Core Viewpoint - Meta Platforms has shown significant growth since its IPO in 2012, with a nearly 2,000% increase, yet it remains undervalued and often criticized by the market [1][2]. Financial Performance - In the latest earnings report, Meta's revenue increased by 24% to $59.9 billion, while operating income rose by 6% to $24.7 billion despite narrowing margins due to increased spending [4]. - The company provided optimistic guidance for the first quarter, projecting revenue between $53.5 billion and $56.5 billion, indicating a potential growth rate of 30%, the fastest in five years [5]. Valuation Metrics - Meta's net income for the previous year was $74.7 billion, translating to earnings per share of $29.04, with a current price-to-earnings (P/E) ratio of 25.4, lower than the S&P 500's P/E of 28.1 [6]. - The stock trades at a discount of over 20% compared to its "Magnificent Seven" peers, despite having a faster revenue growth rate than all but Nvidia [8]. Historical Context - Historically, Meta has traded at a discount, with an average P/E ratio of 26 over the past eight years, while maintaining an average revenue growth rate of 23% [11]. - The market struggles to accurately value Meta, similar to Alphabet, which has also faced valuation challenges despite strong growth [11]. Competitive Position - Meta and Alphabet dominate the digital advertising space, yet they are valued like average companies, despite their significant economic moats and high profit margins [12]. - Both companies possess platforms with billions of daily users and have developed sophisticated advertising models that generate substantial profits with minimal direct competition [13]. Investor Sentiment - The current modest valuation of Meta is seen as beneficial for investors, as it allows for potential stock buybacks and increases the opportunity for long-term gains [15][16].

Core Insights - Rivian Automotive has experienced significant stock decline, dropping over 90% from its all-time high, despite initial success with its R1T electric truck [1] - The upcoming R2 vehicle launch is anticipated to be a pivotal moment for the company, potentially transforming its market position [2][6] Financial Performance - Rivian's gross margin has improved alongside sales growth, indicating progress towards financial sustainability [3] - The company has successfully reengineered its R1T and R1S models to lower manufacturing costs and has increased revenue from higher-margin EV regulatory credit sales and software services [4] - Free cash flow losses have decreased to less than $500 million over the past four quarters, with the company holding $7 billion in cash as a financial buffer [5] Future Projections - Analysts project Rivian's revenue to reach approximately $6.8 billion by the end of the year, with an expected increase to $11.2 billion in fiscal 2026 following the R2 launch [7] - The R2 is priced at $45,000, significantly lower than the R1S's starting price of around $78,000, which could help Rivian penetrate the mainstream automotive market [6] Investment Considerations - The stock is currently trading at a price-to-sales (P/S) ratio of 3, which is considered a bargain compared to Tesla but higher than traditional automotive companies [7] - Investing in Rivian before the R2 launch may be seen as a speculative opportunity, with potential for increased market confidence and valuation if the launch is successful [8]

Analyst's Disclosure: I/we have a beneficial long position in the shares of ANET either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Arista Networks ( ANET ) has the characteristics for being considered a wonderful company: excellent capital allocation (ROC ttm of 30%), doub ...

Core Insights - Brookdale Senior Living projects RevPAR growth of 8% to 9% for 2026, with adjusted EBITDA guidance of $502 million to $516 million, and anticipates mid-teen annualized growth in adjusted EBITDA through 2028 [1][6][5] Financial Performance - In 2025, Brookdale reported adjusted EBITDA of $458 million, a 19% year-over-year increase, and achieved adjusted free cash flow positivity for the first time since the pandemic [2][3] - The company generated over $3 billion in revenue in 2025, with consolidated RevPAR increasing by 5.7% due to occupancy gains and pricing increases [2][3] Occupancy and Demographics - Same-community occupancy ended 2025 at a weighted average of 83.5%, with a year-end spot occupancy of 84.5%, and the company aims to surpass pre-COVID occupancy levels in 2026 [3][6] - The U.S. population aged 80 and older is projected to grow at a 4% CAGR for the next 15 years, driving demand for senior housing [9][10] Operating Model and Structure - Brookdale has restructured into six regions to enhance decision-making and accountability, focusing on local market needs [13][14] - The company is investing in staffing and signature care programs to improve execution and service quality [5][15] Capital Allocation and Growth Strategy - Management emphasizes a holistic approach to capital expenditures, targeting comprehensive upgrades rather than piecemeal repairs [16][18] - Brookdale is exploring targeted acquisitions to enhance its market presence and address capacity needs in specific regions [16][19] Industry Position - Brookdale is the largest operator of senior living communities in the U.S. and the third-largest owner of senior housing real estate, with 75% of its units owned and 94% of revenue derived from private pay sources [7][20]

Executives, saying they anticipate huge changes from the technology, are making cuts now. AI was cited in the announcements of more than 50,000 layoffs in 2025, according to Challenger, Gray & Christmas, a research firm. ETtech Amazon said Wednesday that it was Pinterest said last month that it would And HP Inc chief executive officer, Enrique Lores, said during an investor call last November, “We see a significant opportunity to embed AI into HP,” which would lead to as many as 6,000 job cuts in the coming ...

