NIO Chart done on daily timeframe. NIO is another Chinese stock that’s become a victim of geopolitical tensions and unrest. Like many of its China based peers, the company has impressive numbers, but investors are just too uncertain to buy. This could be seen as a major opportunity because chances are, tensions will either simmer down, or Wall Street will find them too good of a risk/reward investment to pass up. NIO in specific has grown its revenue from under 1B in 2018 to over 7B last year. Their market cap is only 9B currently, meaning they’re close to grossing as much as revenue as their market valuation. Their balance sheet has a positive asset to liabilities ratio, but cash...
Airbnb Post-Earnings Analysis Chart done on daily timeframe. It’s always a challenge to identify a healthy valuation for a young company like Airbnb, but now that they’ve had about seven years of public earnings, we’re starting to see what the company is capable of. Since its initial public offering (IPO), Airbnb has grown its annual revenue by 400%, all while slowly crawling their net income to a positive territory. The company’s bookings have grown significantly and leadership is optimistic they’ll continue penetrating international markets in the coming quarters. New international markets means more revenue for the company, and based on the way their leadership have managed revenue in the past, they’ll likely continue growing everything from their income statement to...
AVGO Chart done on daily timeframe. Semiconductor companies have been big winners in the last 12 months. While most of the focus has gone to Nvidia and AMD, Broadcom has swiftly moved its way to all time highs, gaining more than 100% since this time last year. The rise in market valuation has moved its price to earnings ratio to 39, doubling its valuation from last year, and making the stock more expensive than the healthy average of 25-35. However when we compare AVGO to NVDA, AVGO is still far cheaper in terms of price to earnings ratio. Broadcom brings in more revenue and offers a healthier balance sheet, which explains the attention it has received in the last year....
Applied Materials (AMAT) Pre-earnings Analysis Chart done on daily timeframe. Stocks involved in the semiconductor sector have grown in valuation to astronomical numbers in the last 12 months. The two most prominent names to mention are Nvidia and AMD, both of which have reached new all time highs recently, but their price to earnings ratios are far above the “healthy” 15-25 average. The recent rally from Nvidia and AMD has lifted their price to earnings ratio to 90x and 320x (in that order), making them very expensive compared to the average. The continued optimism around artificial intelligence is the catalyst behind the exponential growth we’ve seen in semiconductor companies, but many semiconductor stocks may have grown too expensive in valuation....
AliBaba (BABA) Post-earnings Analysis Chart done on hourly timeframe. Shares of the Chinese conglomerate AliBaba are pulling back after the company’s latest earnings report. Their numbers are a clear reflection of the Chinese economy’s struggle in recent years, which weighed on both e-commerce and cloud computing. The last 12 months have already been difficult for AliBaba’s stock as relations between the U.S. and China remain tense, so the miss on revenue projections this quarter sent a chilling message to BABA investors. The company did try to salvage the bad news by announcing a massive $25B stock buyback, which brings their buyback expectations to be worth about 20% of the company’s current valuation. Stock buybacks are effective in raising the stock’s...
