Stockyme/iStock via Getty Images The Financial Times recently published a piece referring to the “Zuckerberg discount,” which is the idea that Meta Platforms, Inc. ( META ) trades at a P/E ratio discount against its peers due to its founder controlling the majority of its voting shares. This is far from surprising. Generally, the market tends to assign a discount to companies that are tightly cont...
Stockyme/iStock via Getty Images The Financial Times recently published a piece referring to the “Zuckerberg discount,” which is the idea that Meta Platforms, Inc. ( META ) trades at a P/E ratio discount against its peers due to its founder controlling the majority of its voting shares. This is far from surprising. Generally, the market tends to assign a discount to companies that are tightly controlled by founders. SoftBank Group Corp. ( SFTBY ) ( SFTBF ), for example, trades at a cheap valuation with an FWD P/E below 9. The company is controlled by Masayoshi Son, its founder. Exor N.V. ( EXXRF ), a European family holding, tends to trade at a significant NAV discount. The company is controlled by the Agnelli-Elkann, the founding family of Fiat and major shareholders of Stellantis N.V. ( STLA ) and Ferrari N.V. ( RACE ). The most obvious exceptions to the rule are those of Tesla, Inc. ( TSLA ) and the soon-to-be-public SpaceX. Both companies are trading at rich valuations, which can be seen as a “ Musk premium .” Today, I discuss why I believe Meta may be re-priced by the market and start trading at a premium, rather than a discount, against its peers. Running the math: a re-rating of Meta presents an upside of 25% to 100% Before discussing how and why the market could decide to re-rate META with a “Zuckerberg premium,” I want to start with some back-of-the-napkin math on what this could represent in terms of upside for the stock. The table below compares the P/E ratios of Meta and Mag 7 companies, in addition to Micron Technology, Inc. ( MU ) and Broadcom Inc. ( AVGO ), two semiconductor stocks that have grown above a $1 trillion market cap. The source is Seeking Alpha, and the figures are valid at the time of writing this article. Company Trailing P/E Forward P/E Market Cap $ META 23.10 20.20 1.61T AAPL 37.83 35.34 4.59T AMZN 31.60 31.15 2.92T GOOGL 29.76 27.62 4.70T MSFT 25.43 21.98 3.17T NVDA 32.81 24.45 5.19T TSLA 405.64 212.77 1.66T MU 43.58 9.39 1.04T AVGO 8...
The Pentagon is pushing forward its Drone Dominance initiative, and drone stocks are soaring as the government signals funding support for the industry.
The Pentagon is pushing forward its Drone Dominance initiative, and drone stocks are soaring as the government signals funding support for the industry.
Getty Images One of the doubts that I read in the last weeks has to do with the impact of inflation in financial markets. For example, a user asked in my recent article about Celestica ( CLS ) how I was looking at the economy with higher prices, and how that might influence our investments. In a context of bullish markets, where the S&P 500 ( SP500 ) has posted 9 consecutive weeks of growth, a log...
Getty Images One of the doubts that I read in the last weeks has to do with the impact of inflation in financial markets. For example, a user asked in my recent article about Celestica ( CLS ) how I was looking at the economy with higher prices, and how that might influence our investments. In a context of bullish markets, where the S&P 500 ( SP500 ) has posted 9 consecutive weeks of growth, a logical question comes up: how is it possible that markets keep rising while inflation is accelerating? My answer tends to be simple: tech revolutions, like the current AI case, don't care about monetary policy. But even so, it is not that simple. That's why I consider it a very good question, and one worth analyzing in depth. I must warn you first that I have a very bullish view, as I wrote in this article , where I assumed the market is not paying attention anymore to the conflict with Iran, and that it could reach 8,000 points before the end of the year, leaving 2026 with double-digit growth for the fourth consecutive year. In other words, my answer is that inflation doesn't necessarily crash markets. Of course, inflation is generally bad, but the market isn't that scared of it. Stock markets tend to be more sensitive to the Fed's monetary policy, interest rate hikes, and balance sheet reductions, among other factors that can weigh on corporate profits. Let's look at the current causes of inflation, its differences from past inflationary periods, and why markets keep breaking all-time highs. Are all inflationary periods the same? No. Not all inflationary periods are the same. Inflation triggered by monetary phenomena, where the money supply grows excessively, is not the same as inflation caused by external shocks. Sometimes it can be a combination of both, leading to the worst possible scenario, as was the case in 2022: the economy emerging from a pandemic that triggered a surge in liquidity through QE (quantitative easing), and the start of the war in Ukraine that drove up...
More and more people are looking for love when they’re abroad, and consider themselves better placed to do so. But there are potential pitfalls ... Name: Wanderlove. Age: Originally coined by the dating app Bumble in 2022 to describe a trend predicted for 2023 . Continue reading...
