Offshore
Photo
Ahmad
read this dude’s manifesto if you want to survive-hell, maybe even thrive-this cycle
absolute legend https://t.co/cfskVCOXlf
tweet
read this dude’s manifesto if you want to survive-hell, maybe even thrive-this cycle
absolute legend https://t.co/cfskVCOXlf
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
RT @Mexiape: No one that I’ve come across has broken down absolute winners every time like Dimitry, free financial knowledge you just have to read his analysis and make your call on when to buy. I only fumbled two picks I wish I never sold and that’s $MEDP and $LRCX, worth a follow 🫡
A quality valuation analysis on $APP 🧘🏽♂️
•NTM P/E Ratio: 42x
•YTD-Mean: 44x
•NTM FCF Yield: 2.3%
•YTD-Mean: 2.5%
As you can see, $APP appears to be trading near fair value
Going forward, investors can receive about the same in earnings per share & FCF per share 🧠***
Before we get into valuation, let’s take a look at why $APP is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $1.19B
•Long-Term Debt: $3.51B
$APP has a good balance sheet, a BBB S&P Credit Rating, & 11x FFO Interest Coverage
RETURN ON CAPITAL🆗➡️✅
•2021: 3.0%
•2022: (0.4%)
•2023: 14.6%
•2024: 38.9%
•LTM: 62.5%
RETURN ON EQUITY🆗➡️✅
•2021: 3.6%
•2022: (9.5%)
•2023: 22.6%
•2024: 124.7%
•LTM: 253.8%
$APP has strong returns on capital, highlighting the financial efficiency of the business
REVENUES✅
•2021: $2.79B
•2024: $4.71B
•CAGR: 19.07%
FREE CASH FLOW✅
•2021: $360.46M
•2024: $2.09B
•CAGR: 79.77%
NORMALIZED EPS✅
•2021: $1.39
•2024: $5.69
•CAGR: 59.96%
SHARE BUYBACKS❌
•2021 Shares Outstanding: 342.76M
•LTM Shares Outstanding: 345.41M
MARGINS✅
•LTM Gross Margins: 78.6%
•LTM Operating Margins: 51.0%
•LTM Net Income Margins: 43.8%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive about the same in EPS & FCF per share
Using Benjamin Graham’s 2G rule of thumb, $APP has to grow earnings at a 21% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2026 - 2028 EPS growth over the next few years to be just greater than the (21%) required growth rate:
2025E: $9.26 (62% YoY) *FY Dec
2026E: $14.06 (52% YoY)
2027E: $18.32 (30% YoY)
2028E: $25.39 (38% YoY)
$APP has a good track record of meeting analyst estimates ~2 years out, but let’s assume $APP ends 2028 with $25.39 in EPS & see its CAGR potential assuming different multiples
40x P/E: $1015💵 … ~18.6% CAGR
38x P/E: $964💵 … ~16.7% CAGR
36x P/E: $914💵 … ~14.7% CAGR
34x P/E: $863💵 … ~12.7% CAGR
32x P/E: $812💵 … ~10.6% CAGR
As you can see, $APP appears to have attractive return potential if we assume >36x earnings multiple (allowing for ~15% multiple compression)
Growing its monetization of gaming, user acquisition & subscription business, $APP potential catalysts include broadening of its software platform beyond mobile games into enterprise marketing automation, and leveraging its data-rich advertising stack for AI-driven optimization — both of which could unlock multiple years of EPS expansion
Despite its potential and AXON rollout, $APP is not for the faint-hearted, as its extreme volatility can test even the most resolute shareholders’ conviction in the business
Additionally, $APP also comes with a high-level of uncertainty
$APP is a good business & appears to be a fair consideration for today at $589💵
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛�[...]
