$Meta Platforms, Inc.(META)$ announced a $15 billion deal last week but the shares barely moved. Is now a good time to buy the stock? Balance Sheet At the most recent price Meta has a market value of 1.75 trillion. The company's balance sheets has: - Cash and investments: 76 billion - Long-term debt: 29 billion The enterprise value is 1.67 trillion Over the past 12 months - Revenue: 170 billion - Net income: 67 billion - Free cash flow: 52 billion Stock valuation metrics - EV/Revenue: 10x - P/E: 26x - EV/free cash flow: 32x Historical Performance For context over the last 10 years, Meta has average a PE ratio of 32, 30% annual revenue growth and a 33% free cash flow margin. Risks There are some risks to owning Meta stock. The company is batt
$Carvana Co.(CVNA)$ 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 188% over the past year but can the stock continue its powerful run? At the latest price, Carvana now has a: - Market cap: $63.61 billion - Cash: $1.86 billion -Debt and non-controlling interests: $5.9 billion Full enterprise value: 80.2 billion Over the last 12 months: Revenue: 14.8 billion Net income: 398 million free cash flow: 949 million So the company is valued at: P/E Ratio: 104.17 EV/FCF: 85 times 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 e-commerce business
$Upwork Inc.(UPWK)$ 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 now got a market value of $1.29 billion Financials Cash and investments: $500 million Debt: $360 million Enterprise Value: $1.2 billion TTM Revenue: $744 million Net income: $74 million Free cash flow: $73 million Ratios P/E: 18x EV/FCF: 16x Recent performance That valuation is not bad when you look at Upwork's recent performance. Average revenue growth over the last 5 years: 22% Sales TTM: 14% Positives Crucially, Upwork recently turned the corner on profitability. Cost cutting help total operating exp
$Occidental(OXY)$ at the current price, the company is worth 52.44 billion. Financials and ratios Cash & Investments: $5.3 billion Debt: $20 billion Enterprise Value: 78 billion Revenue TTM: $28 billion Net income TTM: $3.9 billion Free cash flow: $4.1 billion P/E Ratio: 14x EV/FCF: 19x Stock Performance comparison Occidental petroleum has not had the best couple of years including dividends. The stock has returned -9% while the S&P 500 is up 34% and $Energy Select Sector SPDR Fund(XLE)$ is up 22% over the same period. Past actions However, the performance of Occidental isn't that surprising. Back in 2019, the company won a bidding war with
$Rivian Automotive, Inc.(RIVN)$ Did not hold previous week options till expiration. Was a good choice. Price fell below 13.5, got to purchase at a strike price of 13, out of the money. Options $RIVN 20240823 13.0 PUT$ Portfolio Cash No actions. Just happily accuring interest from banks and Chocolate Finance Stocks No new purchases. Sold $Nike(NKE)$ at breakeven invluding commissions. T bills Instead of T bills, will buy Syfe guaranteed monthly. Not SDIC insured. Crypto No actions.
Warren Buffett just bought this stock. Cosmetic Company, $ulta beauty(ULTA)$ jumped 11% yesterday on news that Warren Buffett's business Burk Shear halfway had purchased almost 700,000 shares. What does Warren Buffett see in Ulta Beauty? Financials Cash: $525 million debt: $0 Enterprise Value: $17.3 billion Revenue TTM: $11.3 billion Net income TTM: $1.26 billion Adjusted EBITDA TTM: $1.94 billion Free cash flow TTM: $914 million Valuation P/E Ratio: 14 EV/FCF: 19 EV/EBITDA: 8.9 That PE ratio is right at the bottom of the company's historical range. That low valuation is because Ulta is not performing as well as in the past. Negatives Same-store sales in the first quarter rose just 1. 6% year-over-year. Ulta then cut its full year outlo
Since July 18th, cyber security stock, $SentinelOne, Inc(S)$ has climbed 13% but those gains have little to do with business results. Instead, SentinelOne stock has soared after rival, $CrowdStrike Holdings, Inc.(CRWD)$ caused the global outage that disrupted millions of people. The question is whether SentinelOne can hold on to those gains at the latest price. Financials Market cap: $7.9 billion. Cash and investments: $1.1 billion Enterprise Value: $6.8 billion TTM Revenue TTM: $674 million However, the company is not yet profitable. Net income TTM: - $300 million FCF TTM: $0 Stock based compensation TTM: $220 million SentinelOne vs CrowdStrike Revenue: 47% vs 36% Revenue Multiple: 10x vs
$Intel(INTC)$ No. 1 Intel Just over 4 years ago, Intel was worth more than $Advanced Micro Devices(AMD)$ and $NVIDIA Corp(NVDA)$ combined. Today the company is worth just 87 billion and AMD and Nvidia are worth over 2 trillion. That sort of Divergence might seem like a buying opportunity but in Intel's case there is not much to be optimistic about. Q2 Results Revenue: - 1% YoY Net Income TTM: $1.6 billion FCF TTM: - $13 billion Risks Firstly, the company is dealing with slowing PC sales and has fallen behind in AI. Secondly, management's guidance for next quarter was even worse. With Revenu
$Intuitive Surgical(ISRG)$ is one of the best businesses in the world. The dominant player in robotic surgery has had huge success with its Da Vinci system and the stock has increased almost 23,000% from its initial public offering (IPO). At the latest price, the company's got a valuation of $164.24 billion. Financials Cash: $8 billion Debt: $0 Trailing 12 months (TTM) Revenue: $7.6 billion Net income: 2.1 billion Free cash flow (FCF): $420 million Its numbers look closer to a good software company than a medical business. Gross margins: 67% (STRONG) EBITA margins: 40% A great business More than 80% of the revenue is recurring and the company continues to put up solid growth. The instruments and accessories segment which is mostly recurr