Research highlights some of the risks. Notably, the majority of GigaClouds operations reside in China which makes the company unattractive to many investors and the company was late to file its 10-k annual report. The bookrunner for GigaCloud’s IPO, Aegis Capital, also has a poor reputation while Culper Research claimed that GigaClouds warehouses are simply not busy enough for a company of its size. #stocks #investing #stockmarket #3mb 2024-05-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/8008/should-you-buy-shopify-stock-may-2024 https://atto.videonest.co/8008_horizontal_thumbnail_v2.webp https://atto.videonest.co/8008_video_v3_360.mp4 Should you buy Shopify stock? (May 2024) Published first at https://www.3minutebreakdowns.com Shopify stock analysis. Ticker: $SHOP Shopify stock is down 25% over the past week after the company reported first quarter earnings. At the latest price, the company is now worth 74.7 billion. Account for cash, investments and debt, and the enterprise value is just over 67 billion. Revenue over the last 12 months comes to 7.4 billion, net income is negative 200 million and free cash flow is positive 1 billion. So Shopify stock is now valued at 9 times revenue and 64 times free cash flow. On its face, Shopify’s Q1 earnings look fine. Revenue grew 23% which was above analyst estimates and guidance for high-teens growth next quarter is more than acceptable. Especially since that number includes a 3 or 4% hit from the sale of Shopify’s logistics business. Even so, the recent sell-off simply highlights the main concern about Shopify stock. Heading into earnings, Shopify was trading at over 10 times revenue and 20 times gross profit. That valuation is in line with some of the fastest growing and most expensive stocks on the market. But Shopify’s growth rates, although strong, are slowing down. Perhaps more importantly the company is seeing pressure on gross margins. Management said that gross margins would decline again next quarter by about 50 basis points. #stocks #investing #stockmarket #3mb 2024-05-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9186/should-you-buy-alibaba-stock-june-2024 https://atto.videonest.co/9186_horizontal_thumbnail_v3.webp https://atto.videonest.co/9186_video_v3_360.mp4 Should you buy Alibaba stock? (June 2024) Published first at https://www.3minutebreakdowns.com Alibaba stock analysis. Ticker: $BABA Over the last two years, Alibaba stock has essentially gone nowhere, that’s despite it being one of the cheapest stocks around. The company has a current market value of 198 billion US dollars. But it’s also got 34 billion of cash on its balance sheet and 75 billion of investments. Subtract 24 billion of debt and the enterprise value comes to 112 billion. Considering Alibaba has reported 22 billion of free cash flow over the last 12 months and almost 27 billion of ebitda, the stock is valued at only 5 times free cash flow and the enterprise value to ebitda ratio is even lower. That valuation has sparked interest from a number of high profile investors. Filings indicate that David Tepper, Michael Burry and Howard Marks all own the stock. But it’s worth understanding why Alibaba stock is so cheap in the first place. As noted in my previous video, Alibaba’s variable interest entity structure holds certain risks to investors such as not providing direct ownership of the company. The grey legal area surrounding the VIE structure is enough to put some investors off entirely. Combine that with geopolitical tensions and a heavy handed Chinese Communist Party and it’s easy to see why markets punished the stock. #alibabastock #investing #stocks #3mb 2024-05-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9197/should-you-buy-xpel-stock-june-2024 https://atto.videonest.co/9197_horizontal_thumbnail_v3.webp https://atto.videonest.co/9197_video_v3.mp4 Should you buy Xpel stock? (June 2024) Published first at https://www.3minutebreakdowns.com Xpel stock analysis. Ticker: $XPEL Xpel specializes in paint protection film for vehicles and over the last 10 years its been one of the best stocks in the whole market. However, shares have fallen almost 50% over the last 12 months. At the latest price the company has a market cap of 1 billion dollars with annual revenues of 400 million. Adjusted EBITDA comes to 74 million with 48 million of net income and 25 million of free cash flow. So the stock is valued at just under 22 times earnings. Xpel nearly went bankrupt during the financial crisis and CEO Ryan Pape had to use his personal credit card to keep the company afloat. Since then, however, the company has gone from strength to strength. Revenue has compounded at an average rate of 35% over the past 10 years and at one point the stock was up over 5000%. But despite that success, Xpel is seeing volatility once again. Revenue in the latest quarter grew by only 5% and ebitda fell 31% to under 12 million dollars. And there are other reasons for investors to be nervous. A short report last year argued that Xpel faces existential risk from a new type of protective paint developed by PPG and Entrotech. And last October Tesla announced it was launching its own paint protection film and wrap for its vehicles. This is bad news for XPEL because the company derives a large portion of revenue from new electric vehicles. #xpelstock #investing #stockstobuy #3mb 2024-06-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9758/should-you-buy-marex-group-stock-july-2024 https://atto.videonest.co/9758_horizontal_thumbnail_v3.webp https://atto.videonest.co/9758_video_v3.mp4 Should you buy Marex Group stock? (July 2024) Published first at https://www.3minutebreakdowns.com Marex Group stock analysis. Ticker: $MRX UK brokerage Marex Group provides commodity trading, market making, hedging and clearing. The company came to the public markets via IPO in April and based on data from financial websites, the stock looks like a screaming buy. However, those websites have failed to account for a reverse stock split and are in fact reporting incorrect numbers. Based on accurate figures from the company’s annual report, Marex Group actually has a market cap of 2.6 billion dollars with a book value of 794 million. Revenue last year was 1.2 billion unlike the 1.8 billion reported on most financial websites, and net income was 141 million. So Marex stock is valued at about 2.1 times revenue and 19 times earnings. But when you consider Q1 earnings and analyst estimates for the rest of the year, Marex is actually trading at only 8 times this year's earnings. That is incredibly cheap when you consider Marex’s recent growth. Revenue is up 75% year over year and adjusted operating profit has compounded at 34% a year since 2014. #investing #stockstobuy #stockanalysis #3mb 2024-07-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9759/should-you-buy-nike-stock-july-2024 https://atto.videonest.co/9759_horizontal_thumbnail_v2.webp https://atto.videonest.co/9759_video_v3.mp4 Should you buy Nike stock? (July 2024) Published first at https://www.3minutebreakdowns.com Nike stock analysis. Ticker: $NKE Nike shares plunged to another new low today taking the stock back to levels last seen during the pandemic. At the latest price, the company has a market cap of 111 billion dollars. With 11.6 billion of cash on the balance sheet and 7.9 billion of long term debt, the enterprise value is 107.3 billion. Revenue over the last 12 months comes to 51.4 billion with 5.7 billion of net income and 7.5 billion of ebitda. So Nike stock is now valued at 20 times earnings and 14 times ebitda. There’s no doubt, that’s a cheap valuation for Nike. The stock hasn’t had a PE ratio this low since 2012. But just because the PE ratio is low doesn’t necessarily mean Nike is a buy. The company is clearly going through some issues right now with revenue increasing by just 1% last year. And the company’s outlook for next quarter is for sales to decline by 10%. One of the most concerning aspects of Nike’s performance is the company’s results in North America. Footwear sales in the US, which is the company’s biggest segment, declined 6% in the most recent quarter and 2% for the whole year. Direct to consumer sales were down 8% and Digital sales fell 10%. #investing #stocks #nikestock #3mb 2024-07-16T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9760/should-you-buy-opendoor-stock-july-2024 https://atto.videonest.co/9760_horizontal_thumbnail_v2.webp https://atto.videonest.co/9760_video_v3.mp4 Should you buy Opendoor stock? (July 2024) Published first at https://www.3minutebreakdowns.com Opendoor stock analysis. Ticker: $OPEN Opendoor stock has fallen 95% since 2021 taking the company’s market cap to $1.3 billion. And fundamentally, the stock is beginning to look cheap. The enterprise value to revenue ratio is among the lowest multiples in the market. Gross margins are low but the enterprise value to gross profit is only 1.6 times. And Opendoor holds a decent amount of assets as well. Net cash is almost half the market cap. And tangible book value is about $900 million. But Opendoor stock is cheap for a reason, the market simply doesn’t trust this business model. Opendoor is often referred to as a “house flipping” business, but in reality it’s much more like a market maker. The company provides liquidity by buying and selling assets when its customers want to transact. This allows customers to transact much more quickly and easily than having to wait for someone on the other side of the trade. And like a market maker, Opendoor aims to generate a spread on transactions which ends up being about 5% to 7%. However, there are problems with this approach. The first is that many homeowners don’t want to sacrifice profits for convenience. Properties hold significant value and sellers would rather wait for the right price than accept the first offer from Opendoor. Of course, there are exceptions such as when customers need to move quickly, but they’re less common. #stocks #investing #stockanalysis #3mb 2024-07-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9761/should-you-buy-chewy-stock-july-2024 https://atto.videonest.co/9761_horizontal_thumbnail_v2.webp https://atto.videonest.co/9761_video_v3.mp4 Should you buy Chewy stock? (July 2024) Published first at https://www.3minutebreakdowns.com Chewy stock analysis. Ticker: $CHWY Chewy stock surged over 30% last week after Roaring Kitty aka Keith Gil revealed a $200 million dollar position in the company. At the latest price, the online pet business now has a market cap of 10.9 billion dollars. With 1.1 billion of cash and no debt on the balance sheet the enterprise value is 9.8 billion. Revenue over the last 12 months comes to 11.2 billion with 84 million of net income, 256 million of adjusted ebitda and 268 million of free cash flow. So Chewy stock is now valued at 130 times earnings and 37 times free cash flow. At an investor day last year Chewy unveiled a plan to reignite growth and get to a long term adjusted ebitda margin over 10%. Such a margin would mean strong earnings growth for Chewy and a significant increase in the stock price. And so far the plan seems to be working. Chewy has grown its recurring autoship revenue, introduced advertising and sponsorships, expanded into Canada and begun to open new offline veterinary clinics. These clinics can drive new revenue as well as awareness for the Chewy brand.True to form, adjusted ebitda margin took a big step up in the latest quarter hitting 5.7%, a significant improvement.. If this performance holds, Chewy could deliver over 500 million in free cash flow this year. That’s a lot considering the current valuation. And Chewy stock, which has rallied 60% since May should have more upside ahead. #investing #stocks #3mb #chewystock 2024-07-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9762/should-you-buy-rivian-stock-july-2024 https://atto.videonest.co/9762_horizontal_thumbnail_v2.webp https://atto.videonest.co/9762_video_v3.mp4 Should you buy Rivian stock? (July 2024) Published first at https://www.3minutebreakdowns.com Rivian stock analysis. Ticker: $RIVN Rivian jumped 36% last week after Volkswagen announced it was investing $5 billion dollars in the company. Shares have fallen back slightly taking the company’s market cap to 14.6 billion. With 7.9 billion of cash and investments on its balance sheet and 4.4 billion of debt the enterprise value is just under 11 billion. The fundamentals for Rivian don’t look good. Gross margins are shapely negative at minus 41%. Over the past 4 quarters, for every dollar Rivian has made in revenue, its lost more than a dollar in free cash flow. Revenue might have grown to 5 billion over the last 12 months but earnings before interest taxes depreciation and amortization is negative 3.8 billion and free cash flow at negative 5.6 billion is even worse. Adding to the concern is Rivian’s balance sheet. The company’s pile of cash and investments is enough to cover just six quarters at the current rate of cash burn. And when you consider Rivian is guiding for growth of just 14% this year, the stock looks like an obvious avoid. It;s not surprising investors are shorting the stock with a short interest over 18%. But as bad as the numbers look, it’s worth remembering that automotive manufacturing is capital intensive and it takes time for startups to build the scale needed. Tesla, after all, took 18 years to turn its first profit. #investing #stocks #rivianstock #3mb 2024-07-07T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9763/should-you-buy-unity-stock-july-2024 https://atto.videonest.co/9763_horizontal_thumbnail_v2.webp https://atto.videonest.co/9763_video_v3.mp4 Should you buy Unity stock? (July 2024) Published first at https://www.3minutebreakdowns.com Unity stock analysis. Ticker: $U The story of Unity Software is one of mismanagement and missed opportunity. The company’s original game engine has always been strong but management entered into a number of expensive acquisitions to grow the company which haven’t all paid off. The company's bid for advertising business Irounsource was criticized from the beginning while revenue in the most recent quarter fell by 8%. Unity then shot itself in the foot by changing the pricing of its product. Previously, game developers only paid a fixed, annual licensing fee to use the Unity software, but Unity tried to increase revenue by taking a share of every installation of a game developed on Unity’s engine. Developers were up in arms and many left the platform for rival engines. Unity eventually backtracked though they did keep the new pricing structure for larger customers. In response to the turmoil, Unity has made a number of changes. A service agreement with Wētā Digital which Unity bought for 1.6 billion has been terminated, the hardware business has been cut and about a quarter of staff laid off. Those layoffs will help reduce stock-based compensation which will move the company closer to profitability. New CEO Matt Bromberg has also been brought in from Zynga to turn the company around. #investing #stocks #unitystock #3mb 2024-07-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9764/should-you-buy-xpeng-stock-july-2024 https://atto.videonest.co/9764_horizontal_thumbnail_v3.webp https://atto.videonest.co/9764_video_v3.mp4 Should you buy XPeng stock? (July 2024) Published first at https://www.3minutebreakdowns.com Xpeng stock analysis. Ticker: $XPEV Chinese car company Xpeng has had a wild few years. Despite delivering over 400,000 vehicles, the stock has fallen 87% from its 2021 peak. At the latest price, Xpeng now has a market cap just under 7.3 billion dollars. With 5.7 billion of cash and investments on its balance sheet and 1.6 billion of long term debt, the enterprise value is 3.1 billion. Revenue over the last 12 months comes to 4.6 billion but net income, adjusted ebitda and free cash flow are all negative as the company has yet to reach profitability. The problem facing XPENG is the same for many other EV companies around the world, a slowdown in consumer demand for electric vehicles and a vicious price war. Industry leaders BYD and Tesla have continued to cut prices putting pressure on smaller players which has caused many companies to go under. Chinese carmakers Li Auto, Nio and Xpeng are al facing the same pressures to keep prices low. The problem for Xpeng is that even with gross margins improving to nearly 13% in the first quarter, there simply isn’t enough room to compete on price and still turn a profit. The company remains a long way from breakeven, with Adjusted EBITDA margins likely to be about negative 13% next year. The company needs more scale to close that gap. Meanwhile, the US and Europe continue to penalize Chinese car makers with import tariffs. So, XPENG still has a lot of work to do and a lot more cars to sell if it is to reach profitability. Even so, Xpeng does have some positive attributes. The cars, themselves, are innovative and well-reviewed with full self-driving capabilities to come next year. Vehicle sales are increasing rapidly and Xpeng prices are still lower than most even after tariffs have been applied. #investing #stocks #xpengstock #3mb 2024-07-03T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9765/should-you-buy-dave-and-busters-stock-june-2024 https://atto.videonest.co/9765_horizontal_thumbnail_v3.webp https://atto.videonest.co/9765_video_v3.mp4 Should you buy Dave & Busters stock? (June 2024) Published first at https://www.3minutebreakdowns.com Dave & Busters stock analysis. Ticker: $PLAY Restaurant and entertainment business Dave & Busters is what’s known as a battleground stock. Bears see a restaurant concept in decline while bulls see an undervalued turnaround. But for the last 8 years neither side has been right as the stock has essentially gone nowhere. At the latest price, Dave & Busters has a market cap of 1.7 billion dollars. With 32 million of cash on its balance sheet and 1.3 billion of long term debt the enterprise value is just under 3 billion. Revenue over the last 12 months comes to 2.2 billion with 98 million of net income and 533 million of adjusted ebitda. So Dave & Busters stock is now valued at 17 times earnings and 5.6 times EBITDA. The bear case for Dave & Busters is relatively simple. The company isn’t growing fast enough. Same store sales are up only 8% since 2019 and net income has remained flat over the same period. Meanwhile, debt levels have increased to about 2.5 times ebitda. Dave & Buster’s runs a relatively capital-intensive model with free cash flow turning negative over the past four quarters. And there’s a clear sense that Dave & Busters arcade concept has become dated, competing with other venues and at-home entertainment. #investing #stocks #stockmarket #3mb 2024-07-01T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9766/3-stocks-to-avoid-june-2024-edition https://atto.videonest.co/9766_horizontal_thumbnail_v3.webp https://atto.videonest.co/9766_video_v3.mp4 3 Stocks To Avoid - June 2024 Edition Published first at https://www.3minutebreakdowns.com 3 stocks to avoid, June 2024 edition IBM stock has soared 30% over the past year as the company positions itself as an AI winner. On the latest earnings call, management talked up bookings from generative AI and WatsonX. However, it looks like AI growth at IBM has already started to slow. Sales doubled in the fourth quarter but in the latest quarter growth slipped to double digits. And at 1 billion of revenue it doesn’t move the needle. In fact, AI could hurt IBM more than it helps it, since more than a third of IBM’s revenue comes from consulting services which might be at risk from new AI solutions. Total revenue for IBM is expected to grow in the mid-single digits which isn’t great in the context of the current artificial intelligence boom. Meanwhile, numerous acquisitions over the years have left the company with a bloated balance sheet and $60 billion dollars of debt. #stocks #investing #3mb 2024-06-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9767/should-you-buy-adobe-stock-june-2024 https://atto.videonest.co/9767_horizontal_thumbnail_v3.webp https://atto.videonest.co/9767_video_v3.mp4 Should you buy Adobe stock? (June 2024) Published first at https://www.3minutebreakdowns.com Adobe stock analysis. Ticker: $ADBE Adobe reported earnings last week and the stock jumped by 15% taking the company’s market value to 235 billion dollars. With 8 billion of cash and investments on its balance sheet and 4 billion of debt, the enterprise value is 231 billion. Revenue over the last 12 months is 20.4 billion with just over 5 billion of net income and 6.4 billion of free cash flow. So Adobe stock is now valued at 11 times revenue and 46 times earnings. That seems like an expensive valuation but that’s because Adobe is one of the best businesses in the world. Revenue has grown every year for the last 10 years at a compounded annual growth rate of 17%. Earnings per share has grown continuously supported by recurring revenue growth and share buybacks.. And the latest quarter provides more evidence of Adobe’s quality. Revenue grew 10% year over year which was above analyst estimates and the company raised its targets for the rest of the year. Crucially, management said on the earnings call that they are seeing strong uptake for the company’s new generative AI products such as FIrefly and this is bringing new users into the Adobe ecosystem. This is important because the bear case for Adobe revolves around new AI products taking market share. #investing #stocks #adobestock #3mb 2024-06-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9768/should-you-buy-uipath-stock-june-2024 https://atto.videonest.co/9768_horizontal_thumbnail_v3.webp https://atto.videonest.co/9768_video_v3.mp4 Should you buy UiPath stock? (June 2024) Published first at https://www.3minutebreakdowns.com UiPath stock analysis. Ticker: $PATH UIPath provides software for robotic process automation known as RPA. When the company IPO’d in 2021 it held a market cap of $35 billion dollars. Since then, the company has fallen over 80% taking the market value to 6.5 billion dollars. With 1.9 billion of cash and investments on its balance sheet and no debt the enterprise value is 4.6 billion. Revenue over the last 12 months comes to 1.35 billion with 248 million of adjusted ebitda and 325 million of free cash flow. However, that free cash flow is completely covered by stock based compensation of 376 million. Which is why the company reports negative net income. RPA involves using software to automate manual tasks and processes. In the case of UIPath these actions can include logging into applications, extracting information from documents, moving folders, filling in forms and reading emails. The use of AI and machine learning helps companies to be more productive and that supports a growing and sticky business for UIPath. Revenue has more than doubled since 2021 and the company reports a healthy revenue retention rate of 118 per cent. #investing #stocks #pathstock #3mb 2024-06-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9769/should-you-buy-celsius-holdings-stock-june-2024 