AkhenOsiris
There was a time and place when TSLA would rip 10% on this. 2021 was that fucked up ๐
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There was a time and place when TSLA would rip 10% on this. 2021 was that fucked up ๐
*MUSK: XAI BUYS X IN DEAL THAT VALUES XAI AT $80B, X AT $33B - *Walter Bloombergtweet
Offshore
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AkhenOsiris
RT @neilksethi: BoA (Hartnett): "DeepSeek, DOGE, Trump geopolitics big drivers in Q1, but US tariffs set to jump from 2% to 8% of imports (Chart 3); we expect Trump underplays not overplays April 2nd to avoid 2nd wave US inflation; [NFP on] April 4th more important to set April directionโฆsoft landing 100-200k payroll = no recession = recent SPX 5.5k low holds (US retail/homebuilding stocks bounce); hard landing <100k payroll = spx to new lows in april, taking global stocks, banks, credit down (kick-starts big trump pivot to tax cuts)."
"most faq is 'what stops doge & tariff shock therapy?' (a: inflation jump in bond yields, lower trump approval, gop house losses, jump in unemployment in pa, wi, mi)"
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RT @neilksethi: BoA (Hartnett): "DeepSeek, DOGE, Trump geopolitics big drivers in Q1, but US tariffs set to jump from 2% to 8% of imports (Chart 3); we expect Trump underplays not overplays April 2nd to avoid 2nd wave US inflation; [NFP on] April 4th more important to set April directionโฆsoft landing 100-200k payroll = no recession = recent SPX 5.5k low holds (US retail/homebuilding stocks bounce); hard landing <100k payroll = spx to new lows in april, taking global stocks, banks, credit down (kick-starts big trump pivot to tax cuts)."
"most faq is 'what stops doge & tariff shock therapy?' (a: inflation jump in bond yields, lower trump approval, gop house losses, jump in unemployment in pa, wi, mi)"
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โ The All-In Podcast
๐จ๐จ๐จ pod up
@GavinSBaker is BACK!
he joins the besties to discuss:
-- the ai cold war: usa ๐บ๐ธ vs china ๐จ๐ณ
-- m&a bounceback
-- @coreweave ipo
-- the endgame for tariffs
-- signalgate
-- el salvador deportations
(0:00) the besties welcome gavin baker!
(1:20) @nvidia balance sheet questions, @coreweave ipo, m&a/ipo bounce back
(16:22) us vs china in ai: manus, china building its own nvidia, and more
(28:37) the administration's endgame for tariffs
(53:05) signalgate: context and fallout
(1:09:42) el salvador deportations
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๐จ๐จ๐จ pod up
@GavinSBaker is BACK!
he joins the besties to discuss:
-- the ai cold war: usa ๐บ๐ธ vs china ๐จ๐ณ
-- m&a bounceback
-- @coreweave ipo
-- the endgame for tariffs
-- signalgate
-- el salvador deportations
(0:00) the besties welcome gavin baker!
(1:20) @nvidia balance sheet questions, @coreweave ipo, m&a/ipo bounce back
(16:22) us vs china in ai: manus, china building its own nvidia, and more
(28:37) the administration's endgame for tariffs
(53:05) signalgate: context and fallout
(1:09:42) el salvador deportations
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twitter.com
undefined
undefined
Offshore
Video
โ The All-In Podcast
M&A and IPOs are Back ๐ฅ
On E221, @Jason and @GavinSBaker discussed the current state of dealmaking with a pro-M&A administration taking over.
@Jason:
"I mean, M&A with Wiz and now CoreWeave going public, the Wrath of Lina Khan is over."
"We gotta give the administration a lot of credit for maybe removing the roadblocks to M&A and IPOs, or at least people perceive that."
"So I don't know if perception becomes reality here, but it does seem like M&A is a bit on fire."
@GavinSBaker:
"CoreWeave bought Weights & Biases, which I think is a really interesting acquisition for them that kind of further differentiates them and maybe de-commodifies them a little bit."
"There have been quite a few acquisitions by big companies of smaller companies in the last month, and I think because none of the companies that have been bought have been public maybe it's flying a little under the radar, but it's happening in an accelerating way."
"And I think this would be very good for the market, and animal spirits, and everything that we care about."
