The article mentions Meta (NASDAQ:META) stock. The author does not explicitly give a recommendation to buy, hold, or sell the stock.
The author's core thesis is that Meta has experienced a remarkable turnaround, with revenue accelerating, margins improving, and positive outlook. The key information and data provided include Meta's revenue growth in Q2, the improvement in advertising revenue from its Family of Apps, the growth in Family Monthly Active People, the increase in ad impressions and decrease in average price per ad, the progress in Reels engagement and monetization, the profitability and financial health of Meta, the company's outlook for Q3, and the valuation of Meta stock.
The article mentions the stock of Applied Materials, Inc. (NASDAQ: AMAT). The author gives a recommendation to buy the stock.
The author's core thesis is that Applied Materials has shown resilience in the semiconductor equipment industry and is expected to continue reporting resilient YoY growth rates. The author mentions that the company has a strong market position, comprehensive product portfolio, and revenue driven primarily by the semiconductor systems segment. They also highlight the company's commitment to research and development and its potential for long-term growth.
The key information and data mentioned in the article include Applied Materials' Q3 financial results, which beat Wall Street consensus and the author's own estimates. The company reported revenue of $6.43 billion, down 1.4% YoY but better than expected. The article also discusses the company's margin profile, earnings per share, cash flows, and dividend growth history. The author highlights the company's exposure to the ICAPS (IoT, communications, automotive, power, and sensors) segment, which has been driving its outperformance, and the growing importance of the services segment in stabilizing its revenue stream. The article also mentions the company's future outlook, guidance for Q4, and updated financial projections. The author provides a target price for the stock of $177, based on a forward P/E multiple of 20x and improved financial estimates.
This article mentions Marqeta (NASDAQ: MQ) stock. The author gives a buy recommendation for Marqeta stock, stating that it is undervalued with decent upside potential.
The core argument of the article is that Marqeta's partnership renewal with its largest customer, Block (SQ), reduces the risk of losing a major customer and highlights the company's strong value proposition. The author also discusses Marqeta's Q2 results, including growth in total processing volume (TPV) and revenue.
Key information and data mentioned in the article include:
- Marqeta's partnership renewal with Block's Cash App program extends until June 2027.
- Marqeta's Q2 TPV grew 33% YoY and 7% QoQ.
- Revenue grew by 24% to $231 million in Q2.
- Gross profit was $85 million, growing by 8% YoY.
- Gross margin reached its lowest level ever at 37%.
- Marqeta operates a usage-based business model with two primary services: Managed by Marqeta (MxM) and Powered by Marqeta (PxM).
- Marqeta's gross profit take rate is at its lowest point at 0.16%.
- Marqeta turned adjusted EBITDA profitable with $1 million in Q2.
- Marqeta has a strong balance sheet with a cash position of $1.4 billion and no debt.
In terms of the outlook, the Cash App renewal is expected to have a significant impact on Marqeta's financials, causing a decline in net revenue and gross profit. The author expects Q3 to be challenging for the company but anticipates improvement in Q4 and beyond. The outlook for FY2023 includes a decline in revenue and a low to mid-single-digit negative adjusted EBITDA margin.
The article concludes with a discussion on Marqeta's valuation, stating that the stock is undervalued based on historical multiples and the author's discounted cash flow (DCF) valuation. However, the author highlights the fundamental uncertainty surrounding the company's financials and suggests caution in considering the investment due to the potential impact of the Cash App renewal.
Overall, the author recommends buying Marqeta stock but acknowledges the risks associated with competition, concentration, and fundamental uncertainty.
Better Home & Finance, a mortgage company that recently went public, experienced a significant drop in its share value, falling 93%.
The inventory of existing homes has been declining since the peak of the housing bubble in July 2007, with technology playing a key role in speeding up the processes involved in selling a home and reducing the time it takes for a home to sit in inventory.
Shares in online mortgage lender Better Home & Finance Holding rebounded slightly after a poor debut, with the company backed by SoftBank seeing a 4.3% increase in its stock price following a merger with a blank-check company, although it still finished the day down 93.4%; CEO Vishal Garg believes the company's technology will drive long-term growth and create shareholder value when interest rates normalize.
The article mentions SurgePays (NASDAQ:SURG) as the stock being discussed. The author's recommendation is to maintain a Buy rating on SurgePays.
The author's core thesis is that SurgePays has shown resilience and controlled growth, with impressive Q2 performance and promising strategies. The key information and data provided include:
- SurgePays turned profitable in Q1 and is expected to continue growing in the second half of the year.
- The neighborhood store distribution model has a low acquisition cost and room for growth.
- Valuations are depressed relative to the industry, indicating an undervalued stock.
- SurgePays is on track to meet its expansion goals, with partnerships and distribution methods in place.
- Q2 performance showed record revenue, EBITDA, and net income.
- Cash flow has improved, and SurgePays has turned operating cash flow positive ahead of schedule.
- The company is on track to reach its store and subscriber targets.
- Valuation multiples are depressed, and Wall Street analysts provide a strong buy rating with an average price target of $12.75.
- Downside risks include reliance on government subsidies, competition, and the ability to deliver on scale, but the author believes these risks are being well managed.
Overall, the author believes SurgePays has significant upside potential and maintains a Buy rating on the stock.
The article mentions the stock of homebuilder Taylor Morrison (NYSE:TMHC). The author's recommendation is to buy the stock. The author's core argument is that despite mixed financial results, the stock still looks cheap and has further upside potential. The key information and data mentioned include the company's revenue, net income, backlog, new orders, average selling price, cancellation rates, and valuation metrics.
KB Home CEO Jeffrey Mezger discusses the dramatic shifts in the housing market since the pandemic hit, the rebound in new home sales, and the strategies utilized by KB Home to maintain sales, including price cuts and buydowns. Mezger believes that the housing market has reached its bottom, but acknowledges that the metric to watch is inventory levels.
The housing market is entering its slow season and home sales may be impacted by high mortgage rates, but home builder stocks could remain strong.
Rapidly falling house prices have caused a "cost of owning crisis," with tens of thousands of homeowners falling into negative equity over the past year, making it difficult to sell or remortgage properties. Experts predict that more households will face difficulties as house prices continue to decline, with the Government's tax and spending watchdog expecting a 10% fall in prices. However, there are expectations of a rebound in house prices in the future, particularly for those intending to live in their homes for several years.
Homebuilders are thriving due to a chronic shortage of existing housing inventory, leading to increased home prices and strong sales, according to KB Home CEO Jeffrey Mezger. The lack of inventory is also reflected in the significant drop in active home listings, with only Austin returning to pre-pandemic levels, while other markets have experienced substantial declines. Despite rising mortgage rates, the scarcity of existing inventory has prevented a steep national home price decline.
Warren Buffett's recent investments in homebuilding companies D.R. Horton, Lennar, and NVR during a time of high inflation and rising interest rates suggest a contrarian move with potential for profitability based on the long-term outlook of falling interest rates and increased affordability of home ownership.
Real estate investor Sean Terry predicts a "Black Swan" event in the US housing market within the next year due to affordability pressures caused by high interest rates and housing prices, which could lead to a market crash. However, experts argue that a crash like the one in 2008 is unlikely due to the current housing shortage and limited supply of homes. The future of the housing market will depend on factors such as economic stability, mortgage rates, and homebuilders' ability to increase supply.
Hong Kong's property market has slowed down, but CK Assets Holdings attracted thousands of homebuyers with a 16% discount on residential flats.
