$Palantir Tech(PLTR.US)
$NVIDIA(NVDA.US)$Intel(INTC.US)$Netflix(NFLX.US)Palantir, another AI stock victim which stock price fell after forecasting it contract win is only 15% for next quarters instead of 20% its enjoy in this current quarter. Market is so used to see explosive growth in this stock that anything less than that will be punished.
$Apple(AAPL.US) Apple revenue up 12% YOY but market is expecting more on Ipad sales forecast for next quarter. The current earnings are yet to factor in its new Iphone Duo which has some problems. For a company that has not been investing heavily in AI and thus has been shielded by AI investment volatility, it should do better!$NVIDIA(NVDA.US)$Intel(INTC.US)$Netflix(NFLX.US)
$Netflix(NFLX.US)
Context: In a podcast interview with Nicolai Tangen, CEO of Norges Bank Investment Management, Ackman defined his criteria for an ideal stock. “A great company is a business you could buy today. The markets could shut for 20 years, and you know with an enormous degree of certainty that you’ll own something that’s enormously valuable 10 or 20 years from now,” Ackman said. He added that Pershing Square prefers “businesses that look like royalty collecting companies like annuities.” Ackman also expressed conviction in Netflix during his CNBC appearance, referring to the company as a “high growth utility.” He told CNBC that investors can “buy the stock today at one of the lowest valuations in history,” noting it was trading around 18 times earnings. Ackman stated that he expects Pershing Square’s internal rate of return on the stock to be “well north of, you know, well into the 20s,” projecting that earnings growth is going to be in the “mid to high teens for the foreseeable future.”
My Trade: Easy to lose confidence in a stock that has been falling ever since I opened position. However, I do believe, like Ackman, that the stock is seriously undervalued, albeit needing stronger earnings to prove the worth to wait.
Takeaway: With how volatile the stock market can be as majority chase after the high risk high reward tech stocks, Netflix is one of the undervalued and slightly defensive "streaming consumer" stock to hold. I'll continue to be patient to ride it out. @Captain's Treasure
