Latest news with #OakoffInvestments
Business Insider
25-05-2025
- Business
- Business Insider
‘Major Trigger Coming,' Says Investor About Dell Stock
Dell Technologies (NYSE:DELL) has been steadily climbing back up from its post-Liberation Day nadir in early April. Though its share price is still slightly down year-to-date, DELL has risen over 50% since reaching a 52-week low last month. Confident Investing Starts Here: There are plenty of AI-related hopes attached to Dell, which recently announced new servers that will be powered by Nvidia's Blackwell chips. The company's management has guided for 'at least $15 billion' for AI server shipments in Fiscal Year 2026, a strong indication that the company is well on its way to enjoying the fruits of the AI bonanza. Indeed, the company has revealed a $9 billion AI server backlog. As the company prepares to unveil its Q1 FY 2026 numbers later this week on May 29, one investor known by the pseudonym Oakoff Investments sees dollar signs up ahead. 'Dell Technologies Inc.'s upcoming Q1 FY2026 earnings are poised as a significant catalyst, expected to build on Q4's robust ISG [Infrastructure Solutions Group] performance and a rapidly expanding AI server backlog,' states the investor. Oakoff is positively bullish regarding DELL's AI prospects, believing that the $15 billion figure is only a 'starting point' for the company. Last quarter, ISG enjoyed an EBIT margin of 18.1%, which was significantly higher than the 8% margin from Q1 FY 2025 – another sign that AI growth is 'firing on all cylinders.' Moreover, the investor is optimistic that the company's Client Solutions Group could also deliver for DELL. Oakoff notes that the PC installed base is getting older, while the end of support for Windows 10 in October will mean that at least half a billion PCs could be in need of an upgrade. 'Dell's market standing in AI PCs is only going to progress and add another layer of top-line growth,' adds Oakoff. Further sweetening the pot, according to the investor's calculations, the company is severely undervalued, and could appreciate by some 32% going forward. A strong Q1 report should be part of this multiple expansion. 'The upcoming Q1 report should bring back optimism,' concludes Oakoff Investments, who rates DELL a Buy. (To watch Oakoff Investment's track record, click here) Wall Street is also projecting optimism prior to DELL's earnings report. With 12 Buy and 3 Hold ratings, DELL enjoys a Strong Buy consensus rating. Its 12-month average price target of $133.56 has an upside just shy of 20%. (See ) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Globe and Mail
20-05-2025
- Automotive
- Globe and Mail
‘I Don't See a Way Out,' Says Investor About Tesla Stock
Tesla (NASDAQ:TSLA) stock has been riding high lately, buoyed by the recent turn of events that have pushed it 47% higher since the company's Q1 2025 earnings call late last month. Confident Investing Starts Here: What really lit the fuse was Elon Musk's announcement that he'd be stepping back from most of his D.C. commitments, a move that reassured investors after a shaky start to the year. You see, betting on Tesla has always meant betting on Musk – his vision, his leadership, and his knack for turning ambitious ideas into real profits. So naturally, the market welcomed the news that he'd be refocusing his energy on Tesla's day-to-day operations. However, long-term hopes can sometimes run into the brick wall of near-term constraints – and that's exactly what one investor, known by the pseudonym Oakoff Investments, expects to happen. Specifically, the investor doubts Tesla's ability to break free from its worsening fundamentals. 'Despite recent stock strength, Tesla's Q1 earnings missed expectations, with declining revenues, margins, and brand power raising red flags,' notes Oakoff. According to the investor, Tesla is already facing fallout from Musk's political entanglements, which may have contributed to a drop in EV sales earlier this year. Although bullish investors continue to pin their hopes on transformative technologies like full self-driving, robotaxis, and the Optimus humanoid robot, Oakoff warns that these breakthroughs are still far from ready for primetime. 'Long-term bets on robotaxis and humanoids are risky and won't offset near-term auto and energy business headwinds or margin compression,' Oakoff adds. Oakoff argues that Tesla should be valued more like a hybrid: part high-growth stock (energy business plus robotaxis and humanoids), part traditional automaker. And even under that framework, the numbers don't look great. With Tesla currently trading at an EV/EBITDA of 86x on a trailing basis, Oakoff believes the stock is priced far above what the fundamentals support. To make matters worse, the investor doesn't see Tesla clawing its way back to the 20–25% margin range anytime soon. Competition is heating up, and the market dynamics have shifted. In other words, growing near-term pressures will likely lead to losses up ahead. 'I remain skeptical of Tesla's prospects in the near future as I fear the sustainability of its gross margins. I don't see a way out of the current situation,' concludes Oakoff, who rates TSLA shares a Sell. (To watch Oakoff Investment's track record, click here) Meanwhile, Wall Street remains divided. With 16 Buy, 10 Hold, and 11 Sell recommendations, TSLA holds a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $277.78 implies a potential downside of ~21%. (See TSLA stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment. Disclaimer & DisclosureReport an Issue This article contains syndicated content. We have not reviewed, approved, or endorsed the content, and may receive compensation for placement of the content on this site. For more information please view the Barchart Disclosure Policy here.
