U (Unity Software) Chart done on daily timeframe. Earlier this year, Apple announced that they will be partnering with Unity to “create immersive real-time 3D apps and simulations to Apple’s new spatial computing platform, Apple Vision Pro” (Unity. com). Partners of Apple have enjoyed exponential growth in the past so many investors are excited to see what’s in store for Unity in 2024. The software company was founded in 2004, but has struggled to maintain notable revenue growth until recent years when it finally topped 1B in annual revenue, but leadership hasn’t been able to move the needle in the right direction when it comes to profitability. As revenue has grown, profitability has moved further into the negative, and free...
IBM Analysis It is always difficult for analysts to stay positive on a company that suddenly loses more than 20B in annual revenue, but IBM may be a name which is worth looking at twice when diving deep into their numbers and valuation. Between 2019 and 2020, IBM’s revenue went from an average of around 80B annually to 55B, an alarming decrease, but since then, they have been slowly climbing back as they recovery from Covid’s impacts. The biggest highlight for them, which is also the highlight for many other companies in their space, is their focus on AI and cloud. Many tech companies have proven that the cloud is at the heart of revenue and is only expected to...
NVDA Pre-earnings Analysis Artificial intelligence has taken the market by a storm in 2023, leading companies like Nvidia to up more than 200% YTD, and moving its valuation to trade at a price to earnings ratio of 119, much higher than the average healthy ratio of 15. The astronomical valuation could be accredited to Nvidia’s ability to post substantial growth in revenue and earnings following the sharp increase in demand for artificial intelligence microchips. Analysts and markets are pricing the stock as if the growth will continue to grow at the same rate. This quarter, analysts are projecting Nvidia to post 3.03 in earnings per share, six times higher than same quarter last year when it posted .44 in EPS....
BABA Q3 Earnings Analysis AliBaba and other Chinese companies are once again at the mercy of political circumstances between The U.S. and China. The company announced earnings this week and the stock plummeted after they canceled their cloud computing spinoff plans. Investors are were highly optimistic about this, but AliBaba cited U.S. tensions to be the reason behind the change of plans. Political tensions between the two countries are not new, for years we’ve seen foreign publicly traded companies experience volatility due to politics, but most of the time the storm passes and there comes a short period of time where foreign investments thrive. It’s important to note, AliBaba’s change of plans doesn’t mean they will no longer pursue cloud-computing...
NVDA After a phenomenal performance in 2023 so far, the company is setting itself to launch higher into 2024. AMD’s recent earnings foreshadowed what we can expect from leaders in the artificial intelligence space after the company reported a guidance of $2B in AI chip sales for next year. Nvidia is likely to follow the same route with even higher numbers. Last quarter’s revenue doubled, citing exponential demand in AI chips. The company’s revenue has grown their cash reserves to $10B and their asset to liability ratio to 2:1, with 41B in assets. Wall Street is bullish on Nvidia and will remain upbeat as long as AI demand continues to increase. The artificial intelligence market is currently worth around $150B,...
