Diamondhand2的个人主页 - 老虎社区

Diamondhand2

Diamondhand2

暂无个人介绍

IP属地：未知

58关注

2粉丝

0主题

0勋章

2021-08-06

Isiiskdkf

20 cloud stocks expected to increase sales the most over the next two years

2021-07-30

Ggffgh

抱歉，原内容已删除

2021-07-27

Hubccryhbbbhhhh uhh what you are

抱歉，原内容已删除

2021-07-13

Bdmdjd

Earnings season starts with sky-high stock prices and soaring expectations

2021-07-12

Lol

抱歉，原内容已删除

2021-07-08

Zzzzz

2021-06-30

Issudi

抱歉，原内容已删除

2021-06-30

Jsjsjdj

抱歉，原内容已删除

2021-06-30

Jsjsjdj

抱歉，原内容已删除

2021-06-30

Man that’s tough

Russia opens case against Google for breaching personal data law

2021-06-30

$STI ETF(ES3.SI)$Loo

2021-06-30

Msksjs

Facebook: Simply Unstoppable

2021-06-30

Lol

抱歉，原内容已删除

2021-06-30

Lol

IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down

2021-06-30

Lol

IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down

2021-06-21

Lol

Naspers offshoot Prosus reports earnings boost from Tencent stake

2021-06-21

Wow

Carnival: Ludicrous Mode

2021-06-21

Nicebshhsjs

2021-06-11

Man

抱歉，原内容已删除

2021-06-11

Damn

We put 6 more meme stocks' numbers to the test and the differences are telling

去老虎APP查看更多动态

{"i18n":{"language":"zh_CN"},"userPageInfo":{"id":"3585032110055415","uuid":"3585032110055415","gmtCreate":1621938954075,"gmtModify":1621941466197,"name":"Diamondhand2","pinyin":"diamondhand2","introduction":"","introductionEn":null,"signature":"","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","hat":null,"hatId":null,"hatName":null,"vip":1,"status":2,"fanSize":2,"headSize":58,"tweetSize":23,"questionSize":0,"limitLevel":999,"accountStatus":4,"level":{"id":2,"name":"无畏虎","nameTw":"無畏虎","represent":"初生牛犊","factor":"发布3条非转发主帖,1条获得他人回复或点赞","iconColor":"3C9E83","bgColor":"A2F1D9"},"themeCounts":0,"badgeCounts":0,"badges":[],"moderator":false,"superModerator":false,"manageSymbols":null,"badgeLevel":null,"boolIsFan":false,"boolIsHead":false,"favoriteSize":0,"symbols":null,"coverImage":null,"realNameVerified":null,"userBadges":[{"badgeId":"e50ce593bb40487ebfb542ca54f6a561-1","templateUuid":"e50ce593bb40487ebfb542ca54f6a561","name":"出道虎友","description":"加入老虎社区500天","bigImgUrl":"https://static.tigerbbs.com/0e4d0ca1da0456dc7894c946d44bf9ab","smallImgUrl":"https://static.tigerbbs.com/0f2f65e8ce4cfaae8db2bea9b127f58b","grayImgUrl":"https://static.tigerbbs.com/c5948a31b6edf154422335b265235809","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2022.10.08","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1001},{"badgeId":"518b5610c3e8410da5cfad115e4b0f5a-1","templateUuid":"518b5610c3e8410da5cfad115e4b0f5a","name":"实盘交易者","description":"完成一笔实盘交易","bigImgUrl":"https://static.tigerbbs.com/2e08a1cc2087a1de93402c2c290fa65b","smallImgUrl":"https://static.tigerbbs.com/4504a6397ce1137932d56e5f4ce27166","grayImgUrl":"https://static.tigerbbs.com/4b22c79415b4cd6e3d8ebc4a0fa32604","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":null,"individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100},{"badgeId":"35ec162348d5460f88c959321e554969-1","templateUuid":"35ec162348d5460f88c959321e554969","name":"精英交易员","description":"证券或期货账户累计交易次数达到30次","bigImgUrl":"https://static.tigerbbs.com/ab0f87127c854ce3191a752d57b46edc","smallImgUrl":"https://static.tigerbbs.com/c9835ce48b8c8743566d344ac7a7ba8c","grayImgUrl":"https://static.tigerbbs.com/76754b53ce7a90019f132c1d2fbc698f","redirectLinkEnabled":0,"redirectLink":null,"hasAllocated":1,"isWearing":0,"stamp":null,"stampPosition":0,"hasStamp":0,"allocationCount":1,"allocatedDate":"2021.12.21","exceedPercentage":"60.97%","individualDisplayEnabled":0,"backgroundColor":null,"fontColor":null,"individualDisplaySort":0,"categoryType":1100}],"userBadgeCount":3,"currentWearingBadge":null,"individualDisplayBadges":null,"crmLevel":1,"crmLevelSwitch":0,"location":"未知","starInvestorFollowerNum":0,"starInvestorFlag":false,"starInvestorOrderShareNum":0,"subscribeStarInvestorNum":0,"ror":null,"winRationPercentage":null,"showRor":false,"investmentPhilosophy":null,"starInvestorSubscribeFlag":false},"baikeInfo":{},"tab":"post","tweets":[{"id":893612506,"gmtCreate":1628259271905,"gmtModify":1631892018789,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Isiiskdkf","listText":"Isiiskdkf","text":"Isiiskdkf","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/893612506","repostId":"1155656235","repostType":4,"repost":{"id":"1155656235","pubTimestamp":1628227304,"share":"https://www.laohu8.com/m/news/1155656235?lang=&edition=full","pubTime":"2021-08-06 13:21","market":"us","language":"en","title":"20 cloud stocks expected to increase sales the most over the next two years","url":"https://stock-news.laohu8.com/highlight/detail?id=1155656235","media":"MarketWatch","summary":"Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales ","content":"<p>Cloud ETFs are close to record highs, propelled by a rally in the sector</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/78101d8010e186fe4df59b2ef82b5de6\" tg-width=\"700\" tg-height=\"394\" width=\"100%\" height=\"auto\"><span>Analysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)</span></p>\n<p>U.S. investors remain bullish, despite rumblings out of China and the spike in delta variant infections.</p>\n<p>Cloud companies — those at the forefront of the shift in computing power to distributed models over the internet — are expected to grow at a rapid clip over the next several years, and four of the five largest exchange traded funds covering the space are close to hitting record highs.</p>\n<p>Below is a screen of stocks held by those ETFs, showing which are expected to increase their sales the most through 2023. In an industry with many players at relatively early stages, increases in sales, rather than in earnings, might be the best driver of stock prices.</p>\n<p>To begin the screen, we looked at the five largest cloud ETFs:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/36209ce827d95e822cad5128be8b146a\" tg-width=\"933\" tg-height=\"664\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>ETFs might be your best way to take a broad approach for a long-term play on the cloud revolution. If you are interested in any ETF, you should review the fund manager’s website.</p>\n<p>Here’s a comparison of total returns through Aug. 4, along with those for the SPDR S&amp;P 500 ETF&nbsp;and the Invesco QQQ Trust&nbsp;(which tracks the Nasdaq-100 Index) for comparison:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/242f135b3c7cca3cbaae3ee574023c1f\" tg-width=\"942\" tg-height=\"577\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>The ETFs’ approaches differ. For example, the ARK Next Generation Internet ETF&nbsp;is the only one that is actively managed. The others track an index. It is also the only one that holds shares of Tesla Inc.,which makes up 10.65% of the portfolio, according to information posted by ARK Invest on Aug. 5. Tesla is an electric-vehicle manufacturer, but it can also be considered a cloud company because it distributes software updates over the internet continually, and offers other cloud-based services.</p>\n<p>Another holding unique to ARKW among the five cloud ETFs is Walt Disney Co.,which is certainly an important cloud player through its Disney+ streaming service, even if the company doesn’t say directly how much of its sales are derived from that rapidly growing segment.</p>\n<p>As part of its description of ARKW, FactSet says the following:</p>\n<p><i>“Broadly speaking, the ARKW’s managers appear focused on big buzzwords such as Internet of Things, cloud computing, digital currencies and wearable technology. While the fund’s focus may be appealing for investors with conviction in these new technologies, portfolio implementation is a more difficult task: Most of the companies developing these advancements are huge corporations for which nascent technologies are only a small fraction of total revenues. As such, it’s very difficult to get pure-play access to ARKW’s targeted technologies — so be sure to confirm that the fund’s holdings — not just its thesis — align with your view of the space.”</i></p>\n<p><b>Cloud-stock screen</b></p>\n<p>Together, the five cloud ETFs listed above hold 147 stocks. To project sales growth through 2023, we used calendar 2020 sales estimates as a baseline and then looked at consensus estimates among analysts polled by FactSet for the subsequent three years, if available. (The 2020 numbers are estimates, because many companies’ fiscal years don’t match the calendar.)</p>\n<p>To make sure we had a solid set of estimates, we confined the group to the 126 companies covered by at least five analysts polled by FactSet, for which consensus sales estimates for calendar 2020 through calendar 2023 are available.</p>\n<p>Here are the 20 companies projected to have the highest compound annual growth rates (CAGR) for sales through calendar 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/517a23591cde159fb889ab80abc4bcc6\" tg-width=\"934\" tg-height=\"765\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/6af2cf5b5f9f0ce50f8f023ac7babc7f\" tg-width=\"935\" tg-height=\"717\" width=\"100%\" height=\"auto\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b88ebe72e09cb9ce3294269f0a4ae431\" tg-width=\"935\" tg-height=\"403\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>There are actually 21 stocks listed, including Zillow Group Inc.’s Class A&nbsp;and Class C&nbsp;shares.</p>\n<p>It is interesting to see that the list is dominated by stocks held by ARKW. The fund has a broad definition of cloud companies and is focused also on sales growth.</p>\n<p>Here are current forward price-to-sales ratios based on consensus estimates for the next 12 months, as well as ratios of current market cap to projected 2023 sales and summaries of analysts’ opinions about the stocks.</p>\n<p><img src=\"https://static.tigerbbs.com/19b9c4bf1d8b1abcfa76b7d008a47ad7\" tg-width=\"938\" tg-height=\"805\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/2ff191189c5d7d2f31698843734ca3cc\" tg-width=\"933\" tg-height=\"773\" width=\"100%\" height=\"auto\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0e9543489c4d52d3f1a69dfdcf170115\" tg-width=\"930\" tg-height=\"242\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>In comparison, the forward price-to-sales ratio for SPY is 2.8, with a price/2023 estimated sales ratio of 2.6. For QQQ, the current P/S is 4.7, declining to 4.3 for 2023.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>20 cloud stocks expected to increase sales the most over the next two years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n20 cloud stocks expected to increase sales the most over the next two years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-06 13:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)\nU.S. investors ...</p>\n\n<a href=\"https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","DKNG":"DraftKings Inc.","CRWD":"CrowdStrike Holdings, Inc.","MELI":"MercadoLibre","SKLZ":"Skillz Inc","PINS":"Pinterest, Inc.","TSLA":"特斯拉","COIN":"Coinbase Global, Inc.","PDD":"拼多多","Z":"Zillow","SNAP":"Snap Inc","TDOC":"Teladoc Health Inc.","ADYEY":"Adyen N.V.","KC":"金山云","ZG":"Zillow Class A","ROKU":"Roku Inc","SHOP":"Shopify Inc","OKTA":"Okta Inc.","VCYT":"Veracyte Inc","SE":"Sea Ltd","LC":"LendingClub"},"source_url":"https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1155656235","content_text":"Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)\nU.S. investors remain bullish, despite rumblings out of China and the spike in delta variant infections.\nCloud companies — those at the forefront of the shift in computing power to distributed models over the internet — are expected to grow at a rapid clip over the next several years, and four of the five largest exchange traded funds covering the space are close to hitting record highs.\nBelow is a screen of stocks held by those ETFs, showing which are expected to increase their sales the most through 2023. In an industry with many players at relatively early stages, increases in sales, rather than in earnings, might be the best driver of stock prices.\nTo begin the screen, we looked at the five largest cloud ETFs:\nSource: FactSet\nETFs might be your best way to take a broad approach for a long-term play on the cloud revolution. If you are interested in any ETF, you should review the fund manager’s website.\nHere’s a comparison of total returns through Aug. 4, along with those for the SPDR S&P 500 ETF and the Invesco QQQ Trust (which tracks the Nasdaq-100 Index) for comparison:\nSource: FactSet\nThe ETFs’ approaches differ. For example, the ARK Next Generation Internet ETF is the only one that is actively managed. The others track an index. It is also the only one that holds shares of Tesla Inc.,which makes up 10.65% of the portfolio, according to information posted by ARK Invest on Aug. 5. Tesla is an electric-vehicle manufacturer, but it can also be considered a cloud company because it distributes software updates over the internet continually, and offers other cloud-based services.\nAnother holding unique to ARKW among the five cloud ETFs is Walt Disney Co.,which is certainly an important cloud player through its Disney+ streaming service, even if the company doesn’t say directly how much of its sales are derived from that rapidly growing segment.\nAs part of its description of ARKW, FactSet says the following:\n“Broadly speaking, the ARKW’s managers appear focused on big buzzwords such as Internet of Things, cloud computing, digital currencies and wearable technology. While the fund’s focus may be appealing for investors with conviction in these new technologies, portfolio implementation is a more difficult task: Most of the companies developing these advancements are huge corporations for which nascent technologies are only a small fraction of total revenues. As such, it’s very difficult to get pure-play access to ARKW’s targeted technologies — so be sure to confirm that the fund’s holdings — not just its thesis — align with your view of the space.”\nCloud-stock screen\nTogether, the five cloud ETFs listed above hold 147 stocks. To project sales growth through 2023, we used calendar 2020 sales estimates as a baseline and then looked at consensus estimates among analysts polled by FactSet for the subsequent three years, if available. (The 2020 numbers are estimates, because many companies’ fiscal years don’t match the calendar.)\nTo make sure we had a solid set of estimates, we confined the group to the 126 companies covered by at least five analysts polled by FactSet, for which consensus sales estimates for calendar 2020 through calendar 2023 are available.\nHere are the 20 companies projected to have the highest compound annual growth rates (CAGR) for sales through calendar 2023:\n\nSource: FactSet\nThere are actually 21 stocks listed, including Zillow Group Inc.’s Class A and Class C shares.\nIt is interesting to see that the list is dominated by stocks held by ARKW. The fund has a broad definition of cloud companies and is focused also on sales growth.\nHere are current forward price-to-sales ratios based on consensus estimates for the next 12 months, as well as ratios of current market cap to projected 2023 sales and summaries of analysts’ opinions about the stocks.\n\nSource: FactSet\nIn comparison, the forward price-to-sales ratio for SPY is 2.8, with a price/2023 estimated sales ratio of 2.6. For QQQ, the current P/S is 4.7, declining to 4.3 for 2023.","news_type":1},"isVote":1,"tweetType":1,"viewCount":346,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":806221046,"gmtCreate":1627659068585,"gmtModify":1631892018798,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Ggffgh","listText":"Ggffgh","text":"Ggffgh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/806221046","repostId":"1109908934","repostType":4,"isVote":1,"tweetType":1,"viewCount":183,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":803938585,"gmtCreate":1627400059647,"gmtModify":1631892018808,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Hubccryhbbbhhhh uhh what you are&nbsp;","listText":"Hubccryhbbbhhhh uhh what you are&nbsp;","text":"Hubccryhbbbhhhh uhh what you are","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/803938585","repostId":"1112910553","repostType":4,"isVote":1,"tweetType":1,"viewCount":388,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":142731793,"gmtCreate":1626175365512,"gmtModify":1631892018829,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Bdmdjd","listText":"Bdmdjd","text":"Bdmdjd","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/142731793","repostId":"1191858541","repostType":4,"repost":{"id":"1191858541","pubTimestamp":1626175065,"share":"https://www.laohu8.com/m/news/1191858541?lang=&edition=full","pubTime":"2021-07-13 19:17","market":"us","language":"en","title":"Earnings season starts with sky-high stock prices and soaring expectations","url":"https://stock-news.laohu8.com/highlight/detail?id=1191858541","media":"CNBC","summary":"Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper,","content":"<div>\n<p>Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Earnings season starts with sky-high stock prices and soaring expectations</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEarnings season starts with sky-high stock prices and soaring expectations\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-13 19:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1191858541","content_text":"Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having risen steadily for the past six months, from expected 45% growth in January to 65% growth today compared to the same period last year.\nIt's the strongest rate of growth since 2009, when earnings were just starting to recover from the disaster of the Great Financial Crisis.\nBut the gap between earnings expectations and the actual reported growth rates has been huge for nearly a year — and the market is beginning to (mistakenly) believe it is a permanent feature of the reporting landscape.\nHistorically, reported earnings tend to beat expectations by 3% to 5%, that is, companies usually manage to eke out a small positive surprise in their earnings reports.\nBut the last four quarters have blown apart those historical averages.\nEarnings blowout\n(difference between end of quarter estimates vs. reported estimates)\n\nQ2 20     12.6%\nQ3 20      15.5%\nQ420       13.2%\nQ121       28.7%\n\nSource:  FactSet\nPut it all together, and the average \"beat\" for the last four quarters is about 18 percentage points above analyst estimates.\nCan the market pull off yet another 18% to 20% earnings beat?  It looks like the market is anticipating exactly that. The second quarter dollar estimates are below the first quarter, even though corporate profits are clearly stronger, implying analysts are wrong again.\n2021 earnings\n($ per share, rounded)\n\nQ1:  $49 (up 52%)\nQ2:  $45 (up 65%)\nQ3:  $48 (up 25%)\nQ4:  $50 (up 18%)\n\nSource:  Refinitiv\nThe per share dollar gain is $49 for Q1, but only $45 for Q2.  The dollar value of the S&P earnings for the second quarter is well below the first quarter, which makes no sense if the second quarter economy is even stronger than the first quarter.\nThe market seems to be clearly implying another quarter of big earnings beats, higher than the even 65% growth analysts are already expected.\n\"Markets clearly believe Q2 earnings reports will far exceed expectations,\" Nicholas Colas from DataTrek said in a recent note to clients.  \"The 'right' earnings growth rate for Q2 is likely closer to 80 percent assuming S&P EPS is only the same as Q1 2021...It could be closer to 100 percent if US corporate earnings power has improved since then.\"\nNearly two dozen companies have already reported earnings, and many of the largest have indeed pulled off impressive earnings beats:\nEarly performers\n(% beat)\n\nNike          82%\nKroger       18%\nCostco       18%\nOracle        17%\nFedEx         in-line\n\nThe exception, FedEx, reported merely in-line earnings on June 24th after the close, and has traded below its price on that day ever since.\nAre earnings really that good?\nA 65% increase in earnings sounds titanic, but it's only because the Covid crisis reached its peak in the second quarter last year, and earnings predictably collapsed, as Christine Short from Wall Street Horizon noted.\n\"In this regard, because Q2 2020 is an easy YoY comparison, it's best to compare to years prior,\" she said in a recent note. \"For example, Q2 2021 growth is only 8.3% when compared to Q2 2019, which seems like a more realistic picture of the current rebound phase and growth trajectory we're on. But don't get me wrong, 8.3% is still a great growth rate in any quarter, well above the 5-year average earnings growth rate of 4.1%.\"\nBottom line: Earnings growth is still above historic norms, even after accounting for Covid.\nWhat's up with costs?\nBesides sky-high expectations, higher costs and pricing power are a major flashpoint for second quarter earnings.\nTake MSC Industrial Direct, a distributor of industrial supplies.  It recently reported strong earnings and said demand was \"robust\" but also reported much higher costs.  \"The industrial economy is experiencing very real supply chain shortages and disruptions,\" the company said on a conference call. \"These disruptions are evidencing themselves in product scarcity, freight delays, and extreme labor shortages that are resulting in significant availability and inflationary pressures.\"\nHowever, the company has also been raising prices as costs have increased.\n\"What's going to be important in this earnings season is who can have revenue growth and keep their operating margins,\" Sarat Sethi, managing partner and portfolio manager at DCLA and a CNBC contributor, said on our air. \"If you can't raise your prices or you can't raise revenue, you can't expand, I think those stocks that have already reflected really good futures could get hurt.\"\n Are big earnings beats here to stay?\nDon't bet on it.\nFortunately, earnings estimates for the third quarter have also been rising.  \"Q3 earnings estimates have risen fairly close in tandem with Q2 estimates,\" CNBC's Robert Humreports.\nBut don't expect earnings beats of 20% to become the new normal.\n\"This [20% earnings beats] will not be a permanent feature,\" Nick Raich, who tracks corporate earnings at Earnings Scout, told me.  \"Long-term the beat rate will come down to the more historic norm of five percent. But it could take a year to get back to normal.  What will bring that down is more guidance from the companies.  Those 20% beats are only happening because the guidance has been fuzzy.  Once it gets sharper, analyst estimates will get closer to the actual guidance.\"\nRaich is urging investors to focus less on the beat rate, and more on the revisions.  You want estimates to keep rising.\n\"The peak percentage rate of growth is likely in the second quarter.  But I am looking for peak optimism, which is based on how much the estimates are going up after companies report.  It's not just the direction, it's the magnitude.  If estimates go up at a decreasing rate, that's when we know we hit peak optimism,\" he said.\nFor Nick Colas, it's a lot simpler:  \"U.S. earnings season needs to be awesome\" to keep prices up, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":790,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":142080777,"gmtCreate":1626103835999,"gmtModify":1631892018838,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/142080777","repostId":"1175879126","repostType":4,"isVote":1,"tweetType":1,"viewCount":432,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":149551960,"gmtCreate":1625737841050,"gmtModify":1631892018853,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Zzzzz","listText":"Zzzzz","text":"Zzzzz","images":[{"img":"https://static.tigerbbs.com/c1dd6dc8a00feeb22753175fb19ca43b","width":"750","height":"1618"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/149551960","isVote":1,"tweetType":1,"viewCount":320,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":151376517,"gmtCreate":1625065723839,"gmtModify":1631892018864,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Issudi","listText":"Issudi","text":"Issudi","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151376517","repostId":"2147139718","repostType":4,"isVote":1,"tweetType":1,"viewCount":308,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151376883,"gmtCreate":1625065715642,"gmtModify":1631892018869,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Jsjsjdj","listText":"Jsjsjdj","text":"Jsjsjdj","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151376883","repostId":"2147139718","repostType":4,"isVote":1,"tweetType":1,"viewCount":371,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151378532,"gmtCreate":1625065702326,"gmtModify":1631892018883,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Jsjsjdj","listText":"Jsjsjdj","text":"Jsjsjdj","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151378532","repostId":"2147139718","repostType":4,"isVote":1,"tweetType":1,"viewCount":174,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151397589,"gmtCreate":1625063346441,"gmtModify":1631892018891,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Man that’s tough&nbsp;","listText":"Man that’s tough&nbsp;","text":"Man that’s tough","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151397589","repostId":"2147786816","repostType":4,"repost":{"id":"2147786816","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1625057524,"share":"https://www.laohu8.com/m/news/2147786816?lang=&edition=full","pubTime":"2021-06-30 20:52","market":"us","language":"en","title":"Russia opens case against Google for breaching personal data law","url":"https://stock-news.laohu8.com/highlight/detail?id=2147786816","media":"Reuters","summary":"MOSCOW, June 30 (Reuters) - Russia has opened an administrative case against Google for not storing ","content":"<p>MOSCOW, June 30 (Reuters) - Russia has opened an administrative case against Google for not storing the personal data of Russian users in databases on Russian territory, a move that could see the tech giant fined, communications regulator Roskomnadzor said on Wednesday.</p>\n<p>Roskomnadzor said it was also waiting for <a href=\"https://laohu8.com/S/FB\">Facebook</a> and <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> to respond to a demand that they localise similar data by July 1 or face fines, part Moscow's wider efforts to exert greater control over Big Tech.</p>\n<p>Russia has imposed a punitive slowdown on Twitter since March over a failure to delete content Moscow deems illegal and is considering legislation that would force foreign technology companies to open offices in Russia or face penalties such as advertising bans.</p>\n<p>President Vladimir Putin said on Wednesday Russia was not planning to block any foreign social media sites, but that he hoped Russian social networks would provide opportunities for creative and talented people to thrive.</p>\n<p>\"We don't intend to block anyone, we want to work with them, but there are problems, which lie in the fact that they send us away when they do not comply with our demands and Russian law,\" Putin said during a live question and answer session broadcast by state television.</p>\n<p>Google, a subsidiary of Alphabet Inc, did not immediately respond to a request for comment.</p>\n<p>It could be fined up to 6 million roubles ($82,060) for failing to comply, Roskomnadzor said.</p>\n<p>Such administrative cases are usually heard in a Moscow district court.</p>\n<p>About 600 foreign companies have localised data in Russia, a list that Roskomnadzor previously said includes Apple, Samsung and <a href=\"https://laohu8.com/S/PYPL\">PayPal</a>.</p>\n<p>Microsoft's LinkedIn is blocked in Russia after a court found it breached the data-storage rule, passed in 2015, which required all data about Russian citizens to be stored within the country.</p>\n<p>($1 = 73.1175 roubles)</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Russia opens case against Google for breaching personal data law</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nRussia opens case against Google for breaching personal data law\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-30 20:52</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>MOSCOW, June 30 (Reuters) - Russia has opened an administrative case against Google for not storing the personal data of Russian users in databases on Russian territory, a move that could see the tech giant fined, communications regulator Roskomnadzor said on Wednesday.</p>\n<p>Roskomnadzor said it was also waiting for <a href=\"https://laohu8.com/S/FB\">Facebook</a> and <a href=\"https://laohu8.com/S/TWTR\">Twitter</a> to respond to a demand that they localise similar data by July 1 or face fines, part Moscow's wider efforts to exert greater control over Big Tech.</p>\n<p>Russia has imposed a punitive slowdown on Twitter since March over a failure to delete content Moscow deems illegal and is considering legislation that would force foreign technology companies to open offices in Russia or face penalties such as advertising bans.</p>\n<p>President Vladimir Putin said on Wednesday Russia was not planning to block any foreign social media sites, but that he hoped Russian social networks would provide opportunities for creative and talented people to thrive.</p>\n<p>\"We don't intend to block anyone, we want to work with them, but there are problems, which lie in the fact that they send us away when they do not comply with our demands and Russian law,\" Putin said during a live question and answer session broadcast by state television.</p>\n<p>Google, a subsidiary of Alphabet Inc, did not immediately respond to a request for comment.</p>\n<p>It could be fined up to 6 million roubles ($82,060) for failing to comply, Roskomnadzor said.</p>\n<p>Such administrative cases are usually heard in a Moscow district court.</p>\n<p>About 600 foreign companies have localised data in Russia, a list that Roskomnadzor previously said includes Apple, Samsung and <a href=\"https://laohu8.com/S/PYPL\">PayPal</a>.</p>\n<p>Microsoft's LinkedIn is blocked in Russia after a court found it breached the data-storage rule, passed in 2015, which required all data about Russian citizens to be stored within the country.</p>\n<p>($1 = 73.1175 roubles)</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GOOGL":"谷歌A","QNETCN":"纳斯达克中美互联网老虎指数","09086":"华夏纳指-U","03086":"华夏纳指","TWTR":"Twitter","PYPL":"PayPal","AAPL":"苹果","GOOG":"谷歌"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2147786816","content_text":"MOSCOW, June 30 (Reuters) - Russia has opened an administrative case against Google for not storing the personal data of Russian users in databases on Russian territory, a move that could see the tech giant fined, communications regulator Roskomnadzor said on Wednesday.\nRoskomnadzor said it was also waiting for Facebook and Twitter to respond to a demand that they localise similar data by July 1 or face fines, part Moscow's wider efforts to exert greater control over Big Tech.\nRussia has imposed a punitive slowdown on Twitter since March over a failure to delete content Moscow deems illegal and is considering legislation that would force foreign technology companies to open offices in Russia or face penalties such as advertising bans.\nPresident Vladimir Putin said on Wednesday Russia was not planning to block any foreign social media sites, but that he hoped Russian social networks would provide opportunities for creative and talented people to thrive.\n\"We don't intend to block anyone, we want to work with them, but there are problems, which lie in the fact that they send us away when they do not comply with our demands and Russian law,\" Putin said during a live question and answer session broadcast by state television.\nGoogle, a subsidiary of Alphabet Inc, did not immediately respond to a request for comment.\nIt could be fined up to 6 million roubles ($82,060) for failing to comply, Roskomnadzor said.\nSuch administrative cases are usually heard in a Moscow district court.\nAbout 600 foreign companies have localised data in Russia, a list that Roskomnadzor previously said includes Apple, Samsung and PayPal.\nMicrosoft's LinkedIn is blocked in Russia after a court found it breached the data-storage rule, passed in 2015, which required all data about Russian citizens to be stored within the country.\n($1 = 73.1175 roubles)","news_type":1},"isVote":1,"tweetType":1,"viewCount":295,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151396103,"gmtCreate":1625063253002,"gmtModify":1631885653131,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/ES3.SI\">$STI ETF(ES3.SI)$</a>Loo","listText":"<a href=\"https://laohu8.com/S/ES3.SI\">$STI ETF(ES3.SI)$</a>Loo","text":"$STI ETF(ES3.SI)$Loo","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151396103","isVote":1,"tweetType":1,"viewCount":42,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151391589,"gmtCreate":1625063210241,"gmtModify":1633945277460,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Msksjs","listText":"Msksjs","text":"Msksjs","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151391589","repostId":"1100563900","repostType":2,"repost":{"id":"1100563900","pubTimestamp":1624956396,"share":"https://www.laohu8.com/m/news/1100563900?lang=&edition=full","pubTime":"2021-06-29 16:46","market":"us","language":"en","title":"Facebook: Simply Unstoppable","url":"https://stock-news.laohu8.com/highlight/detail?id=1100563900","media":"seekingalpha","summary":"The #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.Despite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.The strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets , cumulatively make for a compel","content":"<p><b>Summary</b></p>\n<ul>\n <li>The #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.</li>\n <li>Despite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.</li>\n <li>The strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets (DIEM), cumulatively make for a compelling growth story.</li>\n <li>Although the company is highly controversial and rightfully so, this article focuses more on the quantitative analysis and less on the morals and ethics behind this investment. That, we shall leave to you.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3b3414073b72a391e760025594ec111f\" tg-width=\"768\" tg-height=\"528\"><span>nemke/E+ via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>Facebook (FB) has had a volatile trading period the past few years with a general uptrend, delivering shareholders nice returns whilst subjecting them to a few major dips which presented investors an opportunity for a steal. Despite the controversy and headline risks every now and then, the company has been able to battle through them and emerge ever so stronger. The company’s financials have been holding up and shows no sign of stoppage anytime soon. In a time as such, with significant uncertainty in the macro environment and inflation fears creeping up, we believe that shifting some of your assets to high cashflow generating companies is a wise strategy that will pay off. Growth and value are 2 different things, and there still exists growth companies that are undervalued and can still generate substantial cashflow, and we believe Facebook is one of them. The company also remains to be one of the more attractive blue-chip stocks compared to the others in the FAANG. We employ a 3–5-year outlook and have been bullish since USD$200/share. Let’s Begin!</p>\n<p><b>What is Facebook</b></p>\n<p>Known to all, Facebook is a social media giant with a family of products including the likes of Facebook, Instagram,WhatsApp, Messenger, and now Oculus. The firm essentially has a stronghold in the social media industry and has an impressive DAP of2.72 BN as of Q1’21and MAP of 3.45 BN.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e3d08f4df186c4705a5300f40d6b8a5e\" tg-width=\"640\" tg-height=\"429\"><span>(Source:FB Q1’21 Presentation)</span></p>\n<p>The world has7.874 BNpeople as of the time of this writing and that would mean that 43.8% of all the people in the world use some form of product from Facebook’s portfolio in the past 30 days. On a daily basis, 34.5% of the people in the world use it. If that isn’t a sticky service, nothing really is. If we were to focus on the usage of the Facebook app solely, 23.8% of the world logs into the app daily based on DAUs.