https://atto.videonest.co/9769_horizontal_thumbnail_v3.webp https://atto.videonest.co/9769_video_v3.mp4 Should you buy Celsius Holdings stock? (June 2024) Published first at https://www.3minutebreakdowns.com Celsius Holdings stock analysis. Ticker: $CELH Energy drink maker Celsius is one of the best performing stocks of the last 10 years. Shares have increased over 25,000 per cent since 2014. But over the last 15 days, the stock has dropped 40% taking the company’s market value back to 13.9 billion dollars. With 879 million of cash on the balance sheet and no debt, the enterprise value is just 13 billion. Revenue over the last 12 months comes to 1.4 billion, with 263 million of net income and 335 million of adjusted ebitda. So Celsius stock is valued at 9 times revenue, 53 times earnings and 39 times ebitda. The fall in Celsius stock started when market research company Nielsen showed that sales were beginning to slow. Weekly sales growth slowed to 39% and market share. according to Nielsen. dipped from 10.8% to 10.5%. Then, we heard that Celsius’s distribution partner PEPSI was having to reduce its inventory, often a sign of weak demand. To top things off, videos started circulating across social media suggesting that Celsius drinks contained cyanide. For a company that was trading at over 80 times earnings it's not really surprising that shares gave up some of their gains. However, there’s a case that the market is overreacting. #investing #stocks #CELH #celsiusenergy #3mb 2024-06-20T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9770/should-you-buy-dream-finders-homes-stock-june-2024 https://atto.videonest.co/9770_horizontal_thumbnail_v3.webp https://atto.videonest.co/9770_video_v3.mp4 Should you buy Dream Finders Homes stock? (June 2024) Published first at https://www.3minutebreakdowns.com Dream Finders Homes stock analysis. Ticker: $DFH US homebuilder DreamFinder Homes has experienced rapid growth over the last 10 years. But the stock has fallen 40% from its 52 week high. At the latest price, DreamFinder Homes has a market cap of 2.7 billion dollars. With 240 million of cash on its balance sheet and one billion of debt, the enterprise value is just under 3.5 billion. Revenue over the last 12 months comes to 3.8 billion with 300 million of net income and 157 million of free cash flow. So DreamFinder stock is valued at just 9 times earnings and 22 times free cash flow. DreamFinder Homes was started by CEO Patrick Zalupski in the aftermath of the financial crisis and it’s what’s known as an asset-light home builder. The company doesn’t purchase land until its found a buyer for the home it’s about to build. This keeps debt off the balance sheet and minimizes risk. It’s an approach that was popularized by market leader NVR which has been one of the best performing stocks of the last 20 years. DreamFinder has made no secret about copying NVR’s model and so far it’s worked exceptionally well. The company has grown from just 3 sold homes in 2009 to more than 8000 expected sales this year. Total revenues grew 50% in 2020, 70% in 2021, and 74% in 2022. Operating margins have also inflected higher. #investing #stocks #dfhstock #3mb 2024-06-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9771/should-you-buy-salesforce-stock-june-2024 https://atto.videonest.co/9771_horizontal_thumbnail_v3.webp https://atto.videonest.co/9771_video_v3.mp4 Should you buy Salesforce stock? (June 2024) Published first at https://www.3minutebreakdowns.com Salesforce stock analysis. Ticker: $CRM Salesforce reported earnings recently and the stock plunged 20%. Shares have recovered slightly since then but they’re still down 26% from the peak. At the latest price, Salesforce has a market cap of 228 billion dollars. With 17 billion of cash and investments on its balance sheet and 9 billion of debt the company’s enterprise value is just under 220 billion. Revenue over the last 12 months comes to 35.7 billion with 5.5 billion of net income and 11.3 billion of free cash flow. So Salesforce stock is now valued at 42 times earnings, and 19 times free cash flow. That valuation may seem high but it is in fact the lowest the company has traded at since it’s IPO. And that’s because since it went public, Salesforce has been one of the best stocks in the market. Revenue has compounded steadily, and for more than 17 years, Salesforce didn’t miss a single Wall Street estimate. Between 2004 and the end of 2021, the stock produced annualized returns of almost 30%. However, last month’s earnings was the first time the company has missed estimates for revenue growth since 2006. Sales grew just 11% and guidance looks even worse. Revenue for the full year is expected to grow just 8 or 9%. So the key question for investors is whether this business is as good going forward as it has been in the past. #investing #stocks #salesforce #3mb 2024-06-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9772/should-you-buy-shift4-stock-june-2024 https://atto.videonest.co/9772_horizontal_thumbnail_v3.webp https://atto.videonest.co/9772_video_v3.mp4 Should you buy Shift4 stock? (June 2024) Published first at https://www.3minutebreakdowns.com Shift4 stock analysis. Ticker: $FOUR Shift4 Payments provides point of sale solutions that help businesses accept payments. The company has been focussing on restaurants, hotels and stadiums and is showing strong growth across the board. At the latest price, Shift4 has a market cap of 6.8 billion dollars. With 600 million of cash and 1.8 billion of debt the enterprise value is 8 billion. Revenue over the last 12 months comes to 2.7 billion with 131 million of net income and 492 million of adjusted ebitda. CEO Jared Isaacman started Shift4 when he was 16 and he’s led the company to double digit revenue growth for 25 consecutive years. More recently, total payment volume grew 50% with EBITDA growing over 30%. And Shift4 recently provided guidance which suggests adjusted ebitda will come to 658 million this year with free cash flow of 395 million. That means the stock is trading at 20 times this years free cash flow and 12 times this years adjusted ebitda. That’s a dirt cheap multiple when compared to growth and other companies in the space. Toast for comparison trades at over 50 times ebitda. #investing #stocks #stockstobuy #3mb 2024-06-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9773/should-you-buy-diageo-stock-june-2024 https://atto.videonest.co/9773_horizontal_thumbnail_v3.webp https://atto.videonest.co/9773_video_v3.mp4 Should you buy Diageo stock? (June 2024) Published first at https://www.3minutebreakdowns.com Diageo stock analysis. Ticker: $DEO Diageo is one of the largest drinks companies in the world with over 200 brands including Johnnie Walker, Smirnoff, Baileys and Guinness. The company’s stock is down 22% over the past year prompting some investors to buy the dip. But is the stock undervalued? At the latest share price, Diageo has a market value just under 75 billion dollars. There’s 1.8 billion of cash on the balance sheet and 19 billion of debt so the enterprise value is about 92 billion. Over the last 12 months, Diageo has reported 21.6 billion dollars of revenue, 4.3 billion of net income and just under 3 billion of free cash flow. So Diageo stock is now valued at 4.3 times revenue and 17 times earnings. That valuation is cheap for a company of Diageo’s caliber. After all, this is a company whose brands can be traced back to the 17th century. Revenue continues to grow consistently and Diageo returns capital in the form of dividends and share buybacks. Looking at a historical chart of Diageo’s PE ratio you can see that the current PE multiple is near the bottom of its historical range and it's a similar story for the enterprise value to ebitda ratio. In other words, Diageo is about as cheap as it’s been for the last 12 years. But despite Diageo’s blue chip status, there are some concerns around the business. Management issued a profit warning last year following weak sales in Latin America. That weakness was put down to cost of living pressures following the pandemic but Diageo is dealing with a much bigger trend of lower alcohol consumption in developed markets. #investing #stocks #diageo #3mb 2024-06-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9774/should-you-buy-gamestop-stock-june-2024 https://atto.videonest.co/9774_horizontal_thumbnail_v3.webp https://atto.videonest.co/9774_video_v3.mp4 Should you buy GameStop stock? (June 2024) Published first at https://www.3minutebreakdowns.com GameStop stock analysis. Ticker: $GME GameStop soared 500% last month after Keith Gil, also known as Roaring Kitty, reappeared on social media after a 3 year absence. Things got even crazier when Kitty revealed a huge position in the stock worth over $200 million dollars, then scheduled a YouTube live stream. Anticipation for the stream sent the stock even higher and at one point Kitty’s position looked set to hit a billion dollars. But momentum cratered after Gamestop management released a surprise earnings report before the market open and a 75 million stock offering. Kitty’s live stream then started 20 minutes late and was unable to support the stock amid multiple trading halts. By the end of Friday, shares had crashed 40% in value. Accounting for recent stock offerings, GameStop now looks to be worth about 9.9 billion with a cash balance of 1.9 billion. And that cash balance will increase further as the company attempts to sell another 75 million shares. Of course, those sales will also dilute shareholders and put pressure on the stock price. Meanwhile, GameStop’s latest earnings report wasn’t good. Revenue in the quarter declined by a huge 29% taking the twelve month figure under 5 billion. The company has cut costs but free cash flow is still in the red. GameStop’s brick and mortar business model simply doesn’t work without revenue growth. #gamestopstock #gmestock #investing #3mb 2024-06-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9775/should-you-buy-twilio-stock-june-2024 https://atto.videonest.co/9775_horizontal_thumbnail_v3.webp https://atto.videonest.co/9775_video_v3.mp4 Should you buy Twilio stock? (June 2024) Published first at https://www.3minutebreakdowns.com Twilio stock analysis. Ticker: $TWLO Twilio provides APIs that developers use to embed messaging applications like SMS, email and push notifications. These applications allow companies to communicate and engage with customers. Twilio stock soared during the pandemic but has since come back to earth. At the current price, the company has a market cap of 10.6 billion dollars. With 4.4 billion of cash and investments and just under 1 billion of debt the enterprise value is 7.2 billion. Revenue over the last 12 months comes to 4.2 billion with 660 million of adjusted ebitda and 655 million of free cash flow. But the company is not GAAP profitable. Net income over the last 12 months is negative 729 million owing to high marketing costs and high levels of stock based compensation. To be fair, Twilio has taken steps to address stock-based compensation. The company has slashed its workforce by 33% and implemented a buyback scheme that, if completed, should reduce the outstanding share count by 20%. The company has also cut operating costs and invested in a new product called Segment which uses customer data to help companies personalize their services. So Twilio has made an effort to streamline its business. And at 11 times free cash flow the stock can provide strong upside if the company can now get growth back on track. Revenue growth at Twilio, however, looks underwhelming. Sales grew less than 9% last year and on a trailing twelve month basis growth is only 6%. Management doesn’t expect a huge improvement in the rest of this year either. Also worrying is the company’s net expansion rate which has been trending down consistently over the last few years, hitting 102% in the latest quarter. #stocks #investing #stockanalysis #3mb 2024-06-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9776/3-stocks-im-buying-now-june-2024-edition https://atto.videonest.co/9776_horizontal_thumbnail_v3.webp https://atto.videonest.co/9776_video_v3.mp4 3 Stocks I'm Buying Now (June 2024 Edition) Published first at https://www.3minutebreakdowns.com 3 Stocks I'm Buying Now June 2024 Edition. A UK fintech company that facilitates cross border payments. With Wise you can send money across the world more quickly and more cheaply than with a typical bank. For example, in the second quarter 95% of payments were received within 24 hours and 60% were received instantly. In a world of globalization and remote working the need for easy payments is increasing and Wise has a founder who is passionate about building out a quality product. Wise’s moat comes from an interconnected payments infrastructure that has been built over several years. And that infrastructure is increasingly being used to power platform businesses like Agoda and Monzo with Wise taking a cut. And Wise has plenty of room to grow in its small business segment. Wise stock is not particularly cheap, trading at about 40 times earnings. But if the company can maintain growth above 15% a year I think the stock can continue to move higher. A small company from France that builds catamarans. This is a relatively unknown business that trades on the Paris stock exchange with a market cap around 170 million euros. #investing #stockstobuynow #stockstobuy #3mb 2024-06-06T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9777/should-you-buy-costco-stock-june-2024 https://atto.videonest.co/9777_horizontal_thumbnail_v3.webp https://atto.videonest.co/9777_video_v3.mp4 Should you buy Costco stock? (June 2024) Published first at https://www.3minutebreakdowns.com Costco stock analysis. Ticker: $COST Costco is one of the best businesses in the world. Over the last 20 years the stock has gone up over 3000%, which is an annualized return of nearly 19% including dividends. And the stock just hit another all-time high. At the current price, Costco now has a market value of 368 billion dollars. Revenue over the last 12 months comes to 254 billion with 7.2 billion of net income and 7.4 billion of free cash flow. So Costco stock is now valued at 1.4 times revenue and 51 times earnings. To put that into perspective, if you bought Costco today, and earnings stayed flat, it would take you more than 50 years to see a return on investment. That’s a rich valuation, so it’s worth considering why investors continue to pay such a high multiple. The simple answer is that Costco has built a reputation as one of the best businesses in the world and investors are happy to pay up for quality. A longer answer is that Costco still has room to grow its business and increase its margins. The company thinks it can open 30 new warehouses a year, both in the US and abroad, which can provide a rough 3% boost to annual revenue growth. And Costco has ample room to increase prices and membership fees in the face of inflation with higher membership fees dropping almost entirely to the bottom line. #investing #3mb #stocks #costcostock 2024-06-05T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9778/should-you-buy-taylor-devices-stock-june-2024 https://atto.videonest.co/9778_horizontal_thumbnail_v3.webp https://atto.videonest.co/9778_video_v3.mp4 Should you buy Taylor Devices stock? (June 2024) Published first at https://www.3minutebreakdowns.com Taylor Devices stock analysis. Ticker: $TAYD This micro cap stock is up 150% over the past year but there could be more gains ahead. Taylor Devices makes shock absorbers that are used in buildings, aircraft, satellites and more. At the current price, the company has a market cap of 159 million dollars. With 25 million of cash on the balance sheet and no debt the enterprise value is 135 million. Revenue over the last 12 months comes to 43 million with 8.6 million of net income and 11.8 million of ebitda. So Taylor Devices stock is valued at 19 times earnings, 11 times ebitda and 12 times free cash flow. That valuation is not unreasonable for a company whose execution has greatly improved in recent years. Revenues grew 37% in 2022 and 30% last year with cost reduction and share repurchases more than doubling earnings per share. The company has been able to diversify its revenue by moving into the architectural market, providing seismic dampers for tall buildings that help to mitigate earthquake damage. However, it’s the company;s aerospace and defense segment that has been responsible for the majority of growth. In fact, while Revenue in the structural segment is down 37% over the last three quarters, it’s been more than offset by aerospace demand which climbed over 100% in the latest quarter. And the company’s backlog has continued to advance, hitting over 30 million. #stocks #investing #microcapstocks #3mb 2024-06-04T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9813/should-you-buy-lululemon-stock-july-2024 https://atto.videonest.co/9813_horizontal_thumbnail_v3.webp https://atto.videonest.co/9813_video_v3.mp4 Should you buy Lululemon stock? (July 2024) Published first at https://www.3minutebreakdowns.com Lululemon stock analysis. Ticker: $LULU Lululemon stock has fallen 45% over the past year to under $300 a share. At the latest price, Lululemon has a market cap of 35 billion dollars. With just under 2 billion of cash on the balance sheet the company’s enterprise value is 33.5 billion. Revenue over the last 12 months comes to 9.8 billion with 1.6 billion of net income and 1.7 billion of free cash flow. So Lululemon stock is now valued at 22 times earnings and 19 times free cash flow. That valuation is right at the bottom of the company’s historical range at a level not seen since 2017. Lululemon stock has declined this year as investors worry about slowing growth. Management expects growth of 11-12% this year which is much lower than the company is used to. But the most worrying aspect is Lululemon’s North American segment which makes up 61% of total revenue. Growth in that region has slowed from 30% in 2022 to just 2% in the latest quarter. And so the big concern is that consumers are going cold over the Lululemon brand. Bears points to changing demand for athletic leisure and competition from brands like On Cloud, Alo and Viouri. Apparel is historically a difficult area to invest in, consumers can be fickle and there’s no shortage of brands that have risen and fallen over the years. #investing #stocks #stockstobuy #3mb 2024-07-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9817/should-you-buy-nu-holdings-stock-july-2024 https://atto.videonest.co/9817_horizontal_thumbnail_v3.webp https://atto.videonest.co/9817_video_v3_360.mp4 Should you buy Nu Holdings stock? (July 2024) Published first at https://www.3minutebreakdowns.com Nu Holdings stock analysis. Nubank. Ticker: $NU This is one of the best performing stocks of 2024. Nu Holdings, owner of Brazilian fintech Nubank is up 62% this year taking the company’s market value to 66 billion dollars. Nubank has a book value of 6.8 billion and has reported 9.2 billion of revenue over the last 12 months and 1.3 billion of net income. So the stock is valued at just under 10 times book value and 52 times earnings. Since the company was founded in 2013, Nubank has had a stunning rise, growing from zero to 100 million customers across Brazil, Mexico and Colombia. As a mostly digital bank, Nu doesn’t have the high fixed costs that come from operating branches. This allows the company to lower fees which attracts customers and leads to powerful feedback loops. Top line revenue continues to expand, growing 68% last year and 182% the year before. Customers grew 26% last year and another 6% in q1. And importantly, those new customers are using more of Nubank’s products which translates to higher revenues per user. #investing #stocks #3mb #stockstobuy 2024-07-24T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9832/should-you-buy-inmode-stock-july-2024 https://atto.videonest.co/9832_horizontal_thumbnail_v3.webp https://atto.videonest.co/9832_video_v3_360.mp4 Should you buy InMode stock? (July 2024) Published first at https://www.3minutebreakdowns.com InMode stock analysis. Ticker: INMD Between April 2020 and November 2021, this stock went up 10X but since then shares have crashed back to earth. Inmode, ticker symbol, INMD is a manufacturer of minimally-invasive medical equipment that are used for cosmetic treatments. At the latest price, Inmode now has a market cap of 1.5 billion dollars. With 770 million of cash and investments on its balance sheet the enterprise value is only 751 million. Meanwhile, revenue over the last 12 months comes to 466 million with 181 million of net income and 179 million of free cash flow. So Inmode stock is now valued at 8 times earnings and only 4 times free cash flow. That is incredibly cheap especially when you consider InMode's history of growth. This is a company that grew its revenue 73% in 2021 and 27% in 2022. And Inmode’s body contouring and skin tightening products should have a bright future from ageing demographics and the uptake of GLP-1 weight loss drugs. Rapid weight loss, after all, can lead to loose skin which Inmode’s systems hope to resolve. #investing #stocks #cheapstocks #3mb 2024-07-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9858/2-stocks-im-buying-now-july-2024 https://atto.videonest.co/9858_horizontal_thumbnail_v3.webp https://atto.videonest.co/9858_video_v2_360.mp4 2 Stocks I'm Buying Now July 2024 Published first at https://www.3minutebreakdowns.com 2 stocks I'm buying now July 2024. #investing #stocks #stockstobuy #stockstobuynow 2024-07-28T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9873/should-you-buy-kinsale-capital-stock-july-2024 https://atto.videonest.co/9873_horizontal_thumbnail_v3.webp https://atto.videonest.co/9873_video_v2_360.mp4 Should you buy Kinsale Capital stock? (July 2024) Published first at https://www.3minutebreakdowns.com Kinsale Capital stock analysis. Ticker: $KNSL Insurance business Kinsale Capital is one of the best performing stocks of the last 10 years. However, shares have fallen 30% since March. At the latest price, Kinsale now has a market cap of 9.1 billion dollars against a book value of 1.26 billion. Revenue over the last 12 months comes to 1.4 billion with 371 million of net income. So Kinsale stock is now valued at 25 times earnings and 7.2 times book. Kinsale may well be the best insurance company in America and its certainly the most profitable in the E&S niche. E&S stands for excess and surplus because it extends beyond typical property and casualty to risk that is more difficult to assess. In 2023, for example, over 2% of Kinsale premiums came from customers in entertainment like bowling alleys, escape rooms and paintball facilities. But Kinsale is performing exceptionally well. It’s average loss ratio over the last 3 years (which is the percentage of premiums paid out as a result of claims) is only 55%, much lower than the industry average of 61%. Even better, its combined ratio, which includes company operating expenses is only 77%. That’s 16% lower than the industry average of 93%. And the