Built this position over the last week heading into earnings. Earnings came out tonight and were solid across the board (stock up moderately AH). Projecting mid single digit revenue, EBITDA and EPS growth next year. The stock has been hammered given AI fears but the selloff is way overblown in my opinion (putting 100k on the line to prove it). LTM EBITDA of \~$450m means this is trading at about 6.7x EBITDA and Adj EPS of $3.61 means this is trading at a PE ratio of 7.5x.
Stock price has now given up all gains over the last 5 years. For fun, let’s do a comparison of financials now vs 2020.
Revenue:
2025: $2,758 million
2020: $964 million
EBITDA:
2025: $447 million
2020: $132 million
Adj. EPS:
2025: $3.61
2020: $1.42
Position: 307 x July $30 calls for cost basis of $104k
I expect this to bounce back to the $40-50 range quickly.