RT @Mexiape: No one that I’ve come across has broken down absolute winners every time like Dimitry, free financial knowledge you just have to read his analysis and make your call on when to buy. I only fumbled two picks I wish I never sold and that’s $MEDP and $LRCX, worth a follow 🫡
A quality valuation analysis on $APP 🧘🏽♂️
•NTM P/E Ratio: 42x
•YTD-Mean: 44x
•NTM FCF Yield: 2.3%
•YTD-Mean: 2.5%
As you can see, $APP appears to be trading near fair value
Going forward, investors can receive about the same in earnings per share & FCF per share 🧠***
Before we get into valuation, let’s take a look at why $APP is a good business
BALANCE SHEET✅
•Cash & Short-Term Inv: $1.19B
•Long-Term Debt: $3.51B
$APP has a good balance sheet, a BBB S&P Credit Rating, & 11x FFO Interest Coverage
RETURN ON CAPITAL🆗➡️✅
•2021: 3.0%
•2022: (0.4%)
•2023: 14.6%
•2024: 38.9%
•LTM: 62.5%
RETURN ON EQUITY🆗➡️✅
•2021: 3.6%
•2022: (9.5%)
•2023: 22.6%
•2024: 124.7%
•LTM: 253.8%
$APP has strong returns on capital, highlighting the financial efficiency of the business
REVENUES✅
•2021: $2.79B
•2024: $4.71B
•CAGR: 19.07%
FREE CASH FLOW✅
•2021: $360.46M
•2024: $2.09B
•CAGR: 79.77%
NORMALIZED EPS✅
•2021: $1.39
•2024: $5.69
•CAGR: 59.96%
SHARE BUYBACKS❌
•2021 Shares Outstanding: 342.76M
•LTM Shares Outstanding: 345.41M
MARGINS✅
•LTM Gross Margins: 78.6%
•LTM Operating Margins: 51.0%
•LTM Net Income Margins: 43.8%
***NOW TO VALUATION 🧠
As stated above, investors can expect to receive about the same in EPS & FCF per share
Using Benjamin Graham’s 2G rule of thumb, $APP has to grow earnings at a 21% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2026 - 2028 EPS growth over the next few years to be just greater than the (21%) required growth rate:
2025E: $9.26 (62% YoY) *FY Dec
2026E: $14.06 (52% YoY)
2027E: $18.32 (30% YoY)
2028E: $25.39 (38% YoY)
$APP has a good track record of meeting analyst estimates ~2 years out, but let’s assume $APP ends 2028 with $25.39 in EPS & see its CAGR potential assuming different multiples
40x P/E: $1015💵 … ~18.6% CAGR
38x P/E: $964💵 … ~16.7% CAGR
36x P/E: $914💵 … ~14.7% CAGR
34x P/E: $863💵 … ~12.7% CAGR
32x P/E: $812💵 … ~10.6% CAGR
As you can see, $APP appears to have attractive return potential if we assume >36x earnings multiple (allowing for ~15% multiple compression)
Growing its monetization of gaming, user acquisition & subscription business, $APP potential catalysts include broadening of its software platform beyond mobile games into enterprise marketing automation, and leveraging its data-rich advertising stack for AI-driven optimization — both of which could unlock multiple years of EPS expansion
Despite its potential and AXON rollout, $APP is not for the faint-hearted, as its extreme volatility can test even the most resolute shareholders’ conviction in the business
Additionally, $APP also comes with a high-level of uncertainty
$APP is a good business & appears to be a fair consideration for today at $589💵
___
𝐃𝐈𝐒𝐂𝐋𝐎𝐒𝐔𝐑𝐄‼️: 𝐓𝐡𝐢𝐬 𝐢𝐬 𝐍𝐎𝐓 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐀𝐝𝐯𝐢𝐜𝐞. 𝐁𝐚𝐛𝐲𝐥𝐨𝐧 𝐂𝐚𝐩𝐢𝐭𝐚𝐥® 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐚𝐭𝐢𝐯𝐞𝐬 𝐦𝐚𝐲 𝐡𝐚𝐯𝐞 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧𝐬 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐞𝐜𝐮𝐫𝐢𝐭𝐢𝐞𝐬 𝐝𝐢𝐬𝐜𝐮𝐬𝐬𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭.
𝐓𝐡𝐞 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐢𝐬 𝐢𝐧𝐭𝐞𝐧𝐝𝐞𝐝 𝐟𝐨𝐫 𝐢𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧𝐚𝐥 𝐩𝐮𝐫𝐩𝐨𝐬𝐞𝐬 𝐨𝐧𝐥𝐲 𝐚𝐧𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐛𝐞 𝐜𝐨𝐧𝐬𝐭𝐫𝐮𝐞𝐝 𝐚𝐬 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐚𝐝𝐯𝐢𝐜𝐞 𝐭𝐨 𝐦𝐞𝐞𝐭 𝐭𝐡𝐞 𝐬𝐩𝐞𝐜𝐢𝐟𝐢𝐜 𝐧𝐞𝐞𝐝𝐬 𝐨𝐟 𝐚𝐧𝐲 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥 𝐨𝐫 𝐬𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧. 𝐏𝐚𝐬𝐭 𝐩𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐢𝐬 𝐧𝐨 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞 𝐨𝐟 𝐟𝐮𝐭𝐮𝐫𝐞 𝐫𝐞𝐬𝐮𝐥𝐭𝐬.