</p>\n<p>The firm was founded in 2004 and generates the majority of their revenue from advertisements. If you have watched the social dilemma on Netflix, you would realize that Facebook’s real customer isn’t everyday users. Instead, users are the product, and they are being sold to advertisers. The company has created such an engaging and sticky service that users are more than happy to be using their apps, despite knowing that their data is being sold from one company to another. As appalling as it is, they’re indifferent to it all and still find the value in using the company’s products on a daily basis – keeping in touch with distant relatives, chatting with friends, staying up to date with the latest fashion trends and news… (According to the&nbsp;Pew Research Center, more than a 1/3 of US adults say they get their news regularly from Facebook)</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7cb9d05bb00f3038cec301c72ef56827\" tg-width=\"608\" tg-height=\"378\"><span>(Source:Pew Research Center)</span></p>\n<p>To Facebook, this is equally as good as the more users, the wider the ‘product’ base that they have to offer their customers - advertisers. Advertisers are also indifferent to how Facebook attains its data, so long as Facebook’s targeting metrics and trackers are working well, the more likely it is that they are able to generate conversions. The more conversions, the more sales for them, the more ads they continue to pay for, the more revenue Facebook generates. Win-Win-Win, their apps are the bait, and the product (users), customers (advertisers), and supplier (Facebook), all walk away winners. It’s a remarkable business model that has stood the test of time and no matter the amount of controversy around the business, founders, and its practices, it isn’t going anywhere anytime soon and for one simple reason: Users likely can’t do without Facebook’s products whether they are willing to admit it or not.</p>\n<p>When we look back in the past to reflect on how the #StopHateForProfit Campaign turned out for the company, it is apparent that the impact it had on the top and bottom line were both minimal. The boycott was one that arose due to Facebook’s bad hate speech regulations and policing, and because of the laissez-faire attitude toward posts from then President, Donald Trump. More than&nbsp;1000 companies publicly committed&nbsp;to boycotting the social media giant in June/July (coinciding with end Q2 and start Q3) and many of the top 100 advertisers based on ad spend such as Nike, Adidas, Puma, Coca-Cola, all revised their budgets downwards.</p>\n<p>Despite this, Facebook&nbsp;beat on Q2 earnings&nbsp;and saw an increase of&nbsp;10.7% YOY. In its forward guidance, the company also announced that for July, they were anticipating a slowdown in YoY growth of 17% but was still due to see a 10% increase. They alsoanticipatedthe slowdown in growth to last through till October. However, the company did not attribute this slowdown to the boycott specifically but to 3 other major headwinds. With the benefit of hindsight, we can now see that even for Q3’20, the firm saw an impressive 21.6% rise in its top line, with the bottom line still registering a 12.2% improvement in NPM for Q2’20 YoY and a 200 bps NPM improvement in Q3.</p>\n<p>The results are clear and indicative of a few things. The boycott by the largest companies did little to Facebook’s financial story as they still managed to register growth and did not see significant pullbacks that were material. This can be tied to the fact that most of Facebook’s advertisers are SMBs. Although certain few SMBs did join the boycott, most didn’t, and the firm still had their impressive 9 million + customer base to rely on. If anything, this also suggests that despite what any SMB stands for and whether they agree with a social cause or not, it is hard for them to find alternatives that they can shift to on a similar pricing scale. Big brands can easily pivot to other advertisements such as TV and radio commercials but SMBs simply can’t because of smaller budgets. Lastly, it is now clear that the campaign affected Facebook’s reputation more so than it did its cashflow.</p>\n<p><b>Risks</b></p>\n<p>Other risks that the company may face would be future antitrust lawsuits. As it is, the company is already facing allegations of being a monopoly based on their aggressive acquisitive history having acquired more than90 other companiessince inception. They were alsofined US$5 BNby the FTC in 2019 and were required to adopt their policies and employ new protections for the users and their data that has been shared.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f694ca79d59162e95f05335ebefbca3d\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Though representative of a historic penalty and the largest ever imposed on a company for violating user’s privacy rights, the US$5BN was a drop in the bucket for the giant that went on to generate US$70+ BN dollars for the year.</p>\n<p>The current issues that they have with Apple’s new iOS changes and the IDFA implications are also likely not going to have a substantial impact on the firm. The Identifier for Advertisers [IDFA] is a random device identifier assigned by Apple to a user's device. Advertisers use this to track data so they can deliver customized advertising on mobile. With the new iOS changes, Apple essentially programmed it such that each app that wants to use these identifiers will have to ask users to opt in for tracking when the app is first launched. If users opt out, the app can’t track certain data and Facebook will have a smaller database of points to rely upon. As consumer preferences change, so will Facebook’s targeting that relies on IDFAs get worse and less effective due to outdated data points.</p>\n<p>According to aCNBC article:</p>\n<blockquote>\n Most critically at stake for Facebook is what’s known as view-through conversions. This metric is used by ad-tech companies to measure how many users saw an ad, did not immediately click on it, but later made a purchase related to that ad.”\n</blockquote>\n<p>When the conversion is made later on, the data IDFA for that particular user is then shared by the retailer to Facebook which is then used by the company to see if it matches the IDFA of the user who saw the ad. If they pair, it indicates that the ad was useful in generating a conversion. This data performance is then relayed to advertisers so that they can tweak their ad strategies accordingly. Withas much as 96% of usersanticipated to opt out of tracking on all apps, this would mean that mobile ads on 3rdparty apps may no longer be as useful if Facebook cannot really judge its effectiveness anymore. The more ineffective the ads become, the less conversions for retailers, and the more they pivot to other advertising platforms, which will impact the revenues for the firm.</p>\n<p>However, Facebook has disclosed that this will particularly only affect one form of advertisement which relies heavily on the IDFA, known as Audience Networks. Fortunately, the audience network segment only represents less than 10% of the firm’s total revenues. With the impact estimating to cost a drop in50% of all ads deliveredand hence sales from this segment, this would atbest represent a 5% drop in their total revenues. With that said, we do not anticipate that this will be present significant impact moving forward and the firm can easily recoup the 5% loss at worse by focusing on increasing ARPUs and user engagement to save their core business.</p>\n<p>Though Facebook started by disclosing that they anticipated the impact on their revenues to be large at first, this no longer seems to be the case. If anything, history has shown us that Mark is not one to back down and if he doesn’t get his way, he damn well will find another way to minimise loss and increase revenue generation in other segments to make up for it. If you aren’t too involved in the technicalities, we think it’s safe to bet on the jockey in this case. Besides, AR / VR growth,WhatsApp monetization, Reels monetization, further user growth in less developed countries away from the legacy North America and Europe region can very well pick up the lost (US$5BN) in sales.</p>\n<p><b>Moat</b></p>\n<p>As mentioned above, the DAUs and MAUs for Facebook are very impressive with a large portion of the world using at least 1 of their products. The moat for the business relies on the wide user base that Facebook has meticulously built over the course of 17 years. With any new product that they have, the firm can easily roll it out to their database of users and expect demand to pick up in a matter of weeks, maybe even days. That is the power of the network of Facebook that really can’t be valued.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2057a83640201edd89430e754f3f8525\" tg-width=\"640\" tg-height=\"431\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>Despite the controversy, endless allegations, and negative headlines one after the other, the numbers don’t lie. DAUs have been increasing every single quarter, with the fastest growth observed in Asia-Pacific and the rest of the world. US &amp; Canada growth has slowed as it nears saturation levels, and this is perfectly normal and to be expected. The way we anticipate Facebook to grow their core cash cow business moving forward is clean. 1) Focus on growing ARPUs in their saturated legacy areas (US &amp; Canada and Europe) as well as 2) Increase User Growth by Geography in their growth areas (Asia-Pacific and the Rest of the World). Unsurprisingly, Facebook has been focused on doing just that.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce3456321584d2eea288f7e410215571\" tg-width=\"640\" tg-height=\"388\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>When we look to the infamous metric for judging social media companies and their performance – ARPUs, we can see that in the legacy areas, ARPUs have been increasing at a faster pace than compared to growth areas. This falls in line with point number 1 as mentioned above. The legacy areas have already reached saturation levels and user growth is unable to grow at astounding rates anymore. However, since this represent areas that are more developed and generally have higher disposable incomes on the average, focusing on increasing ARPUs and monetizing advertisers is the right strategy and a very feasible one. Though the growth areas are also seeing ARPUs grow YoY as they should, they are not at the same pace as in the US &amp; Canada and Europe. When we look to revenue generated by geography below, this confirms the thesis that revenue is growing faster than user base in those areas, and since ARPU equal to (Total Revenue from that Geography / Number of Users in that area), so long revenue is growing at a faster pace than the user base, they should increase meaningfully.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84eaec3de9bafd595bf4ecf9ffdae16a\" tg-width=\"640\" tg-height=\"430\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>When we look to the slide below, it is also apparent that user numbers are growing much faster in Asia-Pacific and the rest of the world, away from the legacy areas. Across 2 years, MAUs which is the broadest business performance metric employed by Facebook, grew 22.4% and 25.4% in the growth areas while they only grew a mere 6.6% in US &amp; Canada and 10.2% in Europe.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2d72be6c3ca7eb809567503ffc1d4ed9\" tg-width=\"640\" tg-height=\"395\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>If Facebook can continue to grow their user engagement numbers in the growth areas whilst maximizing ARPUs in legacy areas, the company can easily ensure that the core advertising model will remain the cash cow of the business, funding growth for their other product developments.</p>\n<p><b>Growth Tactics</b></p>\n<p>When we look to potential growth Facebook has, the company isn’t short of any. Facebook has moved to monetizeWhatsApp, where they plan to generate fees from payments made within the app itself as well as through in-app status advertisements. The company is essentially trying to integrate the growth and TAM of the E-commerce market more seamlessly into their family of products including the likes ofWhatsApp. ThroughFacebook Pay, users can now engage in peer-to-peer payments withinWhatsApp itself at no cost. However, when businesses receive a fee from customers through the app itself, they will then have to pay a small ‘processing fee’ to Facebook and this is where it profits. This is the same method that is being employed by Shopify and all the other payment processing channels just that it is now being done locally inWhatsApp itself.WhatsApp payments has launched in Brazil, the 2nd largest market by users and the fee stands at 3.99%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4d1d27ff399e3e6fdfbc44a3ff1fb6e6\" tg-width=\"640\" tg-height=\"557\"><span>(Source:Facebook Newsroom)</span></p>\n<p>The firm has also been trying to grow their presence in the E-commerce market and reduce the friction customers experience when clicking through ads on its platforms. Both Instagram checkout and Facebook shops are aimed at doing just that. Their shops solutions are also expanding toWhatsApp, and the marketplace as observed above. The company sees a major shift to online shopping even after the grand reopening of the economies. As part of its effort over the years, they now have 1.2M active shops across their platforms and more than 300M monthly shop visitors. Thelatest releasestates that:</p>\n<blockquote>\n Soon, we’ll give businesses in select countries the option to showcase their Shop inWhatsApp. In the US, we’ll enable them to bring Shops products into Marketplace, helping them reach the more than 1 billion people globally who visit each month.\n</blockquote>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/38d87012cd9e376a0bed27a095b01828\" tg-width=\"640\" tg-height=\"418\"><span>(Source:Facebook Newsroom)</span></p>\n<p>What’s even more fascinating is the fact that Facebook now plans to integrate new technologies such as AR Dynamic Ads to power the future of shopping. New visual discovery tools on their platforms like Instagram will help customers find new products that they resonate with faster than ever before and help them to visualize their products with AR experiences that they have been working on for a long time now.</p>\n<p>Their continued expansion in the AR/VR market along with the rollout of DIEM, their native digital currency functioning as a stablecoin that was once under the “Libra Project” also presents good growth opportunity in the near future. Facebook is also looking to introducepodcasts and live audio streamsas part of the beginning of their audio journey. In short, Facebook still has a lot of room to grow moving forward apart from looking to squeeze out more cash from their legacy advertising business model. However, as always, product development is one thing, but the financials do need to shape up as well and with Facebook it does.</p>\n<p><b>Financials</b></p>\n<p>Of the FAANG stock group, Facebook enjoys one of the highest margins. The company saw 80.55% in GM in Q1’21 and even in the past, it has enjoyed such high margins, trading between 80.5% to as high as 86.6% in FY17. The chart below also clearly indicates that the remarkable margins trickle down to the bottom line and aren’t wiped out due to operating expenses, registering a NPM of 35.7%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1367468f26c73bde43f494b2b7fb49d6\" tg-width=\"635\" tg-height=\"467\"><span>Data by YCharts</span></p>\n<p>FB also routinely spends a large portion of their revenues on R&amp;D, reinvesting into the business YoY to further improve their products and innovate on new ones. In 2020 the R&amp;D expense represented 21.5% of total sales.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4b923685aa0489833ae8f50fcddf3601\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>A large chunk of the firms’ revenues is also retained on the balance sheet which is then used over the years to funnel money to continue their acquisitive culture. Despite this, the strong cashflow that the firm enjoys allows it to stay at the top of their industry in terms of innovation whilst ensuring that their treasure trove of cash is growing should there be a need to deploy it. When we look to liquid cash that the firm holds (Cash &amp; Equivalents, and STI), Facebook has grown it at a tremendous CAGR of 26.2%. Net Debt has also just been becoming less of a concern over the years. To date, even after the pandemic, Facebook has no debt.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/13b40cadc31458233d0ea83ce4917c33\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Given the data above, it is evident that the firm has one of the most pristine balance sheets in the industry and in the whole stock market. The US$62 BN that they hold as cash presents itself as a massive buffer to cushion the impact of whatever comes their way, be it another acquisitive opportunity, or yet another fine. Either way, the company can weather any financial storm and near balance sheet issues aren’t a problem. Shareholders aren’t too pleased with the cash pile just sitting there and would instead rather the firm start paying a dividend or pick up the pace in share buybacks to maximize investor returns. Facebook has never paid a dividend in its entirety and although they may consider that moving forward, we anticipate that it is not a move that they will commit to. In any case, we ourselves hope that they commit to more share buybacks instead of moving to issue a dividend.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f5b82506a0385a1265c494b21462678\" tg-width=\"640\" tg-height=\"43\"><span>(Source:Q1 10-K Filing SEC)</span></p>\n<p>In their 10-K filing, the company expanded their SRP program to include an additional US$25 BN which will be added atop the US$8.6 BN remaining from a 2017 authorization. That amounts to a current authorized SRP valued at around US$33.6 BN and we anticipate that this may further increase substantially moving forward. Despite outstanding shares reducing overtime, a large part is offset by additional equity issued as part of SBC to employees. It is disappointing that the firm isn’t making more of a definitive move to put that cash pile to use but this is nonetheless not a major red flag.</p>\n<p><b>Valuations</b></p>\n<p>Being a blue-chip company with strong FCF, we would normally value the social media giant with a DCF model. Today, however, we will be looking at EV/Sales and P/E Ratios to try and justify its future valuation, looking 3 years out as always to end 2023.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0878b205b837634b7d2528f57ebe84fc\" tg-width=\"640\" tg-height=\"321\"><span>(Source:Seeking Alpha)</span></p>\n<p>Looking 3 years out to end 23, Facebook is projected to grow revenues at an average of 23.4%, with growth in the 30s for this fiscal year. That would mean that Facebook is anticipated to grow revenues to US$160.8 BN by end 2023, up 87% from what they delivered in FY20 in 3 years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1707f8cfee45ce9ebb0e3ac961e78f48\" tg-width=\"640\" tg-height=\"338\"><span>(Source: TIKR.com)</span></p>\n<p>Since 2018, the firm has traded at an average EV/Sales of 8.85, and last exchanged hands at a multiple of 9.76. Although the firm is trading at a multiple above its mean and higher than any of the other stocks as part of the FAANG group, Facebook does have higher estimates than all the other companies in the near future as observed below. The data does not reflect estimates for 2023.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/444e1473e814530e2332cea02637af53\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Moreover, when we look further into the past all the way back to 2013, the company has historically traded at an average of 12.82 and even registered a high close to 22 in 2014. However, since we want to be conservative, but believe that the market has yet to really price Facebook for what it’s worth given all the headline risks in the media that have induced immediate selloffs without any fundamental reason, we will employ a multiple of 9.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8494d3084eed106a9cb0bff0f27cfe7a\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>At an EV/Sales multiple of 9, that would put Facebook at a US$1.447 TRN dollar valuation by the end of 2023 and a share price of US$539, an upside of 58%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/55014da5e82d1a67caaeb34766b35940\" tg-width=\"640\" tg-height=\"294\"><span>(Source:Seeking Alpha)</span></p>\n<p>When we look to revenue surprise and analyst estimate beat / miss trends, Facebook has quite the historical track record of surpassing estimates, having done so 10/12 times in the past 3 years. The average upside surprise stands at 3.59%. Assuming Facebook will continue to deliver the same upside surprise moving forward, a 3.59% beat to the top line estimate of 2023 would warrant revenues of US$166.57 BN. At the same EV/Sales ratio of 9, that would render a higher valuation of US$558.77 USD. Given that Facebook is very close to crossing the US$1 TRN dollar valuation mark, we anticipate this to be a very realistic price target.</p>\n<p>Now shifting on to another valuation method by P/E multiples, the valuation also paints a similar picture.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5d67f3c257657bc10ee6be38c16d2a1f\" tg-width=\"640\" tg-height=\"207\"><span>(Source:Seeking Alpha)</span></p>\n<p>Turning to earnings estimates, the company is also projected to do high-teens digit growth for 2022 and 2023 and a close to 30% growth in the bottom line for this fiscal year.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ffe26a8eabec7045dc5a904497737623\" tg-width=\"635\" tg-height=\"501\"><span>Data by YCharts</span></p>\n<p>Despite trading at the highest EV / Sales ratio of the FAANG stocks, Facebook is trading at the lowest TTM normalized PE Ratio amongst its peers, with the inclusion of Microsoft (FANGMA). This is likely due to the market failing to internalize and appreciate the company’s high NPM and profitability. Currently trading at a P/E ratio of 29.14, this is also below its historical means of as high as 60+ in 2016.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/247661f12f62820f6266763f49531355\" tg-width=\"635\" tg-height=\"417\"><span>Data by YCharts</span></p>\n<p>However, given that earnings have improved dramatically since and likely won’t be revisiting those levels as seen from the forward estimates, we will stick with what we believe to be a fair multiple for the stickiest company in the world, 30. At a P/E ratio of 30, that would put the end 2023 share price somewhere near levels of US$531.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce908799f1bf9091b49b94e03db7e476\" tg-width=\"640\" tg-height=\"284\"><span>(Source:Seeking Alpha)</span></p>\n<p>However, because of a surprisingly good earnings-beat track record once again, this has to be factored in moving forward. Of the last 3 years, Facebook has beat earnings 11/12 times. The average beat comes in at 15.72%. If we were to stick to a similar but more conservative beat of say 7%, that would put 2023 normalized earnings at 18.93. The exact same P/E ratio would now warrant a realistic share price of US$567.8, an upside of 66.3%.</p>\n<p>With all 4 estimates using different methods and assumptions with different levels of conservatism employed delivering a potential share price anywhere between US$531 and US$568, it would be fair to conclude that this is a realistic price target for the cashflow king 3 years out into the future. At the low end of estimates of US$531, this is still indicative of a 55% upside.</p>\n<p><b>Investor Takeaways</b></p>\n<p>To conclude, we believe Facebook has a very strong future ahead and the projected numbers for both the Topline and Bottom line are indicative of potential upside. We place significant emphasis on forward estimates as markets are future discounting mechanisms that react accordingly. The company enjoys unbelievably high margins, has a pristine balance sheet with absolutely no debt, and is anticipated to keep raking in high revenues with strong cashflow numbers.</p>\n<p>With so many growth opportunities such as the monetization ofWhatsApp, AR/VR, shops, marketplace growth, DIEM, and the continued growth in its legacy advertisement business both in terms of MAP and ARPUs, Facebook is here to stay and is nowhere near exhausting its full potential. The sizeable TAMs in each of the different business segments combined with other opportunities such as Facebook Reels which we did not cover, and the fact that it has yet to have been monetized, all point to a bright future.</p>\n<p>That being said, it is a given that the company will face many other bumps along moving forward. Facebook will continue to be subjected to what we call ‘headline risks’ whereby the stock will be overly sold off to the downside based upon nothing fundamental but one-sided exaggerated narratives. This we believe presents the best time to pick up shares and accumulate for the long run. Facebook has been perceived to have engaged in a lot of dubious unethical behaviour surrounding user data but like we said, that is separate from the investment opportunity the company presents and we will leave that to you to decide. Granted that there are many reasons surrounding the company's beat-down reputation, the return on invested capital is a different story and the main one to be focused on when considering if a company is a good investment or not.</p>\n<p>End day, when it comes to blue-chip stocks that have a firm hold in the industry, good sticky products, and solid financials, it is hard for the stock not to trend up overtime so long as estimates paint a bright picture and most importantly, the markets continue to value them in the same rational way. This has not always been the case and can be easily seen from Microsoft’s outperformance hiatus when the Dot Com bubble crashed, and the stock took 17 years to put in a new high. Still, we believe blue chip stocks are a good bet as of now and should be a part of everyone’s portfolio, and Facebook presents the best buy of the FAANG from our perspective. Till next time!</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Facebook: Simply Unstoppable</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFacebook: Simply Unstoppable\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-29 16:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4437000-facebook-simply-unstoppable><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nThe #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.\nDespite an ...</p>\n\n<a href=\"https://seekingalpha.com/article/4437000-facebook-simply-unstoppable\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://seekingalpha.com/article/4437000-facebook-simply-unstoppable","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1100563900","content_text":"Summary\n\nThe #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.\nDespite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.\nThe strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets (DIEM), cumulatively make for a compelling growth story.\nAlthough the company is highly controversial and rightfully so, this article focuses more on the quantitative analysis and less on the morals and ethics behind this investment. That, we shall leave to you.\n\nnemke/E+ via Getty Images\nInvestment Thesis\nFacebook (FB) has had a volatile trading period the past few years with a general uptrend, delivering shareholders nice returns whilst subjecting them to a few major dips which presented investors an opportunity for a steal. Despite the controversy and headline risks every now and then, the company has been able to battle through them and emerge ever so stronger. The company’s financials have been holding up and shows no sign of stoppage anytime soon. In a time as such, with significant uncertainty in the macro environment and inflation fears creeping up, we believe that shifting some of your assets to high cashflow generating companies is a wise strategy that will pay off. Growth and value are 2 different things, and there still exists growth companies that are undervalued and can still generate substantial cashflow, and we believe Facebook is one of them. The company also remains to be one of the more attractive blue-chip stocks compared to the others in the FAANG. We employ a 3–5-year outlook and have been bullish since USD$200/share. Let’s Begin!\nWhat is Facebook\nKnown to all, Facebook is a social media giant with a family of products including the likes of Facebook, Instagram,WhatsApp, Messenger, and now Oculus. The firm essentially has a stronghold in the social media industry and has an impressive DAP of2.72 BN as of Q1’21and MAP of 3.45 BN.\n(Source:FB Q1’21 Presentation)\nThe world has7.874 BNpeople as of the time of this writing and that would mean that 43.8% of all the people in the world use some form of product from Facebook’s portfolio in the past 30 days. On a daily basis, 34.5% of the people in the world use it. If that isn’t a sticky service, nothing really is. If we were to focus on the usage of the Facebook app solely, 23.8% of the world logs into the app daily based on DAUs.\nThe firm was founded in 2004 and generates the majority of their revenue from advertisements. If you have watched the social dilemma on Netflix, you would realize that Facebook’s real customer isn’t everyday users. Instead, users are the product, and they are being sold to advertisers. The company has created such an engaging and sticky service that users are more than happy to be using their apps, despite knowing that their data is being sold from one company to another. As appalling as it is, they’re indifferent to it all and still find the value in using the company’s products on a daily basis – keeping in touch with distant relatives, chatting with friends, staying up to date with the latest fashion trends and news… (According to the Pew Research Center, more than a 1/3 of US adults say they get their news regularly from Facebook)\n(Source:Pew Research Center)\nTo Facebook, this is equally as good as the more users, the wider the ‘product’ base that they have to offer their customers - advertisers. Advertisers are also indifferent to how Facebook attains its data, so long as Facebook’s targeting metrics and trackers are working well, the more likely it is that they are able to generate conversions. The more conversions, the more sales for them, the more ads they continue to pay for, the more revenue Facebook generates. Win-Win-Win, their apps are the bait, and the product (users), customers (advertisers), and supplier (Facebook), all walk away winners. It’s a remarkable business model that has stood the test of time and no matter the amount of controversy around the business, founders, and its practices, it isn’t going anywhere anytime soon and for one simple reason: Users likely can’t do without Facebook’s products whether they are willing to admit it or not.\nWhen we look back in the past to reflect on how the #StopHateForProfit Campaign turned out for the company, it is apparent that the impact it had on the top and bottom line were both minimal. The boycott was one that arose due to Facebook’s bad hate speech regulations and policing, and because of the laissez-faire attitude toward posts from then President, Donald Trump. More than 1000 companies publicly committed to boycotting the social media giant in June/July (coinciding with end Q2 and start Q3) and many of the top 100 advertisers based on ad spend such as Nike, Adidas, Puma, Coca-Cola, all revised their budgets downwards.\nDespite this, Facebook beat on Q2 earnings and saw an increase of 10.7% YOY. In its forward guidance, the company also announced that for July, they were anticipating a slowdown in YoY growth of 17% but was still due to see a 10% increase. They alsoanticipatedthe slowdown in growth to last through till October. However, the company did not attribute this slowdown to the boycott specifically but to 3 other major headwinds. With the benefit of hindsight, we can now see that even for Q3’20, the firm saw an impressive 21.6% rise in its top line, with the bottom line still registering a 12.2% improvement in NPM for Q2’20 YoY and a 200 bps NPM improvement in Q3.\nThe results are clear and indicative of a few things. The boycott by the largest companies did little to Facebook’s financial story as they still managed to register growth and did not see significant pullbacks that were material. This can be tied to the fact that most of Facebook’s advertisers are SMBs. Although certain few SMBs did join the boycott, most didn’t, and the firm still had their impressive 9 million + customer base to rely on. If anything, this also suggests that despite what any SMB stands for and whether they agree with a social cause or not, it is hard for them to find alternatives that they can shift to on a similar pricing scale. Big brands can easily pivot to other advertisements such as TV and radio commercials but SMBs simply can’t because of smaller budgets. Lastly, it is now clear that the campaign affected Facebook’s reputation more so than it did its cashflow.\nRisks\nOther risks that the company may face would be future antitrust lawsuits. As it is, the company is already facing allegations of being a monopoly based on their aggressive acquisitive history having acquired more than90 other companiessince inception. They were alsofined US$5 BNby the FTC in 2019 and were required to adopt their policies and employ new protections for the users and their data that has been shared.\n(Source: TIKR.com)\nThough representative of a historic penalty and the largest ever imposed on a company for violating user’s privacy rights, the US$5BN was a drop in the bucket for the giant that went on to generate US$70+ BN dollars for the year.\nThe current issues that they have with Apple’s new iOS changes and the IDFA implications are also likely not going to have a substantial impact on the firm. The Identifier for Advertisers [IDFA] is a random device identifier assigned by Apple to a user's device. Advertisers use this to track data so they can deliver customized advertising on mobile. With the new iOS changes, Apple essentially programmed it such that each app that wants to use these identifiers will have to ask users to opt in for tracking when the app is first launched. If users opt out, the app can’t track certain data and Facebook will have a smaller database of points to rely upon. As consumer preferences change, so will Facebook’s targeting that relies on IDFAs get worse and less effective due to outdated data points.\nAccording to aCNBC article:\n\n Most critically at stake for Facebook is what’s known as view-through conversions. This metric is used by ad-tech companies to measure how many users saw an ad, did not immediately click on it, but later made a purchase related to that ad.”\n\nWhen the conversion is made later on, the data IDFA for that particular user is then shared by the retailer to Facebook which is then used by the company to see if it matches the IDFA of the user who saw the ad. If they pair, it indicates that the ad was useful in generating a conversion. This data performance is then relayed to advertisers so that they can tweak their ad strategies accordingly. Withas much as 96% of usersanticipated to opt out of tracking on all apps, this would mean that mobile ads on 3rdparty apps may no longer be as useful if Facebook cannot really judge its effectiveness anymore. The more ineffective the ads become, the less conversions for retailers, and the more they pivot to other advertising platforms, which will impact the revenues for the firm.\nHowever, Facebook has disclosed that this will particularly only affect one form of advertisement which relies heavily on the IDFA, known as Audience Networks. Fortunately, the audience network segment only represents less than 10% of the firm’s total revenues. With the impact estimating to cost a drop in50% of all ads deliveredand hence sales from this segment, this would atbest represent a 5% drop in their total revenues. With that said, we do not anticipate that this will be present significant impact moving forward and the firm can easily recoup the 5% loss at worse by focusing on increasing ARPUs and user engagement to save their core business.\nThough Facebook started by disclosing that they anticipated the impact on their revenues to be large at first, this no longer seems to be the case. If anything, history has shown us that Mark is not one to back down and if he doesn’t get his way, he damn well will find another way to minimise loss and increase revenue generation in other segments to make up for it. If you aren’t too involved in the technicalities, we think it’s safe to bet on the jockey in this case. Besides, AR / VR growth,WhatsApp monetization, Reels monetization, further user growth in less developed countries away from the legacy North America and Europe region can very well pick up the lost (US$5BN) in sales.