1. monday.com demonstrates high-quality growth with 27% YoY revenue growth, GAAP profitability, and a strong net cash position; 2. The company’s valuation appears attractive at 22x long-term earnings, with potential for 50% upside driven by margin strength and revenue expansion; 3. Risks include generative AI disruption and sector volatility, but the stock is rated 'Buy' due to its balanced growth and financial discipline.
Recent #Profitability news in the semiconductor industry
1. Nebius achieved 625% YoY revenue growth in Q2 2025, with raised ARR guidance implying over 1000% annual growth, reflecting surging demand for AI computing; 2. The company is nearing profitability with improved operational efficiency, achieving positive adjusted EBITDA ahead of schedule; 3. Despite high valuation, the author maintains a buy rating due to exceptional growth and cost control aligning with long-term potential.
1. Meta's Q2 revenue and margin growth surpassed expectations, but a significant decline in cash reserves and a net-debt position raised concerns; 2. The company is aggressively investing in AI to achieve 'superintelligence for everyone,' though it faces privacy challenges and lower user engagement compared to ChatGPT; 3. Meta maintains exceptional profitability, supported by strong cash flows and stable performance of its legacy platforms, ensuring long-term stability.
➀ There has been much discussion about the viability of Xbox Game Pass; ➁ Microsoft has claimed it to be profitable, but an insider suggests it might not be; ➂ The insider points out the costs not accounted for, such as lost revenue from first-party studios.
1. Roku faces decelerating growth but maintains a strong net cash position and progress toward profitability; 2. Management expresses confidence in long-term streaming trends and profitability goals despite macroeconomic challenges; 3. Valuation appears reasonable with potential for double-digit returns, though risks include competition, margin pressures, and overinvestment in subscription services.
➀ In the three months ended January 26, 2025, Nvidia's revenue grew 78% y-o-y, reaching $39.3 billion.
➁ Nvidia's datacentre business led the growth with a 93% jump y-o-y.
➂ Net income amounted to $22.1 billion in the quarter, which is roughly five times the company's full-year profit for fiscal 2023.
➀ X-FAB's 2024 financial report reflects a challenging year with significant market headwinds, mainly due to industry-wide destocking, especially in the automotive sector.
➁ Despite the challenges, the company demonstrated resilience, maintaining profitability and preparing for future growth.
➂ Key highlights include a full-year revenue of USD 816.4 million.
➀ Microsoft's Xbox division saw a 7% revenue drop but still had the second-highest holiday period in Xbox history.
➁ The shift towards high-margin businesses like Xbox Game Pass has contributed to increased profitability.
➂ Despite the revenue drop, gaming significantly contributed to Microsoft's More Personal Computing division's operating growth.
1. Nu Holdings, a rapidly growing neobank in Latin America, is becoming more profitable each year with impressive business metrics and a reasonable valuation. 2. Nubank's mobile-first platform disrupts traditional banking, targeting underserved younger demographics in Brazil, Mexico, and Colombia. 3. The company reached 110 million customers in Q3, with significant growth in Mexico, demonstrating the vast potential in underserved Latin American markets.
1. Freshworks' shares are poised to rebound after Q3 results showed accelerating revenue and another raise to its full-year guidance. 2. The company announced layoffs to boost its margin position. 3. Freshworks has a broad software portfolio, blue-chip customer base, and a highly liquid, debt-free balance sheet. 4. A new $400 million buyback plan supports the stock.
➀ Capcom's games typically take 1-1.5 years to recoup development costs and become profitable; ➁ Capcom's sales strategy focuses on long-term discounts; ➂ Capcom aims to sell 100 million games in a single fiscal year.
1. Palantir's earnings surged, driven by strong AI capabilities and rapid customer turnaround in diverse industries; 2. The company achieved 44% YoY U.S. revenue growth, with commercial revenue outpacing government revenue; 3. Palantir boasts no debt, $4.6 billion in cash, and a 1.6% annual adjusted FCF yield.
1. Reiterate a 'Buy' rating on PayPal due to strong growth in payment transactions and profitability; 2. Highlight key partnerships and Buy Now, Pay Later usage enhancing PayPal's commerce platform; 3. PayPal's Fastlane rollout gaining traction with over 1,000 merchants and large enterprise customers.
1. Google Cloud experienced significant growth in scale and profitability; 2. Google Search's operating performance exceeded expectations; 3. YouTube's combined ad and subscription revenue reached over $50 billion for the first time; 4. Alphabet returned capital to shareholders through buybacks and dividends.
1. Profitability pressures are expected to continue due to CVS Health's Insurance business; 2. The stock's fall is driven more by earnings downgrades than valuation; 3. Relative technicals suggest underperformance ahead due to the bearish trend.
1. Uber's profitability turnaround in 2023; 2. Strategic partnerships with Waymo and GM; 3. Autonomous vehicles promise to improve margins and reduce labor risks.
1. ZIM Integrated Shipping's profits surged in 2Q24 due to a significant recovery in sea freight prices. 2. The company's EBIT forecast for 2024 was substantially raised, enhancing its appeal as a dividend stock with a leading yield of 13%. 3. ZIM's quarterly dividend quadrupled QoQ, reflecting its policy of returning 30% of net income to shareholders.
1. Deere & Company reported a 12% beat in Q3 EPS and affirmed its 2024 net income guidance of ~$7B, indicating a potential bottoming of the agricultural cycle. 2. The company's profitability exceeded expectations, with Large Ag margins at ~23%, partially offsetting lower volumes. 3. The stock remains Overweight with a raised price target of $505/share, reflecting improved margins in Ag segments and a slightly weaker Construction business.
1. Grab Holdings, often referred to as the 'Uber of Southeast Asia', has seen its shares drop by over 72% since its IPO in 2021. 2. Despite this, the company's financials are improving, with a path to profitability expected by late this year or early 2025. 3. With a more reasonable valuation and potential for a re-rating due to improved profitability, the stock could see significant upside, similar to Uber's trajectory.
1. Twilio reported Q1 FY24 earnings with a 4% revenue growth and a 54% increase in earnings, beating estimates. 2. The management raised profitability outlook for FY24 while keeping revenue guidance unchanged, which slightly dampened investor sentiment. 3. The company is focusing on financial discipline and targeted AI-led product innovations to accelerate 'time-to-value' for customers, suggesting potential for re-acceleration of growth in the low teens in FY25 and beyond.