Getty Images Investment thesis Caterpillar ( CAT ) is a Strong Sell at $808, trading at a tech-like 43x P/E that ignores its lack of operational leverage and a $350 mean-reversion fair value. The last 12 months stock rally is fueled by the hyperscale data center narrative. The headline backlog of $51 billion masks a business where costs are outpacing revenue growth even when volumes are booming. M...
Getty Images Investment thesis Caterpillar ( CAT ) is a Strong Sell at $808, trading at a tech-like 43x P/E that ignores its lack of operational leverage and a $350 mean-reversion fair value. The last 12 months stock rally is fueled by the hyperscale data center narrative. The headline backlog of $51 billion masks a business where costs are outpacing revenue growth even when volumes are booming. Management is eroding shareholder value by funding $5 billion in buybacks, executed at a historic 95th percentile of CAT's 10-year valuation, consuming the majority of their $7.45 billion in free cash flow. The Margin pressure Caterpillar's $51 billion backlog record looks like global demand, but looking at the segments shows the margins are deteriorating. Q4 2025 Earnings Press Release (SEC 8-K, Jan 29 2026) Construction industry sales increased by 15% in the fourth quarter to $6.9 billion... Fourth quarter profit Construction Industries decreased by 12% versus the prior year to $1.0 billion. The segment's margin was 14.9%, a decrease of 470 basis points versus the prior year. The margin decrease was primarily due to higher manufacturing costs driven by tariffs, which had an impact of about 600 basis points on margins - CFO Andrew Bonfield, Q4 2025 Earnings Call All three primary segments posted double-digit sales growth. Yet only Power & Energy converted that volume into profit growth (+25%), while the others saw concerning decreasing profit, year over year. Margin compression during revenue growth Like mentioned, a 43x P/E reminds you of a tech company, which implies structural operating leverage. Caterpillar does not prove operational leverage over the last 5 years. Caterpillar 10-K filings, Yahoo finance YCharts As shown above, you can see how the net margin is largely unchanged despite healthy revenue growth over the last 5 years. Revenue climbed from $64.81B to $67.59B between 2024 and 2025. Operating margins fell 370 basis points over the same period. The margin prof...
Russia’s Defense Minister Andrey Belousov arrived in North Korea to meet political and military leaders as the two nations deepen strategic ties. Belousov will also take part in ceremonial and commemorative events, according to a Defense Ministry post on Telegram on Sunday. Separately Vyacheslav Volodin, the speaker of Russia’s lower house, arrived in North Korea on Saturday. He met with North Kor...
Russia’s Defense Minister Andrey Belousov arrived in North Korea to meet political and military leaders as the two nations deepen strategic ties. Belousov will also take part in ceremonial and commemorative events, according to a Defense Ministry post on Telegram on Sunday. Separately Vyacheslav Volodin, the speaker of Russia’s lower house, arrived in North Korea on Saturday. He met with North Korean leader Kim Jong Un , according to a post in his Telegram channel, conveying “warm greetings and best wishes” from Russian President Vladimir Putin. Russia and North Korea have been cooperating in defense in recent years. Pyongyang backed Moscow’s war in Ukraine, sending thousands of soldiers to the conflict zone. In return, Russia has sent aid that has propped up North Korea’s economy and helped Kim advance his weapons programs, Seoul and Washington have said. According to Telegram, Volodin also expressed “gratitude for the assistance in liberating the Kursk region,” some parts of which were taken by Ukrainian forces in 2024 and held for several months.
Amazon (NASDAQ: AMZN) is involved in many industries, from healthcare to entertainment, but the company's biggest businesses are e-commerce and cloud computing. And in these areas, Amazon is a global leader. Amazon's presence in these fields, touching both consumer and corporate spending, has helped the company build an empire -- and generate billions of dollars in earnings. In the latest full yea...
Amazon (NASDAQ: AMZN) is involved in many industries, from healthcare to entertainment, but the company's biggest businesses are e-commerce and cloud computing. And in these areas, Amazon is a global leader. Amazon's presence in these fields, touching both consumer and corporate spending, has helped the company build an empire -- and generate billions of dollars in earnings. In the latest full year, sales and net income increased in the double digits to $716 billion and $77 billion, respectively. The company is seeing growth in e-commerce and cloud unit Amazon Web Services (AWS), and artificial intelligence (AI) is showing itself to be a particularly powerful revenue driver. In fact, this hot technology may lead to yet another explosive growth business for the tech giant. Amazon might be about to seize a once-in-a-lifetime opportunity. Let's find out how you, as an investor, can benefit. Continue reading
Right now, there's not a lot to bark about for meme coin Shiba Inu (CRYPTO: SHIB) . It's down 20% in 2026, and is now trading at a staggering 93% discount to its all-time high from just five years ago. It's literally trading as close to zero as you can possibly get ($0.000006). As a result, there's only one factor that could convince me to buy Shiba Inu right now: A hard pivot into artificial inte...
Right now, there's not a lot to bark about for meme coin Shiba Inu (CRYPTO: SHIB) . It's down 20% in 2026, and is now trading at a staggering 93% discount to its all-time high from just five years ago. It's literally trading as close to zero as you can possibly get ($0.000006). As a result, there's only one factor that could convince me to buy Shiba Inu right now: A hard pivot into artificial intelligence (AI). That's right -- Shiba Inu needs to build out a vast blockchain ecosystem of AI projects with true long-term value. That might sound like a fanciful proposition, but if a bird-themed sneaker company can pivot into AI, why can't a dog-themed meme coin? The good news, if you're a Shiba Inu investor, is that there have already been some initial steps taken to pivot into AI. For example, Shiba Inu recently launched a new AI initiative called ShibClaw, designed to integrate AI agents and low-cost micro-transactions into its blockchain. That's big news because AI agents -- according to Nvidia (NASDAQ: NVDA) CEO Jensen Huang -- are about to change everything. Continue reading
Social Security provides retirement income to more than 60 million Americans. It's the most popular federal program, based on a survey conducted last year. But Social Security can be confusing. Many rules and regulations are included in a program as large as Social Security. Unsurprisingly, it's hard for retirees to keep up with all of them. This can lead to costly errors. Here are the five bigges...
Social Security provides retirement income to more than 60 million Americans. It's the most popular federal program, based on a survey conducted last year. But Social Security can be confusing. Many rules and regulations are included in a program as large as Social Security. Unsurprisingly, it's hard for retirees to keep up with all of them. This can lead to costly errors. Here are the five biggest Social Security mistakes retirees make -- and how to avoid them. Image source: Getty Images. Continue reading
Bloom Energy CEO K.R. Sridhar tapped former Intel CEO Andy Grove for wisdom during a company crisis—and he learned employees are the best kept secret in reversing course.
Bloom Energy CEO K.R. Sridhar tapped former Intel CEO Andy Grove for wisdom during a company crisis—and he learned employees are the best kept secret in reversing course.
NASA advisor turned $65 billion founder says ex-Intel CEO Andy Grove helped him get out of a crisis: ‘That’s a lesson I will take to my grave’ Yahoo Finance UK
NASA advisor turned $65 billion founder says ex-Intel CEO Andy Grove helped him get out of a crisis: ‘That’s a lesson I will take to my grave’ Yahoo Finance UK