Alibaba Group Holding Ltd. (BABA, Financial) is one of the largest Chinese equities in the word, having a market capitalization of approximately $180 billion at $75 per share. Renowned as one of the fastest-growing companies in the world, it has become a dominant figure in Asia's e-commerce, finance and service industries. Over the past several years, it had to navigate through China's evolving political landscape and economic objectives. However, China remains the world's largest e-commerce market and Alib ...

Amazon.com Inc. (AMZN, Financial) is a giant in the realms of e-commerce, cloud computing and digital entertainment. The company, which was initially established as an online bookstore in 1994, has become one of the most influential companies in the world. With services such as Amazon Prime and the cloud computing service AWS, strong customer orientation alongside technological leading-edge products, it not only changed the retail industry, but created unprecedented new benchmarks. Even amid market fluctuat ...

Despite being seen as a key beneficiary of the artificial intelligence boom, primarily due to its strategic investment in OpenAI, Microsoft Corp.'s (MSFT, Financial) stock has underperformed broader markets and its mega-cap peers this year. After a strong start, the stock has only gained about 7.10% year to date. This is a significant decline from its mid-July peak, where it was up nearly 25%. The downturn can be attributed to weaker-than-expected near-term prospects at Azure following the latest earnings r ...

Core Insights - Berkshire Hathaway made significant new investments in Ulta Beauty Inc and Heico Corp during Q2 2024, acquiring 690,106 shares of Ulta valued at approximately $266.29 million and 1,044,242 shares of Heico valued at around $185.37 million [2] - The company increased its stake in Occidental Petroleum Corp by 7,263,396 shares, totaling 255,281,524 shares valued at approximately $16.09 billion, and also raised its position in Chubb Ltd by 1,109,944 shares, now totaling 27,033,784 shares valued at about $6.90 billion [3] - Berkshire Hathaway completely exited its positions in Snowflake Inc and Paramount Global, liquidating 6,125,376 shares of Snowflake and 7,531,765 shares of Paramount, impacting the portfolio by -0.3% and -0.03% respectively [3] - A significant reduction was observed in Apple Inc shares, with a drastic cut of 389,368,450 shares, representing a -49.33% decrease and impacting the portfolio by -20.13% [4] - Chevron Corp shares were reduced by 4,369,673, a -3.55% decrease, with a -0.21% impact on the portfolio [5] - As of Q2 2024, Berkshire Hathaway's portfolio comprised 41 stocks, with top holdings in Apple Inc (30.09%), Bank of America Corp (14.67%), American Express Co (12.54%), Coca-Cola Co (9.09%), and Chevron Corp (6.63%), reflecting a diversified investment strategy across various sectors [6] Sector Breakdown - The portfolio includes investments across multiple sectors such as Financial Services, Technology, Consumer Defensive, Energy, Communication Services, Healthcare, Consumer Cyclical, and Industrials, showcasing a strategic diversification approach [6][8]

Company Overview - Fiserv Inc. is a leading fintech company with a market cap near $90 billion and revenue approaching $20 billion, providing technology services to financial institutions [1] - The company has double the market share of its closest competitor, Jack Henry, in the bank core processes market, which is essential for handling deposits and processing loans [2] Revenue Growth - Fiserv's revenue has significantly increased over the past decade, particularly after acquiring First Data Corp. in 2019, which enhanced its payment processing capabilities [5][6] - The company’s revenue segments include Acceptance, Fintech, Payments, and Corporate or Other, with all segments generally showing an upward trend in revenue [5][6] Market Potential - The global core banking software market is projected to grow from $58.01 billion in 2024 to $17.19 billion by 2031, indicating a strong growth trajectory for the industry [4] Operating Expenses and Margins - Although expenses have risen, they are increasing at a slower rate than revenue, leading to improved operating margins across all segments [6][9] - The operating margins for Acceptance, Fintech, and Payments segments have shown a steady increase since 2019 [9] Valuation Metrics - Fiserv's current price-to-earnings (P/E) ratio is just below 20, significantly lower than its 10-year median of 28, suggesting a valuation discount [10][11] - The PEG ratio is around 1.04, which is more than 30% below the industry median, indicating favorable growth prospects relative to its valuation [11][12] Investment Appeal - Fiserv has a GuruFocus score of 94/100, positioning it as an attractive investment compared to other software companies [13][14] - The company’s markets exhibit strong growth potential, and its margin expansion is notable, making it a compelling investment opportunity [20] Financial Health Indicators - The Altman Z-Score is at 1.60, indicating a higher risk of bankruptcy, while the Altman Z2-Score is at 1.77, which is above the distress level, suggesting some financial stability [15][17] - The Z2-Score has improved by about 15% since 2019, reflecting a gradual recovery post-acquisition of First Data [18][19]

Amazon.com Inc. (AMZN, Financial) has delivered exceptional results for long-term shareholders. The stock delivered a total return of roughly 993% over the past 10 years, while the S&P 500 has delivered a total return of roughly 231% over the same period. However, the e-commerce giant's shares have underperformed the benchmark index over the past five years, delivering a total return of roughly 84% while the S&P 500 has delivered a total return of around 97%. The stock has underperformed as the company has ...

While some tech companies are suffering a sell-off, such as Microsoft (MSFT, Financial), which has fallen by 11% in the last 30 days, and Amazon (AMZN, Financial), which has fallen by an even greater 16%, Apple Inc. (AAPL, Financial) has continued to advance and reached the $224 mark in the post-earnings period.This new valuation level for Apple is justified by its responsibility for spreading artificial intelligence (or Apple Intelligence) technology through its strong user base and possible monetization f ...

McDonald's Corp. (MCD, Financial) presented disappointing second-quarter earnings on July 29. The quarter's indicators show how challenging the company's situation is, with negative same-store sales, flat revenue and an earnings miss.Despite this, shares have advanced slightly, the justification for which can be attributed to strategies to return value to the consumer like cheaper meal initiatives.Combining the bad situation with some trends in the fast-food chain's market, I believe a very cautious stance ...

The communication services sector is composed of companies that focus on connectivity and is a favorite of long-term investors as it is resilient to market cycles and somewhat reliably predictable. The sector includes internet and phone providers. Three of these largest U.S. telecommunications companies by market cap are T-Mobile US Inc. (TMUS, Financial) ($208 billion), Verizon Communications Inc. (VZ, Financial) ($171 billion) and AT&T Inc. (T, Financial) ($134 billion). The purpose of this analysis is to ...

When it comes to the Magnificent Seven and big tech stocks, one of the ones I like the least is Alphabet Inc. (GOOGL, Financial) as I find its business model less appealing and a little more fragile when compared to Apple Inc. (AAPL, Financial), Amazon.com Inc. (AMZN, Financial) and Microsoft Corp. (MSFT, Financial). Even so, it is undeniable that the Google parent company has its moats and an excellent operational track record.As the company is far from bad, I believe this recent dip makes the stock even m ...