PINS

Post-Mortem on Facebook (Meta Platforms): Apple Crushed Our Thesis

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Image: Thesis creep kept us excited about Meta, but we’ve since trimmed the “weighting” in the simulated Best Ideas Newsletter portfolio, as updated August 19. What more can we say–Apple is eating Facebook’s lunch, and the iPhone giant is now advancing with its advertising revenue, too. Apple blew up our thesis on Meta, and that’s the long and short of it. By Brian Nelson, CFA Meta Platforms (META) wasn’t the first idea that hasn’t worked out perfectly for us, and it won’t be the last. Frankly, we’re as surprised as the next person at how quickly things fell apart at Meta, and there wasn’t much time to be patient on the idea as the savviest portfolio managers like to do. … Read more

We’ve Suspended Coverage of Stocks in the Disruptive Innovation Industry

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Order the Exclusive publication here to gain access to idea generation that covers some of the most innovative stocks. As a member to the Exclusive publication, you’ll receive one income idea, one capital appreciation idea, and one short idea consideration each month! Order today >> — We’ve suspended coverage of stocks in the ‘Disruptive Innovation’ industry. The ‘Disruptive Innovation’ industry is unique in almost every way. The companies included don’t necessarily share a similar traditional industry or sector make-up, but they do share one big thing in common: They continue to disrupt the traditional way of doing things. Carvana is changing how consumers buy used cars, Roku is leading the streaming charge against linear TV, Teradyne’s industrial robotics technology is … Read more

ICYMI (Aug 19) — ALERT — PYPL, META, GOOG, V — Making Some Big Changes in the Simulated Best Ideas Newsletter Portfolio!

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This note was emailed to members August 19. Alert >> Image Shown: We are very happy with the overall “performance” of the simulated Best Ideas Newsletter portfolio, which is carving out 2.6 percentage points of relative outperformance so far in 2022 on a price-only basis, as shown in the table above. However, we’re making some big changes to the simulated newsletter portfolio today on some of our favorite names. Our best ideas continue to be in the simulated Best Ideas Newsletter portfolio, the simulated Dividend Growth Newsletter portfolio, the simulated High Yield Dividend Newsletter portfolio, the ESG Newsletter portfolio, and the Exclusive publication, as well as with our additional options commentary. “So when it comes to using data, you can think … Read more

Best Idea Alphabet Continues To Grow at a Robust Pace

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Image Shown: Best idea Alphabet Inc continued to grow its revenues by a nice double-digit clip last quarter. Image Source: Alphabet Inc – First Quarter of 2022 Earnings Press Release By Callum Turcan On April 26, Alphabet Inc (GOOG) (GOOGL) reported first quarter 2022 earnings that missed top-line estimates but beat bottom-line estimates. The company remains a free cash flow powerhouse with a fortress-like balance sheet and an incredibly promising growth outlook. Its core digital advertising business, its high-growth Google Cloud unit, and its longer term bets such as the self-driving company Waymo underpin our expectations that Alphabet will continue to grow its revenues at a nice premium to global GDP growth over the decades to come. We include shares … Read more

Undervalued PINS, SNAP Rallying; FB Incredibly Mispriced, and Refreshed Consumer Discretionary Reports

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Image: Valuentum’s Periodic Screener, February 4.  — By Valuentum Analysts — Two of the most undervalued stocks in our coverage Pinterest, Inc. (PINS) and Snap Inc. (SNAP) are indicated to rally hard February 4 after issuing positive earnings reports, providing further evidence of the importance of the discounted cash flow process and the magnet that intrinsic value estimates are to stock prices. Pinterest is indicated up ~14%, while Snap is indicated up ~47% based on the latest information we have. — The refreshed Valuentum periodic data screener is now available for download on our website (it can be found in the ‘Stock Screens’ section in the left column of our website). The periodic data screener, which also includes updated fair value estimates on … Read more