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M&A and IPOs are Back ๐ฅ
On E221, @Jason and @GavinSBaker discussed the current state of dealmaking with a pro-M&A administration taking over.
@Jason:
"I mean, M&A with Wiz and now CoreWeave going public, the Wrath of Lina Khan is over."
"We gotta give the administration a lot of credit for maybe removing the roadblocks to M&A and IPOs, or at least people perceive that."
"So I don't know if perception becomes reality here, but it does seem like M&A is a bit on fire."
@GavinSBaker:
"CoreWeave bought Weights & Biases, which I think is a really interesting acquisition for them that kind of further differentiates them and maybe de-commodifies them a little bit."
"There have been quite a few acquisitions by big companies of smaller companies in the last month, and I think because none of the companies that have been bought have been public maybe it's flying a little under the radar, but it's happening in an accelerating way."
"And I think this would be very good for the market, and animal spirits, and everything that we care about."
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Offshore
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โ The Kobeissi Letter
This is absolutely insane:
From Wednesday to Friday, the S&P 500 lost -$100 billion PER trading hour for a total of -$2 TRILLION.
Then, after the market closed on Friday, S&P 500 futures erased ANOTHER -$120 billion in minutes.
What happened? Let us explain.
(a thread) https://t.co/Rc1GCF1876
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This is absolutely insane:
From Wednesday to Friday, the S&P 500 lost -$100 billion PER trading hour for a total of -$2 TRILLION.
Then, after the market closed on Friday, S&P 500 futures erased ANOTHER -$120 billion in minutes.
What happened? Let us explain.
(a thread) https://t.co/Rc1GCF1876
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Offshore
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โ App Economy Insights
๐ This Week in Visuals:
๐ง๐ป $LULU Lululemon: Soft Outlook
๐ถ $CHWY Chewy: Autoship Unleashed
๐ฎ $GME GameStop: Bitcoin To The Rescue
https://t.co/5YgDFUj9i9
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๐ This Week in Visuals:
๐ง๐ป $LULU Lululemon: Soft Outlook
๐ถ $CHWY Chewy: Autoship Unleashed
๐ฎ $GME GameStop: Bitcoin To The Rescue
https://t.co/5YgDFUj9i9
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Offshore
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โ Dimitry Nakhla | Babylon Capitalยฎ
RT @DimitryNakhla: A quality valuation analysis on $MELI ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 44.66x
โข1-Year Mean: 47.97x
As you can see, $MELI appears to be trading near fair value
Going forward, investors can receive ~7% MORE in earnings per share ๐ง ***
Before we get into valuation, letโs take a look at why $MELI is a great business
BALANCE SHEETโ
โขCash & Short-Term Inv: $3.70B
โขLong-Term Debt: $2.82B
$MELI has a strong balance sheet, an ok BB+ S&P Credit Rating & 48x FFO Interest Coverage
RETURN ON CAPITAL๐โก๏ธโ
โข2019: (4.8%)
โข2020: 3.7%
โข2021: 8.1%
โข2022: 14.7%
โข2023: 25.7%
โข2024: 23.0%
RETURN ON EQUITY๐โก๏ธโ
โข2019: (14.2%)
โข2020: (0.1%)
โข2021: 5.2%
โข2022: 28.7%
โข2023: 40.3%
โข2024: 51.5%
$MELI has strong and improved return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2019: $2.30B
โข2024: $20.78B
โขCAGR: 55.30%
FREE CASH FLOWโ
โข2019: $314.29M
โข2024: $7.05B
โขCAGR: 86.32%
NORMALIZED EPSโ
โข2019: ($3.71)
โข2024: $37.69
SHARE BUYBACKSโ
โข2019 Shares Outstanding: 48.69M
โขLTM Shares Outstanding: 50.70M
MARGINS๐โก๏ธโ
โขLTM Gross Margins: 52.7%
โขLTM Operating Margins: 12.7%
โขLTM Net Income Margins: 9.2%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive ~7% MORE in EPS
Using Benjamin Grahamโs 2G rule of thumb, $MELI has to grow earnings at a 22.33% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be more than the (22.33%) required growth rate:
2025E: $46.91 (24.5% YoY)
2026E: $64.98 (38.5% YoY)
2027E: $84.98 (30.8% YoY)
$MELI has an ok track record of meeting analyst estimates ~2 years out, but letโs assume $MELI ends 2027 with $84.98 in EPS & see its CAGR potential assuming different multiples
40x P/E: $3400๐ต โฆ ~17.6% CAGR
38x P/E: $3230๐ต โฆ ~15.4% CAGR
36x P/E: $3060๐ต โฆ ~13.2% CAGR
34x P/E: $2890๐ต โฆ ~10.9% CAGR
As you can see, $MELI appears to have attractive return potential IF we assume >36x earnings (a multiple justified by its growth rate & moat)
$MELI boasts an expansive growth trajectory, fueled by powerful network effects that should drive sustained momentum
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $2165๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1945๐ต (~10% below todayโs price) where I can reasonably expect ~12% CAGR while assuming a conservative 32x end multiple, ensuring some margin of safety
#stocks #investing
___
๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๏ฟฝ[...]