\nMoat\nAs mentioned above, the DAUs and MAUs for Facebook are very impressive with a large portion of the world using at least 1 of their products. The moat for the business relies on the wide user base that Facebook has meticulously built over the course of 17 years. With any new product that they have, the firm can easily roll it out to their database of users and expect demand to pick up in a matter of weeks, maybe even days. That is the power of the network of Facebook that really can’t be valued.\n(Source: FB Q1’21 Presentation)\nDespite the controversy, endless allegations, and negative headlines one after the other, the numbers don’t lie. DAUs have been increasing every single quarter, with the fastest growth observed in Asia-Pacific and the rest of the world. US & Canada growth has slowed as it nears saturation levels, and this is perfectly normal and to be expected. The way we anticipate Facebook to grow their core cash cow business moving forward is clean. 1) Focus on growing ARPUs in their saturated legacy areas (US & Canada and Europe) as well as 2) Increase User Growth by Geography in their growth areas (Asia-Pacific and the Rest of the World). Unsurprisingly, Facebook has been focused on doing just that.\n(Source: FB Q1’21 Presentation)\nWhen we look to the infamous metric for judging social media companies and their performance – ARPUs, we can see that in the legacy areas, ARPUs have been increasing at a faster pace than compared to growth areas. This falls in line with point number 1 as mentioned above. The legacy areas have already reached saturation levels and user growth is unable to grow at astounding rates anymore. However, since this represent areas that are more developed and generally have higher disposable incomes on the average, focusing on increasing ARPUs and monetizing advertisers is the right strategy and a very feasible one. Though the growth areas are also seeing ARPUs grow YoY as they should, they are not at the same pace as in the US & Canada and Europe. When we look to revenue generated by geography below, this confirms the thesis that revenue is growing faster than user base in those areas, and since ARPU equal to (Total Revenue from that Geography / Number of Users in that area), so long revenue is growing at a faster pace than the user base, they should increase meaningfully.\n(Source: FB Q1’21 Presentation)\nWhen we look to the slide below, it is also apparent that user numbers are growing much faster in Asia-Pacific and the rest of the world, away from the legacy areas. Across 2 years, MAUs which is the broadest business performance metric employed by Facebook, grew 22.4% and 25.4% in the growth areas while they only grew a mere 6.6% in US & Canada and 10.2% in Europe.\n(Source: FB Q1’21 Presentation)\nIf Facebook can continue to grow their user engagement numbers in the growth areas whilst maximizing ARPUs in legacy areas, the company can easily ensure that the core advertising model will remain the cash cow of the business, funding growth for their other product developments.\nGrowth Tactics\nWhen we look to potential growth Facebook has, the company isn’t short of any. Facebook has moved to monetizeWhatsApp, where they plan to generate fees from payments made within the app itself as well as through in-app status advertisements. The company is essentially trying to integrate the growth and TAM of the E-commerce market more seamlessly into their family of products including the likes ofWhatsApp. ThroughFacebook Pay, users can now engage in peer-to-peer payments withinWhatsApp itself at no cost. However, when businesses receive a fee from customers through the app itself, they will then have to pay a small ‘processing fee’ to Facebook and this is where it profits. This is the same method that is being employed by Shopify and all the other payment processing channels just that it is now being done locally inWhatsApp itself.WhatsApp payments has launched in Brazil, the 2nd largest market by users and the fee stands at 3.99%.\n(Source:Facebook Newsroom)\nThe firm has also been trying to grow their presence in the E-commerce market and reduce the friction customers experience when clicking through ads on its platforms. Both Instagram checkout and Facebook shops are aimed at doing just that. Their shops solutions are also expanding toWhatsApp, and the marketplace as observed above. The company sees a major shift to online shopping even after the grand reopening of the economies. As part of its effort over the years, they now have 1.2M active shops across their platforms and more than 300M monthly shop visitors. Thelatest releasestates that:\n\n Soon, we’ll give businesses in select countries the option to showcase their Shop inWhatsApp. In the US, we’ll enable them to bring Shops products into Marketplace, helping them reach the more than 1 billion people globally who visit each month.\n\n(Source:Facebook Newsroom)\nWhat’s even more fascinating is the fact that Facebook now plans to integrate new technologies such as AR Dynamic Ads to power the future of shopping. New visual discovery tools on their platforms like Instagram will help customers find new products that they resonate with faster than ever before and help them to visualize their products with AR experiences that they have been working on for a long time now.\nTheir continued expansion in the AR/VR market along with the rollout of DIEM, their native digital currency functioning as a stablecoin that was once under the “Libra Project” also presents good growth opportunity in the near future. Facebook is also looking to introducepodcasts and live audio streamsas part of the beginning of their audio journey. In short, Facebook still has a lot of room to grow moving forward apart from looking to squeeze out more cash from their legacy advertising business model. However, as always, product development is one thing, but the financials do need to shape up as well and with Facebook it does.\nFinancials\nOf the FAANG stock group, Facebook enjoys one of the highest margins. The company saw 80.55% in GM in Q1’21 and even in the past, it has enjoyed such high margins, trading between 80.5% to as high as 86.6% in FY17. The chart below also clearly indicates that the remarkable margins trickle down to the bottom line and aren’t wiped out due to operating expenses, registering a NPM of 35.7%.\nData by YCharts\nFB also routinely spends a large portion of their revenues on R&D, reinvesting into the business YoY to further improve their products and innovate on new ones. In 2020 the R&D expense represented 21.5% of total sales.\n(Source: TIKR.com)\nA large chunk of the firms’ revenues is also retained on the balance sheet which is then used over the years to funnel money to continue their acquisitive culture. Despite this, the strong cashflow that the firm enjoys allows it to stay at the top of their industry in terms of innovation whilst ensuring that their treasure trove of cash is growing should there be a need to deploy it. When we look to liquid cash that the firm holds (Cash & Equivalents, and STI), Facebook has grown it at a tremendous CAGR of 26.2%. Net Debt has also just been becoming less of a concern over the years. To date, even after the pandemic, Facebook has no debt.\n(Source: TIKR.com)\nGiven the data above, it is evident that the firm has one of the most pristine balance sheets in the industry and in the whole stock market. The US$62 BN that they hold as cash presents itself as a massive buffer to cushion the impact of whatever comes their way, be it another acquisitive opportunity, or yet another fine. Either way, the company can weather any financial storm and near balance sheet issues aren’t a problem. Shareholders aren’t too pleased with the cash pile just sitting there and would instead rather the firm start paying a dividend or pick up the pace in share buybacks to maximize investor returns. Facebook has never paid a dividend in its entirety and although they may consider that moving forward, we anticipate that it is not a move that they will commit to. In any case, we ourselves hope that they commit to more share buybacks instead of moving to issue a dividend.\n(Source:Q1 10-K Filing SEC)\nIn their 10-K filing, the company expanded their SRP program to include an additional US$25 BN which will be added atop the US$8.6 BN remaining from a 2017 authorization. That amounts to a current authorized SRP valued at around US$33.6 BN and we anticipate that this may further increase substantially moving forward. Despite outstanding shares reducing overtime, a large part is offset by additional equity issued as part of SBC to employees. It is disappointing that the firm isn’t making more of a definitive move to put that cash pile to use but this is nonetheless not a major red flag.\nValuations\nBeing a blue-chip company with strong FCF, we would normally value the social media giant with a DCF model. Today, however, we will be looking at EV/Sales and P/E Ratios to try and justify its future valuation, looking 3 years out as always to end 2023.\n(Source:Seeking Alpha)\nLooking 3 years out to end 23, Facebook is projected to grow revenues at an average of 23.4%, with growth in the 30s for this fiscal year. That would mean that Facebook is anticipated to grow revenues to US$160.8 BN by end 2023, up 87% from what they delivered in FY20 in 3 years.\n(Source: TIKR.com)\nSince 2018, the firm has traded at an average EV/Sales of 8.85, and last exchanged hands at a multiple of 9.76. Although the firm is trading at a multiple above its mean and higher than any of the other stocks as part of the FAANG group, Facebook does have higher estimates than all the other companies in the near future as observed below. The data does not reflect estimates for 2023.\n(Source: TIKR.com)\nMoreover, when we look further into the past all the way back to 2013, the company has historically traded at an average of 12.82 and even registered a high close to 22 in 2014. However, since we want to be conservative, but believe that the market has yet to really price Facebook for what it’s worth given all the headline risks in the media that have induced immediate selloffs without any fundamental reason, we will employ a multiple of 9.\n(Source: TIKR.com)\nAt an EV/Sales multiple of 9, that would put Facebook at a US$1.447 TRN dollar valuation by the end of 2023 and a share price of US$539, an upside of 58%.\n(Source:Seeking Alpha)\nWhen we look to revenue surprise and analyst estimate beat / miss trends, Facebook has quite the historical track record of surpassing estimates, having done so 10/12 times in the past 3 years. The average upside surprise stands at 3.59%. Assuming Facebook will continue to deliver the same upside surprise moving forward, a 3.59% beat to the top line estimate of 2023 would warrant revenues of US$166.57 BN. At the same EV/Sales ratio of 9, that would render a higher valuation of US$558.77 USD. Given that Facebook is very close to crossing the US$1 TRN dollar valuation mark, we anticipate this to be a very realistic price target.\nNow shifting on to another valuation method by P/E multiples, the valuation also paints a similar picture.\n(Source:Seeking Alpha)\nTurning to earnings estimates, the company is also projected to do high-teens digit growth for 2022 and 2023 and a close to 30% growth in the bottom line for this fiscal year.\nData by YCharts\nDespite trading at the highest EV / Sales ratio of the FAANG stocks, Facebook is trading at the lowest TTM normalized PE Ratio amongst its peers, with the inclusion of Microsoft (FANGMA). This is likely due to the market failing to internalize and appreciate the company’s high NPM and profitability. Currently trading at a P/E ratio of 29.14, this is also below its historical means of as high as 60+ in 2016.\nData by YCharts\nHowever, given that earnings have improved dramatically since and likely won’t be revisiting those levels as seen from the forward estimates, we will stick with what we believe to be a fair multiple for the stickiest company in the world, 30. At a P/E ratio of 30, that would put the end 2023 share price somewhere near levels of US$531.\n(Source:Seeking Alpha)\nHowever, because of a surprisingly good earnings-beat track record once again, this has to be factored in moving forward. Of the last 3 years, Facebook has beat earnings 11/12 times. The average beat comes in at 15.72%. If we were to stick to a similar but more conservative beat of say 7%, that would put 2023 normalized earnings at 18.93. The exact same P/E ratio would now warrant a realistic share price of US$567.8, an upside of 66.3%.\nWith all 4 estimates using different methods and assumptions with different levels of conservatism employed delivering a potential share price anywhere between US$531 and US$568, it would be fair to conclude that this is a realistic price target for the cashflow king 3 years out into the future. At the low end of estimates of US$531, this is still indicative of a 55% upside.\nInvestor Takeaways\nTo conclude, we believe Facebook has a very strong future ahead and the projected numbers for both the Topline and Bottom line are indicative of potential upside. We place significant emphasis on forward estimates as markets are future discounting mechanisms that react accordingly. The company enjoys unbelievably high margins, has a pristine balance sheet with absolutely no debt, and is anticipated to keep raking in high revenues with strong cashflow numbers.\nWith so many growth opportunities such as the monetization ofWhatsApp, AR/VR, shops, marketplace growth, DIEM, and the continued growth in its legacy advertisement business both in terms of MAP and ARPUs, Facebook is here to stay and is nowhere near exhausting its full potential. The sizeable TAMs in each of the different business segments combined with other opportunities such as Facebook Reels which we did not cover, and the fact that it has yet to have been monetized, all point to a bright future.\nThat being said, it is a given that the company will face many other bumps along moving forward. Facebook will continue to be subjected to what we call ‘headline risks’ whereby the stock will be overly sold off to the downside based upon nothing fundamental but one-sided exaggerated narratives. This we believe presents the best time to pick up shares and accumulate for the long run. Facebook has been perceived to have engaged in a lot of dubious unethical behaviour surrounding user data but like we said, that is separate from the investment opportunity the company presents and we will leave that to you to decide. Granted that there are many reasons surrounding the company's beat-down reputation, the return on invested capital is a different story and the main one to be focused on when considering if a company is a good investment or not.\nEnd day, when it comes to blue-chip stocks that have a firm hold in the industry, good sticky products, and solid financials, it is hard for the stock not to trend up overtime so long as estimates paint a bright picture and most importantly, the markets continue to value them in the same rational way. This has not always been the case and can be easily seen from Microsoft’s outperformance hiatus when the Dot Com bubble crashed, and the stock took 17 years to put in a new high. Still, we believe blue chip stocks are a good bet as of now and should be a part of everyone’s portfolio, and Facebook presents the best buy of the FAANG from our perspective. Till next time!","news_type":1},"isVote":1,"tweetType":1,"viewCount":323,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151399698,"gmtCreate":1625063161614,"gmtModify":1633945278227,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151399698","repostId":"1183093793","repostType":4,"isVote":1,"tweetType":1,"viewCount":106,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151390899,"gmtCreate":1625063146411,"gmtModify":1633945278996,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"&nbsp;Lol","listText":"&nbsp;Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151390899","repostId":"1179476522","repostType":4,"repost":{"id":"1179476522","pubTimestamp":1625062071,"share":"https://www.laohu8.com/m/news/1179476522?lang=&edition=full","pubTime":"2021-06-30 22:07","market":"us","language":"en","title":"IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down","url":"https://stock-news.laohu8.com/highlight/detail?id=1179476522","media":"InvestorPlace","summary":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearl","content":"<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense</p>\n<p>In the nearly two years since&nbsp;<b>International Business Machines</b>(NYSE:<b><u>IBM</u></b>) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.</p>\n<p>This means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.</p>\n<p>It also means roughly $24.5 billion in cash flow has flown out the door, uninvested.</p>\n<p>That’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.</p>\n<p>Cloud Czars like&nbsp;<b>Facebook</b>(NASDAQ:<b><u>FB</u></b>), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.</p>\n<p>If you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.</p>\n<p>You’re hoping the dividend ceases to be an issue.</p>\n<p><b>A Closer Look at IBM Stock</b></p>\n<p>Kyndryl is expected to generate roughly&nbsp;$19 billion&nbsp;in sales per year when it’s spun out, into offices atop a skyscraper&nbsp;next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”</p>\n<p>This could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”</p>\n<p>According to analysts at Andreesen Horowitz’s new online publication&nbsp;<i>Future</i>,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.</p>\n<p>This would be the sweet spot for the new IBM, and the Achilles heel of companies like&nbsp;<b>Amazon.Com</b>(NASDAQ:<b><u>AMZN</u></b>). Questions of where data is located, called&nbsp;cloud sovereignty, can complicate matters, but IBM thrives on such complexity.</p>\n<p><b>Investors Walk Away</b></p>\n<p>Most investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away&nbsp;from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.</p>\n<p>But there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of&nbsp;$2.25/share.</p>\n<p>The March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.</p>\n<p>If IBM can hit its estimates investors could see&nbsp;an historic breakout, according to Alan Farley of&nbsp;<i>FX Empire</i>.</p>\n<p>IBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.</p>\n<p><b>IBM Strategy</b></p>\n<p>IBM’s strategy heading into the spin-off will be based on “industry clouds,” &nbsp;something also being embraced by Cloud Czars&nbsp;<b>Microsoft</b>(NASDAQ:<b><u>MSFT</u></b>) and&nbsp;<b>Alphabet</b>(NASDAQ:<b><u>GOOGL</u></b>).</p>\n<p>IBM’s hope is that hybrid cloud will become&nbsp;a default corporate IT design, seeking to make internal systems as efficient as cloud.</p>\n<p>While IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by&nbsp;<b>Alibaba Group Holding</b>(NASDAQ:<b><u>BABA</u></b>).</p>\n<p>But its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.</p>\n<p><b>The Bottom Line</b></p>\n<p>If you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about&nbsp;storage systems, aboutquantum computers, about&nbsp;government contracts&nbsp;ordisputes with its old chip foundry.</p>\n<p>But don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBM Stock Is a Lot More Attractive as It Refocuses and Trims Down\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-30 22:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up ...</p>\n\n<a href=\"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IBM":"IBM"},"source_url":"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179476522","content_text":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.\nThis means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.\nIt also means roughly $24.5 billion in cash flow has flown out the door, uninvested.\nThat’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.\nCloud Czars like Facebook(NASDAQ:FB), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.\nIf you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.\nYou’re hoping the dividend ceases to be an issue.\nA Closer Look at IBM Stock\nKyndryl is expected to generate roughly $19 billion in sales per year when it’s spun out, into offices atop a skyscraper next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”\nThis could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”\nAccording to analysts at Andreesen Horowitz’s new online publication Future,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.\nThis would be the sweet spot for the new IBM, and the Achilles heel of companies like Amazon.Com(NASDAQ:AMZN). Questions of where data is located, called cloud sovereignty, can complicate matters, but IBM thrives on such complexity.\nInvestors Walk Away\nMost investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.\nBut there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of $2.25/share.\nThe March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.\nIf IBM can hit its estimates investors could see an historic breakout, according to Alan Farley of FX Empire.\nIBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.\nIBM Strategy\nIBM’s strategy heading into the spin-off will be based on “industry clouds,”  something also being embraced by Cloud Czars Microsoft(NASDAQ:MSFT) and Alphabet(NASDAQ:GOOGL).\nIBM’s hope is that hybrid cloud will become a default corporate IT design, seeking to make internal systems as efficient as cloud.\nWhile IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by Alibaba Group Holding(NASDAQ:BABA).\nBut its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.\nThe Bottom Line\nIf you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about storage systems, aboutquantum computers, about government contracts ordisputes with its old chip foundry.\nBut don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":61,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151307925,"gmtCreate":1625063092867,"gmtModify":1633945279863,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151307925","repostId":"1179476522","repostType":4,"repost":{"id":"1179476522","pubTimestamp":1625062071,"share":"https://www.laohu8.com/m/news/1179476522?lang=&edition=full","pubTime":"2021-06-30 22:07","market":"us","language":"en","title":"IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down","url":"https://stock-news.laohu8.com/highlight/detail?id=1179476522","media":"InvestorPlace","summary":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearl","content":"<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense</p>\n<p>In the nearly two years since&nbsp;<b>International Business Machines</b>(NYSE:<b><u>IBM</u></b>) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.</p>\n<p>This means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.</p>\n<p>It also means roughly $24.5 billion in cash flow has flown out the door, uninvested.</p>\n<p>That’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.</p>\n<p>Cloud Czars like&nbsp;<b>Facebook</b>(NASDAQ:<b><u>FB</u></b>), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.</p>\n<p>If you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.</p>\n<p>You’re hoping the dividend ceases to be an issue.</p>\n<p><b>A Closer Look at IBM Stock</b></p>\n<p>Kyndryl is expected to generate roughly&nbsp;$19 billion&nbsp;in sales per year when it’s spun out, into offices atop a skyscraper&nbsp;next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”</p>\n<p>This could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”</p>\n<p>According to analysts at Andreesen Horowitz’s new online publication&nbsp;<i>Future</i>,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.</p>\n<p>This would be the sweet spot for the new IBM, and the Achilles heel of companies like&nbsp;<b>Amazon.Com</b>(NASDAQ:<b><u>AMZN</u></b>). Questions of where data is located, called&nbsp;cloud sovereignty, can complicate matters, but IBM thrives on such complexity.</p>\n<p><b>Investors Walk Away</b></p>\n<p>Most investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away&nbsp;from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.</p>\n<p>But there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of&nbsp;$2.25/share.</p>\n<p>The March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.</p>\n<p>If IBM can hit its estimates investors could see&nbsp;an historic breakout, according to Alan Farley of&nbsp;<i>FX Empire</i>.</p>\n<p>IBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.</p>\n<p><b>IBM Strategy</b></p>\n<p>IBM’s strategy heading into the spin-off will be based on “industry clouds,” &nbsp;something also being embraced by Cloud Czars&nbsp;<b>Microsoft</b>(NASDAQ:<b><u>MSFT</u></b>) and&nbsp;<b>Alphabet</b>(NASDAQ:<b><u>GOOGL</u></b>).</p>\n<p>IBM’s hope is that hybrid cloud will become&nbsp;a default corporate IT design, seeking to make internal systems as efficient as cloud.</p>\n<p>While IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by&nbsp;<b>Alibaba Group Holding</b>(NASDAQ:<b><u>BABA</u></b>).</p>\n<p>But its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.</p>\n<p><b>The Bottom Line</b></p>\n<p>If you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about&nbsp;storage systems, aboutquantum computers, about&nbsp;government contracts&nbsp;ordisputes with its old chip foundry.</p>\n<p>But don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBM Stock Is a Lot More Attractive as It Refocuses and Trims Down\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-30 22:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up ...</p>\n\n<a href=\"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IBM":"IBM"},"source_url":"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179476522","content_text":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.\nThis means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.\nIt also means roughly $24.5 billion in cash flow has flown out the door, uninvested.\nThat’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.\nCloud Czars like Facebook(NASDAQ:FB), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.\nIf you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.\nYou’re hoping the dividend ceases to be an issue.\nA Closer Look at IBM Stock\nKyndryl is expected to generate roughly $19 billion in sales per year when it’s spun out, into offices atop a skyscraper next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”\nThis could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”\nAccording to analysts at Andreesen Horowitz’s new online publication Future,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.\nThis would be the sweet spot for the new IBM, and the Achilles heel of companies like Amazon.Com(NASDAQ:AMZN). Questions of where data is located, called cloud sovereignty, can complicate matters, but IBM thrives on such complexity.\nInvestors Walk Away\nMost investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.\nBut there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of $2.25/share.\nThe March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.\nIf IBM can hit its estimates investors could see an historic breakout, according to Alan Farley of FX Empire.\nIBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.\nIBM Strategy\nIBM’s strategy heading into the spin-off will be based on “industry clouds,”  something also being embraced by Cloud Czars Microsoft(NASDAQ:MSFT) and Alphabet(NASDAQ:GOOGL).\nIBM’s hope is that hybrid cloud will become a default corporate IT design, seeking to make internal systems as efficient as cloud.\nWhile IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by Alibaba Group Holding(NASDAQ:BABA).\nBut its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.\nThe Bottom Line\nIf you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about storage systems, aboutquantum computers, about government contracts ordisputes with its old chip foundry.\nBut don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":246,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167844973,"gmtCreate":1624262119892,"gmtModify":1634008736443,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167844973","repostId":"2145856520","repostType":4,"repost":{"id":"2145856520","weMediaInfo":{"introduction":"Reuters.com brings you the latest news from around the world, covering breaking news in markets, business, politics, entertainment and technology","home_visible":1,"media_name":"Reuters","id":"1036604489","head_image":"https://static.tigerbbs.com/443ce19704621c837795676028cec868"},"pubTimestamp":1624257759,"share":"https://www.laohu8.com/m/news/2145856520?lang=&edition=full","pubTime":"2021-06-21 14:42","market":"hk","language":"en","title":"Naspers offshoot Prosus reports earnings boost from Tencent stake","url":"https://stock-news.laohu8.com/highlight/detail?id=2145856520","media":"Reuters","summary":"AMSTERDAM/JOHANNESBURG, June 21 (Reuters) - Prosus NV, the international investment arm of South Afr","content":"<p>AMSTERDAM/JOHANNESBURG, June 21 (Reuters) - <a href=\"https://laohu8.com/S/PROSF\">Prosus NV</a>, the international investment arm of South Africa's Naspers , reported a better than expected net profit of $7.45 billion for 2021 on Monday, driven by strong returns from its big stake in Chinese software giant Tencent.</p>\n<p>However, the company reported an operating loss of $1.04 billion at the companies it owns around the globe in online marketplaces, food delivery and educational software.</p>\n<p>Analysts had seen net profit at $4.63 billion for the 12 months ended March 31, up from $3.66 billion in the same period a year earlier, according to Refinitiv data. Prosus owns 28.9% of Tencent and is itself controlled by Naspers, Africa's biggest company by market capitalisation.</p>\n<p>Of net profit, $7.1 billion came from minority investments, dominated by the contribution from Tencent, which grew profit by 33%.</p>\n<p>Prosus said its operating loss was due to higher employee expenses, and that its businesses had performed well amid the coronavirus pandemic.</p>\n<p>It pointed a 54% increase in revenue in companies that it consolidates, to $5.1 billion from $3.3 billion.</p>\n<p>\"During the period, we accelerated revenue growth, improved profitability and cash generation, and grew customer numbers,\" the company said in a statement.</p>\n<p>Prosus’ parent Naspers reported a 24% rise in reported core headline earnings per share - the main gauge of corporate profit in South Africa - of 814 U.S. cents, up from 656 cents reported for the same period a year earlier.</p>\n<p>Naspers currently owns 73% of Prosus. The companies are seeking shareholder support to move to a cross-holding structure that would shift the bulk of their assets to Amsterdam while leaving Naspers in control.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Naspers offshoot Prosus reports earnings boost from Tencent stake</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nNaspers offshoot Prosus reports earnings boost from Tencent stake\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1036604489\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/443ce19704621c837795676028cec868);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Reuters </p>\n<p class=\"h-time\">2021-06-21 14:42</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<p>AMSTERDAM/JOHANNESBURG, June 21 (Reuters) - <a href=\"https://laohu8.com/S/PROSF\">Prosus NV</a>, the international investment arm of South Africa's Naspers , reported a better than expected net profit of $7.45 billion for 2021 on Monday, driven by strong returns from its big stake in Chinese software giant Tencent.</p>\n<p>However, the company reported an operating loss of $1.04 billion at the companies it owns around the globe in online marketplaces, food delivery and educational software.</p>\n<p>Analysts had seen net profit at $4.63 billion for the 12 months ended March 31, up from $3.66 billion in the same period a year earlier, according to Refinitiv data. Prosus owns 28.9% of Tencent and is itself controlled by Naspers, Africa's biggest company by market capitalisation.</p>\n<p>Of net profit, $7.1 billion came from minority investments, dominated by the contribution from Tencent, which grew profit by 33%.</p>\n<p>Prosus said its operating loss was due to higher employee expenses, and that its businesses had performed well amid the coronavirus pandemic.</p>\n<p>It pointed a 54% increase in revenue in companies that it consolidates, to $5.1 billion from $3.3 billion.</p>\n<p>\"During the period, we accelerated revenue growth, improved profitability and cash generation, and grew customer numbers,\" the company said in a statement.</p>\n<p>Prosus’ parent Naspers reported a 24% rise in reported core headline earnings per share - the main gauge of corporate profit in South Africa - of 814 U.S. cents, up from 656 cents reported for the same period a year earlier.</p>\n<p>Naspers currently owns 73% of Prosus. The companies are seeking shareholder support to move to a cross-holding structure that would shift the bulk of their assets to Amsterdam while leaving Naspers in control.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"NPSNY":"Naspers(腾讯南非大股东)","TCEHY":"腾讯控股ADR","00700":"腾讯控股"},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2145856520","content_text":"AMSTERDAM/JOHANNESBURG, June 21 (Reuters) - Prosus NV, the international investment arm of South Africa's Naspers , reported a better than expected net profit of $7.45 billion for 2021 on Monday, driven by strong returns from its big stake in Chinese software giant Tencent.\nHowever, the company reported an operating loss of $1.04 billion at the companies it owns around the globe in online marketplaces, food delivery and educational software.\nAnalysts had seen net profit at $4.63 billion for the 12 months ended March 31, up from $3.66 billion in the same period a year earlier, according to Refinitiv data. Prosus owns 28.9% of Tencent and is itself controlled by Naspers, Africa's biggest company by market capitalisation.\nOf net profit, $7.1 billion came from minority investments, dominated by the contribution from Tencent, which grew profit by 33%.\nProsus said its operating loss was due to higher employee expenses, and that its businesses had performed well amid the coronavirus pandemic.\nIt pointed a 54% increase in revenue in companies that it consolidates, to $5.1 billion from $3.3 billion.\n\"During the period, we accelerated revenue growth, improved profitability and cash generation, and grew customer numbers,\" the company said in a statement.\nProsus’ parent Naspers reported a 24% rise in reported core headline earnings per share - the main gauge of corporate profit in South Africa - of 814 U.S. cents, up from 656 cents reported for the same period a year earlier.\nNaspers currently owns 73% of Prosus. The companies are seeking shareholder support to move to a cross-holding structure that would shift the bulk of their assets to Amsterdam while leaving Naspers in control.","news_type":1},"isVote":1,"tweetType":1,"viewCount":89,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167845209,"gmtCreate":1624262091201,"gmtModify":1634008736667,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"&nbsp;Wow","listText":"&nbsp;Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167845209","repostId":"1117073468","repostType":4,"repost":{"id":"1117073468","pubTimestamp":1624261389,"share":"https://www.laohu8.com/m/news/1117073468?lang=&edition=full","pubTime":"2021-06-21 15:43","market":"us","language":"en","title":"Carnival: Ludicrous Mode","url":"https://stock-news.laohu8.com/highlight/detail?id=1117073468","media":"seekingalpha","summary":"Summary\n\nCarnival shares look tired in the current rally.\nWith its long-term debt situation continui","content":"<p><b>Summary</b></p>\n<ul>\n <li>Carnival shares look tired in the current rally.</li>\n <li>With its long-term debt situation continuing to worsen, and with it interest expense, the business is impaired.</li>\n <li>The current share price is pricing in a ludicrously unrealistic recovery.</li>\n</ul>\n<p>The cruise line stocks have been in the midst of a prolonged rally since the vaccine became a reality last fall. The group has soared, including one of its major constituents,<b>Carnival Corp.</b>(CCL). I’ve been critical of the valuations in the sector because I see overly optimistic investors bidding up the stocks of cruise operators without concern for the long-term damage that has been done to their business models. In the case of Carnival, that is very much the case, but the chart is suggesting caution is warranted as well.