To The Moon

The growth potential of a company can be an important consideration when making investment decisions, as it might help investors determine whether a company is likely to offer potentially higher returns in the long run. But how can we assess a company's growth potential? We can focus on the following three key indicators. 1. Revenue Growth Revenue growth can be an important indicator of a company's performance. When assessing a company's revenue growth, here are three key considerations to keep in mind. First, the absolute value of the growth rate. A company might look more attractive if its revenue grows more than 20% on a year-on-year basis with steady and consistent quarterly growth. Second, the growth rate change: an increase in the growth rate over time is more ideal. Third, industry

Fundamental investors generally base their investment decisions on the intrinsic value of a stock. They tend to believe that when investing in a stock that is perceived to be undervalued, they are more likely to make a potential profit. Conversely, they believe that buying an 'overvalued' stock poses a higher risk of loss. The company's earnings report can provide insight into a stock's value, and fundamental investors commonly consider the following four methods. 1. PE Ratio The PE ratio measures a company's stock price relative to its earnings per share (EPS). EPS is calculated by dividing a company's net income by the number of outstanding shares of its common stock. It can also be calculated by dividing a company's market cap by its net income. The PE ratio is a widely used financial m

When earnings season comes around, publicly traded companies will announce their financial reports to the public. With so many financial data and performance figures in the report, one ratio tends to get the most attention from investors. That's the earnings per share. Earnings per share, or EPS, measures a company's profitability per outstanding share of common stock. In other words, it shows how much a company earns for each share. You will often see two EPS measures in a company's earnings report — basic and diluted. Basic EPS is computed by dividing a company's net income by the number of outstanding common shares. For example, if Company A has a net income of $10 million and has 5 million shares of common stock outstanding, it has an EPS of $2 per share.   If the company has

Picking stocks in the stock market is like picking items in a supermarket. Among various items, shoppers will see whether they get the best deals based on factors like brands, unit prices, and coupons. So how do investors know if they get a good deal or not in the stock market? In financial analysis, we can use two metrics to measure a company's fundamentals: return on assets (ROA) and return on equity (ROE). ROA is a profitability ratio calculated by dividing net income by a company's total assets. It measures how efficiently a company uses its assets to generate profits. In general, the higher the ROA ratio, the better, as it indicates that a company is making more profits from its assets. On the contrary, a low ROA means a company's management is not using its assets effectively. For ex

Cash flow is considered a very important aspect of any company's financial stability. Positive and stable cash flow can be crucial to maintain financial health, while cash flow disruptions can lead to bankruptcy risk. Moreover, cash flow often has a significant impact on stock valuation.  To evaluate a company's cash level, it's important to consider focusing on five key areas which we'll explore in more detail below. 1. Cash flow from operating activities This section shows the cash inflows and outflows from the company's daily operations, such as sales income and cash paid to suppliers. Subtracting cash outflow from cash inflow, we can get the net cash flow from operating activities.  If the number is positive, it means the company's operating activities generate more cash than

Maintaining a sound financial position is crucial for a company's growth. A company's solvency informs our investment decisions. It's better for investors to avoid companies struggling to pay off their debts as they may face the risk of bankruptcy due to disrupted capital flows. Generally, we use four indicators to measure a company's creditworthiness. 1. Debt-to-Asset Ratio The debt-to-asset ratio defines the proportion of a company's debt to its assets, reflecting its potential ability to meet its obligations. The formula for calculating this ratio is to divide total debts by total assets. Companies with heavy assets or poor cash flow often need to rely on debt to sustain operations, resulting in a higher debt-to-asset ratio. On the other hand, companies with lighter assets or better cas

The growth potential of a company can be an important consideration when making investment decisions, as it might help investors determine whether a company is likely to offer potentially higher returns in the long run. But how can we assess a company's growth potential? We can focus on the following three key indicators. 1. Revenue Growth Revenue growth can be an important indicator of a company's performance. When assessing a company's revenue growth, here are three key considerations to keep in mind. First, the absolute value of the growth rate. A company might look more attractive if its revenue grows more than 20% on a year-on-year basis with steady and consistent quarterly growth. Second, the growth rate change: an increase in the growth rate over time is more ideal. Third, industry

When a company released its financial report, how do we determine if it's good or bad? There are many indicators to consider, but we can simplify and focus on the following 4 key points. 1. Revenue growth The absolute value of the revenue growth rate may be a reliable indicator to help determine a company's growth momentum. The higher the growth rate compared to its peers in the industry, the more significant the company's growth potential. 2. Net income growth The absolute value of the net income growth rate is another key variable to consider when evaluating a company's growth.  Moreover, it's important to compare the net income growth to that of revenue. If the net income growth rate exceeds the revenue growth rate, it suggests that the company is becoming increasingly pr

$Palantir Technologies Inc.(PLTR)$  I would think that Palantir could continue to do well with the demand for more focus on data, but we need to be aware of the competition Palantir faces from established tech giants and new startups in the AI and data analytics space. And also a global economic downturn could affect demand for Palantir's solutions and impact its financial performance. Increased regulations related to data privacy and AI could pose challenges for Palantir and Attracting and retaining top talent in the competitive tech industry is crucial for Palantir's success. One important point is Palantir's high valuation is a key point to watch. While the company has strong growth potential, its stock price reflects high expectations. So

$Microsoft(MSFT)$  shares gained 1% after the company revealed plans to invest $80 billion in fiscal 2025 to expand data centers for AI model training and cloud application deployment. $Meta Platforms, Inc.(META)$  Analysts expect Meta to report Q4 revenue of approximately $46.9 billion, representing a year-over-year growth of about 17.1%. Earnings per share (EPS) are anticipated at $6.75, a 26.73% increase from the previous year.