𝐈𝐧𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐜𝐨𝐧𝐭𝐚𝐢𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐢𝐬 𝐭𝐰𝐞𝐞𝐭 𝐡𝐚𝐬 𝐛𝐞𝐞𝐧 𝐨𝐛𝐭𝐚𝐢𝐧𝐞𝐝 𝐟𝐫𝐨𝐦 𝐬𝐨𝐮𝐫𝐜𝐞𝐬 𝐛�[...]
Offshore
Dimitry Nakhla | Babylon Capital® RT @Mexiape: No one that I’ve come across has broken down absolute winners every time like Dimitry, free financial knowledge you just have to read his analysis and make your call on when to buy. I only fumbled two picks I…
�𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲. - Dimitry Nakhla | Babylon Capital® tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
RT @KoyfinCharts: $SPY The S&P 500 free cash flow yield currently sits at 2.35%. https://t.co/MQYaZZGvNE
tweet
RT @KoyfinCharts: $SPY The S&P 500 free cash flow yield currently sits at 2.35%. https://t.co/MQYaZZGvNE
tweet
Offshore
Photo
App Economy Insights
$INTC Intel got a big cash infusion in Q3.
Ending the quarter with ~$31B in cash.
Boosted by:
• $5.7B in US government funding.
• $5.2B from divestitures (Altera & Mobileye).
A turning point in Intel’s turnaround story? https://t.co/bq49xi7Nss
tweet
$INTC Intel got a big cash infusion in Q3.
Ending the quarter with ~$31B in cash.
Boosted by:
• $5.7B in US government funding.
• $5.2B from divestitures (Altera & Mobileye).
A turning point in Intel’s turnaround story? https://t.co/bq49xi7Nss
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
Netflix continues to showcase robust growth in the Asia-Pacific (APAC) & Europe, Middle East, and Africa (EMEA) regions
$NFLX latest quarterly YoY growth by region:
APAC: +21%
EMEA: +18%
UCAN: +17%
LATAM: +10% https://t.co/4huAR5j6nO
tweet
Netflix continues to showcase robust growth in the Asia-Pacific (APAC) & Europe, Middle East, and Africa (EMEA) regions
$NFLX latest quarterly YoY growth by region:
APAC: +21%
EMEA: +18%
UCAN: +17%
LATAM: +10% https://t.co/4huAR5j6nO
tweet
Offshore
Photo
Dimitry Nakhla | Babylon Capital®
RT @DimitryNakhla: Here are five quality stocks that faced multiple compression due to short-term growth concerns, creating buying opportunities for those looking beyond temporary challenges
Multiple compression doesn’t always signal a broken thesis—it can be an opportunity 🧵 https://t.co/K2rpHr3c2Q
tweet
RT @DimitryNakhla: Here are five quality stocks that faced multiple compression due to short-term growth concerns, creating buying opportunities for those looking beyond temporary challenges
Multiple compression doesn’t always signal a broken thesis—it can be an opportunity 🧵 https://t.co/K2rpHr3c2Q
Many investors seek quality & are willing to pay a premium multiple, but when short-term growth concerns trigger multiple compression, they mistakenly rationalize:
“Lowered growth justifies this, I should look elsewhere now”
___
This is often a misstep. Will share a 🧵 soon tweet
Ahmad
“grok, fix the algo and make no mistake”
— an intern, probably
tweet
“grok, fix the algo and make no mistake”
— an intern, probably
@TheAhmadOsman dude, I really feel the X team is vibe algorithming, a social platform’s algo shouldn’t change so often tweet
X (formerly Twitter)
Yuchen Jin (@Yuchenj_UW) on X
@TheAhmadOsman dude, I really feel the X team is vibe algorithming, a social platform’s algo shouldn’t change so often