Software is rapidly reducing operating expenses for businesses. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 7.3% over the last six months. This drop was worse than the S&P 500’s 4.7% fall.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Growth is oxygen.
But when it evaporates, the consequences can be extreme - ask anyone who bought Cisco in the Dot-Com Bubble (Nvidia?) or newer investors who lived through the 2020 to 2022 COVID cycle.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the video conferencing industry, including Zoom (NASDAQ:ZM) and its peers.
Zoom has been treading water for the past six months, recording a small return of 3.6% while holding steady at $75.22. However, the stock is beating the S&P 500’s 5.3% decline during that period.
Jim Cramer remains bullish on AI infrastructure and data center stocks, arguing they'll rebound strongly if trade tensions ease and AI optimism returns, despite Wall Street's recent doubts.
Wall Street has set ambitious price targets for the stocks in this article.
While this suggests attractive upside potential, it’s important to remain skeptical because analysts face institutional pressures that can sometimes lead to overly optimistic forecasts.
Generating cash is essential for any business, but not all cash-rich companies are great investments.
Some produce plenty of cash but fail to allocate it effectively, leading to missed opportunities.
In a throwback video, Alibaba Group Holding Ltd. (NYSE: BABA) co-founder Jack Ma expressed that trade wars, such as the one brewing between the U.S. and China, are obscuring deeper issues of resource allocation and wealth concentration, while posing a risk to global stability.