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4c105625684d84d58f9e6641691a5cdf\" tg-width=\"640\" tg-height=\"615\" referrerpolicy=\"no-referrer\"><span>Source: StockCharts</span></p>\n<p>I’ve annotated a rectangular consolidation that has been forming since February, with the bottom near $24 and the top near $31. Rectangular consolidations following strong uptrends are bullish typically, so I would normally say Carnival is digesting gains and readying for a new push higher. But in this case, the rectangle was broken early this month, but the breakout failed.</p>\n<p>I’ve circled the area of the failed breakout, and shares have fallen quickly since then. That is a bearish sign because the bulls had the breakout, but failed to push the stock any higher.</p>\n<p>In addition, the accumulation/distribution line is neutral, which isn’t confirming the bull move, or the breakout attempt that occurred. The A/D line isn’t bearish, necessarily, but it isn’t confirming the bullish move that was attempted.</p>\n<p>In addition, the PPO is showing very strong negative divergences, which simply means it is declining while the price has been rising. That indicates bullish momentum is waning, and can often portend the end of a bullish move as rallies become less and less potent as time goes on.</p>\n<p>Taken together, these factors make it look to me like Carnival’s current move off of the November low is more likely to be complete than to continue. And given what I’ll discuss below about just how damaged Carnival is at this point, I’m sticking with my sell rating.</p>\n<p><b>Reality is setting in</b></p>\n<p>The cruise line stocks – among other highly discretionary groups – have been rallying on the prospect of the world’s economy reopening. That has happened to a large extent, but not for cruise lines, which continue to deal with heavy restrictions in most locales.</p>\n<p>That has led to several quarters in a row of Carnival producing essentially no revenue, but on the plus side, the company has setplansto continue to get its ships moving again. Keep in mind that Carnival isn’t anywhere near even a meaningfully sized fraction of its prior capacity, and won’t be for some time to come, at least into 2022. In addition, there will undoubtedly be restrictions in terms of spacing, cleaning measures, etc., that will drive operating costs that are higher than they otherwise would have been as a percentage of revenue. But that isn’t stopping the bulls from blindly bidding up the stock anyway.</p>\n<p>For some perspective on the matter, I think revenue revisions are extremely instructive.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/535c29d74125585f55ef2ce4bacbd615\" tg-width=\"640\" tg-height=\"285\" referrerpolicy=\"no-referrer\"><span>Source:Seeking Alpha</span></p>\n<p>The ever-plummeting orange line is the mean estimate for this year, and it continues to fall unabated. That’s because estimates for this were<i>always</i>too high, even before the pandemic, and analysts have continuously underestimated the negative impact of COVID on Carnival’s ability to generate revenue. In other words, the analyst community has been wrong<i>for years</i>on Carnival’s top line, and continues to lower estimates to try and keep pace. Thus, why should we believe there is some light at the end of the tunnel when Carnival has disappointed investors over and over again? That’s not a leap I’m willing to make.</p>\n<p>The out years have some upward kinks at the end of the lines, indicating some upward revisions, and that’s a good sign. It means that the worst of the revisions could be behind the company, but that assumes that you believe an analyst community that has gotten it wrong for years by being overly optimistic. Is this time different? Anything is possible. Is that something I’m willing to bet on? I think you know the answer to that.</p>\n<p>This has massive implications on the company’s ability to generate earnings because cruise lines operate with huge fixed and operating costs. Thus, volume is absolutely necessary to produce any sort of meaningful profits. We won’t get a read on the company’s new level of operating margins until at least next year, when some meaningful volume of cruises actually take place. But in the interim, there are some costs – both explicit and implicit – that we do have a handle on, and none of it is good news.</p>\n<p>Let’s begin with the balance sheet, which has been ravaged during this crisis.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e5f65e836dfbd23b70e589bfee554867\" tg-width=\"640\" tg-height=\"169\" referrerpolicy=\"no-referrer\"><span>Source: TIKR.com</span></p>\n<p>Carnival had a huge amount of debt before the pandemic, checking in near $10 billion. Today, it’s nearly 3X that value and rising all the time, because Carnival is burning through huge amounts of cash every single day, and that won’t stop until the cruises start again in earnest. Carnival could easily have $30+ billion in debt before the cruises get going again, and for a company with ~$3 billion in normalizedoperating profit, there is essentially no hope of ever paying down that much debt. The only way Carnival could ever reduce debt back to prior levels is to issue even more common shares (more on that in just a bit), or asset sales, which would further exacerbate its revenue/profit situation.</p>\n<p>Further, we can see Carnival is now on the hook for ~$400 million in<i>quarterly</i>interest expense, an unbelievably huge sum when viewed in comparison to pre-pandemic levels.</p>\n<p>This will continue to rise into next year because Carnival has to keep borrowing as it burns through cash, waiting for the pandemic to end. We could see ~$2 billion in annual interest expense next year, which would be roughly two-thirds of normalized operating profit. And keep in mind I’m not suggesting Carnival will hit normalized operating profit next year; I’m simply providing context for the ruinously expensive hole Carnival is in right now with its financing situation.</p>\n<p>Finally, as if that weren’t enough, Carnival’s share count has ballooned during this crisis because it had no other sources of funds to keep the lights on.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2ac33f6ea2957c3d3e64559f472488e5\" tg-width=\"640\" tg-height=\"168\"><span>Source: TIKR.com</span></p>\n<p>This means that when/if Carnival does start to produce profits again, it will have to produce a staggering ~70% more profit on a dollar basis just to line up equal to pre-pandemic levels of EPS. In other words, because today’s share count is 69% higher than it was at the end of February 2020 – before the share issuances began – each dollar of profit is spread over 69% more shares. That makes each share’s spread of the profits worth 69% less than it otherwise would have been.</p>\n<p><b>The extent of the problem</b></p>\n<p>This all leads us to valuing the stock, which points to only one conclusion for me; Carnival needs to pull way back from where it is today.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e59adf15d725fe2e89c45e9ff1c75742\" tg-width=\"640\" tg-height=\"286\"><span>Source:Seeking Alpha</span></p>\n<p>EPS revisions are hideously negative, similar to revenue, but that’s beside the point here. The company isn’t expected to produce any sort of meaningful earnings until 2023, and even out to 2026, is only at $3.11. But keep in mind that based upon Carnival’s EPS revision history, these estimates are almost certainly too high. But even if we take these at face value, buyers of the stock today are unbelievably optimistic.</p>\n<p>Fiscal 2018was the best year Carnival has ever had when measured by net income, which came to $3.15 billion. That’s a lot of money, and reflected extremely favorable macro factors for cruise lines, which Carnival took full advantage of. Now, we know the company is running at ~$1.5 billion in incremental interest expense over and above fiscal 2018, and we know that the share count is about 60% higher than fiscal 2018.</p>\n<p>If we assume Carnival will hit $3.15 billion in net income again, which would be a company record, that would be spread over ~60% more shares, which would put it in the area of $2.70 in EPS, not the $4.45 the company actually produced with that level of net income. Now, Carnival has to pay an additional $1.5 billion (give or take) in annual interest expense as well, so we’d actually need to see the company produce another $1.5 billion in operating profit over and above fiscal 2018,<i>just to get to $3.15 billion</i>in net income.</p>\n<p>To get to $4.45 again, Carnival would need to cover the additional $1.5 billion in interest expense, and the ~60% higher share count. That means that instead of the $3.4 billion in operating income Carnival produced that year, it would need nearly<i>$7 billion</i>in operating income to produce the same number (covering the incremental interest expense and higher share count).</p>\n<p>When we put all of this together, shareholders today are betting that Carnival will blow past prior records it had produced in terms of operating and net earnings, and that it has some way to sustain $30 billion in debt, and that it won’t simply continue to issue new shares of stock to fund itself.</p>\n<p>When laid out like this, I simply don’t understand anyone wanting to own Carnival. The current valuation implies a rapid ascent to new heights in terms of earnings, and that is not just imprudent, it is delusional. Carnival is in its own form ofLudicrous Mode, but in this case, that's not a good thing.</p>","source":"seekingalpha","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Carnival: Ludicrous Mode</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nCarnival: Ludicrous Mode\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-21 15:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4435729-carnival-ludicrous-mode><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nCarnival shares look tired in the current rally.\nWith its long-term debt situation continuing to worsen, and with it interest expense, the business is impaired.\nThe current share price is ...</p>\n\n<a href=\"https://seekingalpha.com/article/4435729-carnival-ludicrous-mode\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"CCL":"嘉年华邮轮"},"source_url":"https://seekingalpha.com/article/4435729-carnival-ludicrous-mode","is_english":true,"share_image_url":"https://static.laohu8.com/5a36db9d73b4222bc376d24ccc48c8a4","article_id":"1117073468","content_text":"Summary\n\nCarnival shares look tired in the current rally.\nWith its long-term debt situation continuing to worsen, and with it interest expense, the business is impaired.\nThe current share price is pricing in a ludicrously unrealistic recovery.\n\nThe cruise line stocks have been in the midst of a prolonged rally since the vaccine became a reality last fall. The group has soared, including one of its major constituents,Carnival Corp.(CCL). I’ve been critical of the valuations in the sector because I see overly optimistic investors bidding up the stocks of cruise operators without concern for the long-term damage that has been done to their business models. In the case of Carnival, that is very much the case, but the chart is suggesting caution is warranted as well.\nSource: StockCharts\nI’ve annotated a rectangular consolidation that has been forming since February, with the bottom near $24 and the top near $31. Rectangular consolidations following strong uptrends are bullish typically, so I would normally say Carnival is digesting gains and readying for a new push higher. But in this case, the rectangle was broken early this month, but the breakout failed.\nI’ve circled the area of the failed breakout, and shares have fallen quickly since then. That is a bearish sign because the bulls had the breakout, but failed to push the stock any higher.\nIn addition, the accumulation/distribution line is neutral, which isn’t confirming the bull move, or the breakout attempt that occurred. The A/D line isn’t bearish, necessarily, but it isn’t confirming the bullish move that was attempted.\nIn addition, the PPO is showing very strong negative divergences, which simply means it is declining while the price has been rising. That indicates bullish momentum is waning, and can often portend the end of a bullish move as rallies become less and less potent as time goes on.\nTaken together, these factors make it look to me like Carnival’s current move off of the November low is more likely to be complete than to continue. And given what I’ll discuss below about just how damaged Carnival is at this point, I’m sticking with my sell rating.\nReality is setting in\nThe cruise line stocks – among other highly discretionary groups – have been rallying on the prospect of the world’s economy reopening. That has happened to a large extent, but not for cruise lines, which continue to deal with heavy restrictions in most locales.\nThat has led to several quarters in a row of Carnival producing essentially no revenue, but on the plus side, the company has setplansto continue to get its ships moving again. Keep in mind that Carnival isn’t anywhere near even a meaningfully sized fraction of its prior capacity, and won’t be for some time to come, at least into 2022. In addition, there will undoubtedly be restrictions in terms of spacing, cleaning measures, etc., that will drive operating costs that are higher than they otherwise would have been as a percentage of revenue. But that isn’t stopping the bulls from blindly bidding up the stock anyway.\nFor some perspective on the matter, I think revenue revisions are extremely instructive.\nSource:Seeking Alpha\nThe ever-plummeting orange line is the mean estimate for this year, and it continues to fall unabated. That’s because estimates for this werealwaystoo high, even before the pandemic, and analysts have continuously underestimated the negative impact of COVID on Carnival’s ability to generate revenue. In other words, the analyst community has been wrongfor yearson Carnival’s top line, and continues to lower estimates to try and keep pace. Thus, why should we believe there is some light at the end of the tunnel when Carnival has disappointed investors over and over again? That’s not a leap I’m willing to make.\nThe out years have some upward kinks at the end of the lines, indicating some upward revisions, and that’s a good sign. It means that the worst of the revisions could be behind the company, but that assumes that you believe an analyst community that has gotten it wrong for years by being overly optimistic. Is this time different? Anything is possible. Is that something I’m willing to bet on? I think you know the answer to that.\nThis has massive implications on the company’s ability to generate earnings because cruise lines operate with huge fixed and operating costs. Thus, volume is absolutely necessary to produce any sort of meaningful profits. We won’t get a read on the company’s new level of operating margins until at least next year, when some meaningful volume of cruises actually take place. But in the interim, there are some costs – both explicit and implicit – that we do have a handle on, and none of it is good news.\nLet’s begin with the balance sheet, which has been ravaged during this crisis.\nSource: TIKR.com\nCarnival had a huge amount of debt before the pandemic, checking in near $10 billion. Today, it’s nearly 3X that value and rising all the time, because Carnival is burning through huge amounts of cash every single day, and that won’t stop until the cruises start again in earnest. Carnival could easily have $30+ billion in debt before the cruises get going again, and for a company with ~$3 billion in normalizedoperating profit, there is essentially no hope of ever paying down that much debt. The only way Carnival could ever reduce debt back to prior levels is to issue even more common shares (more on that in just a bit), or asset sales, which would further exacerbate its revenue/profit situation.\nFurther, we can see Carnival is now on the hook for ~$400 million inquarterlyinterest expense, an unbelievably huge sum when viewed in comparison to pre-pandemic levels.\nThis will continue to rise into next year because Carnival has to keep borrowing as it burns through cash, waiting for the pandemic to end. We could see ~$2 billion in annual interest expense next year, which would be roughly two-thirds of normalized operating profit. And keep in mind I’m not suggesting Carnival will hit normalized operating profit next year; I’m simply providing context for the ruinously expensive hole Carnival is in right now with its financing situation.\nFinally, as if that weren’t enough, Carnival’s share count has ballooned during this crisis because it had no other sources of funds to keep the lights on.\nSource: TIKR.com\nThis means that when/if Carnival does start to produce profits again, it will have to produce a staggering ~70% more profit on a dollar basis just to line up equal to pre-pandemic levels of EPS. In other words, because today’s share count is 69% higher than it was at the end of February 2020 – before the share issuances began – each dollar of profit is spread over 69% more shares. That makes each share’s spread of the profits worth 69% less than it otherwise would have been.\nThe extent of the problem\nThis all leads us to valuing the stock, which points to only one conclusion for me; Carnival needs to pull way back from where it is today.\nSource:Seeking Alpha\nEPS revisions are hideously negative, similar to revenue, but that’s beside the point here. The company isn’t expected to produce any sort of meaningful earnings until 2023, and even out to 2026, is only at $3.11. But keep in mind that based upon Carnival’s EPS revision history, these estimates are almost certainly too high. But even if we take these at face value, buyers of the stock today are unbelievably optimistic.\nFiscal 2018was the best year Carnival has ever had when measured by net income, which came to $3.15 billion. That’s a lot of money, and reflected extremely favorable macro factors for cruise lines, which Carnival took full advantage of. Now, we know the company is running at ~$1.5 billion in incremental interest expense over and above fiscal 2018, and we know that the share count is about 60% higher than fiscal 2018.\nIf we assume Carnival will hit $3.15 billion in net income again, which would be a company record, that would be spread over ~60% more shares, which would put it in the area of $2.70 in EPS, not the $4.45 the company actually produced with that level of net income. Now, Carnival has to pay an additional $1.5 billion (give or take) in annual interest expense as well, so we’d actually need to see the company produce another $1.5 billion in operating profit over and above fiscal 2018,just to get to $3.15 billionin net income.\nTo get to $4.45 again, Carnival would need to cover the additional $1.5 billion in interest expense, and the ~60% higher share count. That means that instead of the $3.4 billion in operating income Carnival produced that year, it would need nearly$7 billionin operating income to produce the same number (covering the incremental interest expense and higher share count).\nWhen we put all of this together, shareholders today are betting that Carnival will blow past prior records it had produced in terms of operating and net earnings, and that it has some way to sustain $30 billion in debt, and that it won’t simply continue to issue new shares of stock to fund itself.\nWhen laid out like this, I simply don’t understand anyone wanting to own Carnival. The current valuation implies a rapid ascent to new heights in terms of earnings, and that is not just imprudent, it is delusional. Carnival is in its own form ofLudicrous Mode, but in this case, that's not a good thing.","news_type":1},"isVote":1,"tweetType":1,"viewCount":208,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":167845947,"gmtCreate":1624262050889,"gmtModify":1634008737017,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Nicebshhsjs","listText":"Nicebshhsjs","text":"Nicebshhsjs","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/167845947","isVote":1,"tweetType":1,"viewCount":124,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":188146295,"gmtCreate":1623425823617,"gmtModify":1634033309825,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Man","listText":"Man","text":"Man","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/188146295","repostId":"1107871315","repostType":4,"isVote":1,"tweetType":1,"viewCount":143,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":188141027,"gmtCreate":1623425678169,"gmtModify":1634033311501,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"idStr":"3585032110055415","authorIdStr":"3585032110055415"},"themes":[],"htmlText":"Damn&nbsp;","listText":"Damn&nbsp;","text":"Damn","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/188141027","repostId":"2142022769","repostType":4,"repost":{"id":"2142022769","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1623380100,"share":"https://www.laohu8.com/m/news/2142022769?lang=&edition=full","pubTime":"2021-06-11 10:55","market":"us","language":"en","title":"We put 6 more meme stocks' numbers to the test and the differences are telling","url":"https://stock-news.laohu8.com/highlight/detail?id=2142022769","media":"Dow Jones","summary":"Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows i","content":"<blockquote>\n <b>Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.</b>\n</blockquote>\n<p>The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.</p>\n<p>After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.</p>\n<p>(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, Nokia Corp. (NOKIA.HE) and GameStop Corp. <a href=\"https://laohu8.com/S/GME\">$(GME)$</a>.)</p>\n<p><b>Short squeezes and meme stocks</b></p>\n<p>Traders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.</p>\n<p>Professional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.</p>\n<p>\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.</p>\n<p>To have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.</p>\n<p><b>Six more meme stocks</b></p>\n<p>The action changes daily. On June 9, for example, shares of Clover Health Investments Corp. <a href=\"https://laohu8.com/S/CLOV\">$(CLOV)$</a> fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.</p>\n<p>Read:Newest meme stock darling Clover Health is popping. Is the SEC watching?</p>\n<p>Here are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:</p>\n<p><img src=\"https://static.tigerbbs.com/45b4fabbee4e18ee1b473200ab3a7c4b\" tg-width=\"1260\" tg-height=\"300\"></p>\n<p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:</p>\n<p><img src=\"https://static.tigerbbs.com/1d9a8e2dfc61b0e4ff70a8630193cecb\" tg-width=\"1259\" tg-height=\"1038\"></p>\n<p>Palantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.</p>\n<p>Wendy's Co. <a href=\"https://laohu8.com/S/WEN\">$(WEN)$</a> is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.</p>\n<p><a href=\"https://laohu8.com/S/WISH\">ContextLogic Inc.</a> (WISH) is <a href=\"https://laohu8.com/S/AONE\">one</a> of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.</p>\n<p><b>Short interest</b></p>\n<p>Keeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:</p>\n<p><img src=\"https://static.tigerbbs.com/d0875b54168c760b950d250308eb5efd\" tg-width=\"1260\" tg-height=\"390\"></p>\n<p>FactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.</p>\n<p>Clover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares <a href=\"https://laohu8.com/S/HDGE\">Ranger Equity Bear ETF</a> (HDGE), which is meant to be used as a hedging tool.)</p>\n<p>A high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.</p>\n<p>We have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. <a href=\"https://laohu8.com/S/TSLA\">$(TSLA)$</a> is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&amp;P 500. Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a> ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.</p>\n<p><a href=\"https://laohu8.com/S/GOEV\">Canoo Inc.</a> (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.</p>\n<p><a href=\"https://laohu8.com/S/CLNE\">Clean Energy Fuels Corp</a>. <a href=\"https://laohu8.com/S/CLNE.AU\">$(CLNE.AU)$</a> provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.</p>\n<p><b>Fundamentals</b></p>\n<p>We'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.</p>\n<ul>\n <li><b>Looking back</b></li>\n</ul>\n<p>First, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):</p>\n<p><img src=\"https://static.tigerbbs.com/bcc4fbd762406f0684e991d289b8b760\" tg-width=\"1260\" tg-height=\"392\"></p>\n<p>You can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.</p>\n<p>Clover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with <a href=\"https://laohu8.com/S/IPOC.U\">Social Capital Hedosophia Holdings Corp. III</a> (a SPAC) on Jan. 7.</p>\n<ul>\n <li><b>Looking ahead -- sales</b></li>\n</ul>\n<p>Starting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:</p>\n<p><img src=\"https://static.tigerbbs.com/37c11916067fb3829caff57a89cf17f0\" tg-width=\"1260\" tg-height=\"380\"></p>\n<p>Double-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&amp;P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.</p>\n<p><b>Looking ahead -- earnings</b></p>\n<p>Here are earnings-per-share estimates going out to 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/4cf06aa00f9303dda82b1c3f8cf34c21\" tg-width=\"1260\" tg-height=\"500\"></p>\n<p>You might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&amp;P 500 trades for 18.4 times its consensus EPS estimate for 2023.</p>\n<p>The estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .</p>\n<p><b>Wall Street's opinion</b></p>\n<p>Here's a summary of opinion for this group of meme stocks among Wall Street analysts:</p>\n<p><img src=\"https://static.tigerbbs.com/c2dfa61b27c34a6c17f5b4d2119126f9\" tg-width=\"1259\" tg-height=\"373\"></p>\n<p>So the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.</p>\n<p>Wall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>We put 6 more meme stocks' numbers to the test and the differences are telling</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWe put 6 more meme stocks' numbers to the test and the differences are telling\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2021-06-11 10:55</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<blockquote>\n <b>Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.</b>\n</blockquote>\n<p>The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.</p>\n<p>After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.</p>\n<p>(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, Nokia Corp. (NOKIA.HE) and GameStop Corp. <a href=\"https://laohu8.com/S/GME\">$(GME)$</a>.)</p>\n<p><b>Short squeezes and meme stocks</b></p>\n<p>Traders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.</p>\n<p>Professional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.</p>\n<p>\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.</p>\n<p>To have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.</p>\n<p><b>Six more meme stocks</b></p>\n<p>The action changes daily. On June 9, for example, shares of Clover Health Investments Corp. <a href=\"https://laohu8.com/S/CLOV\">$(CLOV)$</a> fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.</p>\n<p>Read:Newest meme stock darling Clover Health is popping. Is the SEC watching?</p>\n<p>Here are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:</p>\n<p><img src=\"https://static.tigerbbs.com/45b4fabbee4e18ee1b473200ab3a7c4b\" tg-width=\"1260\" tg-height=\"300\"></p>\n<p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:</p>\n<p><img src=\"https://static.tigerbbs.com/1d9a8e2dfc61b0e4ff70a8630193cecb\" tg-width=\"1259\" tg-height=\"1038\"></p>\n<p>Palantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.</p>\n<p>Wendy's Co. <a href=\"https://laohu8.com/S/WEN\">$(WEN)$</a> is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.</p>\n<p><a href=\"https://laohu8.com/S/WISH\">ContextLogic Inc.</a> (WISH) is <a href=\"https://laohu8.com/S/AONE\">one</a> of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.</p>\n<p><b>Short interest</b></p>\n<p>Keeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:</p>\n<p><img src=\"https://static.tigerbbs.com/d0875b54168c760b950d250308eb5efd\" tg-width=\"1260\" tg-height=\"390\"></p>\n<p>FactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.</p>\n<p>Clover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares <a href=\"https://laohu8.com/S/HDGE\">Ranger Equity Bear ETF</a> (HDGE), which is meant to be used as a hedging tool.)</p>\n<p>A high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.</p>\n<p>We have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. <a href=\"https://laohu8.com/S/TSLA\">$(TSLA)$</a> is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&amp;P 500. Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a> ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.</p>\n<p><a href=\"https://laohu8.com/S/GOEV\">Canoo Inc.</a> (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.</p>\n<p><a href=\"https://laohu8.com/S/CLNE\">Clean Energy Fuels Corp</a>. <a href=\"https://laohu8.com/S/CLNE.AU\">$(CLNE.AU)$</a> provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.</p>\n<p><b>Fundamentals</b></p>\n<p>We'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.</p>\n<ul>\n <li><b>Looking back</b></li>\n</ul>\n<p>First, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):</p>\n<p><img src=\"https://static.tigerbbs.com/bcc4fbd762406f0684e991d289b8b760\" tg-width=\"1260\" tg-height=\"392\"></p>\n<p>You can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.</p>\n<p>Clover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with <a href=\"https://laohu8.com/S/IPOC.U\">Social Capital Hedosophia Holdings Corp. III</a> (a SPAC) on Jan. 7.</p>\n<ul>\n <li><b>Looking ahead -- sales</b></li>\n</ul>\n<p>Starting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:</p>\n<p><img src=\"https://static.tigerbbs.com/37c11916067fb3829caff57a89cf17f0\" tg-width=\"1260\" tg-height=\"380\"></p>\n<p>Double-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&amp;P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.</p>\n<p><b>Looking ahead -- earnings</b></p>\n<p>Here are earnings-per-share estimates going out to 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/4cf06aa00f9303dda82b1c3f8cf34c21\" tg-width=\"1260\" tg-height=\"500\"></p>\n<p>You might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&amp;P 500 trades for 18.4 times its consensus EPS estimate for 2023.</p>\n<p>The estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .</p>\n<p><b>Wall Street's opinion</b></p>\n<p>Here's a summary of opinion for this group of meme stocks among Wall Street analysts:</p>\n<p><img src=\"https://static.tigerbbs.com/c2dfa61b27c34a6c17f5b4d2119126f9\" tg-width=\"1259\" tg-height=\"373\"></p>\n<p>So the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.</p>\n<p>Wall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"WEN":"温蒂汉堡","CLNE":"Clean Energy Fuels Corp","CLOV":"Clover Health Corp","PLTR":"Palantir Technologies Inc."},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2142022769","content_text":"Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.\n\nThe world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.\nAfter last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.\n(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc $(AMC)$, Nokia Corp. (NOKIA.HE) and GameStop Corp. $(GME)$.)\nShort squeezes and meme stocks\nTraders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.\nProfessional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.\n\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.\nTo have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.\nSix more meme stocks\nThe action changes daily. On June 9, for example, shares of Clover Health Investments Corp. $(CLOV)$ fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.\nRead:Newest meme stock darling Clover Health is popping. Is the SEC watching?\nHere are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:\n\nPalantir Technologies Inc. (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:\n\nPalantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.\nWendy's Co. $(WEN)$ is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.\nContextLogic Inc. (WISH) is one of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.\nShort interest\nKeeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:\n\nFactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.\nClover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares Ranger Equity Bear ETF (HDGE), which is meant to be used as a hedging tool.)\nA high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.\nWe have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. $(TSLA)$ is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&P 500. Amazon.com Inc. $(AMZN)$ ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.\nCanoo Inc. (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.\nClean Energy Fuels Corp. $(CLNE.AU)$ provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.\nFundamentals\nWe'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.\n\nLooking back\n\nFirst, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):\n\nYou can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.\nClover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with Social Capital Hedosophia Holdings Corp. III (a SPAC) on Jan. 7.\n\nLooking ahead -- sales\n\nStarting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:\n\nDouble-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.\nLooking ahead -- earnings\nHere are earnings-per-share estimates going out to 2023:\n\nYou might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&P 500 trades for 18.4 times its consensus EPS estimate for 2023.\nThe estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .\nWall Street's opinion\nHere's a summary of opinion for this group of meme stocks among Wall Street analysts:\n\nSo the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.\nWall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.","news_type":1},"isVote":1,"tweetType":1,"viewCount":196,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"hots":[{"id":893612506,"gmtCreate":1628259271905,"gmtModify":1631892018789,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Isiiskdkf","listText":"Isiiskdkf","text":"Isiiskdkf","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/893612506","repostId":"1155656235","repostType":4,"repost":{"id":"1155656235","pubTimestamp":1628227304,"share":"https://www.laohu8.com/m/news/1155656235?lang=&edition=full","pubTime":"2021-08-06 13:21","market":"us","language":"en","title":"20 cloud stocks expected to increase sales the most over the next two years","url":"https://stock-news.laohu8.com/highlight/detail?id=1155656235","media":"MarketWatch","summary":"Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales ","content":"<p>Cloud ETFs are close to record highs, propelled by a rally in the sector</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/78101d8010e186fe4df59b2ef82b5de6\" tg-width=\"700\" tg-height=\"394\" width=\"100%\" height=\"auto\"><span>Analysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)</span></p>\n<p>U.S. investors remain bullish, despite rumblings out of China and the spike in delta variant infections.</p>\n<p>Cloud companies — those at the forefront of the shift in computing power to distributed models over the internet — are expected to grow at a rapid clip over the next several years, and four of the five largest exchange traded funds covering the space are close to hitting record highs.</p>\n<p>Below is a screen of stocks held by those ETFs, showing which are expected to increase their sales the most through 2023. In an industry with many players at relatively early stages, increases in sales, rather than in earnings, might be the best driver of stock prices.</p>\n<p>To begin the screen, we looked at the five largest cloud ETFs:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/36209ce827d95e822cad5128be8b146a\" tg-width=\"933\" tg-height=\"664\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>ETFs might be your best way to take a broad approach for a long-term play on the cloud revolution. If you are interested in any ETF, you should review the fund manager’s website.