European nations have already spoken about wanting to decouple their reliance on US tech. Additionally, the EU has announced they would consider import tariffs on US services. If these two situations play out. One very large, fast growing and huge potential having industries has a large gap waiting to be filled. Cloud computing. The largest cloud computing provider in Europe is OVH Groupe. Here are the numbers:
Marketcap: 1.5B
Sales: 1B
Sales growth 10% of which the cloud computing segment has a growth of 15%
Opearating cash flow: 370M
CAPEX: 340 (for expansion in capacity)
Free cash flow positive with 25M
Thus it trades at a price to operating cash flow of 4.8, while Amazon and Goolge trade above 3x that amount. Of course I'm taking operating cash flow as a measure because they are nearly investing everything back into assets that have a return on investment.
Last year they announced a 350M share buy back program. The only thing I'm having trouble with is their service and product. I have never used it and don't know too much about it even after a bit of research. But considering their financials are great and the macro's could provide a huge tailwind, this is looking promising. I have been 100% cash since February 20th and have bought 10% yesterday into OVH Groupe. I'm thinking of buying more but am careful due to it being a small cap and not knowing the management and service provided well. Maybe other can chime in on what they know.