RT @DimitryNakhla: A quality valuation analysis on $MELI ๐ง๐ฝโโ๏ธ
โขNTM P/E Ratio: 44.66x
โข1-Year Mean: 47.97x
As you can see, $MELI appears to be trading near fair value
Going forward, investors can receive ~7% MORE in earnings per share ๐ง ***
Before we get into valuation, letโs take a look at why $MELI is a great business
BALANCE SHEETโ
โขCash & Short-Term Inv: $3.70B
โขLong-Term Debt: $2.82B
$MELI has a strong balance sheet, an ok BB+ S&P Credit Rating & 48x FFO Interest Coverage
RETURN ON CAPITAL๐โก๏ธโ
โข2019: (4.8%)
โข2020: 3.7%
โข2021: 8.1%
โข2022: 14.7%
โข2023: 25.7%
โข2024: 23.0%
RETURN ON EQUITY๐โก๏ธโ
โข2019: (14.2%)
โข2020: (0.1%)
โข2021: 5.2%
โข2022: 28.7%
โข2023: 40.3%
โข2024: 51.5%
$MELI has strong and improved return metrics, highlighting the financial efficiency of the business
REVENUESโ
โข2019: $2.30B
โข2024: $20.78B
โขCAGR: 55.30%
FREE CASH FLOWโ
โข2019: $314.29M
โข2024: $7.05B
โขCAGR: 86.32%
NORMALIZED EPSโ
โข2019: ($3.71)
โข2024: $37.69
SHARE BUYBACKSโ
โข2019 Shares Outstanding: 48.69M
โขLTM Shares Outstanding: 50.70M
MARGINS๐โก๏ธโ
โขLTM Gross Margins: 52.7%
โขLTM Operating Margins: 12.7%
โขLTM Net Income Margins: 9.2%
***NOW TO VALUATION ๐ง
As stated above, investors can expect to receive ~7% MORE in EPS
Using Benjamin Grahamโs 2G rule of thumb, $MELI has to grow earnings at a 22.33% CAGR over the next several years to justify its valuation
Today, analysts anticipate 2025 - 2027 EPS growth over the next few years to be more than the (22.33%) required growth rate:
2025E: $46.91 (24.5% YoY)
2026E: $64.98 (38.5% YoY)
2027E: $84.98 (30.8% YoY)
$MELI has an ok track record of meeting analyst estimates ~2 years out, but letโs assume $MELI ends 2027 with $84.98 in EPS & see its CAGR potential assuming different multiples
40x P/E: $3400๐ต โฆ ~17.6% CAGR
38x P/E: $3230๐ต โฆ ~15.4% CAGR
36x P/E: $3060๐ต โฆ ~13.2% CAGR
34x P/E: $2890๐ต โฆ ~10.9% CAGR
As you can see, $MELI appears to have attractive return potential IF we assume >36x earnings (a multiple justified by its growth rate & moat)
$MELI boasts an expansive growth trajectory, fueled by powerful network effects that should drive sustained momentum
Key factors contributing to its promising outlook include ๐
1. Margin expansion
2. Unparalleled access to Latin America's burgeoning economy
3. Network effects that produce self-reinforcing dynamics ensuring long-term competitiveness, among other things
Those buying $MELI today at $2165๐ต are buying it for a fair price, with little margin of safety โ however, these growth rates have to be revised down substantially for $MELI to miss the mark, even if the company grows earnings at 25% CAGR over the next 5 years, shareholders will likely end up with a decent return
I consider $MELI a strong buy closer to $1945๐ต (~10% below todayโs price) where I can reasonably expect ~12% CAGR while assuming a conservative 32x end multiple, ensuring some margin of safety
#stocks #investing
___
๐๐๐๐๐๐๐๐๐๐โผ๏ธ: ๐๐ก๐ข๐ฌ ๐ข๐ฌ ๐๐๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐. ๐๐๐๐ฒ๐ฅ๐จ๐ง ๐๐๐ฉ๐ข๐ญ๐๐ฅยฎ ๐๐ง๐ ๐ข๐ญ๐ฌ ๐ซ๐๐ฉ๐ซ๐๐ฌ๐๐ง๐ญ๐๐ญ๐ข๐ฏ๐๐ฌ ๐ฆ๐๐ฒ ๐ก๐๐ฏ๐ ๐ฉ๐จ๐ฌ๐ข๐ญ๐ข๐จ๐ง๐ฌ ๐ข๐ง ๐ญ๐ก๐ ๐ฌ๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐ข๐ฌ๐๐ฎ๐ฌ๐ฌ๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ.