Group 1 - The article discusses a potential merger between Tesla Inc. and SpaceX, following a post by Elon Musk from last year that hints at possible collaborations among his companies [1][2] - Musk's previous statement indicated that his companies are trending towards convergence, raising speculation about whether he was hinting at a merger [2] - SpaceX is reportedly preparing for an IPO this year, with discussions about its public listing emerging since Musk's comments at the Tesla annual shareholder meeting last November [3][4] Group 2 - SpaceX's IPO is anticipated to occur in June this year, coinciding with a rare cosmic event and Musk's birthday, with a projected valuation of around $1.5 trillion [4] - Tesla's recent fourth-quarter earnings call highlighted a strategic shift towards autonomous vehicles, including the discontinuation of the Model S and Model X, and an emphasis on in-house chipbuilding efforts [6]

Core Viewpoint - Silver experienced a significant 30% drop on January 30, marking the worst decline since 1980, following a nearly 250% price increase over the past year [1]. Group 1: Market Analysis - The decline in silver prices was anticipated by market analysts, including Peter Brandt and Marko Kolanovic, who had previously issued bearish forecasts [2]. - Following the drop, both analysts have shifted their outlook to bullish, indicating a potential for a short-term bounce in silver prices [2][6]. - The volatility in silver prices has created trading opportunities for both bullish and bearish investors [3]. Group 2: Predictions and Strategies - Marko Kolanovic predicts a potential 50% decline in silver prices over the next year, while Brandt suggests that the recent sell-off may have been overdone, leading to a possible short-term rally [5][6]. - Brandt emphasizes that the current market conditions differ from those in 2011, suggesting that a more durable price increase may occur after a washout of speculative positions [8]. Group 3: Structural Issues - The recent sell-off highlighted a significant disconnect between paper contracts and physical silver supply, referred to as the "Great Divorce" [9].

The S & P 500 closed lower on Friday but slightly higher for the week. It briefly topped 7,000 for the first time ever Wednesday. There was no storage of news: Ten portfolio names, including three of our megacaps, reported earnings throughout the week; the Federal Reserve held interest rates steady on Wednesday; software stocks got crushed Thursday; and President Donald Trump on Friday announced his pick to replace Jerome Powell as chairman of the Fed. .SPX .IXIC mountain 2026-01-26 S & P 500 vs. Nasdaq sin ...

Core Insights - Affirm Holdings, Inc. and Expedia Group, Inc. have expanded their travel payment partnership, making Affirm the exclusive Buy Now, Pay Later option for lodging and packages on major travel brands [1] Group 1: Expanded US Coverage - Under the new agreement, Affirm's installment payment option will be the only Buy Now, Pay Later method for travelers booking hotels and vacation packages on Expedia, Hotels.com, and Vrbo in the U.S. [2] - Eligible customers will receive real-time approval decisions and customized monthly payment plans that can extend up to 24 months [2] - Affirm plans to expand its Buy Now, Pay Later service to Canadian travelers on select properties in the near future [2] Group 2: Payment Options - In the U.S., eligible buyers can select three- or six-month plans with 0% APR, with no compounding interest or late fees, and all terms are visible before checkout [3] - The Vice President of Global Payments at Expedia Group emphasized that clear payment choices help individuals pursue meaningful travel experiences [3] Group 3: Adapting to New Booking Habits - Expedia Group is evolving consumer trip planning with tools like AI-powered itinerary discovery, which integrates payment decisions earlier in the booking process [4] - The Senior Vice President of Revenue at Affirm noted that travelers are now considering payment options alongside their destination choices, reflecting the integration of payment flexibility in modern trip planning [4] - Affirm collaborates with nearly 420,000 merchants globally, including major retail brands, to enhance customer access and increase average order value for businesses [5]

Core Viewpoint - Taiwan Semiconductor Manufacturing Company (TSMC) has significantly raised its long-term outlook due to strong performance and demand in the semiconductor industry, particularly driven by artificial intelligence (AI) growth [1][2]. Group 1: Company Performance - TSMC's stock price has increased by 72% since the beginning of 2025, bolstered by impressive fourth-quarter earnings results [2]. - The company holds a dominant 72% market share in the semiconductor manufacturing sector, benefiting from high demand from major clients like Nvidia and Broadcom [3]. - TSMC's technology leadership is recognized as unmatched, allowing it to attract significant contracts and invest in further capacity and R&D [3]. Group 2: Financial Outlook - Management has projected capital expenditures for 2026 to be between $52 billion and $56 billion, representing a 32% increase at the midpoint [6]. - The five-year compound annual growth rate outlook has been raised from 20% to 25%, indicating continued annual growth of approximately 22.4% through the end of the decade [7]. - TSMC's gross margin stands at 59.02%, and the company is expected to maintain high pricing power, leading to improved operating margins and faster earnings growth [7]. Group 3: Market Position - TSMC's stock is currently trading at less than 24 times forward earnings expectations, making it attractive compared to competitors like Broadcom and Nvidia, which trade at 41 and 32 times earnings, respectively [8]. - Despite a strong performance in 2025, TSMC is not expected to experience a significant slowdown in 2026, indicating potential for further stock price appreciation [8].