Kenneth Cheung/iStock Unreleased via Getty Images The only reason Meta Platforms ( META ) continues to be punished despite being the most profitable and fastest-growing operator in the Magnificent 7 (33% growth, 40%+ margins) is a disconnect in sentiment. The sentiment gap is driven by capex fear, resulting in a rare instance of mispricing in a blue chip platform stock, and that’s exactly why I lo...
Kenneth Cheung/iStock Unreleased via Getty Images The only reason Meta Platforms ( META ) continues to be punished despite being the most profitable and fastest-growing operator in the Magnificent 7 (33% growth, 40%+ margins) is a disconnect in sentiment. The sentiment gap is driven by capex fear, resulting in a rare instance of mispricing in a blue chip platform stock, and that’s exactly why I loaded up on META. Monetization Strength Is Doing the Heavy Lifting Let's start by looking at Meta's financials. As expected, it delivered solid numbers in Q1 2026, with revenues up 33% year-over-year to $56.3 billion and an operating profit of $22.9 billion (implying a 40.6% operating margin). However, there are some other interesting factors to note in this report. Meta Earnings Presentation Q1 2026 Firstly, the fact that advertising, the main driver of the company's revenue generation, grew at the same rate and accounted for roughly $55 billion of the revenue base shows that while newer segments are growing, Meta still depends on its ad engine heavily. Secondly, although ad impressions increased only 19%, which is still a very strong number for such a large player, it's worth noting the 12% rise in the average price per ad. Usually, in such a business case, if the ad impressions go up, then it implies that ad prices fall as there's more supply on the market. The simultaneous increase of these metrics implies that advertisers are now paying higher fees and probably enjoying better ROIs for the money spent on Meta's ads, a clear sign that the platform's targeting capabilities and ability to rank ads have been greatly improved due to the use of AI technologies. Moreover, regardless of increasing costs associated with AI, Meta's operating margin was virtually at the same level as compared to the previous year's figures, showing that Meta can handle additional expenses while maintaining margins. To conclude, although the financial performance for Q1 2026 was remarkable, net inc...
felixmizioznikov/iStock via Getty Images The last article I wrote on Diamondback Energy ( FANG ) mentioned that the company would now be pursuing an organic growth strategy (once again) as the number of targets in Texas diminishes. As the latest stockholders ' letter mentions, the outlook switched virtually overnight from an oversupply to a tremendous undersupply with skyrocketing commodity prices...
felixmizioznikov/iStock via Getty Images The last article I wrote on Diamondback Energy ( FANG ) mentioned that the company would now be pursuing an organic growth strategy (once again) as the number of targets in Texas diminishes. As the latest stockholders ' letter mentions, the outlook switched virtually overnight from an oversupply to a tremendous undersupply with skyrocketing commodity prices. Management responded by increasing guidance roughly 3%. Considering that this was a company that was very interested in optimizing operations from an acquisition both at the company level and at the Viper Energy ( VNOM ) level, that could be interpreted as a significant strategy shift or addition to what is already going on. Additionally, there was an impairment charge taken that probably would not affect the profitability outlook. But it was the effect of weak January and February commodity price levels on the relevant calculation. Understand that calculation happens no matter what any purchaser believes that the properties are worth in the long run. At current commodity price levels, nearly any purchase price within reason is likely to work out well. That is especially true since the now higher commodity prices are expected to be around for a while. That means that while the impairment charge was required, it can probably be ignored for analysis's sake in the current pricing environment. Cash Flow I have long been a fan of the cash flow statement. I, personally, believe that businesses should be run to generate cash. Hence, for me, the cash flow statement is very important. Diamondback Energy Free Cash Flow Calculation (Diamondback Energy Earnings Press Release First Quarter 2026) It is important to note (in my opinion) that working capital grew (likely) because commodity prices rose so much. As lower-priced receivables were paid, they were likely replaced by the same volumes (roughly) at a higher commodity price. It should also be noted that free cash flow is a non-GAA...
Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) , under the leadership of legendary retired CEO Warren Buffett, developed a reputation for having its money work for shareholders. Buffett was a master of value investing and tended to favor dividend stocks that offered regular payouts that Berkshire pocketed like clockwork. And it appears that Buffett's successor, Greg Abel, is cut from the same cloth....
Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) , under the leadership of legendary retired CEO Warren Buffett, developed a reputation for having its money work for shareholders. Buffett was a master of value investing and tended to favor dividend stocks that offered regular payouts that Berkshire pocketed like clockwork. And it appears that Buffett's successor, Greg Abel, is cut from the same cloth. But something interesting is happening at Berkshire Hathaway these days. The conglomerate is amassing a massive pile of cash -- nearly $400 billion at the end of the first quarter. The company is growing that cash hoard rather than putting it to work -- taking a conservative, cautious approach even as the stock market continues to reach new highs. Why is Berkshire amassing cash? And should investors mirror the company's cautious approach? Continue reading
Michael Vi NXP Semiconductors ( NXPI ) was in focus as Barclays Capital upped its price target on the analog semiconductor company. Analyst Tom O'Malley raised his price target to $340 from $295 and said the company's long-term growth drivers are kicking in at just the right time, pointing to edge artificial intelligence. “This is a combination of SDV, radar, connectivity, and S32 traction,” O'Mal...
