Daily Briefs

• Q424 revenues of $7.7. billion, up 12% QoQ, up 27% YoY and $200 million above the guided midpoint. This marked the company’s highest ever quarterly revenue
• AMD forecasted Q125 revenues of $7.1 billion at the midpoint, up 30% YoY but down ~7% sequentially. This caused the share price to decline by ~9% in after hours trading
• H125 is a reset period for AMD’s Data Center GPU roadmap. ROCm simply isn’t mature enough to compete effectively with NVIDIA. AMD must do better, and I believe they will.

• Trane Technologies reported robust financial results for the fourth quarter of 2024, reflecting strong execution across its business segments and demonstrating the benefits of its purpose-driven strategy focused on innovation and sustainability.
• The company achieved 10% organic revenue growth, expanded adjusted EBITDA margins by 110 basis points, and increased adjusted earnings per share (EPS) by 20%.
• For the full year, Trane Technologies reported 12% organic revenue growth and 24% adjusted EPS growth, affirming its ability to outperform peer groups in these critical financial metrics.

• 4Q24: just inline, flattish AI GPU revenue, recovery in Server and PC. Not impressive but ok. What matters is: accelerating GPU launch in 2025, the open-source software platform gains traction.
• Please take this literally, from CEO: Data Center AI (revenue will increase) from US$5bn in 2024 to tens of billions of dollars of annual revenue over the coming years.
• Stock has corrected by -32% since Oct-24. It’s trading at -1 standard deviation on forward EPS or 23x 2025EPS. Time to Buy.

• Alphabet maintained their low double digit revenue growth. For the 10th consecutive quarters, Google network’s revenue went down.
• Cloud revenue growth decelerated from 35.0% YoY in 3Q’24 to 30.1% in 4Q’24.
• I will note, however, that Google usually discloses every quarter that GCP grew at higher rate than overall Cloud, but in this call, they mentioned “GCP grew at a rate that was much higher than cloud overall”. 

• Private Equity backed Karman Holdings set terms for its IPO with a scheduled February 14th debut. 
• The company will net $160m if the offering priced at the midpoint of the range and selling shareholders will obtain the remaining $240m in this $400m cash-raise total transaction. 
• The valuation of this company came in lighter than expected. We will continue to dive into the metrics of this deal and provide additional research, color and commentary.

• Alphabet (GOOG US) surely faces certain headwinds, including slowing cloud revenue growth and antitrust issues, but most analysts remain optimistic about the company’s long-term prospects.
• Investors should continue to monitor these developments closely, as they may influence Alphabet’s strategic direction and financial performance in the near future.
• This insight offers a short-term tactical entry point analysis to evaluate where to buy again Alphabet, keeping in mind the stock is short-term oversold (buy at discounted price).

• Tire industry to be a collateral damage in the tariff battle  
• 91% of projected light truck tire requirement is import reliant  
• Trade balance tipping towards China and Canada  

• L3Harris Technologies’ fourth-quarter earnings call provides a comprehensive overview of its performance and strategic positioning, reflecting both achievements and challenges.
• The company concluded 2024 with a record backlog, aligning with its Trusted Disruptor strategy and indicating a strong market position for future endeavors.
• This strategic framework positions L3Harris between traditional primes and new entrants, leveraging advancements in AI and autonomy to meet evolving national security requirements.

• EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
• The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
• The company announced that it has close a public offering of almost four million American Depository Shares, resulting in an additional of over $10 million in cash to its balance sheet.

• Lack of transparency and inadequate financial disclosures at Daily Journal Corporation
• Detailed analysis suggests the stock is severely overvalued
• Significant downside risk for investors in DJCO

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.