Group 1: Shopify - Shopify is the largest e-commerce software company in the U.S., growing internationally and providing services to both small and large businesses [4] - Revenue increased by 26% in 2024, with operating income up 61% and free cash flow rising 37%, achieving a 22% margin [5] - E-commerce is projected to reach over 21% of total global retail sales by 2029, up from over 17% last year, positioning Shopify to benefit from this growth [6] - Shopify stock is currently down 51% from its all-time high and trades at a forward one-year P/E ratio of 55, which is near its lowest level in five years [7][8] Group 2: RH (Restoration Hardware) - RH has seen its stock drop 77% from its pandemic-era peak and 62% from earlier this year due to tariff-driven sell-offs and weak earnings [10] - The company relies on imports for approximately 85% of its products and is sensitive to economic cycles, which has impacted its performance [11] - Management updated free cash flow guidance to 350 million for 2025, with the stock trading at just 9 times expected free cash flow [12] - RH has a strong inventory position with over $1 billion in inventory, representing about four months' worth of sales, and has a history of aggressive buybacks [13] Group 3: Roblox - Roblox is a digital platform for gaming and interaction, with a share price currently 59% off its all-time highs and a 29% year-over-year revenue increase in 2024 [15][17] - The platform's digital nature makes it resilient to tariff impacts, with the main risk being weak consumer spending during a recession [16] - Daily active users have increased from 59 million to 85 million since the end of 2022, with a long-term goal of reaching 1 billion users [18]
3 Brilliant Stocks Down 51% to 77% to Buy Right Now