</p>\n<p>Here’s a comparison of total returns through Aug. 4, along with those for the SPDR S&amp;P 500 ETF&nbsp;and the Invesco QQQ Trust&nbsp;(which tracks the Nasdaq-100 Index) for comparison:</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/242f135b3c7cca3cbaae3ee574023c1f\" tg-width=\"942\" tg-height=\"577\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>The ETFs’ approaches differ. For example, the ARK Next Generation Internet ETF&nbsp;is the only one that is actively managed. The others track an index. It is also the only one that holds shares of Tesla Inc.,which makes up 10.65% of the portfolio, according to information posted by ARK Invest on Aug. 5. Tesla is an electric-vehicle manufacturer, but it can also be considered a cloud company because it distributes software updates over the internet continually, and offers other cloud-based services.</p>\n<p>Another holding unique to ARKW among the five cloud ETFs is Walt Disney Co.,which is certainly an important cloud player through its Disney+ streaming service, even if the company doesn’t say directly how much of its sales are derived from that rapidly growing segment.</p>\n<p>As part of its description of ARKW, FactSet says the following:</p>\n<p><i>“Broadly speaking, the ARKW’s managers appear focused on big buzzwords such as Internet of Things, cloud computing, digital currencies and wearable technology. While the fund’s focus may be appealing for investors with conviction in these new technologies, portfolio implementation is a more difficult task: Most of the companies developing these advancements are huge corporations for which nascent technologies are only a small fraction of total revenues. As such, it’s very difficult to get pure-play access to ARKW’s targeted technologies — so be sure to confirm that the fund’s holdings — not just its thesis — align with your view of the space.”</i></p>\n<p><b>Cloud-stock screen</b></p>\n<p>Together, the five cloud ETFs listed above hold 147 stocks. To project sales growth through 2023, we used calendar 2020 sales estimates as a baseline and then looked at consensus estimates among analysts polled by FactSet for the subsequent three years, if available. (The 2020 numbers are estimates, because many companies’ fiscal years don’t match the calendar.)</p>\n<p>To make sure we had a solid set of estimates, we confined the group to the 126 companies covered by at least five analysts polled by FactSet, for which consensus sales estimates for calendar 2020 through calendar 2023 are available.</p>\n<p>Here are the 20 companies projected to have the highest compound annual growth rates (CAGR) for sales through calendar 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/517a23591cde159fb889ab80abc4bcc6\" tg-width=\"934\" tg-height=\"765\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/6af2cf5b5f9f0ce50f8f023ac7babc7f\" tg-width=\"935\" tg-height=\"717\" width=\"100%\" height=\"auto\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b88ebe72e09cb9ce3294269f0a4ae431\" tg-width=\"935\" tg-height=\"403\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>There are actually 21 stocks listed, including Zillow Group Inc.’s Class A&nbsp;and Class C&nbsp;shares.</p>\n<p>It is interesting to see that the list is dominated by stocks held by ARKW. The fund has a broad definition of cloud companies and is focused also on sales growth.</p>\n<p>Here are current forward price-to-sales ratios based on consensus estimates for the next 12 months, as well as ratios of current market cap to projected 2023 sales and summaries of analysts’ opinions about the stocks.</p>\n<p><img src=\"https://static.tigerbbs.com/19b9c4bf1d8b1abcfa76b7d008a47ad7\" tg-width=\"938\" tg-height=\"805\" width=\"100%\" height=\"auto\"><img src=\"https://static.tigerbbs.com/2ff191189c5d7d2f31698843734ca3cc\" tg-width=\"933\" tg-height=\"773\" width=\"100%\" height=\"auto\"></p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0e9543489c4d52d3f1a69dfdcf170115\" tg-width=\"930\" tg-height=\"242\" width=\"100%\" height=\"auto\"><span>Source: FactSet</span></p>\n<p>In comparison, the forward price-to-sales ratio for SPY is 2.8, with a price/2023 estimated sales ratio of 2.6. For QQQ, the current P/S is 4.7, declining to 4.3 for 2023.</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>20 cloud stocks expected to increase sales the most over the next two years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n20 cloud stocks expected to increase sales the most over the next two years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-08-06 13:21 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)\nU.S. investors ...</p>\n\n<a href=\"https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SQ":"Block","DKNG":"DraftKings Inc.","CRWD":"CrowdStrike Holdings, Inc.","MELI":"MercadoLibre","SKLZ":"Skillz Inc","PINS":"Pinterest, Inc.","TSLA":"特斯拉","COIN":"Coinbase Global, Inc.","PDD":"拼多多","Z":"Zillow","SNAP":"Snap Inc","TDOC":"Teladoc Health Inc.","ADYEY":"Adyen N.V.","KC":"金山云","ZG":"Zillow Class A","ROKU":"Roku Inc","SHOP":"Shopify Inc","OKTA":"Okta Inc.","VCYT":"Veracyte Inc","SE":"Sea Ltd","LC":"LendingClub"},"source_url":"https://www.marketwatch.com/story/20-cloud-stocks-expected-to-increase-sales-the-most-over-the-next-two-years-11628186683?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1155656235","content_text":"Cloud ETFs are close to record highs, propelled by a rally in the sector\nAnalysts see stellar sales growth ahead for companies that provide cloud services. (Getty Images/iStockphoto)\nU.S. investors remain bullish, despite rumblings out of China and the spike in delta variant infections.\nCloud companies — those at the forefront of the shift in computing power to distributed models over the internet — are expected to grow at a rapid clip over the next several years, and four of the five largest exchange traded funds covering the space are close to hitting record highs.\nBelow is a screen of stocks held by those ETFs, showing which are expected to increase their sales the most through 2023. In an industry with many players at relatively early stages, increases in sales, rather than in earnings, might be the best driver of stock prices.\nTo begin the screen, we looked at the five largest cloud ETFs:\nSource: FactSet\nETFs might be your best way to take a broad approach for a long-term play on the cloud revolution. If you are interested in any ETF, you should review the fund manager’s website.\nHere’s a comparison of total returns through Aug. 4, along with those for the SPDR S&P 500 ETF and the Invesco QQQ Trust (which tracks the Nasdaq-100 Index) for comparison:\nSource: FactSet\nThe ETFs’ approaches differ. For example, the ARK Next Generation Internet ETF is the only one that is actively managed. The others track an index. It is also the only one that holds shares of Tesla Inc.,which makes up 10.65% of the portfolio, according to information posted by ARK Invest on Aug. 5. Tesla is an electric-vehicle manufacturer, but it can also be considered a cloud company because it distributes software updates over the internet continually, and offers other cloud-based services.\nAnother holding unique to ARKW among the five cloud ETFs is Walt Disney Co.,which is certainly an important cloud player through its Disney+ streaming service, even if the company doesn’t say directly how much of its sales are derived from that rapidly growing segment.\nAs part of its description of ARKW, FactSet says the following:\n“Broadly speaking, the ARKW’s managers appear focused on big buzzwords such as Internet of Things, cloud computing, digital currencies and wearable technology. While the fund’s focus may be appealing for investors with conviction in these new technologies, portfolio implementation is a more difficult task: Most of the companies developing these advancements are huge corporations for which nascent technologies are only a small fraction of total revenues. As such, it’s very difficult to get pure-play access to ARKW’s targeted technologies — so be sure to confirm that the fund’s holdings — not just its thesis — align with your view of the space.”\nCloud-stock screen\nTogether, the five cloud ETFs listed above hold 147 stocks. To project sales growth through 2023, we used calendar 2020 sales estimates as a baseline and then looked at consensus estimates among analysts polled by FactSet for the subsequent three years, if available. (The 2020 numbers are estimates, because many companies’ fiscal years don’t match the calendar.)\nTo make sure we had a solid set of estimates, we confined the group to the 126 companies covered by at least five analysts polled by FactSet, for which consensus sales estimates for calendar 2020 through calendar 2023 are available.\nHere are the 20 companies projected to have the highest compound annual growth rates (CAGR) for sales through calendar 2023:\n\nSource: FactSet\nThere are actually 21 stocks listed, including Zillow Group Inc.’s Class A and Class C shares.\nIt is interesting to see that the list is dominated by stocks held by ARKW. The fund has a broad definition of cloud companies and is focused also on sales growth.\nHere are current forward price-to-sales ratios based on consensus estimates for the next 12 months, as well as ratios of current market cap to projected 2023 sales and summaries of analysts’ opinions about the stocks.\n\nSource: FactSet\nIn comparison, the forward price-to-sales ratio for SPY is 2.8, with a price/2023 estimated sales ratio of 2.6. For QQQ, the current P/S is 4.7, declining to 4.3 for 2023.","news_type":1},"isVote":1,"tweetType":1,"viewCount":346,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":142731793,"gmtCreate":1626175365512,"gmtModify":1631892018829,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Bdmdjd","listText":"Bdmdjd","text":"Bdmdjd","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/142731793","repostId":"1191858541","repostType":4,"repost":{"id":"1191858541","pubTimestamp":1626175065,"share":"https://www.laohu8.com/m/news/1191858541?lang=&edition=full","pubTime":"2021-07-13 19:17","market":"us","language":"en","title":"Earnings season starts with sky-high stock prices and soaring expectations","url":"https://stock-news.laohu8.com/highlight/detail?id=1191858541","media":"CNBC","summary":"Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper,","content":"<div>\n<p>Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html\">Web Link</a>\n\n</div>\n","source":"cnbc_highlight","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Earnings season starts with sky-high stock prices and soaring expectations</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nEarnings season starts with sky-high stock prices and soaring expectations\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-13 19:17 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html><strong>CNBC</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having...</p>\n\n<a href=\"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{".IXIC":"NASDAQ Composite",".SPX":"S&P 500 Index",".DJI":"道琼斯"},"source_url":"https://www.cnbc.com/2021/07/13/earnings-season-starts-with-sky-high-stock-prices-and-sky-high-expectations.html","is_english":true,"share_image_url":"https://static.laohu8.com/72bb72e1b84c09fca865c6dcb1bbcd16","article_id":"1191858541","content_text":"Earnings season begins with two major tailwinds: sky-high prices and soaring expectations.\nOn paper, second-quarter earnings season looks like the mother of all earnings reports, with estimates having risen steadily for the past six months, from expected 45% growth in January to 65% growth today compared to the same period last year.\nIt's the strongest rate of growth since 2009, when earnings were just starting to recover from the disaster of the Great Financial Crisis.\nBut the gap between earnings expectations and the actual reported growth rates has been huge for nearly a year — and the market is beginning to (mistakenly) believe it is a permanent feature of the reporting landscape.\nHistorically, reported earnings tend to beat expectations by 3% to 5%, that is, companies usually manage to eke out a small positive surprise in their earnings reports.\nBut the last four quarters have blown apart those historical averages.\nEarnings blowout\n(difference between end of quarter estimates vs. reported estimates)\n\nQ2 20     12.6%\nQ3 20      15.5%\nQ420       13.2%\nQ121       28.7%\n\nSource:  FactSet\nPut it all together, and the average \"beat\" for the last four quarters is about 18 percentage points above analyst estimates.\nCan the market pull off yet another 18% to 20% earnings beat?  It looks like the market is anticipating exactly that. The second quarter dollar estimates are below the first quarter, even though corporate profits are clearly stronger, implying analysts are wrong again.\n2021 earnings\n($ per share, rounded)\n\nQ1:  $49 (up 52%)\nQ2:  $45 (up 65%)\nQ3:  $48 (up 25%)\nQ4:  $50 (up 18%)\n\nSource:  Refinitiv\nThe per share dollar gain is $49 for Q1, but only $45 for Q2.  The dollar value of the S&P earnings for the second quarter is well below the first quarter, which makes no sense if the second quarter economy is even stronger than the first quarter.\nThe market seems to be clearly implying another quarter of big earnings beats, higher than the even 65% growth analysts are already expected.\n\"Markets clearly believe Q2 earnings reports will far exceed expectations,\" Nicholas Colas from DataTrek said in a recent note to clients.  \"The 'right' earnings growth rate for Q2 is likely closer to 80 percent assuming S&P EPS is only the same as Q1 2021...It could be closer to 100 percent if US corporate earnings power has improved since then.\"\nNearly two dozen companies have already reported earnings, and many of the largest have indeed pulled off impressive earnings beats:\nEarly performers\n(% beat)\n\nNike          82%\nKroger       18%\nCostco       18%\nOracle        17%\nFedEx         in-line\n\nThe exception, FedEx, reported merely in-line earnings on June 24th after the close, and has traded below its price on that day ever since.\nAre earnings really that good?\nA 65% increase in earnings sounds titanic, but it's only because the Covid crisis reached its peak in the second quarter last year, and earnings predictably collapsed, as Christine Short from Wall Street Horizon noted.\n\"In this regard, because Q2 2020 is an easy YoY comparison, it's best to compare to years prior,\" she said in a recent note. \"For example, Q2 2021 growth is only 8.3% when compared to Q2 2019, which seems like a more realistic picture of the current rebound phase and growth trajectory we're on. But don't get me wrong, 8.3% is still a great growth rate in any quarter, well above the 5-year average earnings growth rate of 4.1%.\"\nBottom line: Earnings growth is still above historic norms, even after accounting for Covid.\nWhat's up with costs?\nBesides sky-high expectations, higher costs and pricing power are a major flashpoint for second quarter earnings.\nTake MSC Industrial Direct, a distributor of industrial supplies.  It recently reported strong earnings and said demand was \"robust\" but also reported much higher costs.  \"The industrial economy is experiencing very real supply chain shortages and disruptions,\" the company said on a conference call. \"These disruptions are evidencing themselves in product scarcity, freight delays, and extreme labor shortages that are resulting in significant availability and inflationary pressures.\"\nHowever, the company has also been raising prices as costs have increased.\n\"What's going to be important in this earnings season is who can have revenue growth and keep their operating margins,\" Sarat Sethi, managing partner and portfolio manager at DCLA and a CNBC contributor, said on our air. \"If you can't raise your prices or you can't raise revenue, you can't expand, I think those stocks that have already reflected really good futures could get hurt.\"\n Are big earnings beats here to stay?\nDon't bet on it.\nFortunately, earnings estimates for the third quarter have also been rising.  \"Q3 earnings estimates have risen fairly close in tandem with Q2 estimates,\" CNBC's Robert Humreports.\nBut don't expect earnings beats of 20% to become the new normal.\n\"This [20% earnings beats] will not be a permanent feature,\" Nick Raich, who tracks corporate earnings at Earnings Scout, told me.  \"Long-term the beat rate will come down to the more historic norm of five percent. But it could take a year to get back to normal.  What will bring that down is more guidance from the companies.  Those 20% beats are only happening because the guidance has been fuzzy.  Once it gets sharper, analyst estimates will get closer to the actual guidance.\"\nRaich is urging investors to focus less on the beat rate, and more on the revisions.  You want estimates to keep rising.\n\"The peak percentage rate of growth is likely in the second quarter.  But I am looking for peak optimism, which is based on how much the estimates are going up after companies report.  It's not just the direction, it's the magnitude.  If estimates go up at a decreasing rate, that's when we know we hit peak optimism,\" he said.\nFor Nick Colas, it's a lot simpler:  \"U.S. earnings season needs to be awesome\" to keep prices up, he said.","news_type":1},"isVote":1,"tweetType":1,"viewCount":790,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":142080777,"gmtCreate":1626103835999,"gmtModify":1631892018838,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/142080777","repostId":"1175879126","repostType":4,"repost":{"id":"1175879126","pubTimestamp":1626103561,"share":"https://www.laohu8.com/m/news/1175879126?lang=&edition=full","pubTime":"2021-07-12 23:26","market":"us","language":"en","title":"Suning’s Billionaire Chairman Quits After China-Led Bailout","url":"https://stock-news.laohu8.com/highlight/detail?id=1175879126","media":"Bloomberg","summary":"Zhang Jindong has stepped down as the chairman of Chinese retail giant Suning.Com Co. after losing c","content":"<p>Zhang Jindong&nbsp;has stepped down as the chairman of Chinese retail giant Suning.Com Co. after losing control of his firm following a government-led bailout.</p>\n<p>The company announced his resignation in a filing with the Shenzhen stock exchange on Monday, adding that Zhang will be appointed honorary chairman to guide the firm’s future growth. Zhang, 58, lost control of Suning when the business sold a 16.96% stake to a state-backedconsortiumfor a $1.36 billion bailout last week.</p>\n<p>The group of investors, led by the Nanjing state asset-management committee and the Jiangsu provincial government, also includes Alibaba Group Holding Ltd. and Chinese appliance makers Midea Group Co. and Haier Group Co., smartphone maker Xiaomi Corp., and TCL Technology Group Corp.</p>\n<p>The bailout, and now Zhang’s resignation, are the end of his reign during which he led the company into an array of businesses, including ownership of the Inter Milan soccer team.</p>\n<p>Suning.com had a market value of about 52 billion yuan ($8 billion) before the trading halt. The retail business was weakened by a slowdown in spending during the pandemic. Concerns about its cash flow intensified in September, when Zhang waived his right to a 20 billion yuan payment from property developer China Evergrande Group.</p>\n<p>The stock tumbled last month after a Beijing courtfroze3 billion yuan worth of shares held by Zhang -- representing 5.8% of Suning.com -- and creditors agreed to extend a bond for Suning Appliance Group Co., which is owned by Zhang and fellow co-founder Bu Yang.</p>","source":"lsy1584095487587","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Suning’s Billionaire Chairman Quits After China-Led Bailout</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSuning’s Billionaire Chairman Quits After China-Led Bailout\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-07-12 23:26 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.bloomberg.com/news/articles/2021-07-12/suning-s-billionaire-chairman-quits-after-china-led-bailout><strong>Bloomberg</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Zhang Jindong has stepped down as the chairman of Chinese retail giant Suning.Com Co. after losing control of his firm following a government-led bailout.\nThe company announced his resignation in a ...</p>\n\n<a href=\"https://www.bloomberg.com/news/articles/2021-07-12/suning-s-billionaire-chairman-quits-after-china-led-bailout\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"002024":"ST易购"},"source_url":"https://www.bloomberg.com/news/articles/2021-07-12/suning-s-billionaire-chairman-quits-after-china-led-bailout","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1175879126","content_text":"Zhang Jindong has stepped down as the chairman of Chinese retail giant Suning.Com Co. after losing control of his firm following a government-led bailout.\nThe company announced his resignation in a filing with the Shenzhen stock exchange on Monday, adding that Zhang will be appointed honorary chairman to guide the firm’s future growth. Zhang, 58, lost control of Suning when the business sold a 16.96% stake to a state-backedconsortiumfor a $1.36 billion bailout last week.\nThe group of investors, led by the Nanjing state asset-management committee and the Jiangsu provincial government, also includes Alibaba Group Holding Ltd. and Chinese appliance makers Midea Group Co. and Haier Group Co., smartphone maker Xiaomi Corp., and TCL Technology Group Corp.\nThe bailout, and now Zhang’s resignation, are the end of his reign during which he led the company into an array of businesses, including ownership of the Inter Milan soccer team.\nSuning.com had a market value of about 52 billion yuan ($8 billion) before the trading halt. The retail business was weakened by a slowdown in spending during the pandemic. Concerns about its cash flow intensified in September, when Zhang waived his right to a 20 billion yuan payment from property developer China Evergrande Group.\nThe stock tumbled last month after a Beijing courtfroze3 billion yuan worth of shares held by Zhang -- representing 5.8% of Suning.com -- and creditors agreed to extend a bond for Suning Appliance Group Co., which is owned by Zhang and fellow co-founder Bu Yang.","news_type":1},"isVote":1,"tweetType":1,"viewCount":432,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":188143667,"gmtCreate":1623425654359,"gmtModify":1634033311950,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Nicee","listText":"Nicee","text":"Nicee","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/188143667","repostId":"1198311684","repostType":4,"repost":{"id":"1198311684","pubTimestamp":1623415805,"share":"https://www.laohu8.com/m/news/1198311684?lang=&edition=full","pubTime":"2021-06-11 20:50","market":"us","language":"en","title":"Opinion: Stock investors now have come to a cliff in the road — and options are limited","url":"https://stock-news.laohu8.com/highlight/detail?id=1198311684","media":"MarketWatch","summary":"Fundamental things haven’t applied to the U.S. market but that seems about to change.\n\nThe coronavir","content":"<blockquote>\n <b>Fundamental things haven’t applied to the U.S. market but that seems about to change.</b>\n</blockquote>\n<p>The coronavirus pandemic has been excellent for investors, but most now realize that the stock market’s extraordinary performance is not based on fundamentals, which ceased to matter some time ago.</p>\n<p>Central banks have been driving asset prices with massive liquidity infusions and zero interest rates. Consumption and corporate earnings are underpinned by large government transfer payments, fiscal stimulus and industry support.</p>\n<p>Will it last? The consensus is that most assets are overpriced. Prices ultimately are the present value of future cash flows. Authorities have manipulated the discount rate but altering underlying long-term cash flows, which are driven by the real economy, is more difficult. Low volatility, engineered by central banks, also encourages exuberant prices. At some stage, profligate government deficits may be reigned by either winding back spending or increasing taxes. These policies may also drive inflation, requiring tighter monetary policy and higher rates.&nbsp;</p>\n<p>Currently high stock prices expose investors to the risk of a sudden correction, when the game of musical chairs stops unexpectedly. Given that almost all of the gains have been in price rather than income (dividends, interest, etc.), the vulnerability is exacerbated. The unstable structure of the financial system — high leverage, shadow banks, illiquidity, unresolved linkages, the rise in trend following investors — means that any problem may trigger a major adjustment.</p>\n<p>Investors’ options are limited. You could believe in the permanency of a “new normal.” Risky asset investments are then justified on the basis that authorities must ensure high- and rising asset prices, primarily as the alternative is too awful to contemplate. This assumes that policy options remain unconstrained indefinitely.</p>\n<p>Or investors can rely on momentum, essentially Keynes’ so-called beauty contest theory of investing, which anticipated today’s “meme stocks.” Successful investment requires investors to select the most popular faces among all judges, rather than those they may personally find the most attractive. The difficulty is knowing the judge’s mind and recognizing when to sell before the music stops.</p>\n<p>Third, investors can park their money in cash. This means accepting exceptionally low returns perhaps for a prolonged period and, worst of all, missing out on further gains.</p>\n<p>An alternative is to reposition defensively into assets or businesses with reliable income streams operating in essential industries or selling staples. These traditional “widows and orphans” investments are more difficult to find today. “Safe” government bonds now offer little income but high risk. Stock and property prices are highly correlated, reflecting investor behavior as well as the common reliance on leverage. More liquid and better-quality assets frequently come under selling pressure when leveraged investors need to raise cash. Today, just as a rising tide lifts all boats, a receding surge leaves everyone stranded.</p>\n<p>Fourth, investors can seek to benefit from higher inflation, switching to stocks that benefit from increasing prices. But the impact on equity prices will depend on whether it is profit inflation (that is, end-product prices rise) or cost inflation, including increases in wages. If it is the latter, then the squeeze on earnings may adversely affect equity valuations. Combined with higher rates, this may adversely affect stocks. Another alternative is inflation-linked securities, such as Treasury inflation-protected securities (TIPS) &nbsp;TIP,+0.52%&nbsp;or commodities.&nbsp;</p>\n<p>Fifth, investors could go “off-piste,” believing that existing policies are unsustainable and the economic system is irredeemable broken. This favors crypto-currencies, precious metals or collectibles — non-traditional assets whose supply is naturally constrained. The ability of the state to confiscate, tax and regulate, as well as reliance on courts to enforce rights, complicates this quest for freedom.</p>\n<p>The ultra-rich and some high-net worth individuals have gone off-grid already by moving into private markets. Concerned about manipulated and gamified markets, they focus now on non-listed real businesses and assets as well as private debt, sacrificing liquidity and transparency for better economics, privacy and control. Unfortunately, these options are limited for ordinary individuals — a different form of inequality.</p>\n<p>Investors therefore face Hobson’s illusory choice, where only one thing is actually offered. They can lose by betting against price rises or that prices keep rising.&nbsp;</p>\n<p>Policymakers, meanwhile, continue to compound decades of mistakes. They must now keep increasing debt and maintaining low rates in order to keep asset prices high. Government deficits are essential to maintaining economic activity. Kicking the can down the road is the only way to ensure that the day of reckoning is deferred — NIMTO (not in my term of office). This forces investors to go out further on the risk curve to generate returns.&nbsp;</p>\n<p>Perhaps investors nowadays should stick to comedian Will Rogers’s famous investment advice: “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”</p>","source":"lsy1603348471595","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Opinion: Stock investors now have come to a cliff in the road — and options are limited </title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOpinion: Stock investors now have come to a cliff in the road — and options are limited \n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-11 20:50 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.marketwatch.com/story/stock-investors-now-have-come-to-a-cliff-in-the-road-and-options-are-limited-11623375733?mod=home-page><strong>MarketWatch</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Fundamental things haven’t applied to the U.S. market but that seems about to change.\n\nThe coronavirus pandemic has been excellent for investors, but most now realize that the stock market’s ...</p>\n\n<a href=\"https://www.marketwatch.com/story/stock-investors-now-have-come-to-a-cliff-in-the-road-and-options-are-limited-11623375733?mod=home-page\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SPY":"标普500ETF",".SPX":"S&P 500 Index",".IXIC":"NASDAQ Composite",".DJI":"道琼斯"},"source_url":"https://www.marketwatch.com/story/stock-investors-now-have-come-to-a-cliff-in-the-road-and-options-are-limited-11623375733?mod=home-page","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1198311684","content_text":"Fundamental things haven’t applied to the U.S. market but that seems about to change.\n\nThe coronavirus pandemic has been excellent for investors, but most now realize that the stock market’s extraordinary performance is not based on fundamentals, which ceased to matter some time ago.\nCentral banks have been driving asset prices with massive liquidity infusions and zero interest rates. Consumption and corporate earnings are underpinned by large government transfer payments, fiscal stimulus and industry support.\nWill it last? The consensus is that most assets are overpriced. Prices ultimately are the present value of future cash flows. Authorities have manipulated the discount rate but altering underlying long-term cash flows, which are driven by the real economy, is more difficult. Low volatility, engineered by central banks, also encourages exuberant prices. At some stage, profligate government deficits may be reigned by either winding back spending or increasing taxes. These policies may also drive inflation, requiring tighter monetary policy and higher rates. \nCurrently high stock prices expose investors to the risk of a sudden correction, when the game of musical chairs stops unexpectedly. Given that almost all of the gains have been in price rather than income (dividends, interest, etc.), the vulnerability is exacerbated. The unstable structure of the financial system — high leverage, shadow banks, illiquidity, unresolved linkages, the rise in trend following investors — means that any problem may trigger a major adjustment.\nInvestors’ options are limited. You could believe in the permanency of a “new normal.” Risky asset investments are then justified on the basis that authorities must ensure high- and rising asset prices, primarily as the alternative is too awful to contemplate. This assumes that policy options remain unconstrained indefinitely.\nOr investors can rely on momentum, essentially Keynes’ so-called beauty contest theory of investing, which anticipated today’s “meme stocks.” Successful investment requires investors to select the most popular faces among all judges, rather than those they may personally find the most attractive. The difficulty is knowing the judge’s mind and recognizing when to sell before the music stops.\nThird, investors can park their money in cash. This means accepting exceptionally low returns perhaps for a prolonged period and, worst of all, missing out on further gains.\nAn alternative is to reposition defensively into assets or businesses with reliable income streams operating in essential industries or selling staples. These traditional “widows and orphans” investments are more difficult to find today. “Safe” government bonds now offer little income but high risk. Stock and property prices are highly correlated, reflecting investor behavior as well as the common reliance on leverage. More liquid and better-quality assets frequently come under selling pressure when leveraged investors need to raise cash. Today, just as a rising tide lifts all boats, a receding surge leaves everyone stranded.\nFourth, investors can seek to benefit from higher inflation, switching to stocks that benefit from increasing prices. But the impact on equity prices will depend on whether it is profit inflation (that is, end-product prices rise) or cost inflation, including increases in wages. If it is the latter, then the squeeze on earnings may adversely affect equity valuations. Combined with higher rates, this may adversely affect stocks. Another alternative is inflation-linked securities, such as Treasury inflation-protected securities (TIPS)  TIP,+0.52% or commodities. \nFifth, investors could go “off-piste,” believing that existing policies are unsustainable and the economic system is irredeemable broken. This favors crypto-currencies, precious metals or collectibles — non-traditional assets whose supply is naturally constrained. The ability of the state to confiscate, tax and regulate, as well as reliance on courts to enforce rights, complicates this quest for freedom.\nThe ultra-rich and some high-net worth individuals have gone off-grid already by moving into private markets. Concerned about manipulated and gamified markets, they focus now on non-listed real businesses and assets as well as private debt, sacrificing liquidity and transparency for better economics, privacy and control. Unfortunately, these options are limited for ordinary individuals — a different form of inequality.\nInvestors therefore face Hobson’s illusory choice, where only one thing is actually offered. They can lose by betting against price rises or that prices keep rising. \nPolicymakers, meanwhile, continue to compound decades of mistakes. They must now keep increasing debt and maintaining low rates in order to keep asset prices high. Government deficits are essential to maintaining economic activity. Kicking the can down the road is the only way to ensure that the day of reckoning is deferred — NIMTO (not in my term of office). This forces investors to go out further on the risk curve to generate returns. \nPerhaps investors nowadays should stick to comedian Will Rogers’s famous investment advice: “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don’t go up, don’t buy it.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":38,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":132440440,"gmtCreate":1622109829080,"gmtModify":1634183773234,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/AMC\">$AMC Entertainment(AMC)$</a>Amc to the moon","listText":"<a href=\"https://laohu8.com/S/AMC\">$AMC Entertainment(AMC)$</a>Amc to the moon","text":"$AMC Entertainment(AMC)$Amc to the moon","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":5,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/132440440","isVote":1,"tweetType":1,"viewCount":90,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":132440172,"gmtCreate":1622109798696,"gmtModify":1634183773459,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Wow","listText":"Wow","text":"Wow","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/132440172","repostId":"1149867313","repostType":4,"repost":{"id":"1149867313","pubTimestamp":1622109491,"share":"https://www.laohu8.com/m/news/1149867313?lang=&edition=full","pubTime":"2021-05-27 17:58","market":"us","language":"en","title":"Here's How Much Gains Cathie Wood Has Missed Out On This Month By Selling Virgin Galactic Stock","url":"https://stock-news.laohu8.com/highlight/detail?id=1149867313","media":"benzinga","summary":"Cathie Wood-led Ark Investment Managementdumped all of its stakein Virgin Galactic Holdings Inc in t","content":"<p>Cathie Wood-led Ark Investment Managementdumped all of its stakein&nbsp;<b>Virgin Galactic Holdings Inc</b>&nbsp;in tranches this month, shedding nearly 2 million shares in the space tourism company and missing out on a rocket-like rally.</p><p><b>What Happened:</b>Virgin Galactic shares have soared about 35.4% since Ark's first SPCE trade this month&nbsp;on May 6.</p><p>Between May 6 and May 25, Wood's hedge fund has sold about 1.96 million shares.