Netflix: Calculating Its Intrinsic Value
Netflix Inc (NFLX) has the potential to perform well. However, we highlight what you need to consider before jumping into the stock. We base our forecast purely on the company's fundamentals. By doing so, we are able to point to the specific growth drivers rooted in numbers as opposed to perceived potential. In addition, we believe that Netflix's margins will expand going forward. Using the fundamentals allows us to more reasonably estimate the company's margin expansion.
Domino's Pizza, Inc. (DPZ) is a stable and predictable pizza industry leader with a great long-term track record. The pizza industry is fragmented which means that the company's size and brand recognition provide it with a competitive edge over the majority of its rivals. Domino's will continue to see strong growth going forward, fueled by its ambition to continue opening many more stores.
Plenty of great articles have been written about what Etsy Inc (ETSY) does and what catalysts can drive its growth, as well as the risks that are associated with the company.
In this article, we want to focus more on the deep potential value hidden in Etsy from a purely fundamental point of view, rather than talk about things that have already been talked about.
Freelance work is increasing in popularity because hiring a freelancer is typically less expensive than hiring a full-time employee or agency. In addition, freelancers earn more than they would as employees for completing the same tasks even if they charge less. Therefore, it is a win-win for both sides.
ANNOUNCEMENT: For almost a year now, we've been posting stocks to watch every single week, and we hope we've helped many people find interesting charts to trade!
Unfortunately, we will not be doing these watch lists every week anymore. The reason for this is that we want to focus more on educational content, potentially creating useful products, and doing more due diligence (research reports) on stocks.
We will still do some watch lists, but they will only be done once in a while when there are great setups to watch. Thanks again to everyone that reads our watch lists! Happy trading!
Proto Labs Inc. (PRLB) is an interesting company that could see strong growth going forward. The company's recent acquisition of Hubs is potentially a great growth catalyst that will allow Proto Labs to double its revenue in five years.
Here's this weeks' stock watch list. The stocks to watch are: QQQ, INMD, SEMR, CRCT, DG, and SQ. Good luck to all!
Traditional schools are not optimal for the modern student. Younger generations grew up surrounded by technology. Therefore, education providers need to embrace if they are serious about providing a high-quality learning experience. As a result, the edtech industry is expected to continue seeing growth despite the pandemic boost.
Squarespace (SQSP) is an interesting company that offers web-building tools for businesses. It's not the industry leader but it has been growing its market share despite stiff competition. Squarespace has impressive margins, solid revenue growth, and strong efficiency metrics. In addition, the company appears to be reasonably priced.
Peloton Interactive (PTON) appears to be a misunderstood stock. When simply looking at multiples, it can appear that the company is overvalued. However, valuation multiples leave out a lot of crucial information. In this article, we highlight two things:
Coursera: Invest With Caution
The e-learning industry is poised for strong growth over the next decade. Coursera (NYSE:COUR) is well-positioned to continue growing at a fast pace. However, investors need to be cautious as the company is trading at a premium.
Previously, we wrote an article on Corsair Gaming (CRSR) where we looked at growth catalysts and quantified its competitive advantage. Today we will be taking a look at Logitech International (LOGI), its closest competitor.
We will look at the cold hard numbers to quantitatively prove that Goodfood Market Corp. (FOOD.TO) is a serious grocery player with an operational competitive advantage in the Canadian market that shouldn't be ignored.
Recently, we wrote an article comparing the "FANGMA" stocks where we talked about why Facebook is currently the best, quantitatively speaking. However, we wouldn't recommend sleeping on Amazon (AMZN) because its AWS segment has seen strong growth and seems likely to continue doing so. Its high margins will continue to boost Amazon's bottom line as it becomes a larger part of the revenue mix.
Here's this weeks' watch list. The stocks to watch are: WISH, BB, ADSK, AMZN, SEMR, IHRT, and TSLA. Good luck to all!
Music streaming has revived the music industry. The fall of physical sales contributed to a decline that lasted over a decade. It wasn't until 2014 that the industry saw a turnaround. Spotify Technology S.A. (SPOT) is one of the leaders of music streaming but has begun to diversify into complementary offerings. In addition, current market conditions suggest that the company may actually be trading at a discount relative to peers.
Corsair Gaming Inc. (NASDAQ:CRSR), was recently dubbed a meme stock. However, we see it as a company with strong fundamentals that is greatly undervalued. Undoubtedly, Corsair received a boost from COVID-19 which led to a jump in revenue growth that was unsustainable. However, even at a reduced growth rate, it still has room for plenty of upside.
ContextLogic Inc. (NASDAQ:WISH) is a long way off its high of $32.85 per share. However, it appears that its stock price has fallen too low and looks attractive at this level. In this article, we will not be discussing what the company does as many articles already do that. Instead, we will look at the company's growth catalysts, its management team/investors, and various valuation models to demonstrate that ContextLogic is trading well below fair value.
There's no doubt that the future of energy is heading towards renewable sources. Solar, in particular, has become much more cost-effective in recent years. In fact, solar energy is actually cheaper than fossil fuels. Electricity from fossil fuels costs between 5 cents and 17 cents per kilowatt-hour whereas solar energy costs average between 3 cents and 6 cents per kilowatt-hour and are trending down.