company also boasts an impressive return on equity of over 30%. In other words, Kinsale is a quality insurance company that appears to be firing on all cylinders. #investing #stocks #3mb #stockanalysis 2024-07-30T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9874/should-you-buy-tesla-stock-july-2024 https://atto.videonest.co/9874_horizontal_thumbnail_v3.webp https://atto.videonest.co/9874_video_v2_360.mp4 Should you buy Tesla stock? (July 2024) Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla reported earnings last week and the stock dropped about 10% taking the company’s market value to 765 billion dollars. With 31 billion of cash and investments and just under 8 billion of debt the enterprise value is 742 billion. Revenue over the last 12 months comes to 95 billion with 12.4 billion of net income and 1.7 billion of free cash flow. So Tesla stock is now valued at 62 times earnings and over 400 times free cash flow. Fundamentally, Tesla stock looks like an easy sell. Not only does the stock trade at a nosebleed valuation but results over the last 18 months have been pretty weak. Total automotive revenues are down 10% this year and high capital expenditures have crushed free cash flow. Adjusted ebitda is down 21% year over year and vehicle deliveries have also slowed. Operating margins sit around 8% which is lower than Toyota Motors. At this point, even Tesla bulls agree that the car business is simply not enough to support the current valuation. The company needs other more profitable revenue sources. #stocks #investing #3mb #stockanalysis 2024-07-29T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9933/2-interesting-stocks-under-dollar5 https://atto.videonest.co/9933_horizontal_thumbnail_v3.webp https://atto.videonest.co/9933_video_v3.mp4 2 Interesting Stocks Under $5 Published first at https://www.3minutebreakdowns.com Two interesting stocks trading under $5. Grab stock has fallen sharply and now sits at just 3 dollars a share. The main reason for that decline is that Grab still isn’t profitable. Net income over the last 12 months is negative 300 million and free cash flow is also in the red. That’s a bit of a problem considering Grab is being valued at over 13 billion dollars. However, Grab also has 4 billion of cash on its balance sheet and the company does seem to be moving closer to profitability. In fact, earnings briefly turned positive in the fourth quarter of last year. Grab is also experiencing excellent growth throughout SE Asia. Sales grew 65% in 2023 and are up 44% on a trailing twelve month basis. Meanwhile, it is worth noting the similarities with Uber. It took Uber 15 years and billions of dollars of losses before it reached profitability. But when it did the flood gates opened. Because Uber is now printing cash and worth 133 billion dollars. #investing #stocks #3mb #stockanalysis 2024-07-31T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9949/should-you-buy-crowdstrike-stock-august-2024 https://atto.videonest.co/9949_horizontal_thumbnail_v3.webp https://atto.videonest.co/9949_video_v3_360.mp4 Should you buy CrowdStrike stock? (August 2024) Published first at https://www.3minutebreakdowns.com CrowdStrike stock analysis. Ticker: $CRWD Crowdstrike stock has collapsed. About two weeks ago the cybersecurity company updated its software but it reacted negatively with millions of Windows devices. There were chaotic scenes around the world and thousands of flights were canceled. It’s estimated that Fortune 500 companies alone (not including Microsoft) face losses of more than $5 billion. But Crowdstrike investors are facing even bigger losses. The stock has now dropped 40% and its market value has fallen from 86 billion dollars to just 56 billion. The big question is whether this sell-off is an opportunity to buy the stock. On the positive side, there’s no doubt that Crowdstrike is one of the best companies in the market. Revenue grew 54% in 2023, 36% last year and, before the latest debacle, management expected another year of 33% growth. In the latest quarter the company reported 3.7 billion of recurring revenue and best in class free cash flow margins of 35%. #investing #stockanalysis #3mb #crowdstrike 2024-08-04T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9959/should-you-buy-paypal-stock-august-2024 https://atto.videonest.co/9959_horizontal_thumbnail_v3.webp https://atto.videonest.co/9959_video_v3_360.mp4 Should you buy PayPal stock? (August 2024) Published first at https://www.3minutebreakdowns.com PayPal stock analysis. Ticker: $PYPL PayPal reported earnings last week and the stock jumped 8%. However, the market sell-off on Friday saw shares slide under 62 dollars so is now a good time to buy the dip? Right now, Paypal is trading at a valuation of 65 billion dollars. Account for cash debt and investments on the balance sheet and the enterprise value is 56.4 billion. Meanwhile, revenue over the last 12 months comes to 31 billion with 4.4 billion of net income and 6.7 billion of free cash flow. So PayPal stock is now valued at under 15 times earnings and just 8.4 times free cash flow. That sort of valuation is usually reserved for a company that isn’t growing but PayPal is. Revenue in the second quarter grew 8% and PayPal’s adjusted earnings per share, which now includes stock based compensation, is expected to grow 10% this year. In other words, PayPal stock at the current price looks too cheap. If earnings continue to grow at that pace, the payback times is under 9 years. #investing #stockanalysis #stockstobuy #3mb 2024-08-05T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9985/should-you-buy-aspen-aerogels-stock-august-2024 https://atto.videonest.co/9985_horizontal_thumbnail_v3.webp https://atto.videonest.co/9985_video_v3.mp4 Should you buy Aspen Aerogels stock? (August 2024) Published first at https://www.3minutebreakdowns.com Aspen Aerogels stock analysis. Ticker: $ASPN Aspen Aerogels, ticker symbol ASPN has developed a thin aerogel barrier that can be used in battery packs for electric vehicles. The material prevents thermal runaway, and stops batteries from catching on fire. At the current price, Aspen has a market cap of 1.4 billion dollars and the enterprise value is roughly the same. Fundamentally, this company doesn’t look like much. It’s valued at over 5 times revenue despite sharp losses and negative free cash flow. Even adjusted metrics are incredibly slim. However, investing is about the future not the past and Aspen Aerogels is starting to look interesting. The company is winning new contracts with automakers like Porsche and last quarter, management significantly increased its outlook. Revenue guidance was increased 9% to over 380 million and adjusted ebitda guidance almost doubled to over $55 million. Looking further out, the company thinks it can get to over 650 million in sales and when you take that guidance into consideration, the stock starts to look cheap. Based on 35% margins the valuation drops to under 10 times EBITDA. #stocks #investing #stockanalysis #3mb 2024-08-06T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/9992/should-you-buy-samsonite-stock-august-2024 https://atto.videonest.co/9992_horizontal_thumbnail_v3.webp https://atto.videonest.co/9992_video_v3_360.mp4 Should you buy Samsonite stock? (August 2024) Published first at https://www.3minutebreakdowns.com Samsonite stock analysis. Ticker: 1910.HK Samsonite is a leading luggage brand which is currently listed on the Hong Kong stock exchange. At the latest price, the company has a market valuation of 3.8 billion dollars. Account for cash and debt on the balance sheet and the enterprise value is 4.8 billion. Revenue over the last 12 months comes to 3.7 billion with 426 million of net income, 714 million of adjusted ebitda and 500 million of free cash flow. So Samsonite stock is valued at under 9 times earnings and under 10 times free cash flow. That valuation looks reasonable when you consider the company’s history. Over the past 10 years, Samsonite has averaged annual revenue growth of 11% despite a large disruption from the pandemic. Meanwhile, net income and free cash flow margins have steadily improved over time with net income margins now approaching 12%. #investing #stockstobuynow #stockstobuy #3mb 2024-08-07T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10019/should-you-buy-starbucks-stock-august-2024 https://atto.videonest.co/10019_horizontal_thumbnail_v3.webp https://atto.videonest.co/10019_video_v3_360.mp4 Should you buy Starbucks stock? (August 2024) Published first at https://www.3minutebreakdowns.com Starbucks stock analysis. Ticker: $SBUX Starbucks stock is down 22% this year taking the company’s market cap to 85.5 billion dollars. With 4.1 billion of cash and investments and 15.6 billion of debt, the enterprise value is 97 billion. Revenue over the last 12 months comes to 36.5 billion with just over 4 billion of net income and 3.8 billion of free cash flow. So the stock is currently valued at 21 times earnings and 25 times free cash flow. That valuation doesn’t look particularly appealing when looking at the company’s recent performance. Total returns in the stock are now negative 14% over the past 5 years. In the latest quarter, US same store sales fell 2%. The same metric in China was negative 14%. From a top down perspective it looks like Starbucks has lost its way. The company’s goal to be a “third place” between home and work seems to have faded. Locations are less comfortable, and customers are spending less time there: the mobile app and the drive thru now account for more than 70% of Starbucks’ sales. #investing #stockanalysis #3mb 2024-08-08T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10026/should-you-buy-intuitive-surgical-stock-august-2024 https://atto.videonest.co/10026_horizontal_thumbnail_v3.webp https://atto.videonest.co/10026_video_v3_360.mp4 Should you buy Intuitive Surgical stock? (August 2024) Published first at https://www.3minutebreakdowns.com Intuitive Surgical stock analysis. Ticker: $ISRG This is one of the best businesses in the world. Intuitive Surgical, the dominant player in robotic surgery, has had huge success with its DaVinci system and the stock has increased almost 19,000% over the last 20 years. At the latest price, the company has a valuation of 162 billion dollars with almost 8 billion of cash on the balance sheet and no debt. Meanwhile the company has reported 7.6 billion of revenue over the last 12 months, 2.1 billion of net income and 420 million of free cash flow. Intuitive’s numbers look closer to a good software company than a medical business. Gross margins are strong at 67% with ebitda margins of 40%. Over 80% of total revenue is recurring and the company continues to put up solid growth. The instruments and accessories segment which is mostly recurring revenue continues to grow in the high teens. Meanwhile, there should be plenty more growth ahead. 2.6 million procedures are likely to be completed this year but management thinks that number can grow to over 20 million over the long term. #investing #stocksanalysis #3mb 2024-08-09T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10712/how-to-follow-famous-investors-free-tool-shorts https://atto.videonest.co/10712_horizontal_thumbnail_v3.webp https://atto.videonest.co/10712_video_v3_1080.mp4 How to follow famous investors (free tool) #shorts 2023-04-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10713/3-stocks-to-buy-may-2024-shorts-amzn-stockmarket-stockstobuynow https://atto.videonest.co/10713_thumbnail_resized_v2.webp https://atto.videonest.co/10713_video_v3_360.mp4 3 Stocks To Buy May 2024 #shorts #amzn #stockmarket #stockstobuynow 2024-05-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10714/8x8-inc-stock-analysis-shorts https://atto.videonest.co/10714_horizontal_thumbnail_v3.webp https://atto.videonest.co/10714_video_v3_1080.mp4 8x8 Inc Stock Analysis #shorts 2023-01-20T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10715/airbnb-stock-analysis-shorts https://atto.videonest.co/10715_horizontal_thumbnail_v3.webp https://atto.videonest.co/10715_video_v3_1080.mp4 Airbnb Stock Analysis #shorts 2022-11-05T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10716/nvidia-stock-update-part-2-shorts https://atto.videonest.co/10716_horizontal_thumbnail_v3.webp https://atto.videonest.co/10716_video_v3_1080.mp4 Nvidia Stock Update (Part 2) #shorts 2023-05-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10717/should-you-buy-adyen-stock-august-2024 https://atto.videonest.co/10717_horizontal_thumbnail_v3.webp https://atto.videonest.co/10717_video_v3_360.mp4 Should you buy Adyen stock? (August 2024) Published first at https://www.3minutebreakdowns.com Adyen stock analysis. Ticker: $ADYEN Adyen reported earnings 10 days ago and the stock jumped 12%. Shares are now up 69% over the past year. At the latest price, Adyen has a market cap of 41 billion euros and an enterprise value of 39 billion. Revenue over the last 12 months comes to 1.8 billion with 826 million of net income and 846 million of ebitda. That means Adyen is now valued at 22 times revenue, 50 times earnings and 46 times ebitda. That’s a rich valuation but Adyen is clearly a high quality business. Operating as a payment gateway, processor and acquiring bank for thousands of companies, Adyen is able to eliminate fraud and drive lower costs for customers. And this is highly profitable for Adyen with over 45% of revenue flowing right to the bottom line. And the company is showing excellent growth as well. Total processed volume increased 45% in the first half to 620 billion euros with total revenue increasing 24%. Volume growth was seen across all of Adyen’s segments; 50% growth in digital, 29% growth in unified commerce and 59% growth in platforms. #investing #stockstobuy #stocks #3mb 2024-08-27T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10718/nike-stock-quick-analysis-shorts https://atto.videonest.co/10718_horizontal_thumbnail_v3.webp https://atto.videonest.co/10718_video_v3_1080.mp4 Nike Stock - Quick Analysis #shorts 2023-01-09T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10719/moderna-stock-quick-analysis-shorts https://atto.videonest.co/10719_horizontal_thumbnail_v3.webp https://atto.videonest.co/10719_video_v3_1080.mp4 Moderna Stock - Quick Analysis #shorts 2023-01-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10720/netflix-stock-analysis-shorts https://atto.videonest.co/10720_horizontal_thumbnail_v3.webp https://atto.videonest.co/10720_video_v3_1080.mp4 Netflix stock analysis #shorts 2023-07-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10721/shopify-stock-analysis-shorts https://atto.videonest.co/10721_horizontal_thumbnail_v3.webp https://atto.videonest.co/10721_video_v3_1080.mp4 Shopify stock analysis #shorts 2022-11-07T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10722/rivian-stock-analysis-shorts https://atto.videonest.co/10722_horizontal_thumbnail_v3.webp https://atto.videonest.co/10722_video_v3_1080.mp4 Rivian stock analysis #shorts 2022-11-25T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10723/mongodb-stock-analysis-shorts https://atto.videonest.co/10723_thumbnail_resized_v2.webp https://atto.videonest.co/10723_video_v3_1080.mp4 MongoDB stock analysis #shorts 2022-12-12T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10724/nvidia-stock-update-part-1-shorts https://atto.videonest.co/10724_horizontal_thumbnail_v3.webp https://atto.videonest.co/10724_video_v3_1080.mp4 Nvidia Stock Update (Part 1) #shorts 2023-05-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10725/bbai-stock-analysis-shorts https://atto.videonest.co/10725_horizontal_thumbnail_v3.webp https://atto.videonest.co/10725_video_v3_1080.mp4 BBAI Stock Analysis #shorts 2023-01-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10726/snowflake-stock-analysis-shorts https://atto.videonest.co/10726_horizontal_thumbnail_v3.webp https://atto.videonest.co/10726_video_v3_1080.mp4 Snowflake stock analysis #shorts 2022-12-01T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10727/interest-rates-just-went-up-05percent-shorts https://atto.videonest.co/10727_thumbnail_resized_v2.webp https://atto.videonest.co/10727_video_v3_1080.mp4 Interest rates just went up 0.5%! #shorts 2022-12-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10728/sofi-stock-analysis-shorts https://atto.videonest.co/10728_thumbnail_resized_v2.webp https://atto.videonest.co/10728_video_v3_1080.mp4 SoFi stock analysis #shorts 2022-12-11T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10729/opra-stock-analysis-shorts https://atto.videonest.co/10729_horizontal_thumbnail_v3.webp https://atto.videonest.co/10729_video_v3_1080.mp4 OPRA Stock Analysis #shorts 2023-01-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10730/is-netflix-stock-a-buy-shorts https://atto.videonest.co/10730_horizontal_thumbnail_v3.webp https://atto.videonest.co/10730_video_v3_1080.mp4 Is Netflix stock a buy? #shorts 2022-10-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10731/adobe-stock-is-on-the-up-shorts https://atto.videonest.co/10731_thumbnail_resized_v2.webp https://atto.videonest.co/10731_video_v3_1080.mp4 Adobe stock is on the up? #shorts 2022-12-16T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10732/nvidia-stock-analysis-shorts https://atto.videonest.co/10732_horizontal_thumbnail_v3.webp https://atto.videonest.co/10732_video_v3_1080.mp4 Nvidia stock analysis #shorts 2022-11-29T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10733/warren-buffett-just-bought-dollar5bn-of-this-stock-shorts https://atto.videonest.co/10733_horizontal_thumbnail_v3.webp https://atto.videonest.co/10733_video_v3_1080.mp4 Warren Buffett just bought $5bn of this stock! #shorts 2022-11-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10734/oatly-stock-analysis-shorts https://atto.videonest.co/10734_horizontal_thumbnail_v3.webp https://atto.videonest.co/10734_video_v3_1080.mp4 Oatly stock analysis #shorts 2022-11-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10735/should-you-buy-carmax-stock https://atto.videonest.co/10735_horizontal_thumbnail_v3.webp https://atto.videonest.co/10735_video_v3_1080.mp4 Should you buy CarMax Stock? 2022-10-26T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10736/should-you-buy-alibaba-stock-shorts https://atto.videonest.co/10736_horizontal_thumbnail_v3.webp https://atto.videonest.co/10736_video_v3_1080.mp4 Should you buy Alibaba stock? #shorts 2022-10-25T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10737/should-you-buy-crowdstrike-stock-shorts https://atto.videonest.co/10737_thumbnail_resized_v2.webp https://atto.videonest.co/10737_video_v3_1080.mp4 Should you buy CrowdStrike stock? #shorts 2022-10-19T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10738/snapchat-earnings-analysis-shorts https://atto.videonest.co/10738_horizontal_thumbnail_v3.webp https://atto.videonest.co/10738_video_v3_1080.mp4 Snapchat earnings analysis #shorts 2022-10-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10739/where-to-get-data-for-company-analysis-shorts https://atto.videonest.co/10739_horizontal_thumbnail_v3.webp https://atto.videonest.co/10739_video_v3_1080.mp4 Where to get data for company analysis #shorts 2023-01-23T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10740/is-palantir-stock-a-buy-shorts https://atto.videonest.co/10740_horizontal_thumbnail_v3.webp https://atto.videonest.co/10740_video_v3_1080.mp4 Is Palantir Stock A Buy? #shorts 2022-10-13T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10741/this-company-is-tiny-shorts https://atto.videonest.co/10741_thumbnail_resized_v2.webp https://atto.videonest.co/10741_video_v3_1080.mp4 This company is tiny! #shorts 2022-12-15T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10742/netflix-earnings-wasnt-too-hot-shorts https://atto.videonest.co/10742_horizontal_thumbnail_v3.webp https://atto.videonest.co/10742_video_v3_1080.mp4 Netflix earnings wasn't too hot #shorts 2023-04-21T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10743/should-you-buy-carvana-stock-shorts https://atto.videonest.co/10743_horizontal_thumbnail_v3.webp https://atto.videonest.co/10743_video_v3_1080.mp4 Should you buy Carvana stock? #shorts 2022-10-12T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10744/should-you-buy-farfetch-stock-shorts https://atto.videonest.co/10744_horizontal_thumbnail_v3.webp https://atto.videonest.co/10744_video_v3_1080.mp4 Should you buy Farfetch stock? #shorts 2022-10-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10745/should-you-buy-google-stock-shorts https://atto.videonest.co/10745_horizontal_thumbnail_v3.webp https://atto.videonest.co/10745_video_v3_1080.mp4 Should You Buy Google Stock? #Shorts 2022-10-11T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10746/should-you-buy-adobe-stock-shorts https://atto.videonest.co/10746_thumbnail_resized_v2.webp https://atto.videonest.co/10746_video_v3_1080.mp4 Should you buy Adobe stock? #shorts 2022-10-18T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10747/how-does-disney-make-money-shorts https://atto.videonest.co/10747_horizontal_thumbnail_v3.webp https://atto.videonest.co/10747_video_v3_1080.mp4 How does Disney make money? #shorts 2022-11-19T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10748/palantir-stock-q3-update-shorts https://atto.videonest.co/10748_horizontal_thumbnail_v3.webp https://atto.videonest.co/10748_video_v3_1080.mp4 Palantir Stock Q3 Update #shorts 2022-11-08T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/10749/is-coupang-stock-a-buy-shorts https://atto.videonest.co/10749_horizontal_thumbnail_v3.webp https://atto.videonest.co/10749_video_v3_1080.mp4 Is Coupang stock a buy? #shorts 2022-11-28T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/20356/this-growth-stock-just-collapsed-alarum-technologies https://atto.videonest.co/20356_horizontal_thumbnail_v3.webp https://atto.videonest.co/20356_video_v3_360.mp4 This Growth Stock Just Collapsed! (Alarum Technologies) Published first at https://www.3minutebreakdowns.com Alarum Technologies stock analysis. Ticker: $ALAR This high growth tech stock just collapsed. Micro cap Alarum Technologies sells software that collects data from websites. The stock went up 10x in just 7 months but shares have come crashing back to earth after the company’s second quarter results. At the latest price, Alarum now has a market cap of 93 million dollars. With 21 million of cash on the balance sheet, the enterprise value is just 71 million. Alarum’s key software product NetNut provides IP proxy addresses which allow customers to scrape data from public-facing websites. This is useful for businesses who want to access data that is not always available to them. One common use is for e-commerce companies to “scrape” competitor websites to find popular products or to adjust their pricing strategies. And NetNut has been growing like a weed. Revenues have grown from just 3 million in 2019 to over 30 million over the past 12 months. The introduction of generative AI and a move into analytical products could help Alarum dramatically expand its total addressable market and build a much bigger company. At just 