Broadcom Pre-earnings Analysis Broadcom shares are trading near all-time highs ahead of the company’s final quarterly earnings report for the year. 2024 has been a remarkable year for the company, with revenue growth of 34%, 43%, and 47% in the first three quarters, respectively. These strong results have set Broadcom on track to achieve its most successful year ever. However, as the earnings release approaches, investors remain cautious about key challenges, particularly the company’s profit margins. Despite robust revenue growth, Broadcom's net income has taken a significant hit this year, dipping into negative territory last quarter due to higher expenses tied to its 2023 acquisition of VMware. This decline in profitability has driven the company’s price-to-earnings (P/E) ratio to...
MP Materials Analysis Shares of MP Materials reached a new two-year high today following China's announcement to ban certain specialty mineral exports to the U.S. This news comes just days after President-Elect Trump’s announcement of a 10% tariff on Chinese imports, likely marking the beginning of a series of retaliatory measures between the two countries. Shares of other precious metals and mining companies also experienced an influx of buyers, as the news could boost U.S. mineral production. MP Materials itself is a relatively small company that has been in operation for only a short time. The Nevada-based materials producer achieved impressive growth from 2020 to 2022, increasing revenue from $134 million to $527 million over three years. However, it saw...
This week, the spotlight is on Nvidia as the semiconductor giant unveils its quarterly earnings, a report that could significantly influence market sentiment as the year approaches its close. Nvidia is expected to report adjusted earnings of $0.71 per share on revenue of $33.09 billion, reflecting a 10% increase from the previous quarter and an impressive 90% year-over-year growth. Despite its meteoric rise—up nearly 200% year-to-date—this earnings release will test whether Nvidia’s $3.4 trillion valuation is still justified. While Nvidia is widely expected to surpass its forecasts, the forward-looking guidance will likely have the greatest impact. The company’s year-over-year growth has been nothing short of extraordinary, and its market dominance is unquestionable. However, quarter-over-quarter growth has shown signs of...
Super Micro Computer Analysis Once considered a promising semiconductor pick alongside giants like Nvidia and AMD, SMCI has become a disappointing investment for many. Shares of SMCI have plunged 85% from their 2024 highs, breaking key support levels after a short-seller report raised concerns about their financial reporting. Hindenburg Research, a well-known firm, accused SMCI of accounting manipulation—claims that the company has yet to acknowledge or defend. Despite reporting earnings since the report’s release, SMCI has remained silent on the accusations, failing to provide any guidance for the coming year, which only heightens the suspicion around their numbers. If the accusations prove unfounded, SMCI could be a hidden gem at its current valuation. The stock now trades at a market...
Celsius Holdings (CELH) Pre-earnings Analysis Shares of Celsius Holdings, the parent company of the popular fitness and energy drink Celsius, have tumbled nearly 50% this year, leaving investors puzzled as to how a fast-growing company could lose so much market value. The answer likely lies in its valuation: Celsius had reached a peak market cap of around $23 billion earlier in the year, suggesting that expectations for its earnings growth were already factored into its price. Now Celsius trades around a $7B market cap, a much more reasonable valuation relative to its $1.32B annual revenue (2023). Celsius has consistently grown revenue by over 100% annually for the past three years and is on track to continue that pace this year....
