See the magnificent seven cash flows vs share price, what do you get?

Discovering the Magnificent Seven Cash Flow Dynamics: Insights into Share Price Movements

1) $NVIDIA(NVDA)$

Source:@KoyfinCharts

2) $Microsoft(MSFT)$

Source:@KoyfinCharts

3) $Meta Platforms, Inc.(META)$

Source:@KoyfinCharts

4) $Alphabet(GOOGL)$

Source:@KoyfinCharts

5. $Amazon.com(AMZN)$

Source:@KoyfinCharts

6) $Tesla Motors(TSLA)$

Source:@KoyfinCharts

7) $Apple(AAPL)$

Source:@KoyfinCharts

• There is a close relationship between cash flow and stock price, although this relationship is not always direct.

• Cash flow refers to the cash generated during the operation of a business, reflecting the financial health and growth capacity of the enterprise.

• Stock price, on the other hand, reflects investors' expectations of the company's future profitability. An increase in cash flow typically leads to a rise in stock price; a decrease in cash flow may cause the stock price to fall.

• Investors tend to invest in companies with stable and predictable cash flows because this indicates the company has the ability to generate profits continuously.

• Free cash flow is the cash left over after a company has paid for its capital expenditures, and it is an important measure of the company's financial health. A high free cash flow is usually associated with a high stock price because it indicates that the company has additional cash for growth and returning to shareholders.

• Price/Cash Flow (P/CF) ratio: This is the ratio that measures a company's stock price relative to its cash flow. A low P/CF ratio may indicate that the company is undervalued, while a high ratio may indicate that the company is overvalued. This ratio also depends on the industry in which the company operates and the maturity of the market.

• In the long term, a company's stock price tends to reflect the growth of its cash flow. If the company's cash flow continues to grow, its stock price may also increase accordingly.
  
  

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