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Yahoo
14-07-2025
- Business
- Yahoo
Why Micron Stock Dropped on Monday
Edgewater Research warned that prices and demand for computer memory chips would fall in the second half of 2025. Micron stock has decent earnings, but its free cash flow already looks weak. And now that free-cash-flow number could get even worse. 10 stocks we like better than Micron Technology › Shares of computer semiconductor memory maker Micron (NASDAQ: MU) tumbled 4.3% through 11:45 a.m. ET Monday. You can probably blame Edgewater Research for that. There's not a lot of detail available yet on what Edgewater said about Micron today. So far, the most I've found is the briefest of mentions, on that the research firm says demand and pricing for computer memory in the first half of 2025 appear to have been "better." (Better than last year? Better than expected? Your guess is as good as mine.) And that both demand and pricing will be "sub seasonal," or worse than the company's historical average for the second half of a year, and with "bias lower." Which would appear to mean that things will be somewhat bad, and potentially worse than investors are expecting. Also, it's worth pointing out that Edgewater says this is true for both Micron and its rival SanDisk (NASDAQ: SNDK). Admittedly, this isn't a whole lot of detail, nor does it give investors a whole lot of explanation for why they might to want to sell Micron -- or SanDisk, whose stock is down 8.6%. So how worried should you be? In the case of Micron, I'd be pretty worried. Although reported earnings of $6.2 billion (according to generally accepted accounting principles) look fine to me, the company generated less than $1.9 billion in real free cash flow over the last 12 reported months. On a $139 billion market cap, that works out to a very expensive price-to-free cash flow ratio of 74 -- which is probably too much to pay. And the greater the "bias lower" in H2 2025, the less inclined I'd be to buy Micron stock. Before you buy stock in Micron Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Micron Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $671,477!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,010,880!* Now, it's worth noting Stock Advisor's total average return is 1,047% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 14, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Micron Stock Dropped on Monday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
25-03-2025
- Business
- Yahoo
Why Cloudflare Stock Popped on Tuesday
Cloudflare (NYSE: NET) stock surged 4.5% through 10:10 a.m. ET Tuesday after analysts at Bank of America double-upgraded the stock from underperform (i.e., sell) to buy, as Street Insider reported this morning. Curiously, BofA upgraded Cloudflare, which is often thought of primarily as a cybersecurity stock, for another reason entirely: BofA likes Cloudflare's artificial intelligence (AI) business. Cloudflare doesn't break its business out among separate segments when reporting earnings. As a result, historically, many investors have considered the company a cybersecurity stock -- which is no surprise. Street Insider notes the company's security products already have 33% market penetration. But as my colleague Harsh Chauhan pointed out last month, while Cloudflare does offer a content delivery network (CDN) that secures internet connections, over the past year and a half, it also has been deploying graphics processing units (GPUs) across its network that enable Cloudflare customers to run AI workloads in the cloud. In other words, as time goes on, cybersecurity stock Cloudflare is becoming more and more an AI stock. BofA believes Cloudflare's AI-as-a-service offering "is already resonating with customers," and has become "the leading product Cloudflare customers are looking to adopt in the next twelve months." Predicting Cloudflare is now on track to meet or exceed full-year revenue guidance, and arguing the company could grow as fast as 30% annually over the next three years, BofA isn't just upgrading the stock. It's nearly tripling its price target to $160 a share. S&P Global Market Intelligence data show Cloudflare has maintained a 36.5% average annual revenue growth rate over the last three years. While not yet profitable under generally accepted accounting principles (GAAP), the company did generate $166.5 million (after deducting capital expenditures and capitalized software costs) last year. That's pretty impressive. Still, at a $44.8 billion market capitalization, it means Cloudflare stock trades for a nosebleed 269 times trailing free cash flow, and 194 times projected 2025 FCF. Even with a 30% growth rate, that seems too expensive to me. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $314,847!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,848!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $524,186!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 2025 Bank of America is an advertising partner of Motley Fool Money. Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America and Cloudflare. The Motley Fool has a disclosure policy. Why Cloudflare Stock Popped on Tuesday was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
03-03-2025
- Business
- Globe and Mail
This Good News From Palantir Just Lifted One of the Red Flags on PLTR Stock
There are three red flags with Palantir that analysts are concerned about. First, Palantir's employee headcount expanded by just 5% in 2024 after declining by 3% in 2023. In the last two years, its net new hires totaled 98 employees. Second, CEO Alex Karp filed paperwork for prearranged share sale, spooking investors. Finally, last month, Palantir's chief accounting officer, Heather Planishek, announced her resignation. However, the good news is that Palantir just lifted one of its red flags. The company appointed Jeffrey Buckley as its new chief accounting officer, effective March 24, 2025. Buckley will replace David Glazer, who has served in the role on an interim basis since Feb. 25 following Planishek's resignation. According to a report from Street Insider, this marks a return for Buckley, who previously served as Palantir's chief accounting officer from September 2020 to February 2023. Most recently, he was chief accounting officer at Human Interest, a private financial services company. Buckley also previously worked at Zynga, holding the same title from 2017 to 2020. Glazer will continue serving as CFO and Treasurer after Buckley assumes his duties. Palantir Stock Is Down 32% From All-Time Highs Palantir was the top-performing stock in the S&P 500 Index ($SPX) in 2024, surging over 300% last year. However, the ongoing market volatility has dragged the tech stock down nearly 30% from its all-time highs, valuing the company at a market cap of $200 billion. Palantir evolved from its 2003 origins as a software provider for U.S. intelligence agencies to become a comprehensive data integration powerhouse serving both the government and commercial sectors. Its four principal software platforms — Gotham, Foundry, Apollo, and Artificial Intelligence Platform (AIP) — form a powerful ecosystem that enables organizations to harness their data for critical decision-making. As of Dec. 31, 2024, Palantir had 711 customers across 90 industries worldwide. It generated $2.9 billion in revenue for the year, representing 29% growth from 2023. It achieved $310.4 million in operating income, or $1.1 billion in adjusted operating income, excluding stock-based compensation and related employer payroll taxes. Palantir's customer base is diverse, with 55% of revenue from government clients and 45% from commercial customers. U.S. customers account for 66% of revenue, generating $1.9 billion in 2024 — a 38% increase from the previous year. Palantir's top 20 customers spent an average of $64.6 million each, up 18% from 2023. A Widening Ecosystem Palantir's platforms address critical challenges in data integration and operation. Initially built for intelligence and defense agencies, Gotham enables users to identify patterns in complex datasets. Foundry is a central operating system for organizational data, allowing users to integrate and analyze information efficiently. Apollo ensures continuous delivery of software updates across various environments, while the newest offering, AIP, enables responsible AI implementation by integrating large language models with enterprise data and operations. Palantir's remaining deal value reached $5.4 billion by the end of 2024, a 40% increase from the previous year. Commercial contracts accounted for $3.1 billion, up 47%, while government contracts represented $2.3 billion, a 30% increase. This doesn't include an additional $3.7 billion in potential government indefinite delivery, indefinite quantity (IDIQ) contracts. Despite a challenging macroeconomic environment, Palantir continues to grow at a steady pace and is poised to benefit from AI-powered tailwinds, making it a top stock to own in 2025. Out of the 19 analysts covering PLTR stock, three recommend 'Strong Buy,' 10 recommend 'Hold,' one recommends 'Moderate Sell,' and five recommend 'Strong Sell.' The average target price for PLTR stock is $85.11, below its current trading price. On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