๐๐ก๐ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๐ง ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ข๐ฌ ๐ข๐ง๐ญ๐๐ง๐๐๐ ๐๐จ๐ซ ๐ข๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง๐๐ฅ ๐ฉ๐ฎ๐ซ๐ฉ๐จ๐ฌ๐๐ฌ ๐จ๐ง๐ฅ๐ฒ ๐๐ง๐ ๐ฌ๐ก๐จ๐ฎ๐ฅ๐ ๐ง๐จ๐ญ ๐๐ ๐๐จ๐ง๐ฌ๐ญ๐ซ๐ฎ๐๐ ๐๐ฌ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐ข๐๐ ๐ญ๐จ ๐ฆ๐๐๐ญ ๐ญ๐ก๐ ๐ฌ๐ฉ๐๐๐ข๐๐ข๐ ๐ง๐๐๐๐ฌ ๐จ๐ ๐๐ง๐ฒ ๐ข๐ง๐๐ข๐ฏ๐ข๐๐ฎ๐๐ฅ ๐จ๐ซ ๐ฌ๐ข๐ญ๐ฎ๐๐ญ๐ข๐จ๐ง. ๐๐๐ฌ๐ญ ๐ฉ๐๐ซ๐๐จ๐ซ๐ฆ๐๐ง๐๐ ๐ข๐ฌ ๐ง๐จ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐ ๐จ๐ ๐๐ฎ๐ญ๐ฎ๐ซ๐ ๐ซ๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ.
๐๐ง๐๐จ๐ซ๐ฆ๐๐ญ๐ข๐จ๐ง ๐๐จ๐ง๐ญ๐๐ข๐ง๐๐ ๐ข๏ฟฝ[...]
Offshore
โ Dimitry Nakhla | Babylon Capitalยฎ RT @DimitryNakhla: A quality valuation analysis on $MELI ๐ง๐ฝโโ๏ธ โขNTM P/E Ratio: 44.66x โข1-Year Mean: 47.97x As you can see, $MELI appears to be trading near fair value Going forward, investors can receive ~7% MORE inโฆ
๏ฟฝ ๐ญ๐ก๐ข๐ฌ ๐ญ๐ฐ๐๐๐ญ ๐ก๐๐ฌ ๐๐๐๐ง ๐จ๐๐ญ๐๐ข๐ง๐๐ ๐๐ซ๐จ๐ฆ ๐ฌ๐จ๐ฎ๐ซ๐๐๐ฌ ๐๐๐ฅ๐ข๐๐ฏ๐๐ ๐ญ๐จ ๐๐ ๐ซ๐๐ฅ๐ข๐๐๐ฅ๐, ๐๐ฎ๐ญ ๐ข๐ฌ ๐ง๐จ๐ญ ๐ ๐ฎ๐๐ซ๐๐ง๐ญ๐๐๐ ๐๐ฌ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐ฅ๐๐ญ๐๐ง๐๐ฌ๐ฌ ๐จ๐ซ ๐๐๐๐ฎ๐ซ๐๐๐ฒ.
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