Daily Brief United States: Amazon.com Inc, Micron Technology, Nutanix Inc, Arcosa , PSQ Holdings , Fidelity National Info Serv, Western Digital, Ball , Adobe Systems, IAC and more

• Like them or despise them. But one thing you can’t do is ignore them. The Super Sevens have become a force to reckon with.
• Super Sevens appear homogenous but exhibit heterogeneity and diversity. They have growth stock like features while at the same time provide value stock like defensiveness.
• Super Sevens aggregate market cap is a staggering USD 12.14 trillion. They comprise 27% of S&P 500 and 55% of the Nasdaq 100 index collectively.

• Micron Technology, Inc. exceeded analyst expectations in terms of revenue as well as earnings.
• Although the expectation for 2024 remains relatively consistent, there has been an adjustment in the perspective on DRAM demand growth for 2023.
• In summary, Micron’s management emphasizes a positive trajectory for pricing and financial performance in 2024, attributing it to oversubscription in cutting-edge technologies.

• Nutanix, Inc. exceeded Wall Street’s revenue and earnings expectations, surpassing anticipated results despite a persistent uncertain macro backdrop.
• Exceeding guided metrics, Nutanix achieved significant quarterly revenue of $511 million, marking an annualized run rate surpassing $2 billion for the first time and an impressive 30% year-over-year growth in ARR to $1.7 billion.
• Nutanix announced crucial enhancements to the Cloud platform, fortifying its capabilities against ransomware attacks on unstructured data.

Key points (machine generated)

• Arcosa is a high-quality equity investment benefiting from secular trends and government spending, with underappreciated secondary businesses experiencing rapid growth.
• The IRA tax credits are expected to act as a significant catalyst for Arcosa, pushing its numbers higher than anticipated.
• Despite its strong balance sheet, excellent management, and successful capital allocation history, Arcosa has zero hedge fund ownership, making it an attractive opportunity.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key points (machine generated)

• The company, referred to as “pumped up,” is seen as a patriotic SPAC, appealing to retail investors who support its mission.
• However, the memo claims that the company’s growth figures are exaggerated and may even be fabricated, questioning the reliability of the stock.
• According to researchers, the stock has a high likelihood of being worthless in the long term, with a projected downside of 65%. Nevertheless, they acknowledge the potential for a short squeeze due to the limited number of shares available for trading.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Fidelity National Information Services, Inc. delivered a disappointing set of results as they were unable to meet Wall Street’s revenue and earnings expectations.
• Their success is attributed to a 4% organic revenue surge, primarily driven by a remarkable 7% growth in recurring revenue within the Banking and Capital Markets segments.
• The company maintains a strong free cash flow trajectory, achieving an impressive 94% conversion year-to-date and poised to surpass the 2023 target of over 80%.

• Peloton Interactive, Inc. delivered a mixed set of results in its most recent results, with revenues above Wall Street expectations but below-par earnings.
• Peloton’s management anticipates a noteworthy upturn in Connected Fitness’s gross margin for the upcoming quarter.
• This positive shift is attributed to the expected leverage of fixed costs resulting from increased unit sales in Connected Fitness.

• Ball Corporation delivered a mixed result in the recent quarter, with revenues below market expectations but surpassed the analyst consensus regarding earnings.
• In the third quarter, they improved operational efficiencies and successful measures to counter inflationary costs.
• Notably, they navigated through a $14 million operating earnings headwind from the Russian sale and $43 million higher interest expense.

• Adobe Inc. delivered an all-around beat in the fourth quarter.
• The success can be attributed to pioneering innovations in Creative Cloud and Document businesses, positioning Creative Cloud as the preferred platform for content creation globally.
• Creative Cloud had a stellar quarter, generating a significant $3 billion in revenue.

• IAC had a mixed quarter with on-par revenues and below-par earnings given the impact of the recent market downturn.
• Changes implemented by the company have impacted its position, with an active real estate market proving beneficial for business demand.
• We have further incorporated a sensitivity analysis/ scenario analysis to understand how changes in key assumptions could impact the valuation under 3 scenarios – a base case, a bull case, and a bear case.