</p><p>An average price of $18.78 per share is estimated based on the closing price of each of these trading days, fetching the investment firm about $36.77&nbsp;million.</p><p>The same shares would be worth $52.85 million as per Thursday's closing price, implying Ark missed out on about $16 million in gains on the stock.</p><p><b>Why It Matters:</b>The investment firm held the shares of the Richard Branson-founded company via the Ark&nbsp;<b>Autonomous Technology &amp; Robotics ETF</b>(BATS:ARKQ) and the recently floated&nbsp;<b>Ark Space Exploration &amp; Innovation ETF</b>(BATS:ARKX).</p><p>The space tourism company over the weekend announced ithad completedits third spaceflight and the first-ever spaceflight from Spaceport America, New Mexico bringing it one step closer to the commercial launch of its space services.</p><p>SPCE competes with Blue Origin, the privately held space venture founded by&nbsp;<b>Amazon.com Inc</b>&nbsp;CEO Jeff Bezos and&nbsp;Elon Musk-led SpaceX.</p><p>The popular fund, known for its investment in&nbsp;<b>Tesla Inc</b>&nbsp;and the recent bets on cryptocurrency exchange&nbsp;<b>Coinbase Global Inc</b>&nbsp;, started diluting Virgin Galactic stake last month after an initialbullishstreak.</p><p>Branson last monthsoldnearly $150 million worth of shares of the space tourism company and still holds 56.8 million shares in Virgin Galactic.</p><p><b>Price Action:</b>SPCE shares closed 5.55% higher at $27 on Wednesday.</p>","source":"lsy1606299360108","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Here's How Much Gains Cathie Wood Has Missed Out On This Month By Selling Virgin Galactic Stock</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nHere's How Much Gains Cathie Wood Has Missed Out On This Month By Selling Virgin Galactic Stock\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-05-27 17:58 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.benzinga.com/news/21/05/21313000/heres-how-much-gains-cathie-wood-has-missed-out-on-this-month-by-selling-virgin-galactic-stock><strong>benzinga</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cathie Wood-led Ark Investment Managementdumped all of its stakein Virgin Galactic Holdings Inc in tranches this month, shedding nearly 2 million shares in the space tourism company and missing out on...</p>\n\n<a href=\"https://www.benzinga.com/news/21/05/21313000/heres-how-much-gains-cathie-wood-has-missed-out-on-this-month-by-selling-virgin-galactic-stock\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"SPCE":"维珍银河"},"source_url":"https://www.benzinga.com/news/21/05/21313000/heres-how-much-gains-cathie-wood-has-missed-out-on-this-month-by-selling-virgin-galactic-stock","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1149867313","content_text":"Cathie Wood-led Ark Investment Managementdumped all of its stakein Virgin Galactic Holdings Inc in tranches this month, shedding nearly 2 million shares in the space tourism company and missing out on a rocket-like rally.What Happened:Virgin Galactic shares have soared about 35.4% since Ark's first SPCE trade this month on May 6.Between May 6 and May 25, Wood's hedge fund has sold about 1.96 million shares.An average price of $18.78 per share is estimated based on the closing price of each of these trading days, fetching the investment firm about $36.77 million.The same shares would be worth $52.85 million as per Thursday's closing price, implying Ark missed out on about $16 million in gains on the stock.Why It Matters:The investment firm held the shares of the Richard Branson-founded company via the Ark Autonomous Technology & Robotics ETF(BATS:ARKQ) and the recently floated Ark Space Exploration & Innovation ETF(BATS:ARKX).The space tourism company over the weekend announced ithad completedits third spaceflight and the first-ever spaceflight from Spaceport America, New Mexico bringing it one step closer to the commercial launch of its space services.SPCE competes with Blue Origin, the privately held space venture founded by Amazon.com Inc CEO Jeff Bezos and Elon Musk-led SpaceX.The popular fund, known for its investment in Tesla Inc and the recent bets on cryptocurrency exchange Coinbase Global Inc , started diluting Virgin Galactic stake last month after an initialbullishstreak.Branson last monthsoldnearly $150 million worth of shares of the space tourism company and still holds 56.8 million shares in Virgin Galactic.Price Action:SPCE shares closed 5.55% higher at $27 on Wednesday.","news_type":1},"isVote":1,"tweetType":1,"viewCount":25,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":803938585,"gmtCreate":1627400059647,"gmtModify":1631892018808,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Hubccryhbbbhhhh uhh what you are&nbsp;","listText":"Hubccryhbbbhhhh uhh what you are&nbsp;","text":"Hubccryhbbbhhhh uhh what you are","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/803938585","repostId":"1112910553","repostType":4,"isVote":1,"tweetType":1,"viewCount":388,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":188141027,"gmtCreate":1623425678169,"gmtModify":1634033311501,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Damn&nbsp;","listText":"Damn&nbsp;","text":"Damn","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":1,"repostSize":0,"link":"https://laohu8.com/post/188141027","repostId":"2142022769","repostType":4,"repost":{"id":"2142022769","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1623380100,"share":"https://www.laohu8.com/m/news/2142022769?lang=&edition=full","pubTime":"2021-06-11 10:55","market":"us","language":"en","title":"We put 6 more meme stocks' numbers to the test and the differences are telling","url":"https://stock-news.laohu8.com/highlight/detail?id=2142022769","media":"Dow Jones","summary":"Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows i","content":"<blockquote>\n <b>Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.</b>\n</blockquote>\n<p>The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.</p>\n<p>After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.</p>\n<p>(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, Nokia Corp. (NOKIA.HE) and GameStop Corp. <a href=\"https://laohu8.com/S/GME\">$(GME)$</a>.)</p>\n<p><b>Short squeezes and meme stocks</b></p>\n<p>Traders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.</p>\n<p>Professional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.</p>\n<p>\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.</p>\n<p>To have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.</p>\n<p><b>Six more meme stocks</b></p>\n<p>The action changes daily. On June 9, for example, shares of Clover Health Investments Corp. <a href=\"https://laohu8.com/S/CLOV\">$(CLOV)$</a> fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.</p>\n<p>Read:Newest meme stock darling Clover Health is popping. Is the SEC watching?</p>\n<p>Here are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:</p>\n<p><img src=\"https://static.tigerbbs.com/45b4fabbee4e18ee1b473200ab3a7c4b\" tg-width=\"1260\" tg-height=\"300\"></p>\n<p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:</p>\n<p><img src=\"https://static.tigerbbs.com/1d9a8e2dfc61b0e4ff70a8630193cecb\" tg-width=\"1259\" tg-height=\"1038\"></p>\n<p>Palantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.</p>\n<p>Wendy's Co. <a href=\"https://laohu8.com/S/WEN\">$(WEN)$</a> is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.</p>\n<p><a href=\"https://laohu8.com/S/WISH\">ContextLogic Inc.</a> (WISH) is <a href=\"https://laohu8.com/S/AONE\">one</a> of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.</p>\n<p><b>Short interest</b></p>\n<p>Keeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:</p>\n<p><img src=\"https://static.tigerbbs.com/d0875b54168c760b950d250308eb5efd\" tg-width=\"1260\" tg-height=\"390\"></p>\n<p>FactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.</p>\n<p>Clover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares <a href=\"https://laohu8.com/S/HDGE\">Ranger Equity Bear ETF</a> (HDGE), which is meant to be used as a hedging tool.)</p>\n<p>A high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.</p>\n<p>We have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. <a href=\"https://laohu8.com/S/TSLA\">$(TSLA)$</a> is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&amp;P 500. Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a> ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.</p>\n<p><a href=\"https://laohu8.com/S/GOEV\">Canoo Inc.</a> (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.</p>\n<p><a href=\"https://laohu8.com/S/CLNE\">Clean Energy Fuels Corp</a>. <a href=\"https://laohu8.com/S/CLNE.AU\">$(CLNE.AU)$</a> provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.</p>\n<p><b>Fundamentals</b></p>\n<p>We'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.</p>\n<ul>\n <li><b>Looking back</b></li>\n</ul>\n<p>First, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):</p>\n<p><img src=\"https://static.tigerbbs.com/bcc4fbd762406f0684e991d289b8b760\" tg-width=\"1260\" tg-height=\"392\"></p>\n<p>You can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.</p>\n<p>Clover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with <a href=\"https://laohu8.com/S/IPOC.U\">Social Capital Hedosophia Holdings Corp. III</a> (a SPAC) on Jan. 7.</p>\n<ul>\n <li><b>Looking ahead -- sales</b></li>\n</ul>\n<p>Starting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:</p>\n<p><img src=\"https://static.tigerbbs.com/37c11916067fb3829caff57a89cf17f0\" tg-width=\"1260\" tg-height=\"380\"></p>\n<p>Double-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&amp;P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.</p>\n<p><b>Looking ahead -- earnings</b></p>\n<p>Here are earnings-per-share estimates going out to 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/4cf06aa00f9303dda82b1c3f8cf34c21\" tg-width=\"1260\" tg-height=\"500\"></p>\n<p>You might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&amp;P 500 trades for 18.4 times its consensus EPS estimate for 2023.</p>\n<p>The estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .</p>\n<p><b>Wall Street's opinion</b></p>\n<p>Here's a summary of opinion for this group of meme stocks among Wall Street analysts:</p>\n<p><img src=\"https://static.tigerbbs.com/c2dfa61b27c34a6c17f5b4d2119126f9\" tg-width=\"1259\" tg-height=\"373\"></p>\n<p>So the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.</p>\n<p>Wall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>We put 6 more meme stocks' numbers to the test and the differences are telling</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWe put 6 more meme stocks' numbers to the test and the differences are telling\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2021-06-11 10:55</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<blockquote>\n <b>Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.</b>\n</blockquote>\n<p>The world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.</p>\n<p>After last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.</p>\n<p>(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc <a href=\"https://laohu8.com/S/AMC\">$(AMC)$</a>, Nokia Corp. (NOKIA.HE) and GameStop Corp. <a href=\"https://laohu8.com/S/GME\">$(GME)$</a>.)</p>\n<p><b>Short squeezes and meme stocks</b></p>\n<p>Traders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.</p>\n<p>Professional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.</p>\n<p>\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.</p>\n<p>To have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.</p>\n<p><b>Six more meme stocks</b></p>\n<p>The action changes daily. On June 9, for example, shares of Clover Health Investments Corp. <a href=\"https://laohu8.com/S/CLOV\">$(CLOV)$</a> fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.</p>\n<p>Read:Newest meme stock darling Clover Health is popping. Is the SEC watching?</p>\n<p>Here are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:</p>\n<p><img src=\"https://static.tigerbbs.com/45b4fabbee4e18ee1b473200ab3a7c4b\" tg-width=\"1260\" tg-height=\"300\"></p>\n<p><a href=\"https://laohu8.com/S/PLTR\">Palantir Technologies Inc.</a> (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:</p>\n<p><img src=\"https://static.tigerbbs.com/1d9a8e2dfc61b0e4ff70a8630193cecb\" tg-width=\"1259\" tg-height=\"1038\"></p>\n<p>Palantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.</p>\n<p>Wendy's Co. <a href=\"https://laohu8.com/S/WEN\">$(WEN)$</a> is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.</p>\n<p><a href=\"https://laohu8.com/S/WISH\">ContextLogic Inc.</a> (WISH) is <a href=\"https://laohu8.com/S/AONE\">one</a> of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.</p>\n<p><b>Short interest</b></p>\n<p>Keeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:</p>\n<p><img src=\"https://static.tigerbbs.com/d0875b54168c760b950d250308eb5efd\" tg-width=\"1260\" tg-height=\"390\"></p>\n<p>FactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.</p>\n<p>Clover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares <a href=\"https://laohu8.com/S/HDGE\">Ranger Equity Bear ETF</a> (HDGE), which is meant to be used as a hedging tool.)</p>\n<p>A high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.</p>\n<p>We have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. <a href=\"https://laohu8.com/S/TSLA\">$(TSLA)$</a> is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&amp;P 500. Amazon.com Inc. <a href=\"https://laohu8.com/S/AMZN\">$(AMZN)$</a> ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.</p>\n<p><a href=\"https://laohu8.com/S/GOEV\">Canoo Inc.</a> (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.</p>\n<p><a href=\"https://laohu8.com/S/CLNE\">Clean Energy Fuels Corp</a>. <a href=\"https://laohu8.com/S/CLNE.AU\">$(CLNE.AU)$</a> provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.</p>\n<p><b>Fundamentals</b></p>\n<p>We'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.</p>\n<ul>\n <li><b>Looking back</b></li>\n</ul>\n<p>First, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):</p>\n<p><img src=\"https://static.tigerbbs.com/bcc4fbd762406f0684e991d289b8b760\" tg-width=\"1260\" tg-height=\"392\"></p>\n<p>You can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.</p>\n<p>Clover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with <a href=\"https://laohu8.com/S/IPOC.U\">Social Capital Hedosophia Holdings Corp. III</a> (a SPAC) on Jan. 7.</p>\n<ul>\n <li><b>Looking ahead -- sales</b></li>\n</ul>\n<p>Starting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:</p>\n<p><img src=\"https://static.tigerbbs.com/37c11916067fb3829caff57a89cf17f0\" tg-width=\"1260\" tg-height=\"380\"></p>\n<p>Double-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&amp;P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.</p>\n<p><b>Looking ahead -- earnings</b></p>\n<p>Here are earnings-per-share estimates going out to 2023:</p>\n<p><img src=\"https://static.tigerbbs.com/4cf06aa00f9303dda82b1c3f8cf34c21\" tg-width=\"1260\" tg-height=\"500\"></p>\n<p>You might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&amp;P 500 trades for 18.4 times its consensus EPS estimate for 2023.</p>\n<p>The estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .</p>\n<p><b>Wall Street's opinion</b></p>\n<p>Here's a summary of opinion for this group of meme stocks among Wall Street analysts:</p>\n<p><img src=\"https://static.tigerbbs.com/c2dfa61b27c34a6c17f5b4d2119126f9\" tg-width=\"1259\" tg-height=\"373\"></p>\n<p>So the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.</p>\n<p>Wall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.</p>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"WEN":"温蒂汉堡","CLNE":"Clean Energy Fuels Corp","CLOV":"Clover Health Corp","PLTR":"Palantir Technologies Inc."},"is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2142022769","content_text":"Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.\n\nThe world of meme stocks is changing every day as traders communicating through Reddit's WallStreetBets channel and other social media set their sights on new targets for short squeezes or find other downtrodden companies to bid up in price.\nAfter last week's look at financial results and projections for the four BANG stocks and four other meme companies, what follows is the same treatment for six more.\n(The BANG stocks are BlackBerry Ltd. (BB.T), AMC Entertainment Holdings Inc $(AMC)$, Nokia Corp. (NOKIA.HE) and GameStop Corp. $(GME)$.)\nShort squeezes and meme stocks\nTraders looking to group together on social media to make quick killings by pushing up share prices of companies at early stages or those going through difficult times have been setting up short squeezes.\nProfessional investors have traditionally short-sold shares of companies they believe will perform worse than most other investors or analysts expect. Shorting means borrowing a company's shares and selling them immediately, in the hope of buying them back at a lower price, returning them to the lender and pocketing the difference. If you simply buy a stock hoping it will go up, all you risk is the money you invest. You might get wiped out. But if you short a stock, your risk potential is unlimited. You never know how high the price might rise if you have gotten the trade wrong.\n\"Covering\" a short position is when you buy back the shares to return them to the investor who lent them to you. You are hoping to cover at a lower price than you sold the shares for, to make a profit.\nTo have a short position, you need to have a margin account with a broker -- an account that lets you borrow to invest or trade. Because of the risk in taking a short position, if the share price goes against you (higher), your broker will keep increasing its collateral requirements. If you run out of cash as the price keeps rising, you will be forced to cover at a loss. That type of action among a large group of short-sellers pushes the price higher in a spiral -- a short squeeze.\nSix more meme stocks\nThe action changes daily. On June 9, for example, shares of Clover Health Investments Corp. $(CLOV)$ fell 24% after rising 86% the day before. The stock is 36.6% sold short, according to FactSet.\nRead:Newest meme stock darling Clover Health is popping. Is the SEC watching?\nHere are the six additional meme stocks, following our initial group of eight , sorted by market capitalization as of the close on June 9:\n\nPalantir Technologies Inc. (PLTR) provides a software platform used by government defense and intelligence agencies. It is the largest company on the list by market cap, but not by revenue, as you can see below. A year-to-date chart of its price performance shows how wild the meme-stock action can be:\n\nPalantir's stock was up 3% for 2021 through June 9, but its market cap had increased by 26% because the company had been raising cash by selling additional shares to investors. The company's following as a meme stock seems to spring more from its growth prospects than from short interest, which peaked at 8.5% of shares available for sale, according to FactSet.\nWendy's Co. $(WEN)$ is another meme stock whose addition to the group may be a bit confusing, as the stock isn't heavily shorted and the company is stable. Thornton McEnery dug into the action on June 8, which may have included confusion over Wendy's ticker symbol , when the stock rose 26%.\nContextLogic Inc. (WISH) is one of two stocks on the new list that have fallen this year. The mobile e-commerce company's stock opened below its initial public offering price before the IPO.\nShort interest\nKeeping the group in the same order, here are levels of short interest as percentages of available shares and in dollars:\n\nFactSet's data on short positions as a percentage of shares outstanding is updated twice a month. The data was updated overnight between June 9 and 10. The second update takes place around the 25th day of the month.\nClover is the most heavily shorted stock on the list. Brad Lamensdorf, CEO of ActiveAlts in Westport, Conn., who runs long and short investment strategies, said previously that a short percentage \"over 30% to 40% is outrageously high.\" (Lamensdorf co-manages the AdvisorShares Ranger Equity Bear ETF (HDGE), which is meant to be used as a hedging tool.)\nA high percentage of shares sold short makes a stock especially dangerous for the short-sellers, because it can increase the intensity of any short squeeze.\nWe have shown the short interest as a percentage of market cap in order to provide context. Tesla Inc. $(TSLA)$ is an excellent example to provide more context, because the company has such a large market capitalization of $576.8 billion. Only 5.16% of the shares are sold short, but that comes to $29.8 billion in short interest -- the most (in dollars) for any stock in the S&P 500. Amazon.com Inc. $(AMZN)$ ranks second for dollars of short interest in the benchmark index, with 1.09% of shares sold short, which comes to $18.1 billion in short interest for a company with a market cap of $1.66 trillion.\nCanoo Inc. (GOEV) is the second-most heavily shorted stock listed above, at 29.5%. The electric-vehicle maker was formed on Dec. 21 through the merger of Canoo Holdings Ltd. and Hennessy Capital Acquisition Corp. IV, a special purpose acquisition company, or SPAC. Canoo expects to produce its first vehicle in mid-2022 in limited quantities, with \"serial production launching in 2023,\" according to its 10-K report filed on March 31.\nClean Energy Fuels Corp. $(CLNE.AU)$ provides natural gas for use as an alternative to gasoline or diesel for fleets of vehicles. The stock is 6.58% sold-short, but has had a good run this year as the energy sector has recovered.\nFundamentals\nWe'll look back at sales results for this group of six meme stocks and then look ahead at sales estimates through 2023.\n\nLooking back\n\nFirst, here's a comparison of annual sales, in millions of dollars for the past five reported fiscal years (where available):\n\nYou can see clear growth paths in recent years for Palantir, Wendy's and ContextLogic, while Clean Energy Fuels had understandable challenges from lower natural gas prices in 2020.\nClover was incorporated on Oct. 18, 2019. It hasn't yet reported annual revenue. For the first quarter, the company reported $200.3 million in sales, up from $165.5 million in the first quarter of 2020. Clover merged with Social Capital Hedosophia Holdings Corp. III (a SPAC) on Jan. 7.\n\nLooking ahead -- sales\n\nStarting from a baseline of calendar 2021, here are sales estimates going out through 2023 among Wall Street analysts polled by FactSet:\n\nDouble-digit or better sales growth is expected for all of the companies over the next two years except Wendy's. Price-to-sale ratios, based on closing share prices on June 9 and the 2023 estimates, are included. In comparison, the S&P 500 trades for 2.5 times its weighted aggregate consensus sales estimate for 2023.\nLooking ahead -- earnings\nHere are earnings-per-share estimates going out to 2023:\n\nYou might not have expected the EPS projections to be particularly useful, but they underscore how high these stocks are trading. The S&P 500 trades for 18.4 times its consensus EPS estimate for 2023.\nThe estimates show expected improvement for Palantir, if it manages to maintain its rapid sales growth. Wendy's is expected to improve EPS significantly even with modest sale growth, in part because of stock buybacks .\nWall Street's opinion\nHere's a summary of opinion for this group of meme stocks among Wall Street analysts:\n\nSo the Wall Street analysts have the most love for ContextLogic, with 82% \"buy\" or equivalent ratings. Second place goes to Clean Energy Fuels. For that company, the timing, in a year of economic and fuel-price recovery, not to mention the desire among many investors to help lower carbon emissions, seems perfect.\nWall Street is skeptical of Palantir and Clover Health, but it would seem for different reasons, as Palantir already has a history of rapid sales growth.","news_type":1},"isVote":1,"tweetType":1,"viewCount":196,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151391589,"gmtCreate":1625063210241,"gmtModify":1633945277460,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Msksjs","listText":"Msksjs","text":"Msksjs","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151391589","repostId":"1100563900","repostType":2,"repost":{"id":"1100563900","pubTimestamp":1624956396,"share":"https://www.laohu8.com/m/news/1100563900?lang=&edition=full","pubTime":"2021-06-29 16:46","market":"us","language":"en","title":"Facebook: Simply Unstoppable","url":"https://stock-news.laohu8.com/highlight/detail?id=1100563900","media":"seekingalpha","summary":"The #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.Despite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.The strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets , cumulatively make for a compel","content":"<p><b>Summary</b></p>\n<ul>\n <li>The #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.</li>\n <li>Despite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.</li>\n <li>The strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets (DIEM), cumulatively make for a compelling growth story.</li>\n <li>Although the company is highly controversial and rightfully so, this article focuses more on the quantitative analysis and less on the morals and ethics behind this investment. That, we shall leave to you.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3b3414073b72a391e760025594ec111f\" tg-width=\"768\" tg-height=\"528\"><span>nemke/E+ via Getty Images</span></p>\n<p><b>Investment Thesis</b></p>\n<p>Facebook (FB) has had a volatile trading period the past few years with a general uptrend, delivering shareholders nice returns whilst subjecting them to a few major dips which presented investors an opportunity for a steal. Despite the controversy and headline risks every now and then, the company has been able to battle through them and emerge ever so stronger. The company’s financials have been holding up and shows no sign of stoppage anytime soon. In a time as such, with significant uncertainty in the macro environment and inflation fears creeping up, we believe that shifting some of your assets to high cashflow generating companies is a wise strategy that will pay off. Growth and value are 2 different things, and there still exists growth companies that are undervalued and can still generate substantial cashflow, and we believe Facebook is one of them. The company also remains to be one of the more attractive blue-chip stocks compared to the others in the FAANG. We employ a 3–5-year outlook and have been bullish since USD$200/share. Let’s Begin!</p>\n<p><b>What is Facebook</b></p>\n<p>Known to all, Facebook is a social media giant with a family of products including the likes of Facebook, Instagram,WhatsApp, Messenger, and now Oculus. The firm essentially has a stronghold in the social media industry and has an impressive DAP of2.72 BN as of Q1’21and MAP of 3.45 BN.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/e3d08f4df186c4705a5300f40d6b8a5e\" tg-width=\"640\" tg-height=\"429\"><span>(Source:FB Q1’21 Presentation)</span></p>\n<p>The world has7.874 BNpeople as of the time of this writing and that would mean that 43.8% of all the people in the world use some form of product from Facebook’s portfolio in the past 30 days. On a daily basis, 34.5% of the people in the world use it. If that isn’t a sticky service, nothing really is. If we were to focus on the usage of the Facebook app solely, 23.8% of the world logs into the app daily based on DAUs.</p>\n<p>The firm was founded in 2004 and generates the majority of their revenue from advertisements. If you have watched the social dilemma on Netflix, you would realize that Facebook’s real customer isn’t everyday users. Instead, users are the product, and they are being sold to advertisers. The company has created such an engaging and sticky service that users are more than happy to be using their apps, despite knowing that their data is being sold from one company to another. As appalling as it is, they’re indifferent to it all and still find the value in using the company’s products on a daily basis – keeping in touch with distant relatives, chatting with friends, staying up to date with the latest fashion trends and news… (According to the&nbsp;Pew Research Center, more than a 1/3 of US adults say they get their news regularly from Facebook)</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/7cb9d05bb00f3038cec301c72ef56827\" tg-width=\"608\" tg-height=\"378\"><span>(Source:Pew Research Center)</span></p>\n<p>To Facebook, this is equally as good as the more users, the wider the ‘product’ base that they have to offer their customers - advertisers. Advertisers are also indifferent to how Facebook attains its data, so long as Facebook’s targeting metrics and trackers are working well, the more likely it is that they are able to generate conversions. The more conversions, the more sales for them, the more ads they continue to pay for, the more revenue Facebook generates. Win-Win-Win, their apps are the bait, and the product (users), customers (advertisers), and supplier (Facebook), all walk away winners. It’s a remarkable business model that has stood the test of time and no matter the amount of controversy around the business, founders, and its practices, it isn’t going anywhere anytime soon and for one simple reason: Users likely can’t do without Facebook’s products whether they are willing to admit it or not.</p>\n<p>When we look back in the past to reflect on how the #StopHateForProfit Campaign turned out for the company, it is apparent that the impact it had on the top and bottom line were both minimal. The boycott was one that arose due to Facebook’s bad hate speech regulations and policing, and because of the laissez-faire attitude toward posts from then President, Donald Trump. More than&nbsp;1000 companies publicly committed&nbsp;to boycotting the social media giant in June/July (coinciding with end Q2 and start Q3) and many of the top 100 advertisers based on ad spend such as Nike, Adidas, Puma, Coca-Cola, all revised their budgets downwards.</p>\n<p>Despite this, Facebook&nbsp;beat on Q2 earnings&nbsp;and saw an increase of&nbsp;10.7% YOY. In its forward guidance, the company also announced that for July, they were anticipating a slowdown in YoY growth of 17% but was still due to see a 10% increase. They alsoanticipatedthe slowdown in growth to last through till October. However, the company did not attribute this slowdown to the boycott specifically but to 3 other major headwinds. With the benefit of hindsight, we can now see that even for Q3’20, the firm saw an impressive 21.6% rise in its top line, with the bottom line still registering a 12.2% improvement in NPM for Q2’20 YoY and a 200 bps NPM improvement in Q3.</p>\n<p>The results are clear and indicative of a few things. The boycott by the largest companies did little to Facebook’s financial story as they still managed to register growth and did not see significant pullbacks that were material. This can be tied to the fact that most of Facebook’s advertisers are SMBs. Although certain few SMBs did join the boycott, most didn’t, and the firm still had their impressive 9 million + customer base to rely on. If anything, this also suggests that despite what any SMB stands for and whether they agree with a social cause or not, it is hard for them to find alternatives that they can shift to on a similar pricing scale. Big brands can easily pivot to other advertisements such as TV and radio commercials but SMBs simply can’t because of smaller budgets. Lastly, it is now clear that the campaign affected Facebook’s reputation more so than it did its cashflow.</p>\n<p><b>Risks</b></p>\n<p>Other risks that the company may face would be future antitrust lawsuits. As it is, the company is already facing allegations of being a monopoly based on their aggressive acquisitive history having acquired more than90 other companiessince inception. They were alsofined US$5 BNby the FTC in 2019 and were required to adopt their policies and employ new protections for the users and their data that has been shared.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/f694ca79d59162e95f05335ebefbca3d\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Though representative of a historic penalty and the largest ever imposed on a company for violating user’s privacy rights, the US$5BN was a drop in the bucket for the giant that went on to generate US$70+ BN dollars for the year.</p>\n<p>The current issues that they have with Apple’s new iOS changes and the IDFA implications are also likely not going to have a substantial impact on the firm. The Identifier for Advertisers [IDFA] is a random device identifier assigned by Apple to a user's device. Advertisers use this to track data so they can deliver customized advertising on mobile. With the new iOS changes, Apple essentially programmed it such that each app that wants to use these identifiers will have to ask users to opt in for tracking when the app is first launched. If users opt out, the app can’t track certain data and Facebook will have a smaller database of points to rely upon. As consumer preferences change, so will Facebook’s targeting that relies on IDFAs get worse and less effective due to outdated data points.</p>\n<p>According to aCNBC article:</p>\n<blockquote>\n Most critically at stake for Facebook is what’s known as view-through conversions. This metric is used by ad-tech companies to measure how many users saw an ad, did not immediately click on it, but later made a purchase related to that ad.”\n</blockquote>\n<p>When the conversion is made later on, the data IDFA for that particular user is then shared by the retailer to Facebook which is then used by the company to see if it matches the IDFA of the user who saw the ad. If they pair, it indicates that the ad was useful in generating a conversion. This data performance is then relayed to advertisers so that they can tweak their ad strategies accordingly. Withas much as 96% of usersanticipated to opt out of tracking on all apps, this would mean that mobile ads on 3rdparty apps may no longer be as useful if Facebook cannot really judge its effectiveness anymore. The more ineffective the ads become, the less conversions for retailers, and the more they pivot to other advertising platforms, which will impact the revenues for the firm.</p>\n<p>However, Facebook has disclosed that this will particularly only affect one form of advertisement which relies heavily on the IDFA, known as Audience Networks. Fortunately, the audience network segment only represents less than 10% of the firm’s total revenues. With the impact estimating to cost a drop in50% of all ads deliveredand hence sales from this segment, this would atbest represent a 5% drop in their total revenues. With that said, we do not anticipate that this will be present significant impact moving forward and the firm can easily recoup the 5% loss at worse by focusing on increasing ARPUs and user engagement to save their core business.</p>\n<p>Though Facebook started by disclosing that they anticipated the impact on their revenues to be large at first, this no longer seems to be the case. If anything, history has shown us that Mark is not one to back down and if he doesn’t get his way, he damn well will find another way to minimise loss and increase revenue generation in other segments to make up for it. If you aren’t too involved in the technicalities, we think it’s safe to bet on the jockey in this case. Besides, AR / VR growth,WhatsApp monetization, Reels monetization, further user growth in less developed countries away from the legacy North America and Europe region can very well pick up the lost (US$5BN) in sales.</p>\n<p><b>Moat</b></p>\n<p>As mentioned above, the DAUs and MAUs for Facebook are very impressive with a large portion of the world using at least 1 of their products. The moat for the business relies on the wide user base that Facebook has meticulously built over the course of 17 years. With any new product that they have, the firm can easily roll it out to their database of users and expect demand to pick up in a matter of weeks, maybe even days. That is the power of the network of Facebook that really can’t be valued.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2057a83640201edd89430e754f3f8525\" tg-width=\"640\" tg-height=\"431\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>Despite the controversy, endless allegations, and negative headlines one after the other, the numbers don’t lie. DAUs have been increasing every single quarter, with the fastest growth observed in Asia-Pacific and the rest of the world. US &amp; Canada growth has slowed as it nears saturation levels, and this is perfectly normal and to be expected. The way we anticipate Facebook to grow their core cash cow business moving forward is clean. 