Michael Vi NXP Semiconductors ( NXPI ) was in focus as Barclays Capital upped its price target on the analog semiconductor company. Analyst Tom O'Malley raised his price target to $340 from $295 and said the company's long-term growth drivers are kicking in at just the right time, pointing to edge artificial intelligence. “This is a combination of SDV, radar, connectivity, and S32 traction,” O'Malley wrote in a note to clients. “The message has been consistent but the execution and/or timing of the ramps is finally coming around and Western Tier 1s have finally burned down inventory. The [data center] angle is helpful for the multiple but not materially impactful for now. This doesn’t seem like a flash in the pan either, it seems sustainable for the next several years and is underlined by the confidence management displayed with the 2-year [forward] guide of [double-digit] top-line.” O'Malley also noted that margins are expected to surpass 60% soon, citing better utilization (moving to 85% in the second-half of the year from 80%) and product mix. “The company seems extremely confident in this progression and we see potential upside to both Street [revenues and gross margins],” O'Malley added. More on NXP Semiconductors NXPI Stock: 2 Catalysts Driving The $500M Data Center Shift And 2027 Auto Mandates NXP Semiconductors: A Meteoric Rise NXP Semiconductors N.V. 2026 Q1 - Results - Earnings Call Presentation EU's new Chips Act would let Commission invest directly in facilities: report Ten ETFs to watch as NXP Semiconductors surges 25%
JHVEPhoto GameStop ( GME ) swung lower at the open on Tuesday as investors sized up the implications of the ambitious plan to acquire eBay ( EBAY ). Wedbush Securities warned that Michael Burry's exit from owning GameStop ( GME ) removes one of the most recognizable long-term bulls from the register and could be seen as a signal of institutional skepticism toward the eBay ( EBAY ) deal as value cr...
JHVEPhoto GameStop ( GME ) swung lower at the open on Tuesday as investors sized up the implications of the ambitious plan to acquire eBay ( EBAY ). Wedbush Securities warned that Michael Burry's exit from owning GameStop ( GME ) removes one of the most recognizable long-term bulls from the register and could be seen as a signal of institutional skepticism toward the eBay ( EBAY ) deal as value creative. "We expect continued GME volatility as the market debates deal probability," warned analyst Michael Piccolo. The core issue was noted to be the structural math behind GameStop ( GME ) needing to bridge the gap between its $9B cash position + $20B TD Bank commitment and the deal price for eBay ( EBAY ) of $125 per share, or $56B. Piccolo and his team think that GameStop ( GME ) may not generate enough meme buzz about a deal to overcome the large issuance of new GME shares to complete an acquisition of eBay ( EBAY ). GlobalData retail analyst Neil Saunders described the proposal as a David trying to take over a Goliath to buy David relevance. "eBay is a successful business that has a very clear proposition, a clear rationale for existence," he noted. "Whereas I feel that GameStop is a company that is sort of grappling with a reason to be around," he added. Shares of GameStop ( GME ) were down 2.2% after a 10% decline on Monday. eBay ( EBAY ) was off 2.4% to $106.76 after rising 5.1% on Monday More on GameStop and eBay eBay: GameStop Bid Doesn't Add Up GameStop's 'Crazy Idea' To Buy EBay Isn't So Crazy, But It Is Risky eBay And GameStop: A Deal Made In Meme Heaven Michael Burry exits entire GameStop stake after $56B eBay bid SA Investing Community sounds the alarm on a GameStop-eBay combination
(RTTNews) - With imports increasing by modestly more than exports, the Commerce Department released a report on Tuesday showing the U.S. trade deficit widened roughly in line with economist estimates in the month of March.
(RTTNews) - With imports increasing by modestly more than exports, the Commerce Department released a report on Tuesday showing the U.S. trade deficit widened roughly in line with economist estimates in the month of March.
FroggyFrogg Global semiconductor sales reached $99.5B in March, which represented a 79% year-over-year surge, according to data from the World Semiconductor Trade Statistics organization. Sales during the first quarter of 2026 increased 25% year over year to $298.5B. This is positive news for the entire semiconductor industry, but particularly for Taiwan Semiconductor Manufacturing ( TSM ), which ...
FroggyFrogg Global semiconductor sales reached $99.5B in March, which represented a 79% year-over-year surge, according to data from the World Semiconductor Trade Statistics organization. Sales during the first quarter of 2026 increased 25% year over year to $298.5B. This is positive news for the entire semiconductor industry, but particularly for Taiwan Semiconductor Manufacturing ( TSM ), which owns the largest chip fabrication capacity in the world. Intel ( INTC ) is also expanding its fabrication capabilities. Shares for the Lip-Bu Tan company popped up 11% during early market trading on Tuesday. It was reported yesterday that Apple ( AAPL ) is considering using Intel and Samsung ( SSNLF ) to produce the main processors for its devices in the U.S. This would offer options beyond longtime partner Taiwan Semiconductor Manufacturing. "Global chip sales remain on track to reach $1 trillion in 2026, with Q1 sales significantly exceeding sales in Q4 2025," said Semiconductor Industry Association CEO John Neuffer. "Strong sales across the Asia Pacific region, the Americas, and China drove global semiconductor market growth, highlighting broad and robust demand for semiconductors and the countless tech products they enable." If sales continue at the same pace throughout 2026, they would easily surpass the $1T mark and shatter the prior record of $791.7B reached in 2025. On a regional basis, March semiconductor sales jumped 108% year over year in Asia Pacific, 83% in the Americas, 75% in China, 46% in Europe, and 7% in Japan. More on TSMC and Intel Intel: The AI Trade Everyone Hated Is Suddenly Working Intel: The Rally Has Gone Too Far Why Intel's Rally Might Not Be Over Yet Apple weighs using Intel and Samsung to build main device chips, Bloomberg reports Intel appoints another ex Qualcomm exec, this time for Client Computing