More and more people are looking for love when they’re abroad, and consider themselves better placed to do so. But there are potential pitfalls ... Name: Wanderlove. Age: Originally coined by the dating app Bumble in 2022 to describe a trend predicted for 2023 . Continue reading...
Softbank CEO Masayoshi Son has identified physical AI and robotics as the next trillion-dollar company opportunity. Softbank has deployed capital across the technology stack, with landmark investments in Alibaba , OpenAI and ARM transforming the Japanese multinational into an AI platform which has helped it overtake Toyota to become the country's most valuable company. Asked by CNBC's Arjun Kharpa...
Softbank CEO Masayoshi Son has identified physical AI and robotics as the next trillion-dollar company opportunity. Softbank has deployed capital across the technology stack, with landmark investments in Alibaba , OpenAI and ARM transforming the Japanese multinational into an AI platform which has helped it overtake Toyota to become the country's most valuable company. Asked by CNBC's Arjun Kharpal what sectors excite him most, Son said "both" humanoid and industrial robotics, "with physical AI as a core." Son spoke to CNBC on Monday after Softbank unveiled plans on Sunday for a 75 billion ($87 billion) investment in AI infrastructure in France, including 5 GW of AI data center capacity. He told CNBC that AI is potentially "50x bigger" than the dot.com boom — but denied that there is an AI bubble, adding that "this is just the beginning" of a technological "revolution" that could last 50 to 100 years. 9434.T-JP YTD mountain Softbank. While "there is always a correction", such times are often ripe with investment opportunities, he added. He said that following both the 1929 Wall Street Crash and the dot.com bubble, markets later rose much higher, "with big profitable free cash flow." "That kind of thing is going to happen," Son said. "There may be some correction, but that will be a best investment opportunity time."
CherylCasey/iStock via Getty Images Viasat ( VSAT ) has been selected by Lockheed Martin ( LMT ) to provide satellite communications technology to the National Oceanic and Atmospheric Administration’s (NOAA) hurricane hunter aircraft. Lockheed Martin ( LMT ) is supplying NOAA with two modified C130J aircraft, expected to enter service by 2030. The inclusion of Viasat’s ( VSAT ) Hybrid SATCOM Appro...
CherylCasey/iStock via Getty Images Viasat ( VSAT ) has been selected by Lockheed Martin ( LMT ) to provide satellite communications technology to the National Oceanic and Atmospheric Administration’s (NOAA) hurricane hunter aircraft. Lockheed Martin ( LMT ) is supplying NOAA with two modified C130J aircraft, expected to enter service by 2030. The inclusion of Viasat’s ( VSAT ) Hybrid SATCOM Approach Technology (HAS) on the C130J platform is the first formal line-fit integration of this technology. The HSA platform is designed to accommodate multiple antenna apertures and enable multi-network, multi-orbit connectivity and allow for future enhancements to the C-130J aircraft. Financial terms of the contract with Lockheed Martin ( LMT ) were not disclosed. More on Viasat, Lockheed Martin Viasat, Inc. (VSAT) Q4 2026 Earnings Call Transcript Viasat, Inc. 2026 Q4 - Results - Earnings Call Presentation Lockheed Martin Corporation (LMT) Presents at Bernstein 42nd Annual Strategic Decisions Conference Transcript SA Asks: What are the best drone stocks right now? Viasat expects mid-single-digit revenue growth in fiscal 2027 as it targets about $180M free cash flow
Here are the biggest calls on Wall Street on Monday. Goldman Sachs initiates HawkEye 360 as buy Goldman says it's bullish on the intelligence satellite company. "HawkEye i s an early stage, profitable, operator of RF signals intelligence satellites; and we think the company will be able to grow revenue and earnings substantially over time." Morgan Stanley upgrades Dell to equal weight from underwe...
