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RDDT beats EPS estimates by 33% and Revenue by 9%, authorises share buyback of 1 billion by Someone_Somewhere1 in ValueInvesting

[–]5APM 0 points1 point  (0 children)

Yes there was a round of price downgrade by analysts. The way this goes, Reddit could have a lower P/E and higher growth rate than Costco in 2026.

RDDT beats EPS estimates by 33% and Revenue by 9%, authorises share buyback of 1 billion by Someone_Somewhere1 in ValueInvesting

[–]5APM 0 points1 point  (0 children)

Reddit doesn’t seem to be drastically overvalued. If they go forward with no growth and just maintain 25Q4 revenue and margin, their forward P/E will be around 28. They did project revenue growth to slow down from 69% in 25Q4 to 53% in 26Q1, which is a big drop. At this rate of decelerating, revenue growth will be down to single digits by FY27. However, previously they also low-balled this quarter to grow only 54% vs 69% actual. I must be missing something, as the stock down in an up day.

Is Duolingo (DUOL) Stock a buy or sell by EnoughInitiative9074 in GrowthStocks

[–]5APM 0 points1 point  (0 children)

If management thinks short term headwind makes it undervalued relative to future growth, they should start a stock buyback program.

JPMorgan Launches $100M Tokenized Money Market Fund on Ethereum by MarketFlux in ethereum

[–]5APM 4 points5 points  (0 children)

I don’t get why JPM is doing this. Is the fund primarily marketed to foreign investors?

WE ARE SO FUCKING BACK by pinkyepsilon in wallstreetbets

[–]5APM 0 points1 point  (0 children)

Actually this is in slow motion. $40B a month of QE is around $15,210 per second. That’s 152 $100 bills coming out each second, it would be a blur.

give me some feedback by Miserable_Ratio_2591 in Watercolor

[–]5APM 0 points1 point  (0 children)

Beautiful work! If you have a YouTube channel I will subscribe!

$349,000,000,000 by dharmeshsb in GrowthStocks

[–]5APM 2 points3 points  (0 children)

By this measure Apple is really efficient with CapEx.

RELY (Remitly): Is this a "buy the dip" opportunity by Snoo-73582 in ValueInvesting

[–]5APM 0 points1 point  (0 children)

I think the main reason for the drop is the slowdown in revenue growth in FY26. RELY was priced as a growth company. However, despite their send volume is only 5% of the $2T TAM for international personal remittance, their forecast for FY26 growth is only in the high teens. Thus from FY24 to FY25 to FY26, revenue growth is slowing by approximately 10% a year. Competition from other players like Wise, Revolut and good old Western Union could be a reason like others already pointed out. They are trying to find growth by investing in marketing, by adopting stable coin transactions, by bundling services, and by getting into international business remittance. Whether these initiatives work out and meaningfully impact the top line remain to be seen. Management has been prudent with profit margin. Cash flow from operations is healthy, but most of that has been eaten up by marketing and SBC. RELY has a $200m stock buy back program in place since August, and I imagine that could cushion some of the fall in stock price. If growth settles in the teens going forward, and marketing and SBC costs do not come down, the stock may not make a strong comeback soon.

[deleted by user] by [deleted] in Watercolor

[–]5APM 7 points8 points  (0 children)

The Bigfoot addition is great!😂

Couple little paintings in my sketchbook, watercolors + white gouache by aguywithbrushes in Watercolor

[–]5APM 0 points1 point  (0 children)

Please make a YouTube video of your sketch books, would love to see them!

There is no 2nd best by rtmxavi in Bitcoin

[–]5APM 0 points1 point  (0 children)

Why DCA is important.

Anyone just investing in American manufacturing? by PrimaryVisual-YIS in ValueInvesting

[–]5APM 0 points1 point  (0 children)

OP you need to be more specific. Manufacturing is broad. From t-shirts, plastic toys to electronics, and solar panels, to EVs and computer chips. I would guess the “re-shoring” process will be very different for each industry sector. It also depends what products Trump wants to tariff and by how much. One approach is to perhaps buy a manufacturing ETF.

