Quick Note: Meta announced strong quarterly results (beating expectations on earnings and revenues) as its family of apps (and innovation) continues to grow. The shares were up signficantly. However…
Amazon: Ranking "The Magnificent 7" (Midyear Update)
As you can see in the table below, “The Magnificent 7” mega-cap stocks have posted incredible 10-year returns. However, there have recently been some big changes in the market (e.g. interest rate expectations) and to these seven businesses in particular (e.g. maturation, dividends, AI and more). In this report, we provide an update to our January rankings of the Magnificent 7 stocks, with a special focus on Amazon (AMZN) (including its business, four big growth drivers, valuation and risks). We conclude with our strong opinion on investing in Amazon (and each of the Magnificent 7) for the remainder of this year (and beyond).
Meta Earnings Note: 5 Takeaways
Palantir Snubbed: 7 Top “AI” Stocks, Big Upside
Despite the Nasdaq hitting new all-time highs this week, select disruptive growth stocks still have massive long-term upside potential, particularly certain names benefitting from the Artificial Intelligence (AI) mega trend (which, by the way, is still just getting started). In this report, we share 7 top ideas, with a special focus on “Big Data” AI stock Palantir, and then conclude with our strong opinion on investing in disruptive growth stocks at this point in the market cycle.
Nvidia: AI Meet Digital Revolution (5 Stocks Worth Considering)
When two of the economy’s biggest mega trends combine, you get Nvidia (+59% ytd) and offshoots like Super Micro Computer (+202% ytd). And if you’re wondering if its “too late” to invest in these two mega trends (i.e. Artificial Intelligence and/or the Digital Revolution) the answer is a resounding, no way! We’re still in the early innings and here are 5 stock ideas that could potentially ride these waves dramatically higher in the decade ahead (volatility haters need not read on).
Market Overheating? High-Income Strategies Worth Considering
The market continues to climb a wall of worry, and some investors believe it’s getting a bit ahead of itself. For example, the S&P 500 is up +6.9% this year and up +27.4% over the last 12 months, but we keep hearing stories about a sputtering economy. If you are concerned the market is ahead of itself, and we may be due for a healthy pullback, here are 3 high-income investment opportunities for you to consider.
Quick Note: Meta Up +15% on Earnings
Meta AI: Sustaining the Money-Printing Machine?
Meta (META) makes money through advertising on its four main assets, Facebook, Instagram, WhatsApp and Threads (they’re all basically communications aps). But how will the business be disrupted by newly emerging (and rapidly accelerating) Artificial Intelligence (“AI”) technologies? We answer that question in this report, as well as review Meta’s growth, valuation and competitive advantages. We conclude with our strong opinion on investing.
Top 20 S&P 500 Stocks: YTD and Last 10 Years
Meta Platforms (Facebook parent) Update
Shares down ~70% ytd, but this big tech co remains a money-printing machine. Ad rev still astronomical at $27.7B in Q3 (down 4.5% y/y, tough pandemic comp); gross profit margin astounding 79.5%. The prob is spending whereby opex was ~$15.9B (as if it were still late 2020 and int rates were still ~0.0%). The mkt is reacting positively to today’s announced layoffs of 11,000 employees (13% of workforce)—a step in the right direction considering slowing economic growth/ recession risks. To put things in perspective, every $1B in lower opex spend is ~$0.35 in EPS. W/ 12.8% fwd rev growth (& trading at 10.6x fwd EPS and only 2x EV/Sales), this business is impressive.
Meta Platforms: Fervently Hated, Money-Printing Value Stock
Other than a Super Bowl watch party, most people hate commercials and advertisements of any kind. They are disruptive, often offensive and increasingly violate privacy. Nonetheless, Meta Platforms (formerly Facebook) continues to print and store massive piles of money it derives from advertising across its platforms, including Facebook, Instagram, Messenger, WhatsApp and others. And despite the fact that growth in traditional markets may be slowing, and its pivot to the Metaverse is wildly unproven, the low valuation (of this once growth now value stock) is hard to ignore. This report reviews the business, valuation, risks and concludes with our opinion on investing.