23 times earnings and 6.6 times EBITDA that growth is no longer priced in which means the stock can easily produce huge returns if Netnut continues to grow. #investing #stocks #alarum #3mb 2024-08-29T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/20357/should-you-buy-reddit-stock-august-2024 https://atto.videonest.co/20357_horizontal_thumbnail_v3.webp https://atto.videonest.co/20357_video_v3_360.mp4 Should you buy Reddit stock? (August 2024) Published first at https://www.3minutebreakdowns.com Reddit stock analysis. Ticker symbol: $RDDT Since it’s IPO in March, Reddit stock has gained about 19% taking the company’s market value to just under $10 billion dollars. With $1.7 billion of cash and investments the enterprise value is 7.6 billion. Revenue over the last 12 months comes to 981 million but the company is barely profitable. Net income is negative 574 million which is distorted from stock based compensation issued during the IPO. More usefully, adjusted ebitda is only 66 million and free cash only 23 million. Those numbers give Reddit a nosebleed valuation of over 300 times free cash flow and 115 times EBITDA. So its not surprising that short interest in the stock is over 13%. However, there’s also a segment of investors who see Reddit has drastically under-monetised and therefore a business with huge potential. Reddit’s average revenue per user is under $3. Facebook by comparison is over 40. And the nature of a platform business is that profits can be turned on quickly following revenue growth. In the first half of this year, the company grew revenue by 177 million and 135 million of that flowed straight to EBITDA. So Reddit can quickly improve its profit margins as long as top line revenue continues to grow. And it is growing. Revenue grew 21% in 2023. The trailing twelve month figure is actually showing an acceleration to 37% growth. #investing #stocks #redditstock #3mb 2024-08-30T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/23203/3-stocks-to-watch-september-2024 https://atto.videonest.co/23203_horizontal_thumbnail_v3.webp https://atto.videonest.co/23203_video_v3_360.mp4 3 Stocks To Watch September 2024 This will be my last video for a while. I'm taking some time off to visit friends and family. You can still reach me via my website https://www.3minutebreakdowns.com See you in a few weeks! Starbucks stock jumped 25% last month after the company sacked their CEO and appointed Brian Niccol from Chipotle Mexican Grill. Niccol was given a multi million pay deal and starts work on the 9th of September. There’s no doubt that Brian Niccol has done a wonderful job at Chipotle, taking the company to a valuation over70 billion dollars. But the challenge at Starbucks will be much bigger. The coffee chain is facing increasing competition from the likes of Dutch Bros in the US and Luckin Coffee in China. In the most recent quarter, same store sales in the US were down 2% while in China sales fell 14%. Luckin Coffee, which emerged from bankruptcy just two years ago, now has twice the number of stores in China as Starbucks and is growing faster. Starbucks’s brand has deteriorated from a focus on price over experience and a bloated balance sheet with 16 billion of debt will also put off investors. #stocks #investing #stockanalysis #3mb 2024-09-02T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/176347/should-you-buy-rentokil-stock-october-2024 https://atto.videonest.co/176347_horizontal_thumbnail_v3.webp https://atto.videonest.co/176347_video_v3.mp4 Should you buy Rentokil stock? (October 2024) Published first at https://www.3minutebreakdowns.com Rentokil stock analysis. Ticker: $RTO.L This UK stock just plunged 30% percent but activist investors think it's a buy. Rentokil Plc has been in the pest control business for almost 100 years but the company issued a profit warning last month that sent shares lower. At the latest price, Rentokil now has a market value of 9 billion pounds. With 1.6 billion of cash and 4.3 billion of debt on the balance sheet, the total enterprise value is 11.7 billion. Revenue over the last 12 months comes to 5.4 billion with 392 million of net income and 542 million of free cash flow and 1 billion of EBITDA. So Rentokil is now valued at 23 times earnings or 11 times EBITDA. That valuation is at the lower end of the company’s historical range. And it’s sharply lower than Rentokil’s biggest competitor Rollins Inc which currently trades at over 50 times earnings. #investing #stocks #stockmarket #rentokil 2024-10-08T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/176638/should-you-buy-impinj-stock-october-2024 https://atto.videonest.co/176638_horizontal_thumbnail_v3.webp https://atto.videonest.co/176638_video_v3_360.mp4 Should you buy Impinj stock? October 2024 Published first at https://www.3minutebreakdowns.com Impinj stock analysis. Ticker symbol: $PI This is one of the best stocks of the year. Tech company Impinj Inc. makes RFID microchips that help to digitize and connect everyday items. This technology is quickly being embraced across numerous industries and applications. Uniqlo uses RFID to manage inventory and provide contactless checkouts, Delta Airlines uses it to track luggage and TopGolf uses it to track the distance of golf drives. In 2022, retail giant Walmart started requiring all of its suppliers to use RFID tags and grocery looks to be the next big market to embrace the tech. Impinj is benefiting from this trend with shares climbing over 300% over the past 12 months taking the company’s market cap to 6.9 billion dollars. Revenue has improved 66% over the past three years and the company’s guidance anticipates another record year in 2025. #investing #stocks #rfid #impinj 2024-10-14T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/176639/3-stocks-to-watch-october-2024 https://atto.videonest.co/176639_horizontal_thumbnail_v3.webp https://atto.videonest.co/176639_video_v3_360.mp4 3 Stocks To Watch October 2024 Published first at https://www.3minutebreakdowns.com 3 Stocks To Watch October 2024 Edition #stocks #investing #finance #stockstowatch 2024-10-10T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/178327/everything-is-overvalued https://atto.videonest.co/178327_horizontal_thumbnail_v3.webp https://atto.videonest.co/178327_video_v3_360.mp4 Everything Is Overvalued 2024-10-15T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/180383/should-you-buy-robinhood-stock-october-2024 https://atto.videonest.co/180383_horizontal_thumbnail_v3.webp https://atto.videonest.co/180383_video_v3_360.mp4 Should you buy Robinhood stock? (October 2024) Published first at https://www.3minutebreakdowns.com Robinhood stock analysis. Ticker: $HOOD Robinhood just released several new products which got investors excited. Lower margin rates, index options, futures trading and the big one: a new desktop platform called Legend. The question now is whether or not to buy Robinhood stock? At the latest price, Robinhood now has a market cap of 24.3 billion dollars. The company also has 4.8 billion of cash on its balance sheet taking the enterprise value to 19.5 billion. Revenue over the last 12 months comes to 2.2 billion with 290 million of net income and 818 million of adjusted ebitda. That means Robinhood stock is now valued at 8.7 times revenue, 84 times earnings and 24 times EBITDA. Of course, that EBITDA figure doesn’t include a large amount of stock based compensation, about 312 million. There’s no doubt that Robinhood is executing extremely well. New products like 24 hour trading, retirement accounts, Robinhood Gold and now a new desktop platform continue to attract new users to the platform. #investing #stocks #robinhoodstock 2024-10-17T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/182041/should-you-buy-asml-stock-october-2024 https://atto.videonest.co/182041_horizontal_thumbnail_v3.webp https://atto.videonest.co/182041_video_v3_360.mp4 Should you buy ASML stock? (October 2024) Published first at https://www.3minutebreakdowns.com ASML stock analysis. Ticker: $ASML ASML makes complex lithography equipment that is needed to produce the world’s most advanced microchips. A technical error saw the company’s earnings leaked to the press last week and the stock dropped around 16%. At the latest price, ASML now has a market cap of 259 billion euros. With 7 billion of cash and 4.6 billion of debt the enterprise value is 256 billion. Revenue over the last 12 months comes to 26.2 billion with 6.9 billion of net income and 2.9 billion of free cash flow. So ASML stock is now valued at 38 times earnings and 89 times free cash flow. #investing #stocks #ASML 2024-10-23T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/185759/should-you-buy-laurent-perrier-stock-october-2024 https://atto.videonest.co/185759_horizontal_thumbnail_v3.webp https://atto.videonest.co/185759_video_v3_360.mp4 Should you buy Laurent Perrier stock? (October 2024) Published first at https://www.3minutebreakdowns.com Laurent Perrier stock analysis. Ticker: $LPE.PA Laurent-Perrier makes some of the world’s most exclusive champagne but shares have fallen 17% this year taking the company’s market value to 590 million euros. With 183 million of net debt the enterprise value is 773 million. Revenue over the last 12 months comes to 313 million euros with 64 million of net income and 100 million of ebitda. So Laurent Perrier stock is valued at just 9 times earnings and under 8 times EBITDA. That valuation is lower than the stock received during the 2008 financial crisis. Price to tangible book value (which accounts for Laurent Perrier’s vast Champagne stores) also looks cheap at the bottom of the historical range. Meanwhile, Laurent Perrier has been performing well in a difficult market. Global champagne sales fell 8.2% last year but Laurent Perrier’s profits increased 8% thanks to higher pricing. As a result, Laurent Perrier’s margins have soared to record levels with gross margins hitting 61% and operating margins 30%. So why is the stock so cheap? There are several issues to be aware of. The first is that Laurent Perrier’s record margins are unlikely to be sustainable. Champagne typically takes 4 years to develop, so it’s possible that the company’s margins are yet to incorporate the effects of higher inflation. Reported costs could soon go up which means margins should decline going forward. After all, the champagne industry is centuries old and it seems unlikely that Laurent Perrier has found a clever new way to extract significantly higher profits. #investing #stocks #champagne #stockstowatch 2024-10-28T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/193482/should-you-buy-dollar-general-stock-november-2024 https://atto.videonest.co/193482_horizontal_thumbnail_v3.webp https://atto.videonest.co/193482_video_v3_360.mp4 Should you buy Dollar General stock? (November 2024) Dollar General stock analysis. Ticker: $DG Published first at https://www.3minutebreakdowns.com Dollar General used to be one of the best stocks in the market but over the last two years shares have collapsed by 68%. The question is whether the stock is now a value play or a value trap? At the latest price, Dollar General now has a market cap of 17.6 billion dollars. With a significant chunk of debt, the enterprise value is 23.4 billion. Revenue over the past 12 months comes to 40 billion with 1.4 billion of net income and 1.7 billion of free cash flow. So the stock is valued at at under 13 times earnings and 14 times free cash flow. That valuation certainly looks cheap. Not long ago, Dollar General had a PE ratio of 25 and a market cap over 50 billion. However, Dollar General’s results keep getting worse. In the most recent quarter, same store sales increased by only half a percent. Gross margins fell 1.1%, operating profit decreased 21% and net income fell 20%. #investing #stocks #stockstowatch 2024-10-31T04:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/193656/should-you-buy-palantir-stock-november-2024 https://atto.videonest.co/193656_horizontal_thumbnail_v3.webp https://atto.videonest.co/193656_video_v3_360.mp4 Should you buy Palantir stock? (November 2024) Published first at https://www.3minutebreakdowns.com Palantir stock analysis. Ticker: $PLTR Palantir just reported earnings and the stock jumped 13% after hours taking the company’s market valuation to 115 billion dollars. With 4.6 billion of cash and investments and no debt the enterprise value is 110.3 billion. There’s no doubt that this was a blowout quarter for Palantir. Even CEO Alex Karp admitted that management were shocked by the numbers in the company’s third quarter report. Total Palantir revenue grew 30% year on year with US commercial sales growing 54% and US government sales growing 40%. The number of customers grew 39% and Palantir increased its outlook, anticipating another 6% growth by the end of the year. Crucially, Palantir is achieving high growth without sacrificing profits. Operating expenses increased by only 13% in the quarter while the company’s asset-light business means low capital expenditures of only 4 million . As a result, Palantir’s net income more than doubled to 144 million and free cash flow surged to 416 million. #palantirstock #investing #stockmarket #stocks 2024-11-05T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/193657/3-stocks-to-watch-november-2024 https://atto.videonest.co/193657_horizontal_thumbnail_v3.webp https://atto.videonest.co/193657_video_v3_360.mp4 3 Stocks To Watch - November 2024 2024-11-04T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/199982/should-you-buy-goldman-sachs-stock-november-2024 https://atto.videonest.co/199982_horizontal_thumbnail_v3.webp https://atto.videonest.co/199982_video_v3_360.mp4 Should you buy Goldman Sachs stock? (November 2024) 2024-11-11T05:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/207481/should-you-buy-crocs-stock-november-2024 https://atto.videonest.co/207481_horizontal_thumbnail_v3.webp https://atto.videonest.co/207481_video_v2_360.mp4 Should you buy Crocs stock? (November 2024) Published first at https://www.3minutebreakdowns.com Crocs stock analysis. Ticker: $CROX Crocs reported earnings last month and the stock tumbled 20%. Revenue guidance disappointed investors and shares are now down 38% from their all-time high. At the latest price, Crox now has a market value of 6.1 billion dollars. There’s 186 million of cash on the balance sheet and 1.4 billion of debt, so the enterprise value is 7.3 billion. Meanwhile, revenue over the last 12 months comes to 4.1 billion with 835 million of net income and 940 million of free cash flow. So Crocs stock is now valued at 7.3 times earnings and under 8 times free cash flow. There’s one key reason why investors are worried about Crocs and it boils down to growth. Total revenue is up just 3% on a trailing twelve month basis and North American sales continue to slow down. But the biggest culprit is the company’s Hey Dude Brand which it bought back in 2021 for 2.5 billion dollars. #investing #stocks #stockstobuy #stockstobuynow 2024-11-14T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/219923/3-stocks-to-avoid-november-2024 https://atto.videonest.co/219923_horizontal_thumbnail_v3.webp https://atto.videonest.co/219923_video_v2_360.mp4 3 Stocks To Avoid November 2024 Published first at https://www.3minutebreakdowns.com These are 3 stocks to avoid in November 2024. But these are my personal opinions not financial advice and I hold no position in any of these stocks. For more investing videos make sure to visit my website. #investing #stocks #stockstosell #stockanalysis 2024-11-19T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/227695/should-you-buy-nvidia-stock-november-2024 https://atto.videonest.co/227695_horizontal_thumbnail_v3.webp https://atto.videonest.co/227695_video_v2_360.mp4 Should you buy Nvidia stock? (November 2024) Published first at https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: $NVDA Nvidia just reported earnings and the stock fell around 1% in after hours trading. At the latest price the company now has a market cap of 3.57 trillion dollars. Revenue over the last 12 months comes to 121 billion with 63 billion of net income and 56 billion of free cash flow. So Nvidia stock is now valued at 29 times revenue, 57 times earnings and 63 times free cash flow. There’s no doubt that this was a good earnings report from Nvidia. Q3 revenue grew 17% from the previous quarter to 35 billion. That was above expectations and an acceleration in sequential growth. Net income surged to 19.3 billion, a margin of 55%. On the company conference call, Nvidia management said that demand for its latest Blackwell product was staggering. Large companies continue to build out their AI factories. They are developing new AI products and bringing in significant increases in revenue. Recent results out of Google Cloud and Amazon AWS back this up. If there was an issue with today’s report it was the company’s outlook for next quarter. Management expects sequential growth of about 7% which is lower than previous quarters. And gross margins are set to drop to the low 70s as the company rolls out Blackwell. This decrease comes from a higher cost of production and could be a sign that players like TSMC are taking a bigger cut of profits. #investing #stocks #stockmarket #nvidia 2024-11-21T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/233806/estee-lauder-stock-has-collapsed-time-to-buy-3-minute-analysis https://atto.videonest.co/233806_horizontal_thumbnail_v3.webp https://atto.videonest.co/233806_video_v2_360.mp4 Estee Lauder stock has collapsed - time to buy? (3-minute analysis) Published first at https://www.3minutebreakdowns.com Estee Lauder 3-minute stock analysis. Ticker: EL Estee Lauder used to be an incredible investment. Between 2009 and 2021 the stock compounded at almost 30% a year. But since 2022, shares have fallen over 80%. Right now, the company has a market cap of 25 billion dollars. It’s got 2.4 billion of cash and 8.9 billion of debt on the balance sheet so the enterprise value is 31.7 billion. Revenue over the last 12 months is 15.5 billion with 2.4 billion of ebitda and 1.3 billion of free cash flow. But net income has dropped to just 200 million. That means Estee Lauder stock is now valued at 24 times free cash flow and 126 times earnings. Since 2022, Estee Lauder’s revenue has dropped 12%. But earnings have fallen over 90%. That’s partly due to operating deleverage. The company has fixed costs which are difficult to control when demand drops. And so Estee Lauder’s margins have fallen across the board. #investing #stocks #stockanalysis 2024-11-25T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/239936/should-you-buy-snowflake-stock-december-2024 https://atto.videonest.co/239936_horizontal_thumbnail_v3.webp https://atto.videonest.co/239936_video_v2_360.mp4 Should you buy Snowflake stock? (December 2024) 2024-11-30T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/242554/should-you-buy-sofi-stock-december-2024 https://atto.videonest.co/242554_horizontal_thumbnail_v3.webp https://atto.videonest.co/242554_video_v2_360.mp4 Should you buy SoFi stock? (December 2024) Published first at https://www.3minutebreakdowns.com SoFi stock analysis. Ticker: $SOFI SOFI is attempting to disrupt the banking industry and the stock just surged to a new 52-week high. At the latest price, SOFI now has a market capitalization of 18 billion dollars and a book value over 6 billion. Revenue over the last 12 months comes to 2.5 billion with 214 million of net income and 650 million of adjusted ebitda. So SOFI stock is now valued at 2.9 times book value, 7 times revenue and about 29 times EBITDA. SOFI stock is surging because the company is putting up incredible growth numbers. Revenue has more than quadrupled since 2020 and was up another 30% in the latest quarter. New members and products continue to ramp at impressive rates. And while legacy banks like Wells Fargo have seen their customer deposits decline in recent years, SOFI has seen deposits expand by a remarkable 23 billion dollars. These growth metrics are important because they signal that SOFI is taking market share and giving real value to customers. Meanwhile, SOFI’s digital infrastructure allows it to keep costs low and generate real earnings. #investing #stockmarket #stockstowatch #sofistock 2024-12-03T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/248606/3-stocks-to-watch-december-2024 https://atto.videonest.co/248606_horizontal_thumbnail_v3.webp https://atto.videonest.co/248606_video_v2.mp4 3 Stocks To Watch - December 2024 Published first at https://www.3minutebreakdowns.com 3 stocks to watch - December 2024 edition. These are my personal opinions not financial advice and I hold shares in two of these. For more investing videos make sure to join my newsletter #investing #stockmarket #stockstobuy #stockstowatch 2024-12-07T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/249897/should-you-buy-soundhound-ai-stock-december-2024 https://atto.videonest.co/249897_horizontal_thumbnail_v3.webp https://atto.videonest.co/249897_video_v2.mp4 Should you buy SoundHound AI stock? (December 2024) Published first at https://www.3minutebreakdowns.com SoundHound stock analysis. Ticker: $SOUN Soundhound AI provides voice technology that’s used in vehicles, restaurants and drive throughs. And the stock is up more than 600% this year. At the latest price, Soundhound has a fully diluted market cap of 5.4 billion dollars. With 136 million of cash on the balance sheet and 40 million of debt, the enterprise value is 5.3 billion. Revenue over the last 12 months comes to 67.3 million but Soundhound is not yet profitable reporting negative net income, ebitda and free cash flow. So Soundhound stock is priced aggressively at 79 times revenue. Negative earnings make it hard to value Soundhound but investors are clearly excited about its future prospects. Revenue in the most recent quarter was up 89% and management said sales could double again in 2025. Expansion into drive through restaurants offers a huge, untapped opportunity for Soundhound and on a recent conference call, the CEO said the company was on the precipice of massive growth. #investing #stocks #stockanalysis #aistocks 2024-12-10T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/255194/should-you-buy-red-cat-holdings-stock-december-2024 https://atto.videonest.co/255194_horizontal_thumbnail_v3.webp https://atto.videonest.co/255194_video_v2.mp4 Should you buy Red Cat Holdings stock? (December 2024) Published first at https://www.3minutebreakdowns.com Red Cat Holdings stock analysis. Ticker: $RCAT This small cap stock just won a major contract and its shares are up 800%. Red Cat Holdings is a drone technology company that recently announced a partnership with the US army, beating out 37 rivals. It seems the army has placed an order for Red Cat’s Black Widow drone product. At the latest price, Red Cat Holdings has a market valuation of 613 million and an enterprise value of 605 million. The company has reported 19 million dollars of revenue over the last 12 months with negative net income and free cash flow. But what’s important is what Red Cat can earn in the future, not the past. And the bull case for Red Cat Holdings was best summed up in the company's recent conference call. CEO Jeffrey Thompson said that Red Cat expects 50-55 million dollars in revenue next year plus another $79 million from the US army contract. That puts next year’s revenue around $120 million which puts Red Cat’s valuation at about 5 times sales. And that looks cheap considering peers like Skydio trade at 22 times revenue, Anduril trades at 28 times revenue and Shield AI at 18 times revenue. #investing #stockstobuynow #stocks #redcat 2024-12-16T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/256880/should-you-buy-adobe-stock-december-2024 https://atto.videonest.co/256880_horizontal_thumbnail_v3.webp https://atto.videonest.co/256880_video_v2_360.mp4 Should you buy Adobe stock? (December 2024) Published first at https://www.3minutebreakdowns.com Adobe stock analysis. Ticker symbol: $ADBE Adobe reported earnings last week and the stock dived 14% taking the company’s market value to 205 billion dollars. With 7.9 billion of cash on the balance sheet and 4 billion of debt, Adobe’s enterprise value is 200.7 billion. Revenue over the last 12 months comes to 20.3 billion with 5 billion of net income and 8.1 billion of free cash flow. So Adobe stock is now valued at 10 times revenue. 