Ahmad
if you’re at Meta and still not running Claude Code

in YOLO mode (--dangerously-skip-permissions)

you’re ngmi

literally https://t.co/PPBPIn2dTY
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Yellowbrick Investing
Added 59 new stock write-ups to the site (pt 3):
@InverseMax - $VLE.TO
@chitchatstocks - $CROX
@Crussian17 - $VICR
@__MattLindsay (watchlist) - $VOW.OL, $LKQ
@eriksen_tim (fund letter) - $ENDI, $PHIG, $SLBK, $SODI https://t.co/d9AnAX43JD
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Yellowbrick Investing
Added 59 new stock write-ups to the site (pt final):
@pernasresearch - $YELP (pass), $POWI (more research), $QNST (pass)
@alex_dragut - $PLX.PA
@ThreeMileRes - $CROX
@DRGinvests - $DLTR
fund letters
and more... https://t.co/FGl54hfkTV
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AkhenOsiris
RT @SouthernValue95: @modestproposal1 BDCA also an instruction manual for what to do in that case. Buy the Crap out of Amazon.
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AkhenOsiris
Congrats to the top tickers during 2021 in $SHOP ($169.xx)...you are now in the green 🚀
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AkhenOsiris
Let's add a potential negative catalyst for $AMZN in mid-Nov 🤦‍♂️

UBS Karl’s comments are extremely valuable. Right now, people seem to think only Satya and C.C. Wei are the smart ones who haven’t been held hostage by Sam. If Satya starts taking more OpenAI data center orders, it would ease concerns about an AI bubble.

Karl is bullish on Microsoft's upcoming quarterexpecting Azure to beat the 39% bogey forAzure.Enterprise demand and Al-driven growthare both strong.lmportantly, he thinks you get aresolution on the MSFT-OpenAl partnershipagreement AND OpenAl makes a big new spenocommit with Azure. This could happen in mid.November and would be a positive catalyst.
The announcement could happen in mid.November as MSFT has pre-emptively set up aseries of investor meetings in San Francisco orNovember 19 with CFO Amy Hood. We expectan announcement of new terms of the MSFTOpenAl agreement. To compensate MSFT formaking some concessions on the agreement, youcould see a very large OpenAl-MSFT deal. Thatwill help calm the bear case that MSFT wil beleft out of the OpenAl party. The new OpenAlspend commitment could be $100-150Bn.
smaller than Oracle's $250Bn deal but still verybulish for MSFT. - FundaAI
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Ahmad
read this dude’s manifesto if you want to survive-hell, maybe even thrive-this cycle

absolute legend https://t.co/cfskVCOXlf
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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�[...]

�𝐥𝐢𝐞𝐯𝐞𝐝 𝐭𝐨 𝐛𝐞 𝐫𝐞𝐥𝐢𝐚𝐛𝐥𝐞, 𝐛𝐮𝐭 𝐢𝐬 𝐧𝐨𝐭 𝐠𝐮𝐚𝐫𝐚𝐧𝐭𝐞𝐞𝐝 𝐚𝐬 𝐭𝐨 𝐜𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐧𝐞𝐬𝐬 𝐨𝐫 𝐚𝐜𝐜𝐮𝐫𝐚𝐜𝐲. - Dimitry Nakhla | Babylon Capital® tweet