Wall St Engine
RBC CAPITAL ON $LYFT & $UBER: 'ALL EYES ON AUSTIN & ATLANTA'
Analyst Comments: "Our latest driver supply analysis indicates ongoing rationality in the ride-hailing space which is good for both UBER & LYFT. In particular, directionally similar pricing and pick-up times with relatively similar magnitudes was encouraging to see. Bigger picture, LYFT has been an outperformer in our space YTD (#5 in overall space +18% vs. Nasdaq +1%) where low/no tariff exposure and/or GenAI concerns have complemented strong execution which we generally see continuing alongside an upcoming AV launch in Atlanta with May Mobility. We'd flag the upcoming Tesla launch (TSLA covered by RBC analyst Tom Narayan) as a risk but with the stock still trading at an attractive 7.3x EV/'26 EBITDA, we'd be more aggressive buyers on a Tesla-related dislocation/pullback."
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RBC CAPITAL ON $LYFT & $UBER: 'ALL EYES ON AUSTIN & ATLANTA'
Analyst Comments: "Our latest driver supply analysis indicates ongoing rationality in the ride-hailing space which is good for both UBER & LYFT. In particular, directionally similar pricing and pick-up times with relatively similar magnitudes was encouraging to see. Bigger picture, LYFT has been an outperformer in our space YTD (#5 in overall space +18% vs. Nasdaq +1%) where low/no tariff exposure and/or GenAI concerns have complemented strong execution which we generally see continuing alongside an upcoming AV launch in Atlanta with May Mobility. We'd flag the upcoming Tesla launch (TSLA covered by RBC analyst Tom Narayan) as a risk but with the stock still trading at an attractive 7.3x EV/'26 EBITDA, we'd be more aggressive buyers on a Tesla-related dislocation/pullback."
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Offshore
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Investing visuals
$GOOGL:
🔹 28% Cloud growth
🔹 $72B in cash (pre-Wiz acquisition)
🔹 Trading at 25x forward free cash flow
Thoughts? https://t.co/lqOv1gZYNx
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$GOOGL:
🔹 28% Cloud growth
🔹 $72B in cash (pre-Wiz acquisition)
🔹 Trading at 25x forward free cash flow
Thoughts? https://t.co/lqOv1gZYNx
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Offshore
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Offshore
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Dimitry Nakhla | Babylon Capital®
Shares of Brown Forman (Jack Daniel’s) have crashed by over -60% since Nov 2020📉
It doesn’t matter that it’s a Dividend Aristocrat selling alcoholic beverages
This is what happens when you pay 48x earnings for a consumer staple stock that’s not growing EPS at a rate that justifies an aggressive multiple
In other words, at 48x, investors were receiving just $2.08 in EPS for every $100 invested‼️
“Price is what you pay, value is what you get” —Warren Buffett 🗣️
Let’s even use the company’s good years:
From 2010 to 2020, $BF.B grew its earnings at a 7.6% CAGR
A 48x multiple? Even in the best-case scenario, a 48x earnings multiple is hard to justify
It’s not as though investors could reasonably have expected a >20% CAGR for several years
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Shares of Brown Forman (Jack Daniel’s) have crashed by over -60% since Nov 2020📉
It doesn’t matter that it’s a Dividend Aristocrat selling alcoholic beverages
This is what happens when you pay 48x earnings for a consumer staple stock that’s not growing EPS at a rate that justifies an aggressive multiple
In other words, at 48x, investors were receiving just $2.08 in EPS for every $100 invested‼️
“Price is what you pay, value is what you get” —Warren Buffett 🗣️
Let’s even use the company’s good years:
From 2010 to 2020, $BF.B grew its earnings at a 7.6% CAGR
A 48x multiple? Even in the best-case scenario, a 48x earnings multiple is hard to justify
It’s not as though investors could reasonably have expected a >20% CAGR for several years
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