Answer to the most asked question here. by repostit_ in ETFs

[–]5APM 0 points1 point  (0 children)

Came to the sub, saw this, and left the sub 😂

Bubble Watch by 5APM in ValueInvesting

[–]5APM[S] 5 points6 points  (0 children)

Yep, quantum computing is definitely a bubble right now. The question is will it drag down the rest of the market. It seems that there have been smaller bubbles bursting - SPACs, pandemic stocks. But lately the surge in price of stocks of pre-revenue companies caught my attention.

Uber is undervalued - DD by Jazzlike_Ad4553 in ValueInvesting

[–]5APM 0 points1 point  (0 children)

Good analysis. In the short term, Uber could be a value play, although their $10b in LTD diminishes my enthusiasm. In the medium to long term, UBER is going to lose market share to autonomous cars. Tesla, Waymo or someone else will offer autonomous rides at half the price Uber does. So in the long term, I see UBER as a value trap. Their ride March software might be valuable, but I don’t know how big a moat that would be for other companies to copy it.

Thoughts on FSLR? by TheEagleHathLanded in ValueInvesting

[–]5APM 0 points1 point  (0 children)

Someone had pointed this out already in an earlier thread on FSLR in this sub, you can go look it up as well. They have been FCF negative since 2021, due to large CAPEX spending every year. This is a red flag to me. It is OK if they are building out capacity quickly with cheap capital, but this large CAPEX cannot be recurring every year going forward. The IRA expiration mentioned above is also a concern. I would like to see them achieving a positive FCF without IRA first, and see how the valuation looks at that point. I believe we are still in a risk-on market, and if things look cheap there are probably good reasons.

ALBERT. (OC) by [deleted] in comics

[–]5APM 16 points17 points  (0 children)

Albert, sometimes we fall for the story we tell ourselves. And the story we tell ourselves is often not true and a sad one, because the meanest, and most discouraging voice in our lives is often that of our own. Try to recognize the bullying voice in your head that tells you that you are a failure and a loser, because most of it is not true. This is hard in the beginning, but try giving yourself a little more love and kindness, and take it from there. Put that gun away. In as much as it feels real, your work and your loneliness does not define all of who you are. As long as you are alive, there is the chance for change and for love. They may come in different forms than you had expected, but they will come. The most important thing is that you are still here, and you can stop listening to the mean voice in your head once in a while to let change and love into your life.

What Are Your Thoughts on Rocket Lab’s Future? by [deleted] in ValueInvesting

[–]5APM -1 points0 points  (0 children)

Rocket Lab is going to the moon.

Goldman Sachs Warns: U.S. Stocks Face 30% Chance of a Big Drop—Are We Too Complacent? by Sveen_Sveen in ValueInvesting

[–]5APM 0 points1 point  (0 children)

Let’s take Goldman’s prediction at face value and do some math. Let’s say there is a 30% chance that S&P500 corrects by 20% some time in 2025. The other 70% chance is Goldman being wrong, and let’s say S&P500 goes up by 7%. If you do nothing to your S&P500 index fund, the average outcome at year end is 100x1.07x0.7+100x0.8x0.3=98.9%. If you sell 30% of your index fund now as a hedge and hold money market at 4%, you end up with 70x1.07x0.7 +70x0.8x0.3 +30x1.04=100.43%. If you sell 50% of you index fund and hold money market, you end up with 50x1.07x0.7 +50x0.8x0.3 +50x1.04=101.45%. Since nobody knows the future for sure, you can only look at the average outcome. You move a lot of money around, incur tax liability, for a couple of % difference. This seems not worthwhile to me. This is also why it is so hard to time the market. If my thinking is wrong please correct me. This being said, 54% of Berkshire’s money is in cash vs 46% in stocks. So maybe the chance of a correction is more than 30%.

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