GBA Presents: RADIO SAVANT-!
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I'm trying to get the guts for AFRM.
Affirm is positioned well for a competitive fight
Like any significant market opportunity, BNPL is flooded with competition. You'll find dedicated players like Affirm, plus larger technology companies like PayPaland Apple pushing into the market with their offerings. How does someone know who the winners will be? It's a fair question.
Affirm seems positioned well due to several vital partnerships the company has built over the past several years. It works with 90 merchants doing at least $1 million in payment volume, including Amazon,Shopify,Walmart,Target, and Wayfair. These partnerships helped Affirm grow its active members to 15.6 million as of Dec. 31.
Investors will need to monitor user growth moving forward as companies fight for customers in this growing industry. Affirm's partnerships arguably give it competitive distribution (people won't use your product if it's not in front of them), something Apple and PayPal can leverage with their existing user bases. Affirm's member count grew 39% year over year in the quarter ending Dec. 31, so keep an eye on which companies can continue growing and which are losing the fight.
Is profitability within sight?
One criticism of BNPL is the idea that consumers won't pay their bills when times get tough. Affirm saw some of that, as delinquencies are up as we get further away from the pandemic-related stimulus programs. While delinquency rates are above 2020 and 2021 levels, they are tracking on par with 2019 trends. In other words, consumers are acting as they did before COVID-19, so I don't think there's a ton to worry about unless this changes.
Management says it has a goal to generate positive non-GAAP operating income by the end of fiscal 2023 (June 30). This isn't true profitability, but it's a step in the right direction and could show the market that the business is sustainable over the long term. Operating losses through the first two quarters of Affirm's 2023 fiscal year were $647 million, but look for that to shrink over the next two quarters. There is roughly $2.3 billion in unrestricted cash and marketable securities on the balance sheet, plenty to fund operations for a while yet.
At a market cap of just $3.2 billion, more than half of Affirm's value is in the cash it has. It's trading at a price-to-sales ratio of just 2, from what was as high as 45 in 2021. Yes, Affirm has work to do to show it can survive and turn a profit, but there's a lot more upside than downside from here if you believe in the business...
And I do.
Affirm is positioned well for a competitive fight
Like any significant market opportunity, BNPL is flooded with competition. You'll find dedicated players like Affirm, plus larger technology companies like PayPaland Apple pushing into the market with their offerings. How does someone know who the winners will be? It's a fair question.
Affirm seems positioned well due to several vital partnerships the company has built over the past several years. It works with 90 merchants doing at least $1 million in payment volume, including Amazon,Shopify,Walmart,Target, and Wayfair. These partnerships helped Affirm grow its active members to 15.6 million as of Dec. 31.
Investors will need to monitor user growth moving forward as companies fight for customers in this growing industry. Affirm's partnerships arguably give it competitive distribution (people won't use your product if it's not in front of them), something Apple and PayPal can leverage with their existing user bases. Affirm's member count grew 39% year over year in the quarter ending Dec. 31, so keep an eye on which companies can continue growing and which are losing the fight.
Is profitability within sight?
One criticism of BNPL is the idea that consumers won't pay their bills when times get tough. Affirm saw some of that, as delinquencies are up as we get further away from the pandemic-related stimulus programs. While delinquency rates are above 2020 and 2021 levels, they are tracking on par with 2019 trends. In other words, consumers are acting as they did before COVID-19, so I don't think there's a ton to worry about unless this changes.
Management says it has a goal to generate positive non-GAAP operating income by the end of fiscal 2023 (June 30). This isn't true profitability, but it's a step in the right direction and could show the market that the business is sustainable over the long term. Operating losses through the first two quarters of Affirm's 2023 fiscal year were $647 million, but look for that to shrink over the next two quarters. There is roughly $2.3 billion in unrestricted cash and marketable securities on the balance sheet, plenty to fund operations for a while yet.
At a market cap of just $3.2 billion, more than half of Affirm's value is in the cash it has. It's trading at a price-to-sales ratio of just 2, from what was as high as 45 in 2021. Yes, Affirm has work to do to show it can survive and turn a profit, but there's a lot more upside than downside from here if you believe in the business...