39 times earnings and 25 times free cash flow. Adobe stock is down 23% this year and there are a few reasons why. The first is valuation. The company came into the year trading at 50 times earnings which is high even for a company like Adobe. There’s been some negative news too. Adobe has come under pressure from the Federal Trade Commission for deceiving customers and making it hard to cancel subscriptions. Changes there could hurt the company’s revenue growth going forward. Another reason is competition. 2024 has seen an explosion in new AI tools that unbundle many of Adobe’s best products. Photoshop clone Canva now has 170 million monthly users and a private valuation of 50 billion dollars. There’s also MidJourney, Sora and many others. And Adobe’s plan to acquire one competitor, design platform Figma, fell through. #investing #stocks #stockstobuy #adobe 2024-12-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/260873/should-you-buy-x-fab-stock-december-2024 https://atto.videonest.co/260873_horizontal_thumbnail_v3.webp https://atto.videonest.co/260873_video_v3.mp4 Should you buy X-Fab stock? (December 2024) Published first at https://www.3minutebreakdowns.com Xfab stock analysis. Ticker symbol: $XFAB X-Fab Silicon Foundries is a small Belgian company that makes microchips for the automotive, industrial and medical industries. At the current price, the company has a market value of 646 million euros and an enterprise value of 662 million. Revenue over the last 12 months comes to 777 million, with 97 million of net income and 185 million of EBITDA. Free cash flow, however, is negative due to a large increase in CAPEX. So X-Fab stock is currently valued at under 7 times earnings and 3.6 times EBITDA. X-Fab stock has fallen 50% this year as a slowdown in electric vehicle sales and medical devices have affected demand for its chips. Geopolitical events like the pandemic also caused companies to stockpile chips which still hasn’t normalised. As a result, X-FAB’s total revenue is up less than 2% on a trailing twelve month basis. Silicon carbide sales were down 60% in the third quarter and the industrial segment fell 41%. #stockstobuynow #stockmarket #investing #stockstobuy 2024-12-20T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/265542/6-stocks-for-2025-part-one https://atto.videonest.co/265542_horizontal_thumbnail_v3.webp https://atto.videonest.co/265542_video_v3.mp4 6 Stocks For 2025 - Part One! Published first at https://www.3minutebreakdowns.com 6 stocks for 2025 - part one. 6 stocks I'm buying in 2025. Dutch company ASML makes lithography machines that are used to produce the world’s most advanced microchips. These machines are essential to the chip industry and cost hundreds of millions of dollars. Despite having a near monopoly, ASML stock has fallen 30% over the past 6 months and the company’s forward PE ratio has dropped under 30. Weakness in smartphone and electric vehicle sales has impacted ASML’s customers and caused the company’s revenues to decline 2% on a trailing twelve month basis. Meanwhile, ASML has been investing heavily in new facilities which has hit free cash flow. #investing #stocks #stockstobuy #stockstobuy2025 2025-01-02T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/265543/3-stocks-to-avoid-in-2025 https://atto.videonest.co/265543_horizontal_thumbnail_v3.webp https://atto.videonest.co/265543_video_v3.mp4 3 Stocks To Avoid In 2025 Published first at https://www.3minutebreakdowns.com 3 stocks to avoid in 2025. A long list to choose from. 3 stocks to avoid including: $IONQ $SOUN $MSTR #investing #stocks #stockstosell 2024-12-29T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/269500/6-stocks-for-2025-part-two https://atto.videonest.co/269500_horizontal_thumbnail_v3.webp https://atto.videonest.co/269500_video_v3.mp4 6 Stocks For 2025 - Part Two! Published first at https://www.3minutebreakdowns.com 6 Stocks for 2025 - Part Two. Some stocks to watch as we move into 2025 including names such as NKE, XFAB and WISE. Nike stock has had a poor couple of years. Under CEO John Donahoe, the company pushed too heavily into DTC and performance advertising. Relationships with retailers suffered and innovation declined. That opened the door to competition from the likes of Hoka and On Cloud. Nike profits have fallen 18% from their peak and margins have dropped under 10%. #investing #stocks #stockstobuy2025 2025-01-05T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/276387/3-more-stocks-to-watch-in-2025 https://atto.videonest.co/276387_horizontal_thumbnail_v3.webp https://atto.videonest.co/276387_video_v2_360.mp4 3 More Stocks To Watch In 2025! Published first at https://www.3minutebreakdowns.com Three more stocks to watch in 2025. 2025 stock market analysis including CPNG, CROX, SPHR. Ecommerce business Coupang is known as the Amazon of South Korea. The company has built an impressive logistics network throughout the country, a third party marketplace and a lucrative membership program. Coupang also offers food delivery, entertainment and a fast growing fintech business. Coupang’s high valuation is supported by rapid revenue and increasing free cash flow. Revenue growth has accelerated over the past 12 months to 25% #investing #stocks #stockstobuy 2025-01-08T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/279775/should-you-buy-uber-stock-january-2025 https://atto.videonest.co/279775_horizontal_thumbnail_v3.webp https://atto.videonest.co/279775_video_v3.mp4 Should you buy Uber stock? (January 2025) Published first at https://www.3minutebreakdowns.com Uber stock analysis. Ticker: $UBER Uber stock has fallen 16% over the last 3 months taking the company’s market value to 142 billion dollars. Account for cash, investments and debt and the enterprise value is 146 billion. Revenue over the last 12 months comes to 42 billion with 4.4 billion of net income and 6 billion of free cash flow. So Uber is currently valued at 3.5 times revenue, 32 times earnings and 24 times free cash flow. Uber stock has fallen 15% over the past few months despite posting highly impressive growth. In the most recent quarter, Gross bookings on the platform hit 41 billion dollars representing four straight quarters of at least 20% growth. Revenue for Uber’s mobility segment was up 26%, delivery grew 18% and monthly users hit 161 million. Crucially, operating leverage means that Uber is now highly profitable. The company reported 1.7 billion of adjusted ebitda and 2.1 billion dollars of free cash flow in the last quarter alone. #investing #stocks #stockstobuy 2025-01-15T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/283875/should-you-buy-micron-stock-january-2025 https://atto.videonest.co/283875_horizontal_thumbnail_v3.webp https://atto.videonest.co/283875_video_v3.mp4 Should you buy Micron stock? (January 2025) Published first at https://www.3minutebreakdowns.com Micron stock analysis. Ticker: $MU Micron is an American company that makes memory for computers and the stock has gained 21% over the past year taking the company’s market value to 115 billion dollars. With 29 billion of revenue over the last 12 months, 3.9 billion of net income and 13.1 billion of adjusted ebitda, Micron stock is now valued at 4 times revenue, 30 times earnings and 9 times EBITDA. Micron’s products can be split into two categories known as DRAM memory and NAND. DRAM is known as volatile memory because it loses data when the power is turned off, its used for high speed applications like Computer RAM, graphics and AI. NAND retains data without power and is used in SSDs, USB drives and for smartphone storage. When Micron reported earnings last month the stock dropped 13% despite posting some rather impressive numbers. Total revenue increased 84% year over year, gross margins increased to 38% and profits jumped to 1.8 billion. Even more significant, Micron’s data centre revenues grew an incredible 400% so Micron is clearly benefitting from the AI boom in a big way. The company’s high bandwidth chip sits close to GPUs which help speed up AI processing, and Micron’s 3E chip is designed into Nvidia’s Blackwell platform. #stocks #investing #stockmarket 2025-01-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/287187/this-small-italian-stock-is-a-hidden-gem-stocks-stockmarket https://atto.videonest.co/287187_horizontal_thumbnail_v3.webp https://atto.videonest.co/287187_video_v3.mp4 This small Italian stock is a hidden gem #stocks #stockmarket 2025-01-23T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/288690/should-you-buy-netflix-stock-january-2025 https://atto.videonest.co/288690_horizontal_thumbnail_v3.webp https://atto.videonest.co/288690_video_v3.mp4 Should you buy Netflix stock? (January 2025) Published first at https://www.3minutebreakdowns.com Netflix stock analysis. Ticker symbol: $NFLX Netflix reported earnings yesterday and the stock jumped 10% taking the company’s market value to 418 billion dollars. With 10 billion of cash and investments and 13.8 billion of debt the company’s enterprise value is 422 billion. This was another strong quarter from Netflix. Revenues grew 16% to 10.2 billion and total paid subscribers grew by 19 million, double the number that analysts were expecting. The company has now reported 39 billion dollars of revenue over the past 12 months, 8.7 billion of net income and 6.9 billion of free cash flow. Which means the stock is valued at 11 times revenue, 48 times earnings and 61 times free cash flow. Netflix’s positive results are testament to a strong product and a competent management team. Management wanted to accelerate growth in 2024 and they achieved it by cracking down on password sharing, raising prices, bringing in advertising and investing in sport. The Jake Paul - Mike Tyson fight in December became the most streamed sporting event in history and more than 60 million viewers tuned into the Christmas Day Superbowl. #investing #stocks #stockmarket #netflix 2025-01-24T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/296264/should-you-buy-alibaba-stock-january-2025 https://atto.videonest.co/296264_horizontal_thumbnail_v3.webp https://atto.videonest.co/296264_video_v3.mp4 Should you buy Alibaba stock? (January 2025) Published first at https://www.3minutebreakdowns.com Alibaba stock analysis. Ticker: $BABA Alibaba just released a new large language model that outperforms Deepseek and the stock jumped by 7%, taking the company’s market value to 222 billion US dollars. Shares are now up 31% over the past year. Chinese tech giant Alibaba poses a number of risks for investors. The company’s Variable Interest Entity structure means that foreign buyers get a derivative of the company and not direct ownership. The setup carries some legal risk that not all investors want to carry. Meanwhile, geopolitical tensions, a heavy-handed government and economic weakness have all put pressure on the stock which is still down 70% from its 2020 high. And to top things off, the business of Alibaba has also underperformed. #investing #stocks #alibabastock #stockstobuy 2025-01-29T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/296265/should-you-buy-constellation-software-stock-january-2025 https://atto.videonest.co/296265_horizontal_thumbnail_v3.webp https://atto.videonest.co/296265_video_v3.mp4 Should you buy Constellation Software stock? (January 2025) Published first at https://www.3minutebreakdowns.com Constellation Software stock analysis. Ticker: $CSU.TO This is one of the best performing stocks of all time and the company shows no sign of slowing down. Constellation Software is a diversified software company from Canada with a market cap of 97.4 billion Canadian dollars and a total enterprise value of just over 99 billion. Revenue over the last 12 months comes to 13.1 billion with 794 million of net income and 2.7 billion of free cash flow. However, that cash flow includes costs related to acquisitions so Constellation prefers to report a metric called free cash flow available to shareholders. That comes in at 1.9 billion which means Constellation stock is now valued at 7.6 times revenue, 123 times earnings and 53 times free cash flow. Those multiples sound expensive but Constellation Software presents a unique opportunity. #investing #stocks #stockmarket #constellationsoftware 2025-01-28T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/302134/should-you-buy-tesla-stock-february-2025 https://atto.videonest.co/302134_horizontal_thumbnail_v3.webp https://atto.videonest.co/302134_video_v3.mp4 Should you buy Tesla stock? (February 2025) Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: $TSLA Tesla reported earnings last week and the stock jumped 6%. Shares are now up 111% over the past year taking the company’s market value to 1.3 trillion dollars. Account for cash, investments and debt and the total enterprise value is around 1.27 trillion. Revenue over the last 12 months comes to 98 billion with 7.1 billion of net income, 16.6 billion of adjusted ebitda and 3.6 billion of free cash flow. So Tesla stock is now valued at a lofty 13 times sales, 183 times earnings and 355 times free cash flow. Tesla’s Q4 earnings report caused a great deal of confusion among analysts. Revenue, earnings per share and vehicle deliveries all missed expectations and yet the stock still moved higher. Annual revenue growth for the company has now slowed to just 1%, operating margins have nearly halved since 2022 and free cash flow has weakened for the second consecutive year. Meanwhile, Tesla’s own charts indicate the company is no longer gaining market share in Europe or North America. #investing #stockmarket #stockanalysis #teslastock 2025-02-03T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/303648/3-stocks-that-could-double-this-year https://atto.videonest.co/303648_horizontal_thumbnail_v3.webp https://atto.videonest.co/303648_video_v3.mp4 3 Stocks That Could Double This Year These are my personal opinions not financial advice. It will be hard for these stocks to gain 100% in 2025 but I believe it could be possible if everything goes right and markets stay buoyant. This video is for information and entertainment purposes only. Published first at https://www.3minutebreakdowns.com Software company Backblaze provides computer backup and cloud storage solutions. This is a small company with a market cap around 311 million dollars. The company is not yet profitable but free cash flow is moving in the right direction and operating leverage is starting to kick in. While Backblaze’s computer backup segment is ticking along steadily, its B2 product is growing at a much faster rate. B2 provides cloud storage solutions that are one fifth the cost of large providers like AWS and Google Cloud with zero egress fees. #investing #stockstobuy #stockstobuy2025 2025-02-07T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/305112/whats-going-on-with-amd-stock https://atto.videonest.co/305112_horizontal_thumbnail_v3.webp https://atto.videonest.co/305112_video_v3.mp4 What's going on with AMD stock? Published first at https://www.3minutebreakdowns.com AMD stock analysis. Ticker: $AMD 2025-02-11T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/306495/should-you-buy-pinduoduo-stock-february-2025 https://atto.videonest.co/306495_horizontal_thumbnail_v3.webp https://atto.videonest.co/306495_video_v3.mp4 Should you buy Pinduoduo stock? (February 2025) Published first at https://www.3minutebreakdowns.com Pinduoduo stock analysis. Ticker symbol: $PDD Chinese company Pinduoduo started as a way to connect customers with Chinese farmers but its gamified approach to commerce soon took off. Since 2015, the company has grown into an ecommerce juggernaut facilitating the purchase of millions of low cost items. And in 2022, the company launched its international platform Temu. #investing #stocks 2025-02-13T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/312019/this-small-uk-stock-is-one-to-watch-raspberry-pi https://atto.videonest.co/312019_horizontal_thumbnail_v3.webp https://atto.videonest.co/312019_video_v3.mp4 This small UK stock is one to watch (Raspberry Pi) Published first at https://www.3minutebreakdowns.com Raspberry Pi stock analysis. Ticker: $RPI.L 2025-02-19T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/313524/is-this-the-next-microstrategy-semler-scientific https://atto.videonest.co/313524_horizontal_thumbnail_v3.webp https://atto.videonest.co/313524_video_v3_360.mp4 Is this the next MicroStrategy? (Semler Scientific) Published first at https://www.3minutebreakdowns.com Semler Scientific stock analysis. Ticker: $SMLR Semler Scientific, a small US company that sells medical devices is using its cash to buy bitcoin and the stock has been on a rollercoaster ride. At the latest price, Semler Scientific has a market value of 407 million dollars. The company has 15.4 million of cash and investments on its balance sheet and no debt so the enterprise value is 391 million. Meanwhile, the company reports 56 million of revenue over the last 12 months, 41 million of net income and 21 million of EBITDA. So the stock is currently valued at 6.9 times sales and just under 10 times earnings. 2025-02-21T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/314875/should-you-buy-grab-stock-february-2025 https://atto.videonest.co/314875_horizontal_thumbnail_v3.webp https://atto.videonest.co/314875_video_v3_360.mp4 Should you buy Grab stock? (February 2025) Published first at https://www.3minutebreakdowns.com Grab Holdings stock analysis. Ticker: $GRAB Despite falling 10%, this was a strong quarter for GRAB. Delivery revenues increased 13%, mobility revenues increased 19% and financial service revenues increased 38%. Total group sales were up 17% and adjusted ebitda hit a record 97 million. Crucially, the company also delivered solid guidance, forecasting 19 to 22% growth for 2025. If there was an issue with these results it was a modest decrease in margins. Ebitda margins in the mobility segment dropped back to 8.4% largely due to an increase in consumer incentives. These incentives are used to entice customers and they highlight one of the key risks around Grab. Intense competition in South East Asia could eventually constrain the company’s growth. #investing #stockstobuy2025 2025-02-24T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/316987/is-greggs-a-good-stock-to-buy-march-2025 https://atto.videonest.co/316987_horizontal_thumbnail_v3.webp https://atto.videonest.co/316987_video_v3.mp4 Is Greggs a good stock to buy? (March 2025) Published first at https://www.3minutebreakdowns.com Greggs stock analysis. Ticker: $GRG.L UK bakery Greggs has had a rough 12 months with shares falling 24%. However, look under the hood and the business is doing just fine. At the latest price, Greggs has a total market value of 2.1 billion pounds. Account for cash and debt and the enterprise value is just under 2 billion. Although the company does have 300 million of leases. We don’t yet have up to date financials for Greggs, but we know that trailing twelve month revenue was a record at over 2 billion pounds. Net income as of July 2024 was 137 million with 259 million of EBITDA and 159 million of free cash flow. So Greggs stock is trading at around 1 times sales, 15 times earnings and 13 times free cash flow. That’s a low valuation for Greggs and suggests the stock may be near an entry point. Greggs specializes in baked goods like sausage rolls, sandwiches and pies and its brand is near an all time high. The company has over 2600 stores which can be found on high streets, in supermarkets, petrol stations and retail centres. #investing #stockstobuy #stocks #greggs 2025-03-01T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/320574/3-cheap-stocks-march-2025 https://atto.videonest.co/320574_horizontal_thumbnail_v3.webp https://atto.videonest.co/320574_video_v3.mp4 3 Cheap Stocks! (March 2025) Published first at https://www.3minutebreakdowns.com Meanwhile, Crocs’ acquisition of shoe business Hey Dude looks like a huge mistake. Sales have continued to decline and management said they expect revenues to drop another 7-9% this year. Despite that, Crocs’ valuation is getting to a point where it makes sense to take the other side. The company has generated 923 million of free cash flow over the last 12 months against a current market value of only 5.6 billion dollars which means the company is trading at a dirt cheap valuation of just 6 times free cash flow. 2025-03-05T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/333403/mongodb-crashed-27percent-is-it-time-to-buy https://nano.videonest.co/333403_thumbnail_resized_v2.webp MongoDB crashed 27%, is it time to buy? Published first at https://www.3minutebreakdowns.com MongoDB stock analysis. Ticker: $MDB MongoDB reported earnings last week and the stock cratered 27%. Shares are now down 54% over the past year. At the recent price, MongoDB now has a market value of 15.9 billion dollars. The company has a solid balance sheet with 2.3 billion of cash and no debt so the enterprise value is 13.6 billion. Meanwhile, MongoDB has reported 2 billion of revenue over the past 12 months 1.5 billion of gross profit and 115 million of free cash flow. However, the company is not yet GAAP profitable due to a large amount of stock based compensation - almost half a billion. The global database market is perhaps the largest in software but is currently dominated by legacy products that are not equipped for today’s applications. MongoDB, offers a flexible, modern platform that can handle structured and unstructured data. The product is clearly valuable since MongoDB has more than 10xd its annual revenues over the last 7 years. However, shares collapsed on Thursday due to weak forward guidance. Revenue is forecast to grow only 12 to 14% this year, a significant slowdown. After all, Mongo grew 19% last year, 31% the year before and 47% the year before that. 2025-03-12T17:12:47.944Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/343012/state-of-the-stock-market-march-2025 https://atto.videonest.co/343012_horizontal_thumbnail_v3.webp https://atto.videonest.co/343012_video_v3.mp4 State Of The Stock Market - March 2025 Published first at https://www.3minutebreakdowns.com What's next for the stock market? March 2025. US stock markets have entered correction territory. The S&P 500 index is down 10% over the past month, the Nasdaq 100 has fallen 14% and the Russell small cap index has fallen 19%. Some of the hardest hit stocks include The Trade Desk, down 62%, restaurant business Cava down 57% and Robinhood which has fallen 46%. And there are two key reasons for the volatility. The first is that coming into the year US stock markets were already extremely expensive. The Shiller PE ratio was at 36 and the market cap to GDP indicator was at levels last seen during the dotcom bubble. Warren Buffett’s cash pile had soared to over 300 billion.. The second reason is economic uncertainty caused by the new US Government. President Trump has installed tariffs on most of America’s trading partners, stirred geopolitical tensions with Europe and, aided by billionaire Elon Musk, begun cutting federal spending and government jobs. 2025-03-14T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/345087/should-you-buy-robinhood-stock-march-2025 https://atto.videonest.co/345087_horizontal_thumbnail_v3.webp https://atto.videonest.co/345087_video_v3.mp4 Should you buy Robinhood stock? (March 2025) Published first at https://www.3minutebreakdowns.com Time to buy the dip in Robinhood stock? Ticker: HOOD Robinhood stock has dropped 42% in just a few weeks presenting a possible opportunity to buy the dip. At the latest price, Robinhood has a market value of 35.3 billion dollars. WIth 4.3 billion of corporate cash on the balance sheet the enterprise value is 30.6 billion. Revenue over the last 12 months comes to just under 3 billion dollars, with 1.4 billion of net income and 1.4 billion of adjusted ebitda. So the stock is now valued at 10 times revenue, 25 times earnings and 22 times ebitda. 