1) Focus on growing ARPUs in their saturated legacy areas (US &amp; Canada and Europe) as well as 2) Increase User Growth by Geography in their growth areas (Asia-Pacific and the Rest of the World). Unsurprisingly, Facebook has been focused on doing just that.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce3456321584d2eea288f7e410215571\" tg-width=\"640\" tg-height=\"388\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>When we look to the infamous metric for judging social media companies and their performance – ARPUs, we can see that in the legacy areas, ARPUs have been increasing at a faster pace than compared to growth areas. This falls in line with point number 1 as mentioned above. The legacy areas have already reached saturation levels and user growth is unable to grow at astounding rates anymore. However, since this represent areas that are more developed and generally have higher disposable incomes on the average, focusing on increasing ARPUs and monetizing advertisers is the right strategy and a very feasible one. Though the growth areas are also seeing ARPUs grow YoY as they should, they are not at the same pace as in the US &amp; Canada and Europe. When we look to revenue generated by geography below, this confirms the thesis that revenue is growing faster than user base in those areas, and since ARPU equal to (Total Revenue from that Geography / Number of Users in that area), so long revenue is growing at a faster pace than the user base, they should increase meaningfully.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/84eaec3de9bafd595bf4ecf9ffdae16a\" tg-width=\"640\" tg-height=\"430\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>When we look to the slide below, it is also apparent that user numbers are growing much faster in Asia-Pacific and the rest of the world, away from the legacy areas. Across 2 years, MAUs which is the broadest business performance metric employed by Facebook, grew 22.4% and 25.4% in the growth areas while they only grew a mere 6.6% in US &amp; Canada and 10.2% in Europe.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/2d72be6c3ca7eb809567503ffc1d4ed9\" tg-width=\"640\" tg-height=\"395\"><span>(Source: FB Q1’21 Presentation)</span></p>\n<p>If Facebook can continue to grow their user engagement numbers in the growth areas whilst maximizing ARPUs in legacy areas, the company can easily ensure that the core advertising model will remain the cash cow of the business, funding growth for their other product developments.</p>\n<p><b>Growth Tactics</b></p>\n<p>When we look to potential growth Facebook has, the company isn’t short of any. Facebook has moved to monetizeWhatsApp, where they plan to generate fees from payments made within the app itself as well as through in-app status advertisements. The company is essentially trying to integrate the growth and TAM of the E-commerce market more seamlessly into their family of products including the likes ofWhatsApp. ThroughFacebook Pay, users can now engage in peer-to-peer payments withinWhatsApp itself at no cost. However, when businesses receive a fee from customers through the app itself, they will then have to pay a small ‘processing fee’ to Facebook and this is where it profits. This is the same method that is being employed by Shopify and all the other payment processing channels just that it is now being done locally inWhatsApp itself.WhatsApp payments has launched in Brazil, the 2nd largest market by users and the fee stands at 3.99%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4d1d27ff399e3e6fdfbc44a3ff1fb6e6\" tg-width=\"640\" tg-height=\"557\"><span>(Source:Facebook Newsroom)</span></p>\n<p>The firm has also been trying to grow their presence in the E-commerce market and reduce the friction customers experience when clicking through ads on its platforms. Both Instagram checkout and Facebook shops are aimed at doing just that. Their shops solutions are also expanding toWhatsApp, and the marketplace as observed above. The company sees a major shift to online shopping even after the grand reopening of the economies. As part of its effort over the years, they now have 1.2M active shops across their platforms and more than 300M monthly shop visitors. Thelatest releasestates that:</p>\n<blockquote>\n Soon, we’ll give businesses in select countries the option to showcase their Shop inWhatsApp. In the US, we’ll enable them to bring Shops products into Marketplace, helping them reach the more than 1 billion people globally who visit each month.\n</blockquote>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/38d87012cd9e376a0bed27a095b01828\" tg-width=\"640\" tg-height=\"418\"><span>(Source:Facebook Newsroom)</span></p>\n<p>What’s even more fascinating is the fact that Facebook now plans to integrate new technologies such as AR Dynamic Ads to power the future of shopping. New visual discovery tools on their platforms like Instagram will help customers find new products that they resonate with faster than ever before and help them to visualize their products with AR experiences that they have been working on for a long time now.</p>\n<p>Their continued expansion in the AR/VR market along with the rollout of DIEM, their native digital currency functioning as a stablecoin that was once under the “Libra Project” also presents good growth opportunity in the near future. Facebook is also looking to introducepodcasts and live audio streamsas part of the beginning of their audio journey. In short, Facebook still has a lot of room to grow moving forward apart from looking to squeeze out more cash from their legacy advertising business model. However, as always, product development is one thing, but the financials do need to shape up as well and with Facebook it does.</p>\n<p><b>Financials</b></p>\n<p>Of the FAANG stock group, Facebook enjoys one of the highest margins. The company saw 80.55% in GM in Q1’21 and even in the past, it has enjoyed such high margins, trading between 80.5% to as high as 86.6% in FY17. The chart below also clearly indicates that the remarkable margins trickle down to the bottom line and aren’t wiped out due to operating expenses, registering a NPM of 35.7%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1367468f26c73bde43f494b2b7fb49d6\" tg-width=\"635\" tg-height=\"467\"><span>Data by YCharts</span></p>\n<p>FB also routinely spends a large portion of their revenues on R&amp;D, reinvesting into the business YoY to further improve their products and innovate on new ones. In 2020 the R&amp;D expense represented 21.5% of total sales.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4b923685aa0489833ae8f50fcddf3601\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>A large chunk of the firms’ revenues is also retained on the balance sheet which is then used over the years to funnel money to continue their acquisitive culture. Despite this, the strong cashflow that the firm enjoys allows it to stay at the top of their industry in terms of innovation whilst ensuring that their treasure trove of cash is growing should there be a need to deploy it. When we look to liquid cash that the firm holds (Cash &amp; Equivalents, and STI), Facebook has grown it at a tremendous CAGR of 26.2%. Net Debt has also just been becoming less of a concern over the years. To date, even after the pandemic, Facebook has no debt.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/13b40cadc31458233d0ea83ce4917c33\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Given the data above, it is evident that the firm has one of the most pristine balance sheets in the industry and in the whole stock market. The US$62 BN that they hold as cash presents itself as a massive buffer to cushion the impact of whatever comes their way, be it another acquisitive opportunity, or yet another fine. Either way, the company can weather any financial storm and near balance sheet issues aren’t a problem. Shareholders aren’t too pleased with the cash pile just sitting there and would instead rather the firm start paying a dividend or pick up the pace in share buybacks to maximize investor returns. Facebook has never paid a dividend in its entirety and although they may consider that moving forward, we anticipate that it is not a move that they will commit to. In any case, we ourselves hope that they commit to more share buybacks instead of moving to issue a dividend.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/3f5b82506a0385a1265c494b21462678\" tg-width=\"640\" tg-height=\"43\"><span>(Source:Q1 10-K Filing SEC)</span></p>\n<p>In their 10-K filing, the company expanded their SRP program to include an additional US$25 BN which will be added atop the US$8.6 BN remaining from a 2017 authorization. That amounts to a current authorized SRP valued at around US$33.6 BN and we anticipate that this may further increase substantially moving forward. Despite outstanding shares reducing overtime, a large part is offset by additional equity issued as part of SBC to employees. It is disappointing that the firm isn’t making more of a definitive move to put that cash pile to use but this is nonetheless not a major red flag.</p>\n<p><b>Valuations</b></p>\n<p>Being a blue-chip company with strong FCF, we would normally value the social media giant with a DCF model. Today, however, we will be looking at EV/Sales and P/E Ratios to try and justify its future valuation, looking 3 years out as always to end 2023.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/0878b205b837634b7d2528f57ebe84fc\" tg-width=\"640\" tg-height=\"321\"><span>(Source:Seeking Alpha)</span></p>\n<p>Looking 3 years out to end 23, Facebook is projected to grow revenues at an average of 23.4%, with growth in the 30s for this fiscal year. That would mean that Facebook is anticipated to grow revenues to US$160.8 BN by end 2023, up 87% from what they delivered in FY20 in 3 years.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/1707f8cfee45ce9ebb0e3ac961e78f48\" tg-width=\"640\" tg-height=\"338\"><span>(Source: TIKR.com)</span></p>\n<p>Since 2018, the firm has traded at an average EV/Sales of 8.85, and last exchanged hands at a multiple of 9.76. Although the firm is trading at a multiple above its mean and higher than any of the other stocks as part of the FAANG group, Facebook does have higher estimates than all the other companies in the near future as observed below. The data does not reflect estimates for 2023.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/444e1473e814530e2332cea02637af53\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>Moreover, when we look further into the past all the way back to 2013, the company has historically traded at an average of 12.82 and even registered a high close to 22 in 2014. However, since we want to be conservative, but believe that the market has yet to really price Facebook for what it’s worth given all the headline risks in the media that have induced immediate selloffs without any fundamental reason, we will employ a multiple of 9.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/8494d3084eed106a9cb0bff0f27cfe7a\" tg-width=\"640\" tg-height=\"384\"><span>(Source: TIKR.com)</span></p>\n<p>At an EV/Sales multiple of 9, that would put Facebook at a US$1.447 TRN dollar valuation by the end of 2023 and a share price of US$539, an upside of 58%.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/55014da5e82d1a67caaeb34766b35940\" tg-width=\"640\" tg-height=\"294\"><span>(Source:Seeking Alpha)</span></p>\n<p>When we look to revenue surprise and analyst estimate beat / miss trends, Facebook has quite the historical track record of surpassing estimates, having done so 10/12 times in the past 3 years. The average upside surprise stands at 3.59%. Assuming Facebook will continue to deliver the same upside surprise moving forward, a 3.59% beat to the top line estimate of 2023 would warrant revenues of US$166.57 BN. At the same EV/Sales ratio of 9, that would render a higher valuation of US$558.77 USD. Given that Facebook is very close to crossing the US$1 TRN dollar valuation mark, we anticipate this to be a very realistic price target.</p>\n<p>Now shifting on to another valuation method by P/E multiples, the valuation also paints a similar picture.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5d67f3c257657bc10ee6be38c16d2a1f\" tg-width=\"640\" tg-height=\"207\"><span>(Source:Seeking Alpha)</span></p>\n<p>Turning to earnings estimates, the company is also projected to do high-teens digit growth for 2022 and 2023 and a close to 30% growth in the bottom line for this fiscal year.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ffe26a8eabec7045dc5a904497737623\" tg-width=\"635\" tg-height=\"501\"><span>Data by YCharts</span></p>\n<p>Despite trading at the highest EV / Sales ratio of the FAANG stocks, Facebook is trading at the lowest TTM normalized PE Ratio amongst its peers, with the inclusion of Microsoft (FANGMA). This is likely due to the market failing to internalize and appreciate the company’s high NPM and profitability. Currently trading at a P/E ratio of 29.14, this is also below its historical means of as high as 60+ in 2016.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/247661f12f62820f6266763f49531355\" tg-width=\"635\" tg-height=\"417\"><span>Data by YCharts</span></p>\n<p>However, given that earnings have improved dramatically since and likely won’t be revisiting those levels as seen from the forward estimates, we will stick with what we believe to be a fair multiple for the stickiest company in the world, 30. At a P/E ratio of 30, that would put the end 2023 share price somewhere near levels of US$531.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/ce908799f1bf9091b49b94e03db7e476\" tg-width=\"640\" tg-height=\"284\"><span>(Source:Seeking Alpha)</span></p>\n<p>However, because of a surprisingly good earnings-beat track record once again, this has to be factored in moving forward. Of the last 3 years, Facebook has beat earnings 11/12 times. The average beat comes in at 15.72%. If we were to stick to a similar but more conservative beat of say 7%, that would put 2023 normalized earnings at 18.93. The exact same P/E ratio would now warrant a realistic share price of US$567.8, an upside of 66.3%.</p>\n<p>With all 4 estimates using different methods and assumptions with different levels of conservatism employed delivering a potential share price anywhere between US$531 and US$568, it would be fair to conclude that this is a realistic price target for the cashflow king 3 years out into the future. At the low end of estimates of US$531, this is still indicative of a 55% upside.</p>\n<p><b>Investor Takeaways</b></p>\n<p>To conclude, we believe Facebook has a very strong future ahead and the projected numbers for both the Topline and Bottom line are indicative of potential upside. We place significant emphasis on forward estimates as markets are future discounting mechanisms that react accordingly. The company enjoys unbelievably high margins, has a pristine balance sheet with absolutely no debt, and is anticipated to keep raking in high revenues with strong cashflow numbers.</p>\n<p>With so many growth opportunities such as the monetization ofWhatsApp, AR/VR, shops, marketplace growth, DIEM, and the continued growth in its legacy advertisement business both in terms of MAP and ARPUs, Facebook is here to stay and is nowhere near exhausting its full potential. The sizeable TAMs in each of the different business segments combined with other opportunities such as Facebook Reels which we did not cover, and the fact that it has yet to have been monetized, all point to a bright future.</p>\n<p>That being said, it is a given that the company will face many other bumps along moving forward. Facebook will continue to be subjected to what we call ‘headline risks’ whereby the stock will be overly sold off to the downside based upon nothing fundamental but one-sided exaggerated narratives. This we believe presents the best time to pick up shares and accumulate for the long run. Facebook has been perceived to have engaged in a lot of dubious unethical behaviour surrounding user data but like we said, that is separate from the investment opportunity the company presents and we will leave that to you to decide. Granted that there are many reasons surrounding the company's beat-down reputation, the return on invested capital is a different story and the main one to be focused on when considering if a company is a good investment or not.</p>\n<p>End day, when it comes to blue-chip stocks that have a firm hold in the industry, good sticky products, and solid financials, it is hard for the stock not to trend up overtime so long as estimates paint a bright picture and most importantly, the markets continue to value them in the same rational way. This has not always been the case and can be easily seen from Microsoft’s outperformance hiatus when the Dot Com bubble crashed, and the stock took 17 years to put in a new high. Still, we believe blue chip stocks are a good bet as of now and should be a part of everyone’s portfolio, and Facebook presents the best buy of the FAANG from our perspective. Till next time!</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Facebook: Simply Unstoppable</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nFacebook: Simply Unstoppable\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-29 16:46 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4437000-facebook-simply-unstoppable><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nThe #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.\nDespite an ...</p>\n\n<a href=\"https://seekingalpha.com/article/4437000-facebook-simply-unstoppable\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{},"source_url":"https://seekingalpha.com/article/4437000-facebook-simply-unstoppable","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1100563900","content_text":"Summary\n\nThe #StopHateforProfit Campaign, antitrust allegations, Apple IDFA issue, and a host of other historical issues have not stopped the social media giant and will not stop it.\nDespite an impressive rally delivering 65% since the start of CY20 and 26% YTD, Facebook remains undervalued relative to its peers and the FAANG stocks with the best forward estimates.\nThe strong moat originating from their sheer user base, and sizeable TAMs in E-commerce, VR/AR, digital assets (DIEM), cumulatively make for a compelling growth story.\nAlthough the company is highly controversial and rightfully so, this article focuses more on the quantitative analysis and less on the morals and ethics behind this investment. That, we shall leave to you.\n\nnemke/E+ via Getty Images\nInvestment Thesis\nFacebook (FB) has had a volatile trading period the past few years with a general uptrend, delivering shareholders nice returns whilst subjecting them to a few major dips which presented investors an opportunity for a steal. Despite the controversy and headline risks every now and then, the company has been able to battle through them and emerge ever so stronger. The company’s financials have been holding up and shows no sign of stoppage anytime soon. In a time as such, with significant uncertainty in the macro environment and inflation fears creeping up, we believe that shifting some of your assets to high cashflow generating companies is a wise strategy that will pay off. Growth and value are 2 different things, and there still exists growth companies that are undervalued and can still generate substantial cashflow, and we believe Facebook is one of them. The company also remains to be one of the more attractive blue-chip stocks compared to the others in the FAANG. We employ a 3–5-year outlook and have been bullish since USD$200/share. Let’s Begin!\nWhat is Facebook\nKnown to all, Facebook is a social media giant with a family of products including the likes of Facebook, Instagram,WhatsApp, Messenger, and now Oculus. The firm essentially has a stronghold in the social media industry and has an impressive DAP of2.72 BN as of Q1’21and MAP of 3.45 BN.\n(Source:FB Q1’21 Presentation)\nThe world has7.874 BNpeople as of the time of this writing and that would mean that 43.8% of all the people in the world use some form of product from Facebook’s portfolio in the past 30 days. On a daily basis, 34.5% of the people in the world use it. If that isn’t a sticky service, nothing really is. If we were to focus on the usage of the Facebook app solely, 23.8% of the world logs into the app daily based on DAUs.\nThe firm was founded in 2004 and generates the majority of their revenue from advertisements. If you have watched the social dilemma on Netflix, you would realize that Facebook’s real customer isn’t everyday users. Instead, users are the product, and they are being sold to advertisers. The company has created such an engaging and sticky service that users are more than happy to be using their apps, despite knowing that their data is being sold from one company to another. As appalling as it is, they’re indifferent to it all and still find the value in using the company’s products on a daily basis – keeping in touch with distant relatives, chatting with friends, staying up to date with the latest fashion trends and news… (According to the Pew Research Center, more than a 1/3 of US adults say they get their news regularly from Facebook)\n(Source:Pew Research Center)\nTo Facebook, this is equally as good as the more users, the wider the ‘product’ base that they have to offer their customers - advertisers. Advertisers are also indifferent to how Facebook attains its data, so long as Facebook’s targeting metrics and trackers are working well, the more likely it is that they are able to generate conversions. The more conversions, the more sales for them, the more ads they continue to pay for, the more revenue Facebook generates. Win-Win-Win, their apps are the bait, and the product (users), customers (advertisers), and supplier (Facebook), all walk away winners. It’s a remarkable business model that has stood the test of time and no matter the amount of controversy around the business, founders, and its practices, it isn’t going anywhere anytime soon and for one simple reason: Users likely can’t do without Facebook’s products whether they are willing to admit it or not.\nWhen we look back in the past to reflect on how the #StopHateForProfit Campaign turned out for the company, it is apparent that the impact it had on the top and bottom line were both minimal. The boycott was one that arose due to Facebook’s bad hate speech regulations and policing, and because of the laissez-faire attitude toward posts from then President, Donald Trump. More than 1000 companies publicly committed to boycotting the social media giant in June/July (coinciding with end Q2 and start Q3) and many of the top 100 advertisers based on ad spend such as Nike, Adidas, Puma, Coca-Cola, all revised their budgets downwards.\nDespite this, Facebook beat on Q2 earnings and saw an increase of 10.7% YOY. In its forward guidance, the company also announced that for July, they were anticipating a slowdown in YoY growth of 17% but was still due to see a 10% increase. They alsoanticipatedthe slowdown in growth to last through till October. However, the company did not attribute this slowdown to the boycott specifically but to 3 other major headwinds. With the benefit of hindsight, we can now see that even for Q3’20, the firm saw an impressive 21.6% rise in its top line, with the bottom line still registering a 12.2% improvement in NPM for Q2’20 YoY and a 200 bps NPM improvement in Q3.\nThe results are clear and indicative of a few things. The boycott by the largest companies did little to Facebook’s financial story as they still managed to register growth and did not see significant pullbacks that were material. This can be tied to the fact that most of Facebook’s advertisers are SMBs. Although certain few SMBs did join the boycott, most didn’t, and the firm still had their impressive 9 million + customer base to rely on. If anything, this also suggests that despite what any SMB stands for and whether they agree with a social cause or not, it is hard for them to find alternatives that they can shift to on a similar pricing scale. Big brands can easily pivot to other advertisements such as TV and radio commercials but SMBs simply can’t because of smaller budgets. Lastly, it is now clear that the campaign affected Facebook’s reputation more so than it did its cashflow.\nRisks\nOther risks that the company may face would be future antitrust lawsuits. As it is, the company is already facing allegations of being a monopoly based on their aggressive acquisitive history having acquired more than90 other companiessince inception. They were alsofined US$5 BNby the FTC in 2019 and were required to adopt their policies and employ new protections for the users and their data that has been shared.\n(Source: TIKR.com)\nThough representative of a historic penalty and the largest ever imposed on a company for violating user’s privacy rights, the US$5BN was a drop in the bucket for the giant that went on to generate US$70+ BN dollars for the year.\nThe current issues that they have with Apple’s new iOS changes and the IDFA implications are also likely not going to have a substantial impact on the firm. The Identifier for Advertisers [IDFA] is a random device identifier assigned by Apple to a user's device. Advertisers use this to track data so they can deliver customized advertising on mobile. With the new iOS changes, Apple essentially programmed it such that each app that wants to use these identifiers will have to ask users to opt in for tracking when the app is first launched. If users opt out, the app can’t track certain data and Facebook will have a smaller database of points to rely upon. As consumer preferences change, so will Facebook’s targeting that relies on IDFAs get worse and less effective due to outdated data points.\nAccording to aCNBC article:\n\n Most critically at stake for Facebook is what’s known as view-through conversions. This metric is used by ad-tech companies to measure how many users saw an ad, did not immediately click on it, but later made a purchase related to that ad.”\n\nWhen the conversion is made later on, the data IDFA for that particular user is then shared by the retailer to Facebook which is then used by the company to see if it matches the IDFA of the user who saw the ad. If they pair, it indicates that the ad was useful in generating a conversion. This data performance is then relayed to advertisers so that they can tweak their ad strategies accordingly. Withas much as 96% of usersanticipated to opt out of tracking on all apps, this would mean that mobile ads on 3rdparty apps may no longer be as useful if Facebook cannot really judge its effectiveness anymore. The more ineffective the ads become, the less conversions for retailers, and the more they pivot to other advertising platforms, which will impact the revenues for the firm.\nHowever, Facebook has disclosed that this will particularly only affect one form of advertisement which relies heavily on the IDFA, known as Audience Networks. Fortunately, the audience network segment only represents less than 10% of the firm’s total revenues. With the impact estimating to cost a drop in50% of all ads deliveredand hence sales from this segment, this would atbest represent a 5% drop in their total revenues. With that said, we do not anticipate that this will be present significant impact moving forward and the firm can easily recoup the 5% loss at worse by focusing on increasing ARPUs and user engagement to save their core business.\nThough Facebook started by disclosing that they anticipated the impact on their revenues to be large at first, this no longer seems to be the case. If anything, history has shown us that Mark is not one to back down and if he doesn’t get his way, he damn well will find another way to minimise loss and increase revenue generation in other segments to make up for it. If you aren’t too involved in the technicalities, we think it’s safe to bet on the jockey in this case. Besides, AR / VR growth,WhatsApp monetization, Reels monetization, further user growth in less developed countries away from the legacy North America and Europe region can very well pick up the lost (US$5BN) in sales.\nMoat\nAs mentioned above, the DAUs and MAUs for Facebook are very impressive with a large portion of the world using at least 1 of their products. The moat for the business relies on the wide user base that Facebook has meticulously built over the course of 17 years. With any new product that they have, the firm can easily roll it out to their database of users and expect demand to pick up in a matter of weeks, maybe even days. That is the power of the network of Facebook that really can’t be valued.\n(Source: FB Q1’21 Presentation)\nDespite the controversy, endless allegations, and negative headlines one after the other, the numbers don’t lie. DAUs have been increasing every single quarter, with the fastest growth observed in Asia-Pacific and the rest of the world. US & Canada growth has slowed as it nears saturation levels, and this is perfectly normal and to be expected. The way we anticipate Facebook to grow their core cash cow business moving forward is clean. 1) Focus on growing ARPUs in their saturated legacy areas (US & Canada and Europe) as well as 2) Increase User Growth by Geography in their growth areas (Asia-Pacific and the Rest of the World). Unsurprisingly, Facebook has been focused on doing just that.\n(Source: FB Q1’21 Presentation)\nWhen we look to the infamous metric for judging social media companies and their performance – ARPUs, we can see that in the legacy areas, ARPUs have been increasing at a faster pace than compared to growth areas. This falls in line with point number 1 as mentioned above. The legacy areas have already reached saturation levels and user growth is unable to grow at astounding rates anymore. However, since this represent areas that are more developed and generally have higher disposable incomes on the average, focusing on increasing ARPUs and monetizing advertisers is the right strategy and a very feasible one. Though the growth areas are also seeing ARPUs grow YoY as they should, they are not at the same pace as in the US & Canada and Europe. When we look to revenue generated by geography below, this confirms the thesis that revenue is growing faster than user base in those areas, and since ARPU equal to (Total Revenue from that Geography / Number of Users in that area), so long revenue is growing at a faster pace than the user base, they should increase meaningfully.\n(Source: FB Q1’21 Presentation)\nWhen we look to the slide below, it is also apparent that user numbers are growing much faster in Asia-Pacific and the rest of the world, away from the legacy areas. Across 2 years, MAUs which is the broadest business performance metric employed by Facebook, grew 22.4% and 25.4% in the growth areas while they only grew a mere 6.6% in US & Canada and 10.2% in Europe.\n(Source: FB Q1’21 Presentation)\nIf Facebook can continue to grow their user engagement numbers in the growth areas whilst maximizing ARPUs in legacy areas, the company can easily ensure that the core advertising model will remain the cash cow of the business, funding growth for their other product developments.\nGrowth Tactics\nWhen we look to potential growth Facebook has, the company isn’t short of any. Facebook has moved to monetizeWhatsApp, where they plan to generate fees from payments made within the app itself as well as through in-app status advertisements. The company is essentially trying to integrate the growth and TAM of the E-commerce market more seamlessly into their family of products including the likes ofWhatsApp. ThroughFacebook Pay, users can now engage in peer-to-peer payments withinWhatsApp itself at no cost. However, when businesses receive a fee from customers through the app itself, they will then have to pay a small ‘processing fee’ to Facebook and this is where it profits. This is the same method that is being employed by Shopify and all the other payment processing channels just that it is now being done locally inWhatsApp itself.WhatsApp payments has launched in Brazil, the 2nd largest market by users and the fee stands at 3.99%.\n(Source:Facebook Newsroom)\nThe firm has also been trying to grow their presence in the E-commerce market and reduce the friction customers experience when clicking through ads on its platforms. Both Instagram checkout and Facebook shops are aimed at doing just that. Their shops solutions are also expanding toWhatsApp, and the marketplace as observed above. The company sees a major shift to online shopping even after the grand reopening of the economies. As part of its effort over the years, they now have 1.2M active shops across their platforms and more than 300M monthly shop visitors. Thelatest releasestates that:\n\n Soon, we’ll give businesses in select countries the option to showcase their Shop inWhatsApp. In the US, we’ll enable them to bring Shops products into Marketplace, helping them reach the more than 1 billion people globally who visit each month.\n\n(Source:Facebook Newsroom)\nWhat’s even more fascinating is the fact that Facebook now plans to integrate new technologies such as AR Dynamic Ads to power the future of shopping. New visual discovery tools on their platforms like Instagram will help customers find new products that they resonate with faster than ever before and help them to visualize their products with AR experiences that they have been working on for a long time now.\nTheir continued expansion in the AR/VR market along with the rollout of DIEM, their native digital currency functioning as a stablecoin that was once under the “Libra Project” also presents good growth opportunity in the near future. Facebook is also looking to introducepodcasts and live audio streamsas part of the beginning of their audio journey. In short, Facebook still has a lot of room to grow moving forward apart from looking to squeeze out more cash from their legacy advertising business model. However, as always, product development is one thing, but the financials do need to shape up as well and with Facebook it does.\nFinancials\nOf the FAANG stock group, Facebook enjoys one of the highest margins. The company saw 80.55% in GM in Q1’21 and even in the past, it has enjoyed such high margins, trading between 80.5% to as high as 86.6% in FY17. The chart below also clearly indicates that the remarkable margins trickle down to the bottom line and aren’t wiped out due to operating expenses, registering a NPM of 35.7%.\nData by YCharts\nFB also routinely spends a large portion of their revenues on R&D, reinvesting into the business YoY to further improve their products and innovate on new ones. In 2020 the R&D expense represented 21.5% of total sales.\n(Source: TIKR.com)\nA large chunk of the firms’ revenues is also retained on the balance sheet which is then used over the years to funnel money to continue their acquisitive culture. Despite this, the strong cashflow that the firm enjoys allows it to stay at the top of their industry in terms of innovation whilst ensuring that their treasure trove of cash is growing should there be a need to deploy it. When we look to liquid cash that the firm holds (Cash & Equivalents, and STI), Facebook has grown it at a tremendous CAGR of 26.2%. Net Debt has also just been becoming less of a concern over the years. To date, even after the pandemic, Facebook has no debt.\n(Source: TIKR.com)\nGiven the data above, it is evident that the firm has one of the most pristine balance sheets in the industry and in the whole stock market. The US$62 BN that they hold as cash presents itself as a massive buffer to cushion the impact of whatever comes their way, be it another acquisitive opportunity, or yet another fine. Either way, the company can weather any financial storm and near balance sheet issues aren’t a problem. Shareholders aren’t too pleased with the cash pile just sitting there and would instead rather the firm start paying a dividend or pick up the pace in share buybacks to maximize investor returns. Facebook has never paid a dividend in its entirety and although they may consider that moving forward, we anticipate that it is not a move that they will commit to. In any case, we ourselves hope that they commit to more share buybacks instead of moving to issue a dividend.