And I do.
0 for 6good Morning--
I have to be quick today many responsibilities in the sports blogging world and a Vet appointment... Check dem' anal glands!
Overnight is back! ---> But where is the apology?
Each Day I send the HF a list of Daily actionable stocks---- I do not know which of these they will buy for me depends on how they get out of the gate*******
THE LIST MONDAY
A) BUY FLYW
Flywire initiated with a Buy at Loop Capital 05:46 FLYW Loop Capital analyst Hal Goetsch initiated coverage of Flywire with a Buy rating and $25 price target.
B) Jump Back in the WOLF trade- BUY WOLF
Wolfspeed upgraded to Overweight into investor day at JPMorgan
C) Buy AMLX
Amylyx price target raised to $50 from $35 at H.C. Wainwright
D) Buy Ollie Bargain Bin
Ollie's Bargain Outlet initiated with a Buy at Gordon Haskett 06:16 OLLI
E) Buy Nutanix
Nutanix price target raised to $33 from $26 at KeyBanc 06:17 NTNX KeyBanc analyst Thomas Blakey raised the firm's price target on Nutanix to $33 from $26 to reflect increased confidence in his re-rating thesis, in line with peer multiples on an EV/Sales multiples at 4-times 2023 sales and a discount to 5.1-times near-term average for the overall universe. The analyst notes survey data from 35 VARs and channel partners indicated strong Q3 results and a stable outlook for 2022/2023 IT budget growth. However, the survey showed macro impact picking up, Blakey adds. He keeps an Overweight rating on the shares.
F) Buy Stoke Therapeutics
Stoke Therapeutics upgraded to Outperform from Market Perform at SVB Securities 06:18 STOK SVB Securities analyst Rudy Li upgraded Stoke Therapeutics to Outperform from Market Perform with a $30 price target.
G) Buy We Work
WeWork initiated with an Overweight at Cantor Fitzgerald 06:21 WE Cantor Fitzgerald analyst Brett Knoblauch initiated coverage of WeWork with an Overweight rating and $8 price target. WeWork is nearing the tail-end of a multi-year cost rationalization and real estate footprint optimization strategy, which has already resulted in removing $2.7B in costs from the business, Knoblauch tells investors in a research note. Demand for flexible workspace has remained robust post-pandemic, and the analyst believes the shift away from traditional office lease strategies by enterprises will act as a decade-long tailwind.
H) Buy Neurocrine Bio
Neurocrine price target raised to $128 from $114 at Citi
///////////////////////////////// GBA //////////////////////////////////
I think WOLF was the worst though.
$110-->$43
Certainly not a VZ Platinum portfolio.
Hold up Stride rite is online learning pandemic learning! Not a kids shoe company Alert******
Woa I'm just figuring this out-- it's a shell company for K12 which was a kids learning stock until they got busted for a bunch of bad practices.
So this is a typical wall street story of putting lipstick on a pig otherwise known as the ole' name change.
In general I am 100% against online learning this stock is a no Go!!
Kids need air and friends and recess and gym if the pandemic taught us anything it is that kids need to be in school.
I half expect to see the Jeffrey Epstein on the board!
Stride is a product of Silicon Valley, with an extraordinarily well-connected set of backers.
Ronald J. Packard, a former Goldman Sachs banker, launched the company in 2000 with $10 million from Larry Ellison, the chief executive of Oracle Corp., and Michael Milken, the junk-bond king who pleaded guilty to securities fraud in 1990 before becoming an education philanthropist.
The company’s cofounder, former U.S. Secretary of Education William J. Bennett, resigned from the board in 2005 after saying on a radio show that aborting Black babies would result in a lower crime rate. (In the same segment, he called that idea “morally reprehensible” and later described it as a “thought experiment.”)
As the company has grown, performance data and newspaper articles have raised questions about whether virtual schools facilitated by a for-profit company are an effective use of public money.
Woa I'm just figuring this out-- it's a shell company for K12 which was a kids learning stock until they got busted for a bunch of bad practices.
So this is a typical wall street story of putting lipstick on a pig otherwise known as the ole' name change.
In general I am 100% against online learning this stock is a no Go!!