2025-03-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/348568/should-you-buy-ulta-beauty-stock-march-2025 https://atto.videonest.co/348568_horizontal_thumbnail_v3.webp https://atto.videonest.co/348568_video_v3.mp4 Should you buy Ulta Beauty stock? (March 2025) Published first at https://www.3minutebreakdowns.com Ulta Beauty stock analysis. Ticker: $ULTA Ulta Beauty reported earnings last week and the stock popped 14% before giving back some of those gains. Right now the company is worth 16 billion dollars. With 700 million of cash on the balance sheet and no debt the enterprise value is 15.3 billion. Meanwhile, Ulta has reported 11.3 billion of revenue over the last 12 months, 1.2 billion of net income and 964 million of free cash flow meaning the stock is valued at 13 times earnings and under 16 times free cash flow. Those valuations are near the bottom of the company’s historical range. Fiscal 2024 was a disappointing year for Ulta with sales increasing less than 1% and net income falling almost 8%. The company is battling increasing competition and suffering from a slowdown in the beauty market which boomed during the pandemic. 2025-03-20T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/364512/this-market-leader-is-just-7x-earnings https://atto.videonest.co/364512_horizontal_thumbnail_v3.webp https://atto.videonest.co/364512_video_v3.mp4 This Market Leader Is Just 7x Earnings Published first at https://www.3minutebreakdowns.com Keller Group stock analysis. Ticker: $KLR.L Keller Group Plc is the world’s largest specialist geotech contractor and shares are up 30% over the past 12 months. At the current price, Keller has a market cap of 1 billion british pounds and an enterprise value of 1.1 billion. Revenue over the last 12 months comes to 3 billion with 142 million of net income, 289 million of ebitda and 177 million of free cash flow. And the company pays a dividend around 3.6% Keller Group provides geotech services that include foundation expertise, ground improvements, piling and monitoring. They make sure the ground is suitable and ready for building which is an essential part of any construction project. The company has grown steadily over the years, by acquiring smaller geotech companies and expanding into new markets. As a result, Keller has built a highly diversified and profitable company. 60% of revenues come from North America, 27% from Europe and 13% from Asia Pacific. Revenues have expanded 10% a year since 1994, operating profits have increased 11% a year and dividends have increased 9% a year. 2025-03-27T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/366122/lululemon-stock-just-dropped-14percent https://atto.videonest.co/366122_horizontal_thumbnail_v3.webp https://atto.videonest.co/366122_video_v3_converted.mp4 Lululemon stock just dropped 14%! Published first at https://www.3minutebreakdowns.com Lululemon stock analysis. Ticker: $LULU Lululemon reported earnings on Friday and the stock dropped 14% taking the company’s market value to 35.7 billion dollars. With 2 billion of cash on the balance sheet and minimal debt the enterprise value is 33.7 billion. Lululemon’s 2024 results were solid if not spectacular. Full year revenues increased by 10% to 10.6 billion, net income grew 17% to 1.8 billion while free cash flow fell slightly to just under 1.5 billion. So Lululemon stock is now valued at 20 times earnings and 23 times free cash flow which is right near the bottom of the company’s historical range. Importantly, Lululemon is still on track to meet the ambitious targets it set in 2022. Those targets called for $ 12.5 billion of revenue by 2026 so the company only needs to grow sales 18% over the next two years to make it. Looking more closely at Lululemon’s results reveals some interesting trends. While US revenue makes up 65% of the company’s total, US sales only grew 2% last year, with same store sales declining 1%. So most of Lululemon’s growth is coming from overseas. China revenues were up 41% last year with a 25% increase in same store sales and the rest of the world grew 27% with a 19% increase in same store sales. 2025-03-31T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/370109/state-of-the-stock-market-april-2025 https://atto.videonest.co/370109_horizontal_thumbnail_v3.webp https://atto.videonest.co/370109_video_v3.mp4 State Of The Stock Market - April 2025 Published first at https://www.3minutebreakdowns.com US stock markets plunged today after President Donald Trump imposed tariffs on nearly all of its trading partners. The Dow Jones Index gave up 1600 points, the S&P 500 dropped five percent and the Nasdaq 100 fell 6 percent. WTI Crude oil fell below 67 dollars a barrel and the US 10 year yield tumbled to 4%. Donald Trump’s reciprocal tariffs include an additional 34% charge on China, 20% on the European Union, 46% on Vietnam, 26% on India and a whole host of other nations. If enacted, the average tariff level imposed by the USA would rise to a level not seen since the 1800s and the 1930s, an era which preceded the Great Depression. Trump’s tariffs appear to have been devised using a flawed economic formula. Instead of taking the average tariff rate from each country, the Trump team has taken each country’s trade surplus with the United States and divided it by the value of its imports. This leads to a misleading figure which fails to account for economic services and the wealth of each country. 2025-04-05T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/376871/3-stocks-to-buy-in-a-market-crash-april-20250 https://atto.videonest.co/376871_horizontal_thumbnail_v3.webp https://atto.videonest.co/376871_video_v3.mp4 3 Stocks To Buy In A Market Crash (April 20250 Published first at https://www.3minutebreakdowns.com 3 great stocks to buy in a market crash, April 2025. Stock markets are falling right now and for good reason. President Trump’s tariffs could plunge the world into a deep recession. But at some point, stocks will recover and here are three that I’d like to buy on a dip. Cyber-security company Crowdstrike protects some of the world’s largest organisations with its cloud-native Falcon platform. The company holds a dominant position in a large and growing market and it’s got all the attributes of a quality business. Sales have increased every single quarter since at least 2018, with strong operating leverage and customer retention. Crowdstrike is also an asset-light, highly profitable business with gross margins of 75% and free cash flow margins approaching 30%. Meanwhile, a highly publicised outage last year has failed to hurt the business which reinforces how dominant the company is. 2025-04-09T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/397132/should-you-buy-cava-stock-april-2025 https://atto.videonest.co/397132_horizontal_thumbnail_v3.webp https://atto.videonest.co/397132_video_v3.mp4 Should you buy Cava stock? (April 2025) Published first at https://www.3minutebreakdowns.com Cava stock analysis. Ticker: $CAVA Revenue over the last 12 months comes to 964 million with 130 million of net income, 126 million of adjusted ebitda and 53 million of free cash flow. So Cava stock is valued at over 10 times revenue and over 80 times earnings. That sounds expensive but CAVA is executing its growth strategy extremely well. The company opened 58 new restaurants last year taking its total to 367 and growing revenues by 33%. Same store sales grew an impressive 13% and adjusted ebitda was up by 71%. Cava’s unit economics are also highly tuned with store level margins between 20-25% and an average payback period for new stores of under 2 years. But despite Cava’s impressive rise, investors need to tread carefully. Cava’s growth up until now has benefited from its acquisition of Zoes Kitchen and its ability to raise prices in a strong economy. President Trump’s recent tariff policies are now causing businesses a great deal of angst and threatening to throw a wrench in the global economy. 2025-04-14T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/412280/asml-stock-is-feeling-the-heat-april-2025 https://atto.videonest.co/412280_horizontal_thumbnail_v3.webp https://atto.videonest.co/412280_video_v3.mp4 ASML stock is feeling the heat (April 2025) Published first at https://www.3minutebreakdowns.com ASML stock analysis. Ticker: $ASML ASML reported earnings yesterday and the stock dropped 5% taking the company’s market value to 225 billion euros. With 9.1 billion of cash on its balance sheet and 3.7 billion of debt, the company’s total enterprise value is 220 billion. Revenue over the past 12 months comes to 31 billion with 8.7 billion of net income and 9.3 billion of free cash flow. So ASML stock is valued at 26 times earnings and 24 times free cash flow. And the company also pays a dividend of almost 1%. ASML builds complex lithography machines that are used to make the world’s most important microchips. The company has a monopoly in the industry and this was another solid report. Revenue of 7.7 billion was 45% higher than last year and gross margin of 54% was above expectations. 2025-04-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/424373/state-of-the-stock-market-april-29-2025 https://atto.videonest.co/424373_horizontal_thumbnail_v3.webp https://atto.videonest.co/424373_video_v3.mp4 State of the Stock Market - April 29 2025 Published first at https://www.3minutebreakdowns.com US stocks gained about 5% last week and are now up about 14% from their low on April 7th. Naturally, the recovery in stocks has prompted speculation that the worst may be over. Treasury Secretary Scott Bessent happily reported that the Nasdaq 100 was now in positive territory for the month of April. But while stock markets are capable of climbing a wall of worry, it feels too premature to call the bottom. The biggest issue for investors is that the thing that got us into this mess, the tariffs, are still with us. 10% tariffs are still in place with most trading partners. And China tariffs are still a whopping 145%. Trump has indicated he will soften his stance and bring the tariffs down. But there’s still no evidence of him having any discussions with China. Meanwhile, Trump provided more proof at the weekend that tariffs (at least in some form) are here to stay. Posting on Truth Social he said that once tariffs cut in they might be used to eliminate income taxes. Of course, this idea has been debunked by economists who say the math simply doesn’t add up. the Council on Foreign Relations called the idea foolhardy and irresponsible. 2025-04-29T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/429501/this-french-stock-is-one-to-watch https://atto.videonest.co/429501_horizontal_thumbnail_v3.webp https://atto.videonest.co/429501_video_v3.mp4 This French Stock is One to Watch Published first at https://www.3minutebreakdowns.com Eurofins stock analysis. Ticker: $ERF.PA This French stock is one to watch. Eurofins Scientific is a lab testing company that has been one of the best performing stocks in the world. But shares have fallen 50% over the past few years giving investors a chance to buy the dip. At the latest price, Eurofins has a market cap of 10.2 billion euros. With 614 million of cash and 2.7 billion of debt, the enterprise value is 12.3 billion. Revenue over the last 12 months comes to 7 billion with 400 million of net income, 1.4 billion of ebitda and 865 million of free cash flow. So the stock is currently valued at 25 times earnings and 14 times free cash flow. That valuation is lower than the company’s historical average. Eurofins provides lab testing services for food companies, pharmaceuticals, cosmetics and more. And the company has grown from just 3 employees 30 years ago to more than 60,000 rolling up almost 600 smaller businesses in the process. 2025-05-01T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/432062/google-stock-is-looking-cheap-3-minute-stock-analysis-may-2025 https://atto.videonest.co/wWtWAroTeXc_thumbnail_resized_v2.webp https://atto.videonest.co/wWtWAroTeXc_video_v3_360.mp4 Google Stock is Looking Cheap - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com Google stock analysis. Ticker: $GOOG $GOOGL Google/Alphabet reported earnings recently and the stock climbed about 3%. But shares are still down 13% year to date giving the company a market value just over 2 trillion dollars. With 95 billion of cash on the balance sheet, 51 billion of investments and 11 billion of debt the company’s enterprise value is 1.92 trillion. Google’s revenue over the last 12 months comes to 360 billion with 111 billion of net income, 136 billion of ebitda and 75 billion of free cash flow. So the company is now valued at just under 19 times earnings, 14 times ebitda and 26 times free cash flow. 19 times earnings for a quality business like Google seems too cheap and this was another impressive quarter. Youtube revenues grew 10% year over year to 8.9 billion. Subscriptions grew 19% to 10.4 billion and Google Cloud grew an impressive 28% to 12.3 billion. That’s faster growth than AWS but not quite as fast as Microsoft Azure. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-06T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/440373/shopify-is-brushing-off-tariffs-3-minute-stock-analysis-may-2025 https://atto.videonest.co/440373_horizontal_thumbnail_v3.webp https://atto.videonest.co/440373_video_v3.mp4 Shopify is Brushing Off Tariffs - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com Shopify stock analysis. Ticker symbol: $SHOP Shopify just reported earnings and the stock fell 5%. However, shares recovered and were nearly flat by the end of the day. At the latest price, Shopify now has a market value of 118.6 billion US dollars. The company has 5.5 billion of cash and investments on its balance sheet and minimal debt so the enterprise value is 113 billion. Meanwhile Shopify has generated 9.4 billion of revenue over the past 12 months, 1.6 billion of net income and 1.7 billion of free cash flow. So the company is currently valued at 12 times sales, 74 times earnings and 67 times free cash flow. So let’s take a look at whether Shopify is worth buying and if you like this video make sure to click the link in the description. Going into today’s earnings, there was concern that Shopify might be negatively affected by President Trump’s tariffs and the ending of the de minimis import rule. However, Shopify management reported strong results for the quarter and said that they are seeing no material impact so far. Management said that April and May numbers are still looking strong, and they guided for mid-twenties percent revenue growth for the second quarter. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-12T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/445674/united-health-group-just-crashed-3-minute-stock-analysis-may-2025 https://atto.videonest.co/445674_horizontal_thumbnail_v3.webp https://atto.videonest.co/XlihTIkpUwQ_video_v3.mp4 United Health Group Just Crashed - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com United Health Group stock analysis. Ticker symbol: $UNH At the latest price, United Health Group has a market value of 292 billion dollars. The company has generated 410 billion of revenue over the past 12 months, 22 billion of net income and just under 25 billion of free cash flow. So the stock is now valued at 13 times earnings and 11 times free cash flow. That’s the company’s lowest valuation in more than a decade. Although that cash flow doesn’t account for acquisitions, include those at the multiple increases to around 20. UNH is a healthcare giant made up of two main segments, United Healthcare and Optum. United Healthcare provides health insurance and benefits to roughly 50 million people, typically. paid for by employers and government programs. And this segment makes up roughly 54% of revenue. The Optum segment provides healthcare services like clinics, data analytics and pharmacy. This segment makes up the remaining 46% of sales. But shares in United Health are under pressure due to rising medical costs relating from a surge in medicare plans. The company is also dealing with political challenges, poor execution and negative public sentiment. Last year the company experienced a cyber attack and the shocking murder of CEO Brian Thompson. Today, the company withdrew financial guidance and announced that CEO Andrew Witty would step down to be replaced by former CEO Stephen Hemsley. Hemsley has a strong track record from his previous leadership. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-14T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/451935/3-small-stocks-with-10x-potential-3-minute-stock-analysis-may-2025 https://atto.videonest.co/451935_horizontal_thumbnail_v3.webp https://atto.videonest.co/451935_video_v3.mp4 3 Small Stocks With 10X Potential! 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com 3 small stocks with the potential to 10X in valued (over 10 years). Applied Nutrition is a small UK company that provides sports nutrition products like protein powders, creatine, sport drinks and supplements. This is a crowded niche with low barriers to entry. But it’s also a huge market worth 190 billion and Applied Nutrition stands out for a number of reasons. Tiendas 3B is a discount retailer that’s best described as the Aldi of Mexico. The company provides low cost essentials and private labels and typically sells them before having to pay suppliers. This gives the company cash up front that the business can use to grow. 11 Bit Studios is a small video game developer out of Poland. The business trades on the Warsaw stock exchange with a market cap of roughly 145 million US dollars. 11 Bit is famous for emotional, narrative-driven games that include Frostpunk, This War of Mine and Moonlighter. However, the stock collapsed last year when the company decided to cancel a game it was working on called Project 8. That led to a write off of 48 million Polish Zloty and the company ended up posting a yearly profit of just 7 million. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-19T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/453648/hims-stock-could-be-a-bumpy-ride-3-minute-stock-analysis-may-2025 https://atto.videonest.co/453648_horizontal_thumbnail_v3.webp https://atto.videonest.co/oUl1gp-kSwM_video_v3.mp4 Hims Stock Could Be A Bumpy Ride - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com Hims stock analysis. Ticker: $HIMS Telehealth company HIMS is one of the best performing stocks on the market this year with shares up 167% year to date. However, it’s also one of the most shorted with a short interest over 30%. So does this stock have more room to run or is it a bubble waiting to pop? At the recent price, HIMS now has a market value of 15.9 billion dollars. Revenue over the last 12 months comes to 1.78 billion with 164 million of net income, 236 million of adjusted EBITDA and 248 million of free cash flow. So HIMS stock is valued at almost 100 times earnings which sounds expensive but the company is growing incredibly fast. Boosted by the introduction of weight loss drugs in early 2024, revenues grew an impressive 69% last year. And that growth continued into the first quarter where sales more than doubled and adjusted ebitda hit 91 million. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-21T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/456448/paypal-stock-is-in-a-tight-spot-3-minute-stock-analysis-may-2025 https://atto.videonest.co/456448_horizontal_thumbnail_v3.webp https://atto.videonest.co/456448_video_v3.mp4 PayPal Stock Is In A Tight Spot - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com PayPal stock analysis. Ticker symbol: $PYPL Paypal stock is up 20% this month but shares are still down over 75% from their all-time high so is it finally time to buy the stock? Let’s take a look. At the latest price, PayPal now has a market value of 72.5 billion dollars. The company has 15.8 billion dollars of cash and investments on its balance sheet and 11.4 billion of debt which means the enterprise value is 68.1 billion. Meanwhile, PayPal has generated 32 billion of revenue over the past 12 months, 4.5 billion of net income and 6 billion of free cash flow. So PayPal stock is now valued at 16 times earnings and just 11 times free cash flow. That’s extremely cheap although once you include stock based compensation the free cash flow multiple increases to more like 14. