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Top Founder-Run Company Stocks That Are Safe Long-Term Plays
ZACKS· 2025-06-12 19:06
Founder-Run Companies Overview - Founder-run companies constitute less than 5% of the S&P 500 index but account for nearly 15% of the total index's market capitalization, highlighting their significant impact on the market [2] - Notable founder-led companies include NVIDIA, Amazon, Meta, Berkshire Hathaway, and Netflix, which have redefined industries and created trillion-dollar enterprises [2] Characteristics of Founder-Run Companies - These companies are often born from unique ideas and technological innovations, allowing them to navigate challenges and maintain long-term sustainability [3] - Founders typically invest personal wealth into their ventures initially, facing difficulties in securing external funding [4] Challenges Faced by Founders - Founder-owners often struggle to delegate responsibilities due to skepticism about others' commitment, which can hinder the company's growth and adaptability [5] - The reluctance to delegate can limit the infusion of professional expertise, impacting the company's ability to scale effectively [5] Performance of Founder-Led Companies - Founder-led companies have shown superior performance, with a Harvard Business Review study indicating a market-adjusted return of 12% over three years, compared to a negative 26% for companies with professional CEOs [6] Investment Opportunities in Founder-Run Companies - Current appealing stocks include Netflix, AppLovin, and Dell Technologies, which are identified as high-potential investments [6] Company Profiles Netflix - Netflix, co-founded by Reed Hastings and Marc Randolph, has a market capitalization of $387.7 billion and has evolved from a DVD rental service to a leading streaming provider [8] - The company is focusing on expanding its original content portfolio and international growth, with projected revenues between $43.5 billion and $44.5 billion for 2025 [11] AppLovin - AppLovin, co-founded by Adam Foroughi, has a market capitalization of $129.7 billion and leads in mobile advertising through its AI engine, Axon 2 [12] - The company is transitioning to a software-centric model, enhancing profitability and returns on invested capital [14] Dell Technologies - Dell Technologies, founded by Michael Dell, has a market capitalization of $75.5 billion and is a major player in servers, storage, and PCs [15] - The company is expected to benefit from recovering demand driven by the PC-refresh cycle and strong interest in AI servers, with projected revenues for the first quarter of fiscal 2026 between $22.5 billion and $23.5 billion [18]
Crown Announces Entry into Merger Agreement
Globenewswire· 2025-06-09 13:00
LOS ANGELES, June 09, 2025 (GLOBE NEWSWIRE) -- Crown Electrokinetics Corp. (NASDAQ: CRKN) (“Crown” or the “Company”), a leader in optical and fiber infrastructure solutions, today announced that it has entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with Crown EK Acquisition LLC (“Parent”) and Crown EK Merger Sub Corp. (“Purchaser”), a wholly owned subsidiary of Parent. Parent is controlled by Douglas Croxall, the Company’s Chairman and Chief Executive Officer. Under the term ...