Kids need air and friends and recess and gym if the pandemic taught us anything it is that kids need to be in school.
I half expect to see the Jeffrey Epstein on the board!
Stride is a product of Silicon Valley, with an extraordinarily well-connected set of backers.
Ronald J. Packard, a former Goldman Sachs banker, launched the company in 2000 with $10 million from Larry Ellison, the chief executive of Oracle Corp., and Michael Milken, the junk-bond king who pleaded guilty to securities fraud in 1990 before becoming an education philanthropist.
The company’s cofounder, former U.S. Secretary of Education William J. Bennett, resigned from the board in 2005 after saying on a radio show that aborting Black babies would result in a lower crime rate. (In the same segment, he called that idea “morally reprehensible” and later described it as a “thought experiment.”)
As the company has grown, performance data and newspaper articles have raised questions about whether virtual schools facilitated by a for-profit company are an effective use of public money.
GBA: REMOVING STRIDERIGHT FROM WATCH LIST LRN
THIS HORSE IS DEAD AND HAS BEEN BEATEN INTO GLUE.I'm trying to get the guts for AFRM.
Affirm is positioned well for a competitive fight
Like any significant market opportunity, BNPL is flooded with competition. You'll find dedicated players like Affirm, plus larger technology companies like PayPaland Apple pushing into the market with their offerings. How does someone know who the winners will be? It's a fair question.
Affirm seems positioned well due to several vital partnerships the company has built over the past several years. It works with 90 merchants doing at least $1 million in payment volume, including Amazon,Shopify,Walmart,Target, and Wayfair. These partnerships helped Affirm grow its active members to 15.6 million as of Dec. 31.
Investors will need to monitor user growth moving forward as companies fight for customers in this growing industry. Affirm's partnerships arguably give it competitive distribution (people won't use your product if it's not in front of them), something Apple and PayPal can leverage with their existing user bases. Affirm's member count grew 39% year over year in the quarter ending Dec. 31, so keep an eye on which companies can continue growing and which are losing the fight.
Is profitability within sight?
One criticism of BNPL is the idea that consumers won't pay their bills when times get tough. Affirm saw some of that, as delinquencies are up as we get further away from the pandemic-related stimulus programs. While delinquency rates are above 2020 and 2021 levels, they are tracking on par with 2019 trends. In other words, consumers are acting as they did before COVID-19, so I don't think there's a ton to worry about unless this changes.
Management says it has a goal to generate positive non-GAAP operating income by the end of fiscal 2023 (June 30). This isn't true profitability, but it's a step in the right direction and could show the market that the business is sustainable over the long term. Operating losses through the first two quarters of Affirm's 2023 fiscal year were $647 million, but look for that to shrink over the next two quarters. There is roughly $2.3 billion in unrestricted cash and marketable securities on the balance sheet, plenty to fund operations for a while yet.
At a market cap of just $3.2 billion, more than half of Affirm's value is in the cash it has. It's trading at a price-to-sales ratio of just 2, from what was as high as 45 in 2021. Yes, Affirm has work to do to show it can survive and turn a profit, but there's a lot more upside than downside from here if you believe in the business...
And I do.
If the readers want ideas like this, they can watch CNBC. It's only talked about 200X/week.
BREAK AWAY FROM THE HERD STONEY!
OOOOOOOO LOOK->
Power Integrations to Release First-Quarter Financial Results on May 4
SAN JOSE, Calif., April 13, 2023--(BUSINESS WIRE)--Power Integrations (Nasdaq:POWI) will release its first-quarter financial results after market hours on Thursday, May 4, 2023, and will host a conference call that day beginning at 1:30 p.m. Pacific time.
Power Integrations to Release First-Quarter Financial Results on May 4
SAN JOSE, Calif., April 13, 2023--(BUSINESS WIRE)--Power Integrations (Nasdaq:POWI) will release its first-quarter financial results after market hours on Thursday, May 4, 2023, and will host a conference call that day beginning at 1:30 p.m. Pacific time.
No debt, PE 15, 1X sales, rising revenues... 9% net margins.
Put the politics away and learn about stocks. Then you too can try for a Platinum portfolio.