Posts
Netflix got outbid on Warner Bros this year. Reading the new filing, getting outbid looks like the win
Netflix's **Q2** just landed this week. The most interesting thing is what management is telling us, and what they're about to stop telling us. **TL;DR** * Netflix agreed to buy HBO Max + the Warner studios late last year, got outbid by Paramount, and walked away with a **$2.8B** cash …
Adobe’s AI Bet Still Has to Prove the Economics
I know there have already been plenty of posts about ADBE, but I think the main question is still being framed the wrong way. Adobe has been getting crushed - AI costs money, margins are getting worse, and Adobe is giving away a lot of usage without showing clearly who …
TSMC neglected in semiconductor
I'm noticing and recently curious about why everyone talk about MU, SNDK, ASML, INTC and other similar stocks but despite being one of the stable, high moat and fair valued in the sector TSMC gets neglected in the discussions of semiconductor and chip stock buying. Is it because of it's …
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The number Buffett actually wants is not in the 10-K: the maintenance-capex problem in owner earnings
Buffett defined owner earnings in his 1986 shareholder letter: reported earnings, plus depreciation, depletion, amortization and other non-cash charges, minus the average annual capitalized expenditures a business needs to maintain its competitive position and unit volume. That last term is the problem. It does not exist in any filing. Companies …
Question for the Seasoned Investors
I am a 22 y/o that’s been investing and following markets for about 4 years now. I feel like much of the world is hyper fixated on AI, tech, and data/information that moves faster everyday… Companies moving +/- 10% on a daily basis, absurd valuations, and so much capex centered …
Real FCF Yield calculation question
Hi everyone, I'm looking to get some feedback on how you handle Stock-Based Compensation (SBC) adjustments when calculating Free Cash Flow (FCF) Yield, especially for high-growth tech stocks and when they repurchase at the same time as diluting ($DUOL for example). Do you use (FCF-SBC)/(Market cap) or something more sophisticated? …