\n(Source:Q1 10-K Filing SEC)\nIn their 10-K filing, the company expanded their SRP program to include an additional US$25 BN which will be added atop the US$8.6 BN remaining from a 2017 authorization. That amounts to a current authorized SRP valued at around US$33.6 BN and we anticipate that this may further increase substantially moving forward. Despite outstanding shares reducing overtime, a large part is offset by additional equity issued as part of SBC to employees. It is disappointing that the firm isn’t making more of a definitive move to put that cash pile to use but this is nonetheless not a major red flag.\nValuations\nBeing a blue-chip company with strong FCF, we would normally value the social media giant with a DCF model. Today, however, we will be looking at EV/Sales and P/E Ratios to try and justify its future valuation, looking 3 years out as always to end 2023.\n(Source:Seeking Alpha)\nLooking 3 years out to end 23, Facebook is projected to grow revenues at an average of 23.4%, with growth in the 30s for this fiscal year. That would mean that Facebook is anticipated to grow revenues to US$160.8 BN by end 2023, up 87% from what they delivered in FY20 in 3 years.\n(Source: TIKR.com)\nSince 2018, the firm has traded at an average EV/Sales of 8.85, and last exchanged hands at a multiple of 9.76. Although the firm is trading at a multiple above its mean and higher than any of the other stocks as part of the FAANG group, Facebook does have higher estimates than all the other companies in the near future as observed below. The data does not reflect estimates for 2023.\n(Source: TIKR.com)\nMoreover, when we look further into the past all the way back to 2013, the company has historically traded at an average of 12.82 and even registered a high close to 22 in 2014. However, since we want to be conservative, but believe that the market has yet to really price Facebook for what it’s worth given all the headline risks in the media that have induced immediate selloffs without any fundamental reason, we will employ a multiple of 9.\n(Source: TIKR.com)\nAt an EV/Sales multiple of 9, that would put Facebook at a US$1.447 TRN dollar valuation by the end of 2023 and a share price of US$539, an upside of 58%.\n(Source:Seeking Alpha)\nWhen we look to revenue surprise and analyst estimate beat / miss trends, Facebook has quite the historical track record of surpassing estimates, having done so 10/12 times in the past 3 years. The average upside surprise stands at 3.59%. Assuming Facebook will continue to deliver the same upside surprise moving forward, a 3.59% beat to the top line estimate of 2023 would warrant revenues of US$166.57 BN. At the same EV/Sales ratio of 9, that would render a higher valuation of US$558.77 USD. Given that Facebook is very close to crossing the US$1 TRN dollar valuation mark, we anticipate this to be a very realistic price target.\nNow shifting on to another valuation method by P/E multiples, the valuation also paints a similar picture.\n(Source:Seeking Alpha)\nTurning to earnings estimates, the company is also projected to do high-teens digit growth for 2022 and 2023 and a close to 30% growth in the bottom line for this fiscal year.\nData by YCharts\nDespite trading at the highest EV / Sales ratio of the FAANG stocks, Facebook is trading at the lowest TTM normalized PE Ratio amongst its peers, with the inclusion of Microsoft (FANGMA). This is likely due to the market failing to internalize and appreciate the company’s high NPM and profitability. Currently trading at a P/E ratio of 29.14, this is also below its historical means of as high as 60+ in 2016.\nData by YCharts\nHowever, given that earnings have improved dramatically since and likely won’t be revisiting those levels as seen from the forward estimates, we will stick with what we believe to be a fair multiple for the stickiest company in the world, 30. At a P/E ratio of 30, that would put the end 2023 share price somewhere near levels of US$531.\n(Source:Seeking Alpha)\nHowever, because of a surprisingly good earnings-beat track record once again, this has to be factored in moving forward. Of the last 3 years, Facebook has beat earnings 11/12 times. The average beat comes in at 15.72%. If we were to stick to a similar but more conservative beat of say 7%, that would put 2023 normalized earnings at 18.93. The exact same P/E ratio would now warrant a realistic share price of US$567.8, an upside of 66.3%.\nWith all 4 estimates using different methods and assumptions with different levels of conservatism employed delivering a potential share price anywhere between US$531 and US$568, it would be fair to conclude that this is a realistic price target for the cashflow king 3 years out into the future. At the low end of estimates of US$531, this is still indicative of a 55% upside.\nInvestor Takeaways\nTo conclude, we believe Facebook has a very strong future ahead and the projected numbers for both the Topline and Bottom line are indicative of potential upside. We place significant emphasis on forward estimates as markets are future discounting mechanisms that react accordingly. The company enjoys unbelievably high margins, has a pristine balance sheet with absolutely no debt, and is anticipated to keep raking in high revenues with strong cashflow numbers.\nWith so many growth opportunities such as the monetization ofWhatsApp, AR/VR, shops, marketplace growth, DIEM, and the continued growth in its legacy advertisement business both in terms of MAP and ARPUs, Facebook is here to stay and is nowhere near exhausting its full potential. The sizeable TAMs in each of the different business segments combined with other opportunities such as Facebook Reels which we did not cover, and the fact that it has yet to have been monetized, all point to a bright future.\nThat being said, it is a given that the company will face many other bumps along moving forward. Facebook will continue to be subjected to what we call ‘headline risks’ whereby the stock will be overly sold off to the downside based upon nothing fundamental but one-sided exaggerated narratives. This we believe presents the best time to pick up shares and accumulate for the long run. Facebook has been perceived to have engaged in a lot of dubious unethical behaviour surrounding user data but like we said, that is separate from the investment opportunity the company presents and we will leave that to you to decide. Granted that there are many reasons surrounding the company's beat-down reputation, the return on invested capital is a different story and the main one to be focused on when considering if a company is a good investment or not.\nEnd day, when it comes to blue-chip stocks that have a firm hold in the industry, good sticky products, and solid financials, it is hard for the stock not to trend up overtime so long as estimates paint a bright picture and most importantly, the markets continue to value them in the same rational way. This has not always been the case and can be easily seen from Microsoft’s outperformance hiatus when the Dot Com bubble crashed, and the stock took 17 years to put in a new high. Still, we believe blue chip stocks are a good bet as of now and should be a part of everyone’s portfolio, and Facebook presents the best buy of the FAANG from our perspective. Till next time!","news_type":1},"isVote":1,"tweetType":1,"viewCount":323,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151399698,"gmtCreate":1625063161614,"gmtModify":1633945278227,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151399698","repostId":"1183093793","repostType":4,"isVote":1,"tweetType":1,"viewCount":106,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151307925,"gmtCreate":1625063092867,"gmtModify":1633945279863,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Lol","listText":"Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151307925","repostId":"1179476522","repostType":4,"repost":{"id":"1179476522","pubTimestamp":1625062071,"share":"https://www.laohu8.com/m/news/1179476522?lang=&edition=full","pubTime":"2021-06-30 22:07","market":"us","language":"en","title":"IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down","url":"https://stock-news.laohu8.com/highlight/detail?id=1179476522","media":"InvestorPlace","summary":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearl","content":"<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense</p>\n<p>In the nearly two years since&nbsp;<b>International Business Machines</b>(NYSE:<b><u>IBM</u></b>) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.</p>\n<p>This means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.</p>\n<p>It also means roughly $24.5 billion in cash flow has flown out the door, uninvested.</p>\n<p>That’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.</p>\n<p>Cloud Czars like&nbsp;<b>Facebook</b>(NASDAQ:<b><u>FB</u></b>), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.</p>\n<p>If you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.</p>\n<p>You’re hoping the dividend ceases to be an issue.</p>\n<p><b>A Closer Look at IBM Stock</b></p>\n<p>Kyndryl is expected to generate roughly&nbsp;$19 billion&nbsp;in sales per year when it’s spun out, into offices atop a skyscraper&nbsp;next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”</p>\n<p>This could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”</p>\n<p>According to analysts at Andreesen Horowitz’s new online publication&nbsp;<i>Future</i>,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.</p>\n<p>This would be the sweet spot for the new IBM, and the Achilles heel of companies like&nbsp;<b>Amazon.Com</b>(NASDAQ:<b><u>AMZN</u></b>). Questions of where data is located, called&nbsp;cloud sovereignty, can complicate matters, but IBM thrives on such complexity.</p>\n<p><b>Investors Walk Away</b></p>\n<p>Most investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away&nbsp;from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.</p>\n<p>But there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of&nbsp;$2.25/share.</p>\n<p>The March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.</p>\n<p>If IBM can hit its estimates investors could see&nbsp;an historic breakout, according to Alan Farley of&nbsp;<i>FX Empire</i>.</p>\n<p>IBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.</p>\n<p><b>IBM Strategy</b></p>\n<p>IBM’s strategy heading into the spin-off will be based on “industry clouds,” &nbsp;something also being embraced by Cloud Czars&nbsp;<b>Microsoft</b>(NASDAQ:<b><u>MSFT</u></b>) and&nbsp;<b>Alphabet</b>(NASDAQ:<b><u>GOOGL</u></b>).</p>\n<p>IBM’s hope is that hybrid cloud will become&nbsp;a default corporate IT design, seeking to make internal systems as efficient as cloud.</p>\n<p>While IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by&nbsp;<b>Alibaba Group Holding</b>(NASDAQ:<b><u>BABA</u></b>).</p>\n<p>But its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.</p>\n<p><b>The Bottom Line</b></p>\n<p>If you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about&nbsp;storage systems, aboutquantum computers, about&nbsp;government contracts&nbsp;ordisputes with its old chip foundry.</p>\n<p>But don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBM Stock Is a Lot More Attractive as It Refocuses and Trims Down\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-30 22:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up ...</p>\n\n<a href=\"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IBM":"IBM"},"source_url":"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179476522","content_text":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.\nThis means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.\nIt also means roughly $24.5 billion in cash flow has flown out the door, uninvested.\nThat’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.\nCloud Czars like Facebook(NASDAQ:FB), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.\nIf you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.\nYou’re hoping the dividend ceases to be an issue.\nA Closer Look at IBM Stock\nKyndryl is expected to generate roughly $19 billion in sales per year when it’s spun out, into offices atop a skyscraper next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”\nThis could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”\nAccording to analysts at Andreesen Horowitz’s new online publication Future,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.\nThis would be the sweet spot for the new IBM, and the Achilles heel of companies like Amazon.Com(NASDAQ:AMZN). Questions of where data is located, called cloud sovereignty, can complicate matters, but IBM thrives on such complexity.\nInvestors Walk Away\nMost investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.\nBut there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of $2.25/share.\nThe March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.\nIf IBM can hit its estimates investors could see an historic breakout, according to Alan Farley of FX Empire.\nIBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.\nIBM Strategy\nIBM’s strategy heading into the spin-off will be based on “industry clouds,”  something also being embraced by Cloud Czars Microsoft(NASDAQ:MSFT) and Alphabet(NASDAQ:GOOGL).\nIBM’s hope is that hybrid cloud will become a default corporate IT design, seeking to make internal systems as efficient as cloud.\nWhile IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by Alibaba Group Holding(NASDAQ:BABA).\nBut its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.\nThe Bottom Line\nIf you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about storage systems, aboutquantum computers, about government contracts ordisputes with its old chip foundry.\nBut don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":246,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151390899,"gmtCreate":1625063146411,"gmtModify":1633945278996,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"&nbsp;Lol","listText":"&nbsp;Lol","text":"Lol","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151390899","repostId":"1179476522","repostType":4,"repost":{"id":"1179476522","pubTimestamp":1625062071,"share":"https://www.laohu8.com/m/news/1179476522?lang=&edition=full","pubTime":"2021-06-30 22:07","market":"us","language":"en","title":"IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down","url":"https://stock-news.laohu8.com/highlight/detail?id=1179476522","media":"InvestorPlace","summary":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearl","content":"<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense</p>\n<p>In the nearly two years since&nbsp;<b>International Business Machines</b>(NYSE:<b><u>IBM</u></b>) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.</p>\n<p>This means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.</p>\n<p>It also means roughly $24.5 billion in cash flow has flown out the door, uninvested.</p>\n<p>That’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.</p>\n<p>Cloud Czars like&nbsp;<b>Facebook</b>(NASDAQ:<b><u>FB</u></b>), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.</p>\n<p>If you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.</p>\n<p>You’re hoping the dividend ceases to be an issue.</p>\n<p><b>A Closer Look at IBM Stock</b></p>\n<p>Kyndryl is expected to generate roughly&nbsp;$19 billion&nbsp;in sales per year when it’s spun out, into offices atop a skyscraper&nbsp;next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”</p>\n<p>This could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”</p>\n<p>According to analysts at Andreesen Horowitz’s new online publication&nbsp;<i>Future</i>,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.</p>\n<p>This would be the sweet spot for the new IBM, and the Achilles heel of companies like&nbsp;<b>Amazon.Com</b>(NASDAQ:<b><u>AMZN</u></b>). Questions of where data is located, called&nbsp;cloud sovereignty, can complicate matters, but IBM thrives on such complexity.</p>\n<p><b>Investors Walk Away</b></p>\n<p>Most investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away&nbsp;from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.</p>\n<p>But there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of&nbsp;$2.25/share.</p>\n<p>The March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.</p>\n<p>If IBM can hit its estimates investors could see&nbsp;an historic breakout, according to Alan Farley of&nbsp;<i>FX Empire</i>.</p>\n<p>IBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.</p>\n<p><b>IBM Strategy</b></p>\n<p>IBM’s strategy heading into the spin-off will be based on “industry clouds,” &nbsp;something also being embraced by Cloud Czars&nbsp;<b>Microsoft</b>(NASDAQ:<b><u>MSFT</u></b>) and&nbsp;<b>Alphabet</b>(NASDAQ:<b><u>GOOGL</u></b>).</p>\n<p>IBM’s hope is that hybrid cloud will become&nbsp;a default corporate IT design, seeking to make internal systems as efficient as cloud.</p>\n<p>While IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by&nbsp;<b>Alibaba Group Holding</b>(NASDAQ:<b><u>BABA</u></b>).</p>\n<p>But its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.</p>\n<p><b>The Bottom Line</b></p>\n<p>If you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about&nbsp;storage systems, aboutquantum computers, about&nbsp;government contracts&nbsp;ordisputes with its old chip foundry.</p>\n<p>But don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”</p>","source":"lsy1606302653667","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>IBM Stock Is a Lot More Attractive as It Refocuses and Trims Down</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIBM Stock Is a Lot More Attractive as It Refocuses and Trims Down\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-30 22:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up ...</p>\n\n<a href=\"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"IBM":"IBM"},"source_url":"https://investorplace.com/2021/06/ibm-stock-is-a-lot-more-attractive-as-it-refocuses-and-trims-down/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1179476522","content_text":"IBM is still stuck with a dividend, but at least it now has a strategy that makes sense\nIn the nearly two years since International Business Machines(NYSE:IBM) bought Red Hat, its stock price is up just 1.8%. IBM stock has delivered $27.60/share in dividends to its investors.\nThis means IBM stock has delivered a total return of 20% to the “widows and orphans” who hold the stock.\nIt also means roughly $24.5 billion in cash flow has flown out the door, uninvested.\nThat’s the problem with dividends in our technology age. There’s an old tech saying that if you’re handing out dividends you don’t have anything better to do with the investors’ money.\nCloud Czars like Facebook(NASDAQ:FB), founded in 2004 and now worth $1 trillion, use cash flow for capital spending instead. This benefits investors more.\nIf you’re thinking of buying IBM, you’re hoping this error ends after its managed infrastructure business,Kyndryl, becomes independent late this year.\nYou’re hoping the dividend ceases to be an issue.\nA Closer Look at IBM Stock\nKyndryl is expected to generate roughly $19 billion in sales per year when it’s spun out, into offices atop a skyscraper next to Grand Central Station. What remains will have roughly $54 billion in revenue and claim leadership in “hybrid cloud.”\nThis could be the right time for such a move, as many companies are coming down with cloud “sticker shock.”\nAccording to analysts at Andreesen Horowitz’s new online publication Future,cloud margins compress over time. Companies that adopt the hybrid cloud model could end up saving $500 billion/year.\nThis would be the sweet spot for the new IBM, and the Achilles heel of companies like Amazon.Com(NASDAQ:AMZN). Questions of where data is located, called cloud sovereignty, can complicate matters, but IBM thrives on such complexity.\nInvestors Walk Away\nMost investors don’t recognize the opportunities, at least regarding IBM.Hedge funds have been walking away from the stock. Tipranks lists just eight analysts following IBM,only half of whom want you to buy it.\nBut there are signs of a turnaround. IBM next reports earnings on July 19. Analysts expect revenue of $18.29 billion and earnings of $2.25/share.\nThe March quarter,which beat estimates, saw $1.06/share of net income on revenue of $17.7 billion.\nIf IBM can hit its estimates investors could see an historic breakout, according to Alan Farley of FX Empire.\nIBM’s stock price has been falling for years, to as low as $91/share at the height of last year’s pandemic. Investors who bought then have seen a gain of around 52%, but the NASDAQ’s gain has been 108%.\nIBM Strategy\nIBM’s strategy heading into the spin-off will be based on “industry clouds,”  something also being embraced by Cloud Czars Microsoft(NASDAQ:MSFT) and Alphabet(NASDAQ:GOOGL).\nIBM’s hope is that hybrid cloud will become a default corporate IT design, seeking to make internal systems as efficient as cloud.\nWhile IBM does have its own cloud, it’s miniscule compared with those of the giants. Synergy Research says IBM is now fifthin the global cloud rental market, having been passed by Alibaba Group Holding(NASDAQ:BABA).\nBut its relatively small size may not be a hindrance if it’s also dedicated to building out clouds for clients and moving workloads for cost efficiency.\nThe Bottom Line\nIf you look up IBM in the news, you won’t see much focus on its hybrid cloud strategy. Instead you might read about storage systems, aboutquantum computers, about government contracts ordisputes with its old chip foundry.\nBut don’t be fooled. IBM now has a strategy, to off-load the dividend, and focus on hybrid cloud. If it works, and it might, it could be “IBM to the Moon.”","news_type":1},"isVote":1,"tweetType":1,"viewCount":61,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":188146295,"gmtCreate":1623425823617,"gmtModify":1634033309825,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Man","listText":"Man","text":"Man","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/188146295","repostId":"1107871315","repostType":4,"isVote":1,"tweetType":1,"viewCount":143,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":806221046,"gmtCreate":1627659068585,"gmtModify":1631892018798,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Ggffgh","listText":"Ggffgh","text":"Ggffgh","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/806221046","repostId":"1109908934","repostType":4,"isVote":1,"tweetType":1,"viewCount":183,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":149551960,"gmtCreate":1625737841050,"gmtModify":1631892018853,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Zzzzz","listText":"Zzzzz","text":"Zzzzz","images":[{"img":"https://static.tigerbbs.com/c1dd6dc8a00feeb22753175fb19ca43b","width":"750","height":"1618"}],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/149551960","isVote":1,"tweetType":1,"viewCount":320,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":1,"langContent":"EN","totalScore":0},{"id":151376517,"gmtCreate":1625065723839,"gmtModify":1631892018864,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Issudi","listText":"Issudi","text":"Issudi","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151376517","repostId":"2147139718","repostType":4,"isVote":1,"tweetType":1,"viewCount":308,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151376883,"gmtCreate":1625065715642,"gmtModify":1631892018869,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Jsjsjdj","listText":"Jsjsjdj","text":"Jsjsjdj","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151376883","repostId":"2147139718","repostType":4,"isVote":1,"tweetType":1,"viewCount":371,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151378532,"gmtCreate":1625065702326,"gmtModify":1631892018883,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Jsjsjdj","listText":"Jsjsjdj","text":"Jsjsjdj","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151378532","repostId":"2147139718","repostType":4,"repost":{"id":"2147139718","pubTimestamp":1625060407,"share":"https://www.laohu8.com/m/news/2147139718?lang=&edition=full","pubTime":"2021-06-30 21:40","market":"us","language":"en","title":"3 Unstoppable Stocks to Buy and Hold for Years","url":"https://stock-news.laohu8.com/highlight/detail?id=2147139718","media":"Motley Fool","summary":"They are in industries where the annual growth rate is 10% or better.","content":"<p>Buying meme stocks or investing in a company due to a pandemic-related trend can be risky. Investors in these companies can face a lot of volatility, especially as consumer preferences or conditions in the economy change.</p>\n<p>A better way to invest for the long term is by identifying trends that are likely going to continue or even intensify in the future. Robotic-assisted surgery, cloud-based technology, and sports betting are examples of sectors that could provide investors with some terrific growth opportunities for several years. And three companies that would give you exposure to those areas are <b>Globus Medical </b>(NYSE:GMED), <b>Microsoft&nbsp;</b>(NASDAQ:MSFT), and&nbsp;<b>DraftKings&nbsp;</b>(NASDAQ:DKNG).</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/6dfde80107b5c361f54a6ff94e4e926e\" tg-width=\"700\" tg-height=\"393\"><span>Image source: Getty Images</span></p>\n<h2>1. Globus Medical</h2>\n<p>Globus is a medical device company that makes surgical instruments and implantable devices. It also has an ExcelsiusGPS platform, which is a navigational system for robot-assisted surgery. The company says it is \"the world's first revolutionary robotic navigation platform.\" It specifically helps with alignments of the spine.</p>\n<p>The bulk of the company's revenue today comes from its musculoskeletal segment, which relates to its physical devices; in 2020, sales related to that segment totaled $748 million and represented 95% of its revenue. Its enabling technologies segment, which includes ExcelsiusGPS, generated a more modest $40.5 million in sales.</p>\n<p>However, the growth opportunities in this area are too enticing to ignore. Analysts project that the market for robot-assisted surgical systems could be worth nearly $18 billion by 2027, growing at a compounded annual growth rate (CAGR) of 14.8% until then.</p>\n<p>With a solid business today that provides hospitals with important implantable devices&nbsp;<i>plus</i> an exciting growth area related to robotics, Globus can be an investment that provides excellent returns for many years. The healthcare stock has already been picking up steam in the past 12 months, rising more than 70% and outperforming the&nbsp;<b>S&amp;P 500</b>, which is up just 42% during that period.</p>\n<h2>2. Microsoft</h2>\n<p>Tech giant Microsoft is an easy pick for long-term investors. The company provides businesses and individuals with many products and services that will be used for the foreseeable future. Its fastest-growing product is Azure, its cloud computing service where companies can build and test applications. Last quarter, for the first three months of 2021, its year-over-year growth rate was 50% -- highest among the company's segments.</p>\n<p>The cloud computing market is a high-growth sector to invest in, which could be worth more than $832 billion in 2025. It is already more prevalent than robotic-assisted surgery, but it is still growing at a strong CAGR of 17.5%.</p>\n<p>Microsoft also has a stable and growing business that is still generating great numbers. Its Office 365 suite, which includes popular programs like Word, Excel, and PowerPoint, grew its commercial sales by 22% in the most recent quarter. And because Office365 is a recurring service, it should be an excellent source of revenue for the company as businesses and individuals renew their licenses.</p>\n<p>Now that companies are spending more time on the cloud, especially as employees look to continue working remotely, investing in businesses that have many attractive cloud-based products and services like Microsoft is a solid move. Shares of the tech stock are up 37% over the past year, and although they have underperformed the S&amp;P 500, investors shouldn't count on <i>that </i>trend lasting over the long term.</p>\n<h2>3. DraftKings</h2>\n<p>It has been more than three years since the U.S. Supreme Court lifted the federal ban on sports betting. It is a hot new sector to invest in, and it's only getting bigger as more states choose to legalize it.</p>\n<p>Although not everyone has gotten on board with the industry, more than two dozen states now permit some form of sports betting. Globally, the market could be worth $134 billion by 2024 -- growing at a CAGR of close to 10%.</p>\n<p>One company that is in an excellent position to benefit from that is DraftKings. It entered into an exclusive deal with ESPN last year, which will make DraftKings its \"exclusive daily fantasy sports provider.\" While sports activity has been muted during the pandemic, as the economy gets back to normal and sports leagues are back to operating at or near capacity, it could lead to some stellar results for DraftKings this year.</p>\n<p>When the company released its latest results on May 7, it upgraded its guidance and now projects that sales could top $1.15 billion in 2021 (up from a previous forecast that called for no more than $1 billion in revenue). That represents a year-over-year growth rate of 79%.</p>\n<p>Sports betting should only become more popular in the years ahead as more states legalize it, leading DraftKings to deliver fantastic returns to investors. Over the past 12 months, the stock has risen by more than 55%, but that jump shouldn't scare away those with a long-term mindset.</p>","source":"fool_stock","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>3 Unstoppable Stocks to Buy and Hold for Years</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\n3 Unstoppable Stocks to Buy and Hold for Years\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-30 21:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.fool.com/investing/2021/06/30/3-unstoppable-stocks-to-buy-and-hold-for-years/><strong>Motley Fool</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Buying meme stocks or investing in a company due to a pandemic-related trend can be risky. Investors in these companies can face a lot of volatility, especially as consumer preferences or conditions ...</p>\n\n<a href=\"https://www.fool.com/investing/2021/06/30/3-unstoppable-stocks-to-buy-and-hold-for-years/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"GMED":"Globus Medical Inc","MSFT":"微软","DKNG":"DraftKings Inc."},"source_url":"https://www.fool.com/investing/2021/06/30/3-unstoppable-stocks-to-buy-and-hold-for-years/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2147139718","content_text":"Buying meme stocks or investing in a company due to a pandemic-related trend can be risky. Investors in these companies can face a lot of volatility, especially as consumer preferences or conditions in the economy change.\nA better way to invest for the long term is by identifying trends that are likely going to continue or even intensify in the future. Robotic-assisted surgery, cloud-based technology, and sports betting are examples of sectors that could provide investors with some terrific growth opportunities for several years. And three companies that would give you exposure to those areas are Globus Medical (NYSE:GMED), Microsoft (NASDAQ:MSFT), and DraftKings (NASDAQ:DKNG).\nImage source: Getty Images\n1. Globus Medical\nGlobus is a medical device company that makes surgical instruments and implantable devices. It also has an ExcelsiusGPS platform, which is a navigational system for robot-assisted surgery. The company says it is \"the world's first revolutionary robotic navigation platform.\" It specifically helps with alignments of the spine.\nThe bulk of the company's revenue today comes from its musculoskeletal segment, which relates to its physical devices; in 2020, sales related to that segment totaled $748 million and represented 95% of its revenue. Its enabling technologies segment, which includes ExcelsiusGPS, generated a more modest $40.5 million in sales.\nHowever, the growth opportunities in this area are too enticing to ignore. Analysts project that the market for robot-assisted surgical systems could be worth nearly $18 billion by 2027, growing at a compounded annual growth rate (CAGR) of 14.8% until then.\nWith a solid business today that provides hospitals with important implantable devices plus an exciting growth area related to robotics, Globus can be an investment that provides excellent returns for many years. The healthcare stock has already been picking up steam in the past 12 months, rising more than 70% and outperforming the S&P 500, which is up just 42% during that period.\n2. Microsoft\nTech giant Microsoft is an easy pick for long-term investors. The company provides businesses and individuals with many products and services that will be used for the foreseeable future. Its fastest-growing product is Azure, its cloud computing service where companies can build and test applications. Last quarter, for the first three months of 2021, its year-over-year growth rate was 50% -- highest among the company's segments.\nThe cloud computing market is a high-growth sector to invest in, which could be worth more than $832 billion in 2025. It is already more prevalent than robotic-assisted surgery, but it is still growing at a strong CAGR of 17.5%.\nMicrosoft also has a stable and growing business that is still generating great numbers. Its Office 365 suite, which includes popular programs like Word, Excel, and PowerPoint, grew its commercial sales by 22% in the most recent quarter. And because Office365 is a recurring service, it should be an excellent source of revenue for the company as businesses and individuals renew their licenses.\nNow that companies are spending more time on the cloud, especially as employees look to continue working remotely, investing in businesses that have many attractive cloud-based products and services like Microsoft is a solid move. Shares of the tech stock are up 37% over the past year, and although they have underperformed the S&P 500, investors shouldn't count on that trend lasting over the long term.\n3. DraftKings\nIt has been more than three years since the U.S. Supreme Court lifted the federal ban on sports betting. It is a hot new sector to invest in, and it's only getting bigger as more states choose to legalize it.\nAlthough not everyone has gotten on board with the industry, more than two dozen states now permit some form of sports betting. Globally, the market could be worth $134 billion by 2024 -- growing at a CAGR of close to 10%.\nOne company that is in an excellent position to benefit from that is DraftKings. It entered into an exclusive deal with ESPN last year, which will make DraftKings its \"exclusive daily fantasy sports provider.\" While sports activity has been muted during the pandemic, as the economy gets back to normal and sports leagues are back to operating at or near capacity, it could lead to some stellar results for DraftKings this year.\nWhen the company released its latest results on May 7, it upgraded its guidance and now projects that sales could top $1.15 billion in 2021 (up from a previous forecast that called for no more than $1 billion in revenue). That represents a year-over-year growth rate of 79%.\nSports betting should only become more popular in the years ahead as more states legalize it, leading DraftKings to deliver fantastic returns to investors. Over the past 12 months, the stock has risen by more than 55%, but that jump shouldn't scare away those with a long-term mindset.","news_type":1},"isVote":1,"tweetType":1,"viewCount":174,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151397589,"gmtCreate":1625063346441,"gmtModify":1631892018891,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"Man that’s tough&nbsp;","listText":"Man that’s tough&nbsp;","text":"Man that’s tough","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151397589","repostId":"2147786816","repostType":4,"isVote":1,"tweetType":1,"viewCount":295,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":151396103,"gmtCreate":1625063253002,"gmtModify":1631885653131,"author":{"id":"3585032110055415","authorId":"3585032110055415","name":"Diamondhand2","avatar":"https://static.tigerbbs.com/4019fdf127cdc76da1687b8f2343a72e","crmLevel":1,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3585032110055415","idStr":"3585032110055415"},"themes":[],"htmlText":"<a href=\"https://laohu8.com/S/ES3.SI\">$STI ETF(ES3.SI)$</a>Loo","listText":"<a href=\"https://laohu8.com/S/ES3.SI\">$STI ETF(ES3.SI)$</a>Loo","text":"$STI ETF(ES3.SI)$Loo","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/151396103","isVote":1,"tweetType":1,"viewCount":42,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"lives":[]}