The Facebook (Meta Platforms) Thesis Just Got Even More Complicated

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Image: Facebook’s free cash flow generation remains robust. Image Source: Meta Earnings Presentation Q4 2021 By Brian Nelson, CFA We like simple ideas — underpriced investment ideas with moaty characteristics, net cash rich balance sheets, tremendous free cash flow generating potential that are tied to secular growth trends over the long haul. The company formerly known as Facebook, now Meta Platforms (FB), has had all these things going for it, but it is no longer a simple idea. That doesn’t mean we’re abandoning ship, however. No story is perfect. Nevertheless, we’re putting Meta Platform’s fair value estimate under review following its fourth-quarter 2021 results, released February 2, and while we expect shares to still come out underpriced following our model … Read more

PayPal’s Margin Pressure, Flattish Earnings Outlook Shocks Market; Fair Value Estimate Reduced

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Image Shown: PayPal Holdings Inc grew at a robust pace in 2021 though its margin outlook is not as promising as once believed. Image Source: PayPal Holdings Inc – Fourth Quarter of 2021 earnings press release By Callum Turcan On February 1, PayPal Holdings Inc (PYPL) reported fourth quarter 2021 earnings that beat consensus top-line estimates but missed consensus bottom-line estimates. While PayPal put out guidance that called for its revenues to grow by mid-to-upper teens in 2022, the market was unimpressed with its non-GAAP earnings outlook that called for marginal growth at the midpoint. It now stands to reason that PayPal’s operating/earnings leverage potential is not what it first appeared to be, particularly in light of the meager earnings … Read more

Meta Platforms (Facebook), One of the Most Underpriced Stocks on the Market

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Image Shown: Meta Platforms Inc – Third Quarter of 2021 IR Earnings Presentation By Callum Turcan In late October 2021, the company now known as Meta Platforms Inc (FB) announced its name change from Facebook to highlight its focus on the “metaverse,” a digital universe that Meta Platforms is investing heavily in. The metaverse is supposed to be a digital world where video gaming, social media, community and family gatherings, TV and movie watching, card game and board game playing, major entertainment events and related venues, and various other activities come together in an immersive experience that ultimately could generate a lot of revenue for Meta Platforms. In 2014, then-Facebook announced it was acquiring Oculus VR, a maker of virtual … Read more

ICYMI: The PayPal Wave Recedes, We Still Like Shares

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This article was originally published November 10, 2021. The fair value estimate has been updated in this version. Video: PayPal By Brian Nelson, CFA We knew something wasn’t quite lining up at digital-payments provider PayPal (PYPL) when the rumor mill started to turn with reports it was interested in scooping up Pinterest (PINS) for a pretty penny. PayPal has since put to rest rumors about buying Pinterest, but it left investors with a sour outlook when it issued third-quarter 2021 results November 8. Though the market wasn’t happy with the forecast for the fourth quarter of 2021 and into 2022, the company continues to grow revenue at a robust pace, and we expect several key initiatives to drive sustainable top-line … Read more

The Valuentum Weekly Is a Hit! Only Delivered By Email!

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Image: Excerpt from the November 14 edition of the Valuentum Weekly. November 14, 2021: Inflation Is Positive for Nominal Earnings While Interest Rates Remain at All-Time Lows Tickers mentioned: GOOG, FB, PYPL, DIS, JNJ, BRK.A, BRK.B, ASML, BYND, RIVN, TSLA, JD, WB, BABA, GE, TOSBF, Z, ZG, OPEN, RBLX, GLD November 7, 2021: Large Cap Growth Has More Room to Run Tickers mentioned: SCHG, GME, AMC, BBBY, CVX, XOM, XLE, MA, V, PYPL, QCOM, RSG, NEM, TSLA, PTON, Z, ZG, F, IWN, GMET October 31, 2021: Happy Halloween! Tickers mentioned: AAPL, AMZN, QQQ, SPY, INTC, FB, GOOG, MSFT, LMT, MVRS, DLR, XOM, CVX, DIS, SLB, HON, INTC, CMG, PYPL, PINS, TSLA, HTZZ, PTLO, RSG, SBUX, MCD, NEM, SCHG, IWN October 24, … Read more