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-25T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/457751/coreweave-stock-is-surging-3-minute-stock-analysis-may-2025 https://atto.videonest.co/457751_horizontal_thumbnail_v3.webp https://atto.videonest.co/GyHA44ZTwm8_video_v3.mp4 CoreWeave Stock Is Surging - 3 Minute Stock Analysis - May 2025 Published first at https://www.3minutebreakdowns.com CoreWeave stock analysis. Ticker: $CRWV This AI stock IPO’d in March and it’s already up 200%! CoreWeave, ticker symbol CRWV builds AI data centers and the company is experiencing rapid growth. But is it too late to buy the stock? At the latest price, CoreWeave has a market value of 58 billion dollars. The company has 3.3 billion of cash on its balance sheet including 10.7 billion of debt so the enterprise value is 61 billion. Revenue over the last 12 months comes to 2.7 billion but the company is not yet profitable making a loss of 1 billion dollars over the last 12 months. CoreWeave began as a crypto mining operation but its business today involves renting out computing power via the cloud for artificial intelligence. This involves building out large data centers and fitting them with the latest Nvidia GPUs. The company’s key advantage is that it focuses purely on AI which leads to better performance. According to the company, CoreWeave’s platform achieved a machine learning benchmark 29 times faster than its next competitor. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-05-29T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/461335/3-small-dirt-cheap-stocks-june-2025-3-minute-stock-analysis https://atto.videonest.co/461335_thumbnail_resized_v2.webp https://atto.videonest.co/461335_video_v3.mp4 3 Small, Dirt Cheap Stocks - June 2025 - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 3 small, dirt cheap stocks. This company has had a terrible few years with shares falling over 80%. First it was the pandemic, then the Ukraine war and now US tariffs. Nokian was forced to sell its factory in Russia in 2023 because of the war. It built new facilities in Romania but that saddled the company with over 600 million of debt. However, Nokian makes a quality product and management is optimistic for the second half of the year. The Romanian factory is now in operation which should help revenue and margins to recover. It’s also the world's first full-scale zero emission tyre factory, that should be attractive for ESG funds. Meanwhile, Nokian has another factory in the US to help navigate tariffs. One downside to Nokian is that the company is most well known for winter tyres. And that may not be the best niche to be in with global warming. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-06-02T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/463093/should-you-buy-carvana-stock-3-minute-stock-analysis-june-2025 https://atto.videonest.co/463093_horizontal_thumbnail_v3.webp https://atto.videonest.co/Wz0VdxJbTQw_video_v3.mp4 Should you buy Carvana stock? 3-Minute Stock Analysis - June 2025 Published first at https://www.3minutebreakdowns.com Carvana stock analysis. Ticker: $CVNA Carvana offers an online platform where customers can buy and sell used cars. After flirting with bankruptcy in 2022 shares have recovered and are now up 240% over the past year. But can the stock continue its powerful run? At the latest price, Carvana has a market cap of 48.7 billion dollars. Account for cash, debt and non controlling interests and the company’s full enterprise value is over 80 billion. Revenue over the last 12 months comes to 14.8 billion with 398 million of net income and 949 million of free cash flow. So the company is valued at over 100 times earnings and 85 times free cash flow. That seems expensive for an auto dealership but the auto industry is a large market that is ripe for disruption. Carvana likes to position itself as an ecommerce business. The company buys vehicles, reconditions them and then sells them to customers online. They offer financing, delivery, returns and a headturning vending machine for customer pick ups. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-06-12T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/476807/should-you-buy-meta-stock-3-minute-stock-analysis-june-2025 https://atto.videonest.co/476807_thumbnail_resized_v2.webp https://atto.videonest.co/476807_video_v3.mp4 Should you buy Meta stock? 3-Minute Stock Analysis - June 2025 Published first at https://www.3minutebreakdowns.com Meta stock analysis. Ticker: $META Meta announced a 15 billion dollar deal last week but the shares barely moved. Is now a good time to buy the stock? Let’s take a look. At the most recent price, Meta has a market value of 1.72 trillion dollars. The company has 76 billion of cash and investments on its balance sheet and 29 billion of long term debt so the enterprise value is 1.67 trillion. The company has reported 170 billion of revenue over the past 12 months, 67 billion of net income and 52 billion of free cash flow which means the stock is valued at 10 times revenue, 26 times earnings and 32 times free cash flow. For context, over the last 10 years Meta has averaged a PE ratio of 32, 30% annual revenue growth, and a 33% free cash flow margin. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-06-18T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/476808/lululemon-just-crashed-22percent-time-to-buy-stocks-stockanalysis https://atto.videonest.co/476808_thumbnail_resized_v2.webp https://atto.videonest.co/476808_video_v3.mp4 Lululemon just crashed 22%! Time to buy? #stocks #stockanalysis 2025-06-09T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/576782/should-you-buy-oscar-health-stock-3-minute-stock-analysis-july-2025 https://atto.videonest.co/576782_thumbnail_resized_v2.webp https://atto.videonest.co/576782_video_v3.mp4 Should you buy Oscar Health stock? 3-minute stock analysis - July 2025 Published first at https://www.3minutebreakdowns.com Oscar Health stock analysis. Ticker: $OSCR Oscar Health has caught the attention of investors due to its rapid growth and some investors think the stock could 5 or even 10x in value. So let's take a closer look. At the latest share price of $19, Oscar Health has a current market cap around 5.8 billion.. The company has over 3 billion of cash and investments but most of it is needed for insurance operations so I put the true enterprise value at 5.6 billion. Meanwhile, the company has reported 10 billion of revenue over the last 12 months, 123 million of net income and 508 million of adjusted ebitda. So the stock is trading at 47 times earnings and 11 times ebitda. Oscar Health is attempting to disrupt health insurance in the US with a technology-driven approach that focuses on individuals and small businesses. The rise of freelancing and the gig economy has created a large pool of individuals that would like insurance and Oscar has been riding this trend successfully. Since December 2020, members have grown from 400,000 to over 2 million and annual revenues have increased over 2000 percent. Last year, the company posted its first ever GAAP profit. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-07-03T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/576783/did-nike-stock-just-hit-bottom-3-minute-stock-analysis-june-2025 https://atto.videonest.co/576783_thumbnail_resized_v2.webp https://atto.videonest.co/576783_video_v3.mp4 Did Nike Stock Just Hit Bottom? 3-Minute Stock Analysis - June 2025 Published first at https://www.3minutebreakdowns.com Nike stock analysis. Ticker: NKE At the latest price of 69 dollars a share Nike has a market value of 101.9 billion dollars. With 9.2 billion of cash and investments on its balance sheet and 8 billion of debt, the enterprise value is 100.7 billion. Revenue over the last 12 months comes to 46.3 billion with 3.2 billion of net income and 3.9 billion of operating income. We don’t yet know the company’s cash flow because the numbers haven’t been published but we know they’re not likely to be significantly better than last quarter. Put it all together and Nike is now valued at just over 2 times revenue and 32 times earnings. Nike’s full year earnings report was not good. Total revenues fell 10%, gross margins fell 1.9% and net income sank 44%. The slowdown was felt across all of Nike’s geographies and segments except equipment. Footwear was down 11%, apparel was down 5%, Jordan down 16% and Converse down 19%. Operating income in North America was down 19%, 24% in Europe and 21% in China. So why did the stock climb after such a poor set of results? ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-06-28T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/675203/3-cheap-uk-stocks-3-minute-stock-analysis-july-2025 https://atto.videonest.co/0tgZQvMkWTE_thumbnail_resized_v2.webp https://atto.videonest.co/0tgZQvMkWTE_video_v3.mp4 3 Cheap UK Stocks! 3-Minute Stock Analysis - July 2025 Published first at https://www.3minutebreakdowns.com 3 cheap UK stocks. July 2025. With US stock markets at all-time highs, now might be a good time to look further afield and the UK market provides some interesting opportunities. So here are 3 cheap stocks from the UK. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-07-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/702230/i-just-bought-this-uk-stock-renew-holdings-3-minute-stock-analysis https://atto.videonest.co/QsUFCcTs85U_thumbnail_resized_v2.webp https://atto.videonest.co/QsUFCcTs85U_video_v3.mp4 I Just Bought This UK Stock - Renew Holdings - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com Should you buy Renew Holdings stocks? Ticker: RNWH.L I just bought shares in this UK small cap. Renew Holdings provides essential engineering services to maintain and renew the UK’s ageing infrastructure. This company has a solid history of growth but shares are down 23% over the past year. So let’s take a closer look. At the latest share price, Renew Holdings has a market cap of 657 million pounds. The company has 8 million of cash on its balance sheet and 20 million of debt so the enterprise value is 668 million. Meanwhile, the company has generated 1.1 billion pounds of revenue over the past 12 months, 45 million of net income, 83 million of ebitda and 39 million of free cash flow. So the stock is valued at 15 times earnings, 8 times ebitda and 17 times free cash flow. Renew Holdings delivers mission-critical services across 4 segments. Rail, infrastructure, energy and environmental. These are non-discretionary services with a total addressable market of 33 billion pounds. That is much larger than the company’s current run rate and is supported by the UK government’s commitment to spend 725 billion pounds on infrastructure over the next decade. That spend will include renewal of existing infrastructure as well as new projects like wind farms and nuclear. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-07-23T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/734332/should-you-buy-tesla-stock-3-minute-stock-analysis-july-2025 https://atto.videonest.co/734332_thumbnail_resized_v2.webp https://atto.videonest.co/734332_video_v3.mp4 Should you buy Tesla stock? 3-Minute Stock Analysis - July 2025 Published first at https://www.3minutebreakdowns.com Tesla stock analysis. Ticker: TSLA Q2 was another weak quarter for Tesla. The company sold 384 thousand vehicles but that was 13% lower than last year. Automotive revenues fell 16% while operating income dropped a whopping 42%. Tesla’s operating margin of 4.1% is now lower than Toyota, BYD, Volkswagen and General Motors. Net income was down 16% and free cash flow at 146 million is the company’s second lowest print since the first quarter of 2020. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-07-26T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/890854/should-you-buy-novo-nordisk-stock-3-minute-stock-analysis-august-2025 https://atto.videonest.co/KlhyG5-cEpY_thumbnail_resized_v2.webp https://atto.videonest.co/KlhyG5-cEpY_video_v3.mp4 Should you buy Novo Nordisk stock? 3-Minute Stock Analysis - August 2025 Published first at https://www.3minutebreakdowns.com Novo Nordisk stock analysis. Ticker: $NVO Novo Nordisk makes the blockbuster weight loss drugs Ozempic and Wegovy but shares are down 66% taking the company back to levels last seen in 2021. So is this game over for Novo Nordisk or is it time to load the boat? At the latest price, Novo Nordisk now has a market value of 209.5 billion dollars. The company has 6 billion of cash on its balance sheet and 14 billion of debt so the enterprise value is just under 218 billion. Meanwhile the company has generated 44 billion of revenue over the last 12 months, 15 billion of net income and 11.5 billion of free cash flow. So the stock is now valued at just 14 times earnings and 19 times free cash flow. That looks pretty cheap, on the surface. Novo Nordisk is battling several fronts. The company’s weight loss drugs Ozempic and Wegovy are losing market share to Eli Lilly’s Mounjaro and Zepbound. Prescription data shows that doctors have been leaning towards Lily’s products due to lower side effects. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-08-02T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/957745/should-you-buy-deckers-outdoor-stock-3-minute-analysis-august-2025 https://atto.videonest.co/8yfdMkoqqEc_thumbnail_resized_v2.webp https://atto.videonest.co/8yfdMkoqqEc_video_v3_converted.mp4 Should You Buy Deckers Outdoor Stock? 3-Minute Analysis - August 2025 Published first at https://www.3minutebreakdowns.com Decker Outdoor stock analysis. Ticker: $DECK This US company is beginning to look attractive. Deckers Outdoor ticker symbol DECK owns the shoe brands Hoka and Ugg but the stock has fallen 45% year to date so is it time to buy the dip? At the latest price, Deck has a market value of 17 billion dollars. The company has 1.7 billion of cash on its balance sheet and no debt so the enterprise value is 15.2 billion. Meanwhile the company has generated 5.1 billion of revenue over the last 12 months, just under 1 billion of net income and 1.3 billion of EBITDA. The company hasnt yet reported its free cash flow but its unlikely to be much lower than net income. So DECK stock is now valued at 3 times sales, 17 times earnings and 12 times ebitda. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-08-10T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/996494/should-you-buy-zeta-global-stock-3-minute-stock-analysis-august-2025 https://atto.videonest.co/RdEFtcMa-FQ_thumbnail_resized_v2.webp https://atto.videonest.co/RdEFtcMa-FQ_video_v3.mp4 Should you buy Zeta Global stock? 3-minute stock analysis - August 2025 Published first at https://www.3minutebreakdowns.com Zeta Global stock analysis. Ticker: ZETA This growth stock is firing on all cylinders. Zeta Global provides an AI powered marketing platform and they just reported 35% revenue growth. So is this a good time to buy the stock? At the latest price, Zeta now has a market value of 4.2 billion dollars with 365 million of cash on its balance sheet and 197 million of debt. The company has reported 842 million of revenue over the last 12 months, 230 million of adjusted ebitda and 100 million of free cash flow. Net income, however, is negative 27 million mainly due to 130 million of stock based compensation. So Zeta stock is valued at just under 5 times revenue and 40 times free cash flow. Zeta Global has built a proprietary data set that contains over 245 million individuals in the US and 535 million globally. The company uses this data to help brands target consumers across the open web. And while 40 times free cash flow may sound expensive, Zeta’s business is growing fast. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-08-18T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1058257/3-overlooked-ai-stocks-september-2025-3-minute-stock-analysis https://atto.videonest.co/1058257_thumbnail_resized_v2.webp https://atto.videonest.co/1058257_video_v4.mp4 3 Overlooked AI Stocks - September 2025 - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 3 Overlooked AI stocks - September 2025. Nvidia gets all the headlines but it’s not the only company exposed to AI. So here are 3 overlooked AI stocks: ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-08-31T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1058258/3-stocks-im-buying-now-august-2025 https://atto.videonest.co/1058258_thumbnail_resized_v2.webp https://atto.videonest.co/1058258_video_v4.mp4 3 Stocks I'm Buying Now - August 2025 Published first at https://www.3minutebreakdowns.com These are 3 stocks I like right now. With a market value of 21 billion dollars against just 3 billion of revenue, Grab stock isn't particularly cheap. But Grab has a long runway for growth and a bright future ahead. Revenues grew 23% in the latest quarter and gross margins hit a new high. As margins and volume continue to improve Grab is well on the way to a billion dollars of free cash flow over the next couple of years. The company has good management and nearly 4 billion of cash on its balance sheet. Net income is tiny but that should improve as the company scales. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-08-23T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1061258/should-you-buy-nvidia-stock-3-minute-stock-analysis-september-2025 https://atto.videonest.co/ShtmCxy6Lak_thumbnail_resized_v2.webp https://atto.videonest.co/ShtmCxy6Lak_video_v3.mp4 Should You Buy Nvidia Stock? 3-Minute Stock Analysis - September 2025 Published first at https://www.3minutebreakdowns.com Nvidia stock analysis. Ticker: NVDA At 4.2 trillion dollars, Nvidia is now bigger than the economies of Japan, France and the UK. which is quite interesting when you consider Nvidia’s current GPUs are likely to be obsolete in 5 or 10 years from now. True, newer chips will be needed to keep the progress continuing but there will come a time when Nvidia’s rapid growth will start to slow down. So let’s consider a simple discounted cash flow model for Nvidia that assumes 20% annual revenue growth for the next 10 years with free cash flow margins of 40%. (That’s against historical revenue growth rates of 39% and free cash flow margins of 30%.) In this scenario, Nvidia would generate roughly 2 trillion of free cash flow over the next 10 years. And using a 10% discount rate and 25 times exit multiple, the fair value of the stock gets to roughly 208 dollars which is roughly 17% upside from today’s price. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-09-07T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1121204/state-of-the-stock-market-3-minute-analysis-september-2025 https://atto.videonest.co/1121204_thumbnail_resized_v2.webp https://atto.videonest.co/1121204_video_v4.mp4 State Of The Stock Market - 3-Minute Analysis - September 2025 Published first at https://www.3minutebreakdowns.com When President Trump launched widespread tariffs on April 2nd, most economists feared the worst. Tariffs, they said, would increase inflation, disrupt supply chains and hurt economic growth. And yet the US stock market continues to defy the odds with the Dow Jones, S&P 500 and Nasdaq all hitting record highs. In fact, the S&P 500 has now advanced for five straight months, gaining over 30% since those April lows. But despite the gains, a different picture emerges when you look under the hood. Economic data for the first half, for example, shows that growth did indeed slow to just 1.2% while inflation remains high and unemployment ticked up. And while the S&P 500 has climbed 12% this year, the US dollar has fallen by a similar amount, partly driven by Trump’s bloated spending bill and his attacks on the Federal Reserve. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-09-21T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1121205/should-you-buy-oracle-stock-3-minute-stock-analysis-september-2025 https://atto.videonest.co/1121205_thumbnail_resized_v2.webp https://atto.videonest.co/1121205_video_v4.mp4 Should you buy Oracle stock? 3-minute stock analysis - September 2025 Published first at https://www.3minutebreakdowns.com Oracle stock analysis. Ticker: $ORCL Oracle just reported earnings and the stock jumped 40% catapulting founder Larry Ellison to the top of the rich list. But is there still time to buy the stock? At the latest share price, Oracle now has a market value of 896 billion dollars. The company has 11 billion of cash and investments on its balance sheet and 82 billion of long term debt which means the total enterprise value is 967 billion. Meanwhile revenue over the last 12 months comes to 59 billion with 12.4 billion of net income and 24 billion of ebitda. Free cash flow, however, is negative, thanks to significant capital investments. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-09-13T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1124160/3-stocks-to-watch-september-2025-3-minute-analysis https://atto.videonest.co/1124160_thumbnail_resized_v2.webp https://atto.videonest.co/1124160_video_v4.mp4 3 Stocks To Watch - September 2025 - 3-Minute Analysis Published first at https://www.3minutebreakdowns.com Software business UIPATH, provides robotic process automation that helps companies automate repetitive tasks. It does this through click-based events and APIs. You’d think this would be under threat from artificial intelligence and UiPath stock has fallen sharply as investors weigh that risk. AI not only cuts the cost to build custom software but new tools like ChatGPT and Claude are now capable of agentic automation. Even so, UiPath seems to be holding its own. Sales grew 14% in the most recent quarter and annual recurring revenue hit an all-time high of 1.7 billion. The company also produces healthy cash flow, with free cash flow margins of 21%. And UiPath is now leaning into AI with the launch of its own Agentic platform. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-09-25T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1378181/3-stocks-to-avoid-october-2025-3-minute-stock-analysis https://nano.videonest.co/1378181_thumbnail_resized_v2.webp https://nano.videonest.co/1378181_video_v4.mp4 3 Stocks To Avoid - October 2025 - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 3 stocks to avoid October 2025, 3-minute stock analysis ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-10-05T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1403609/should-you-buy-meta-and-the-mag-7-stocks-3-minute-stock-analysis https://nano.videonest.co/1403609_thumbnail_resized_v2.webp https://nano.videonest.co/1403609_video_v4.mp4 Should you buy Meta and the Mag-7 stocks? 3-minute stock analysis Published first at https://www.3minutebreakdowns.com Meta and the Mag-7. 3-minute stock analysis. Over the last few years, Meta has been investing huge amounts of its cash building out AI data centres. The company’s planned Hyperion data centre is expected to cost $50 billion and reach the size of Manhattan. CEO Mark Zuckerberg said the company plans to spend $70 billion this year and $600 billion by 2028. The company is clearly playing to win and its taking on increasing amounts of debt to do so. Meta’s total debt balance has almost quadrupled since 2021. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-10-12T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1411258/3-no-brainer-stock-picks-october-2025-3-minute-stock-analysis https://nano.videonest.co/1411258_thumbnail_resized_v2.webp https://nano.videonest.co/1411258_video_v4.mp4 3 No-Brainer Stock Picks - October 2025 - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 3 No-Brainer Stock Picks - October 2025 - 3-Minute Stock Analysis The decline is understandable, since PayPal’s business has come under pressure from rivals such as Adyen, Stripe, Apple Pay, Google Pay and Shopify. And PayPal’s revenue growth has slowed to just 4% over the past 12 months. Despite those pressures, PayPal investors still have reasons to be optimistic. New CEO Alex Chriss has got the company innovating again with new products such as fastlane, hyperwallet and PayPal World. The company has rebooted its Braintree checkout and management said that demand is as strong as ever. Crucially, Paypal still generates large amounts of cash which is being used to buy back shares. Adjusted earnings per share is expected to grow in the low teens through 2027 which means the company is trading at roughly 10 times 2027 earnings. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-10-17T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1424079/should-you-buy-netflix-stock-3-minute-stock-analysis-october-2025 https://nano.videonest.co/1424079_thumbnail_resized_v2.webp https://nano.videonest.co/1424079_video_v5.mp4 Should you buy Netflix stock? 3-minute stock analysis - October 2025 Published first at https://www.3minutebreakdowns.com Netflix stock analysis. Ticker: NFLX Netflix just reported earnings and the stock sank 11%. The company was hit by a 600 million dollar tax dispute in Brazil but that shouldn’t affect the long term investment case, so is this an opportunity to buy the dip? At the latest price, Netflix now has a market value of 483 billion dollars. Revenue over the last 12 months comes to 43 billion with 10.4 billion of net income and 9 billion of free cash flow. Revenue growth at 15.4% is above guidance and free cash flow is up around 30%. So Netflix is now valued at 11 times sales, 46 times earnings and 54 times free cash flow. If you look beyond the one time tax cost in Brazil, this was another strong quarter from Netflix. KPop Demon Hunters became the company’s biggest ever film, engagement improved 20% and the company’s ad platform is now fully operational across 12 markets. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-10-24T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1437376/should-you-buy-adyen-stock-november-2025-3-minute-stock-analysis https://nano.videonest.co/W5pKclFOEVg_thumbnail_resized_v2.webp https://nano.videonest.co/W5pKclFOEVg_video_v4.mp4 Should You Buy Adyen Stock? November 2025 - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com Adyen stock analysis. Ticker: ADYEN Payments company Adyen released a trading update yesterday and the stock jumped about 10%. But shares fell back and they’re still up only 6% this year. At the latest share price, Adyen now has a market value of 48 billion euros. The company has 3.4 billion of working cash on its balance sheet which means the enterprise value is 44.5 billion. Adyen stock has not delivered huge gains this year even though the company is performing extremely well. Total revenues are up 21% on a trailing twelve month basis to 2.2 billion with over a billion euros of ebitda, a billion of net income and 931 million of free cash flow. That means Adyen stock is currently valued at 20 times sales and 48 times earnings. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-11-01T00:00:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1463911/i-just-bought-this-japanese-stock https://nano.videonest.co/1463911_thumbnail_resized_v2.webp https://nano.videonest.co/1463911_video_v4.mp4 I just bought this Japanese stock! Published first at https://www.3minutebreakdowns.com I just bought this Japanese stock. I just bought this stock. Openwork Inc. is a small Japanese company that provides company reviews and employment services. The best way to describe it, is as the Japanese Glassdoor. And right now the stock looks cheap. At the latest price, Openwork has a market cap of 20 billion yen which is equivalent to 128 million US dollars. The company also has 7.2 billion of cash on its balance sheet and minimal debt which takes the enterprise value down to 12.9 billion. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-11-23T20:12:59.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1472531/two-healthcare-stocks-im-watching-now-3-minute-stock-analysis https://nano.videonest.co/1472531_thumbnail_resized_v2.webp https://nano.videonest.co/1472531_video_v4.mp4 Two Healthcare Stocks I'm Watching Now - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com Two healthcare stocks I'm watching now. Dutch biotech company Uniqure soared over 300% in September after releasing data that showed positive results for its treatment of Huntington’s disease. Uniqure’s experimental gene therapy is delivered directly into the brain and the company’s 3 year study showed a 75% slowing progression of the devastating disease. The news was greeted with euphoria and hailed as a stunning breakthrough by the scientific community. And the therapy could also be highly lucrative for Uniqure with gene therapy treatments often costing upwards of 2 millions dollars. However, on November 3rd, Uniqure stock gave back almost all its gains as it emerged the FDA would no longer accept the company’s data as robust enough to support a BLA submission. Investors scaled back their bets as a new study could take years to develop. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-11-28T20:55:52.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1478141/should-you-buy-duolingo-stock-december-2025-3-minute-analysis https://i.ytimg.com/vi/7eg-0RR_-iY/maxresdefault.jpg https://nano.videonest.co/1478141_video_v4.mp4 Should you buy Duolingo stock? December 2025 - 3-Minute Analysis Published first at https://www.3minutebreakdowns.com Duolingo stock analysis. Ticker: $DUOL Duolingo stock has crashed 66% from its peak. But the company is doing quite well, so is this a good time to buy the dip? At the latest share price, Duolingo has a market value of 9.3 billion dollars. The company has over a billion of cash on its balance sheet and minimal debt which means the enterprise value is roughly 8.1 billion. Meanwhile, Duolingo has reported 964 million of revenue over the past 12 months, 386 million of net income and 355 million of free cash flow. That puts the valuation at roughly 23 times free cash flow. Despite the share price drop, Duolingo’s recent performance shows little sign of weakness. Revenue in the third quarter was up 41%, paid subscribers increased 34%, daily active users grew 36% and adjusted ebitda margin advanced 5%. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-12-04T20:26:42.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1490231/3-ai-proof-stocks-to-watch-3-minute-stock-analysis-december-2025 https://nano.videonest.co/1490231_thumbnail_resized_v2.webp https://nano.videonest.co/1490231_video_v4.mp4 3 AI-Proof Stocks To Watch - 3-Minute Stock Analysis - December 2025 Published first at https://www.3minutebreakdowns.com AI bubble? Consider these plays. Artificial intelligence is disrupting the world. At the same time, many AI stocks trade at ridiculous valuations. So here are 3 stocks that are well positioned to weather an AI bubble… Legacy Education operates colleges for the healthcare industry. They provide over 50 accredited programs in fields such as nursing, sonography, radiotherapy, pharmacy and dentistry. The US currently has a major shortage of healthcare workers which should keep Legacy’s courses in high-demand. And whatever happens with AI, the world still needs doctors and nurses. Meanwhile, rising unemployment from AI or from a weaker economy could push more individuals to enter the field. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-12-14T20:28:51.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1494277/4-etfs-for-2026-3-minute-breakdowns https://nano.videonest.co/1494277_thumbnail_resized_v2.webp https://nano.videonest.co/1494277_video_v4.mp4 4 ETFs For 2026 - 3-Minute Breakdowns Published first at https://www.3minutebreakdowns.com Some ETF ideas for 2026. If there’s one thing we know about 2026, it’s that President Trump will do all he can to keep the stock market propped up. The President is hell bent on lowering interest rates, cutting taxes and there’s talk of refunding tariff costs. The problem for investors, however, is that the S&P 500 ETF is already richly valued and precariously top heavy. Just 7 companies (known as the magnificent 7) account for 35% of the whole index. That could be a problem if AI spending starts to slow down because the top companies are heavily invested in its success. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2025-12-19T19:58:05.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1500462/6-stocks-for-2026-part-one-3-minute-stock-analysis-xH3sVoWmTE https://nano.videonest.co/1500462_thumbnail_resized_v2.webp https://nano.videonest.co/1500462_video_v4.mp4 6 Stocks For 2026 - Part One - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 6 Stocks For 2026 - Part One - 3-Minute Stock Analysis Adyen’s best in class figures support a high valuation. However, at 43 times earnings the company is trading well below its historical average. And that looks like an attractive entry point. So those are 3 stocks that I like for 2026 but these are my personal opinions, not financial advice and I do own shares in Deck and Vistry. Keep your eye out for part two and if you want more investing ideas check out my newsletter. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-01-01T20:59:46.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1511237/6-stocks-for-2026-part-two-3-minute-stock-analysis-0GOBesaoke https://nano.videonest.co/1511237_thumbnail_resized_v2.webp https://nano.videonest.co/1511237_video_v4.mp4 6 Stocks For 2026 - Part Two - 3-Minute Stock Analysis Published first at https://www.3minutebreakdowns.com 3 stocks for 2026 - part two. 3-minute stock analysis. At first glance, media company EVC looks like a value trap. Its TV and radio stations are clearly in long-term decline, the company has taken repeated impairment charges and the balance sheet carries meaningful debt. However, EVC’s media assets still bring in healthy cash flow, especially during election years due to political advertising. More importantly, Entravision owns two assets the market appears to be heavily discounting. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-01-12T20:15:47.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1526821/my-thoughts-on-coupang-nebius-and-rightmove-stocks-SWPrQyXzMA https://nano.videonest.co/1526821_thumbnail_resized_v2.webp https://nano.videonest.co/1526821_video_v4.mp4 My Thoughts on Coupang, Nebius and Rightmove Stocks Published first at https://www.3minutebreakdowns.com My Thoughts on Coupang, Nebius and Rightmove Stock Tickers: CPNG, NBIS, RMV.L Coupang is described as the Amazon of South Korea. The company provides an ecommerce and fulfillment platform that has grown steadily across the country. At the core is its Rocket delivery network delivers 99% of orders within 24 hours nationwide with free shipping over $11. This logistics moat has cemented Coupang’s dominant position in the country and allowed it to expand through a number of additional offerings such as memberships, food, streaming and financial services. And most recently, the company broke ground in Taiwan. Coupang doesn’t break down its Taiwan figures but management are confident and overall trends continue to inspire. Revenue is up 17% over the past 12 months with 2.4 billion dollars of operating cash flow. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-01-16T20:03:39.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1532542/should-you-buy-wise-stock-january-2026-7ibL3RVhsp https://nano.videonest.co/1532542_thumbnail_resized_v2.webp https://nano.videonest.co/1532542_video_v4.mp4 Should you buy Wise stock? January 2026 Published first at https://www.3minutebreakdowns.com Wise Plc 3-minute stock analysis. Ticker: $WISE.L Wise reported earnings today and the stock jumped 16% lifting its market value to 10.1 billion pounds. There could be more gains to come so let’s take a closer look. Wise operates a global payments platform that allows individuals and businesses to make low cost money transfers. By undercutting traditional banks, Wise has built a loyal customer base that has allowed it to scale volumes, expand into new markets and launch additional products. And Q3 numbers showed strong momentum across the board. Active customers grew 20% to 10.9 million, Cross border transaction volume grew 25% to 38 billion, customer balances grew 31% to 21 billion and Wise’s underlying income grew 21% to 424 million. That’s the amount of revenue that Wise makes on transactions plus net interest income. Wise also reported a number of new partnerships and licenses, and said that instant transfers reached a new high of 74%. Importantly, Wise is becoming more than just an app. The cross border payment infrastructure that Wise has built is now relied on by digital banks and financial institutions such as Monzo and Morgan Stanley. And as Wise grows, it’s share of global payments will increase. But despite the progress, Wise stock is still roughly flat since its IPO in 2021 and there are some obvious reasons why. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-01-22T20:25:22.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1573456/state-of-the-stock-market-february-2026-3-minute-a-kboBarwrVu https://nano.videonest.co/1573456_thumbnail_resized_v2.webp https://nano.videonest.co/1573456_video_v4.mp4 State of the Stock Market - February 2026 - 3-Minute Analysis Published first at https://www.3minutebreakdowns.com US stock markets have got off to a cautious start in 2026 with the S&P 500 climbing 1.3% year to date and the Nasdaq up about 2%. So far, there haven’t been too many surprises related to company earnings and the AI boom seems to be intact. But while the stock market has been subdued, the rest of the market has been anything but. The biggest story is a sharp decline in the value of the US dollar which has fallen about 3% in the last 8 trading days. That’s a big move in the currency markets and it continues the 9% drop that we saw in 2025. And since most commodities are priced in US dollars, we’ve seen sharp increases in the value of assets like gold, silver, platinum and now oil. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-01-30T10:10:54.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1587420/software-stocks-are-crashing-what-s-going-on-__ryFL5pMS https://nano.videonest.co/1587420_thumbnail_resized_v2.webp https://nano.videonest.co/1587420_video_v4.mp4 Software Stocks Are Crashing - What's Going On? Published first at https://www.3minutebreakdowns.com Software stocks have had a brutal week with many of the world’s leading software companies down double digits from their highs. Adobe is off 58%, Salesforce 41%, ServiceNow 47%, LegalZoom 78% and Figma more than 80%. In fact, right now it’s hard to find a software stock that hasn’t been affected. Historically, the software industry has been incredibly lucrative for investors, largely due to capital light business models, high margins and recurring revenue. But pressure has been building for some time as investors worry about the disruptive impact of artificial intelligence. The core fear is simple: AI lowers barriers to entry, compresses pricing power and it will make some products obsolete. Matters came to a head this week after Anthropic’s Claude rolled out a new suite of AI plugins that can do many complex white collar tasks in fields like sales, finance and legal. Of course, not everyone thinks AI is such a threat. Nvidia CEO Jensen Huang said “The notion that AI is somehow going to replace software companies is the most illogical thing in the world” And the latest selloff has been so broad, that there are bound to be some bargains to be found in the rubble. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-02-06T09:03:00.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1603645/3-stocks-making-moves-february-2026-Ho0bWpdP7X https://nano.videonest.co/1603645_thumbnail_resized_v2.webp https://nano.videonest.co/1603645_video_v4.mp4 3 Stocks Making Moves - February 2026 Published first at https://www.3minutebreakdowns.com 3-Minute Stock Analysis. There’s a lot going on in the stock market right now with AI dominating the narrative and earnings season in full swing, so here are 3 stocks that have caught my eye. Including:$SHOP, $ADYEN, $FSLY ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-02-14T20:48:42.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1652452/two-stocks-that-moved-this-week-stocks-economy-sto-9RDvQPucja https://nano.videonest.co/1652452_thumbnail_resized_v2.webp https://nano.videonest.co/1652452_video_v4.mp4 Two Stocks That Moved This Week #stocks #economy #stockanalysis Published first at https://www.3minutebreakdowns.com ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-02-21T21:38:20.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1659228/duolingo-stock-just-crashed-again-3-minute-stock-a-rStlZ8_1Ik https://nano.videonest.co/1659228_thumbnail_resized_v2.webp https://nano.videonest.co/1659228_video_v4.mp4 Duolingo stock just crashed again! 3-minute stock analysis Published first at https://www.3minutebreakdowns.com Duolingo stock analysis. Ticker: $DUOL Duolingo just reported earnings and the stock crashed another 22%. Shares are now down more than 80% over the last 9 months but is it too early to buy the dip? At the latest price, Duolingo now has a market cap of 4.5 billion dollars. With 1.1 billion of cash on its balance sheet and no meaningful debt, the enterprise value is 3.4 billion. Revenue over the last 12 months comes to $1 billion. Net income, after adjusting for a one-time tax benefit, is $157 million. Adjusted EBITDA is $306 million and free cash flow is $360 million. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-02-27T21:14:31.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1708269/should-you-buy-the-trade-desk-stock-march-2026-rwWdE_V0vV https://nano.videonest.co/1708269_thumbnail_resized_v2.webp https://nano.videonest.co/1708269_video_v4.mp4 Should you buy The Trade Desk stock? March 2026 Published first at https://www.3minutebreakdowns.com The Trade Desk stock analysis. Ticker: $TTD The Trade Desk provides software that helps advertisers buy digital ads across the open internet which includes websites, apps, and streaming TV. And although the company has executed incredibly well over the last 10 years, the adtech industry does carry some significant risks. Privacy laws, intense competition, macroeconomic swings and AI disruption make this a difficult industry to operate in. Advertising budgets concentrate inside the walled gardens of Meta, Google and Amazon while Amazon is now moving directly onto the Trade Desk’s turf with its own demand side platform. Some pressure is already showing in the numbers. Trade Desk revenue grew 26% in 2024 and 19% in 2025 but Q1 guidance is calling for just 10% growth. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-03-11T20:25:19.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1740551/state-of-the-stock-market-march-2026-stocks-stocka-optAIVZ-Cj https://gamma.videonest.org/1740551_thumbnail_resized_v2.webp https://gamma.videonest.org/1740551_video_v5_360.mp4 State of the Stock Market - March 2026 #stocks #stockanalysis #economy Join my newsletter at https://www.3minutebreakdowns.com ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-03-20T21:53:24.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1746838/lululemon-earnings-analysis-march-2026-stockanalys-sM7MtJRrIe https://gamma.videonest.org/1746838_thumbnail_resized_v2.webp Lululemon Earnings Analysis - March 2026 #stockanalysis #stocks #stocktrading #lululemonstock Join my newsletter: https://www.3minutebreakdowns.com ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-03-23T08:57:27.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1751602/micron-is-booming-3-minute-stock-analysis-march-20-Zw_A45NRo5 https://gamma.videonest.org/1751602_thumbnail_resized_v2.webp https://gamma.videonest.org/1751602_video_v5_360.mp4 Micron is Booming! 3-Minute Stock Analysis - March 2026 Published first at https://www.3minutebreakdowns.com Micron stock analysis. Ticker: $MU Micron just delivered a blowout quarter on AI demand. Revenue surged nearly 200% and profits jumped almost 9x. Yet the stock fell. At today’s price, Micron Technology is valued at roughly $462 billion, or about $455 billion enterprise value after netting cash and debt. That’s around 8x sales and 19x earnings—elevated versus its history, but reflecting a market pricing in an AI-driven supercycle. And the fundamentals support that narrative. AI workloads require enormous amounts of memory, particularly high bandwidth memory (HBM). HBM uses significantly more wafer capacity than traditional DRAM, effectively constraining industry supply. The result is a shortage across both DRAM and NAND, giving Micron unusual pricing power. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-03-24T21:53:11.000Z yes 3-Minute Breakdowns no https://3mb.videonest.co/videos/1775303/a-high-upside-bet-on-space-defense-3-minute-breakd-EE1Y2WsZOw https://gamma.videonest.org/1775303_thumbnail_resized_v2.webp https://gamma.videonest.org/1775303_video_v5_360.mp4 A High-Upside Bet on Space & Defense - 3-Minute Breakdown Published first at https://www.3minutebreakdowns.com This is one of the hottest companies in space right now. Iceye Limited is a Finnish satellite manufacturer that recently won a major contract with German defense heavyweight Rheinmetall. Unlike optical satellites, Iceye uses synthetic aperture radar which is able to see through clouds, darkness and smoke and the company is quickly becoming a data and intelligence platform for Europe’s increasing defense needs. Its satellite constellation can be used to track military movements, monitor the environment and global shipping, assess insurance claims and analyse supply chains. Demand for these services is rising rapidly amid geopolitical tensions and increasing defence budgets around the world. ABOUT ME Joe is the original founder of 3-minute Breakdowns and editor for Overlooked Alpha, the number one newsletter for overlooked investing ideas and stock market analysis. Joe evaluates companies from a business-first perspective, searching for things that the market has got wrong and waiting for the 'fat pitch'. LINKS My website: https://www.3minutebreakdowns.com/ Koyfin charts: https://www.koyfin.com/affiliate/overlooked-alpha/?via=3mb TikTok: https://www.tiktok.com/@overlookedalpha X: https://x.com/OverlookedAlpha DISCLAIMER & DISCLOSURE This content is for educational and entertainment purposes only. 3-Minute Breakdowns is not a registered investment advisor and does not provide financial recommendations (only opinions). The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal. The author reserves the right to buy and sell or change his position in a particular stock at any time. This description contains affiliate links that allow you to find the items that I personally use and recommend. Thank you for your support. 2026-03-28T21:06:32.000Z yes 3-Minute Breakdowns no