Pershing Square Capital Management, the investment firm run by investing guru Bill Ackman (Trades, Portfolio), trimmed its stake in Chipotle Mexican Grill Inc. (CMG, Financial) by nearly 10% during the first quarter of 2024. However, the restaurant chain remains the firm's largest holding at just over 20% of its total portfolio.Chipotle has been a longtime favorite of Ackman as the firm made its initial investment in late 2016. Since then, shares have delivered a total return of roughly 620%. Comparably, th ...

Meta Platforms Inc. (META, Financial) has experienced a significant surge so far this year, pushing the stock to nearly a 40% premium over its previous peak set in 2021, primarily due to its comeback in the social media advertising space after Apple's (AAPL, Financial) App Tracking Transparency update, which had severely impacted its targeting capabilities. Figure 1: Meta Platforms' shares up 44% year to dateDespite this recovery, the first-quarter earnings season has generally been disappointing, and inves ...

PayPal Holdings Inc. (PYPL, Financial) is just one of the many fintech companies that, over the past three years, have missed its numbers repeatedly. As one of the most popular payment companies offering ways to send and receive money securely, the company has sharply underperformed.Spun off from eBay (EBAY, Financial) in 2015, this business has grown impressively, doubling from 180 million users in 2015 to 380 million by 2020. The Covid-19 pandemic changed many things that year: it became trendy for paymen ...

Apple Inc. (AAPL, Financial) has seen its shares pick up since March, after significantly trailing behind the rest of the big tech sector. Despite a sharp recovery, the stock is currently 2% below its all-time high. Comparatively, shares are underperforming the market by about 6% in a year that has generally been very favorable for other major tech companies.Figure 1: Apple shares sharply recover following lackluster performanceAAPL Data by GuruFocusThis underperformance can be attributed to Apple's lacklus ...

Accenture PLC (ACN, Financial) is one of the world's leading professional services companies, and it is driven to provide change and technological advancements for its clients. While it faces a significant threat from high-growth Indian multinational consultancy companies, I believe Accenture offers stability in its valuation. In my opinion, investors would be wise to anticipate changes in growth related to Western and emerging markets over the next few decades, but for the foreseeable future, I think Accen ...

Salesforce Inc. (CRM, Financial) reported its fiscal first-quarter 2025 results on May 29. While the company only slightly missed expectations for a couple of key metrics, it then downgraded its expectations for the 2025 fiscal year. This led to the stock dropping 15%.In my opinion, given the company's unchanged fundamentals, continued high growth potential and compelling valuations, this seems like an overreaction. It could present a great opportunity to invest in a long-term winner.Why I like SalesforceBe ...

Some say the art of investing is the ability of catching falling knives. Pfizer Inc. (PFE, Financial) shares have sold off in 2023 and represent an attractive opportunity after having likely bottomed out.Attractive opportunity despite poor stock performance The pharmaceutical company's dividend yield of approximately 5.80% naturally draws the attention of the market and seasoned investors alike. Approximately $9 billion is spent by the company in dividend payments per year, despite a free cash flow of only ...

In the highly dynamic and challenging realm of digital streaming, Netflix Inc. (NFLX, Financial) has not only gained its place as a leader, but has become an example of strategic resilience and far-sightedness. Following the steady rise in competition over the past decade, Netflix's growth from a DVD rental service to the mighty streaming giant it is today demonstrates how growth can be sustained through smart market maneuvering and employing data-driven strategies. Historic growth amid rising competition T ...

Core Viewpoint - Costco Wholesale Corp. has historically delivered exceptional investment returns, with a total return of approximately 760% over the past decade, significantly outperforming the S&P 500 and the retail sector [1][7]. Company Overview - Costco operates around 878 member-only warehouse stores, primarily in the U.S., which accounts for nearly 73% of total revenue, followed by Canada at approximately 14% [2]. - The company has demonstrated efficiency in a competitive retail industry, consistently generating returns on invested capital above its cost of capital, benefiting from economies of scale and a loyal customer base [2]. Valuation Comparisons - Costco's current price-earnings ratio is about 50, which is at the top end of its historical valuation range, compared to an average of roughly 34 over the past decade [3]. - In comparison to Walmart, which trades at approximately 27 times forward earnings, Costco's valuation appears excessive despite expected higher growth rates [3][4]. - Costco's valuation is also high relative to other high-quality companies like Microsoft and Mastercard, both trading at around 31 times forward earnings [4]. Growth Potential - Costco plans to open 12 new stores in fiscal 2024, with a focus on international expansion, particularly in China, which could provide long-term growth opportunities [6]. - The company has historically maintained gross margins around 14%, and while increasing margins could enhance earnings, the CEO indicated no plans to change this strategy [6]. Takeaways - Costco's strong historical performance is attributed to earnings growth and multiple expansion, but the current valuation of approximately 50 times earnings is significantly above historical averages and peers [7]. - International growth presents a long-term opportunity, but is unlikely to provide the near-term earnings growth necessary to justify the high valuation [7].

Advanced Micro Devices Inc. (AMD, Financial) has solidified its position as a key player in the semiconductor industry through its strategic initiatives and robust product portfolio. Leveraging technological advancements and continuous product innovation, the company has expanded its reach globally, capturing a diverse audience of users, developers and advertisers. Despite recent challenges in the gaming and embedded segments, as evidenced by its first-quarter earnings, the company's impressive growth in th ...