Here are the biggest calls on Wall Street on Monday. Goldman Sachs initiates HawkEye 360 as buy Goldman says it's bullish on the intelligence satellite company. "HawkEye i s an early stage, profitable, operator of RF signals intelligence satellites; and we think the company will be able to grow revenue and earnings substantially over time." Morgan Stanley upgrades Dell to equal weight from underweight The firm admitted its prior thesis was wrong. "Our memory thesis was wrong as DELL is managing supply and executing better than peers, enabling mission critical demand capture, share gains, and pricing power." Wells Fargo upgrades Tandem Diabetes Care as overweight Wells says it sees an attractive risk/reward for the med tech company. "We are upgrading TNDM to Overweight from Equal Weight." Cantor Fitzgerald reiterates Tesla as overweight Cantor says it's bullish on Tesla's humanoid robots. "In Q1, TSLA disclosed that its first-generation production line for the company's humanoid robot (Optimus) is currently being installed in CA. This line, which will replace the production lines for the Model S and X vehicles (currently being discontinued), is expected by management to have an annual production capacity of 1M Optimus Robots." Citizens initiates Microsoft as market outperform Citizens says the stock is firing on all cyinders. "We are initiating coverage on Microsoft Corporation with a Market Outperform rating and $550 price target after the stock has traded down 7% year to date versus an increase of 11% for the S & P 500 and an increase of 10% for the Russell 3000." Barclays initiates IBM as overweight Barclays says it sees "stable growth." "We initiate at OW with a $350 PT. Our core thesis is that IBM has created a stable growth engine around its very defensible software portfolio." Needham initiates MP Materials and USA Rare Earth as buy Needham initiated MP Materials and USA Rare Earth and says both rare earths companies are well positioned. "We believe we are in ...
(RTTNews) - BCB Bancorp, Inc. (BCBP), the holding company for BCB Community Bank, Monday announced that it has appointed former CEO of Sterling Bank & Trust, Thomas OBrien, as its Chief Executive Officer, effective June 1.
(RTTNews) - BCB Bancorp, Inc. (BCBP), the holding company for BCB Community Bank, Monday announced that it has appointed former CEO of Sterling Bank & Trust, Thomas OBrien, as its Chief Executive Officer, effective June 1.
Guido Mieth/DigitalVision via Getty Images Investment Thesis It's been a long time since I last covered the First Trust Morningstar Dividend Leaders Index ETF ( FDL ). Almost four years ago on September 6, 2022, I noted its Energy risks and its 4% estimated dividend yield when I rated it a "hold." But beyond that, I haven't given much thought to this ETF that, until then, was characterized by a de...
Guido Mieth/DigitalVision via Getty Images Investment Thesis It's been a long time since I last covered the First Trust Morningstar Dividend Leaders Index ETF ( FDL ). Almost four years ago on September 6, 2022, I noted its Energy risks and its 4% estimated dividend yield when I rated it a "hold." But beyond that, I haven't given much thought to this ETF that, until then, was characterized by a decent track record and a high 0.45% expense ratio. However, after seeing that FDL has held up quite well against other high-dividend ETFs, like the Fidelity High Dividend ETF ( FDVV ) and the Schwab U.S. Dividend Equity ETF ( SCHD ), it's certainly prudent to challenge that prior view. Data by YCharts Even so, I'm not yet sold on FDL, given its relatively poor quality features that stem from what I view as an insufficient screening process. As an alternative, I recommend a mix of SCHD and FDVV, and after seeing how their fundamentals line up against FDL's, I hope you'll agree. Please enjoy the read, and I look forward to any questions you might have in the comments section afterward. FDL Overview: Strategy and Fund Facts According to its website , FDL tracks the Morningstar Dividend Leaders Index, selecting stocks according to a proprietary screening model that "have historically maintained consistent and sustainable dividend policies." Along with the website description and the Index's methodology document, below is a brief summary of how the strategy works. 1. The selection universe is the Morningstar Dividend Composite Index , which is designed to track the performance of a "broad group of dividend-paying stocks from the Morningstar US Market Index that have a record of consistent dividend payments and the capacity to sustain their dividends." REITs are excluded from the selection process. 2. Stocks are ineligible for selection if their five-year indicated dividend per share growth rate is less than zero or their indicated dividend payout ratios are above 100%. 3. The top...
Alexandria Real Estate Equities ( ARE ) declares $0.72/share quarterly dividend , in line with previous. Forward yield 5.8% Payable July 15; for shareholders of record June 30; ex-div June 30. See ARE Dividend Scorecard, Yield Chart, & Dividend Growth. More on Alexandria Real Estate Equities Alexandria Real Estate: Decade Low, Deep-Value Play Or Value Trap - I Say Both Alexandria Real Estate: A Co...
Alexandria Real Estate Equities ( ARE ) declares $0.72/share quarterly dividend , in line with previous. Forward yield 5.8% Payable July 15; for shareholders of record June 30; ex-div June 30. See ARE Dividend Scorecard, Yield Chart, & Dividend Growth. More on Alexandria Real Estate Equities Alexandria Real Estate: Decade Low, Deep-Value Play Or Value Trap - I Say Both Alexandria Real Estate: A Contrarian Bet On A Recovery In Life Science Real Estate Alexandria Real Estate Equities, Inc. (ARE) Q1 2026 Earnings Call Transcript 16 of 23 REIT stocks beat Wall Street revenue views this week: Earnings Scorecard Alexandria reaffirms $6.40 2026 FFO midpoint while targeting $2.9B of dispositions amid 87% year-end occupancy outlook