UPDATES - SMCI, ABNB, Other and Portfolio Update

The market continue to slide without any respite. But my update is for some key earnings and my opinion, so let me start. 

Super Micro Computer (SMCI)

Q4 Earnings: Beat on top line but miss on bottom line and announced 10 for 1 Stock Split.
  • Earnings: $6.25 adjusted vs. $8.07 expected, up 60.6% YOY
  • Revenue: $5.31 billion vs. $5.30 billion expected, up 143%.
The company expects first-quarter revenues between $6 - $7 billion vs. WS estimates of 5.46B. It expects EPS of $5.59 - $8.27, or a $7.48 midpoint vs. $7.58 estimated. SMCI guided revenue of $26B - $30 billion, or growth of 74% to 101% from 2024. The company gave its forecast in a presentation on its website with its earnings for the fiscal fourth quarter.

My View: Despite company’s huge revenue growth, profit growth has not been able to keep its pace. But the main worries is about its gross margin which can at 11.3% vs. 14.1% expected. In the current market environment WS is more concerned about “show me the money..”. Having said that, I think this is an extreme overreaction by WS. The company is growing revenue in triple digits and making profits. Now the Forward P/E is about 15%!! I just can’t imagine for a company with such revenue growth with such low forward earnings multiple. It has been painful few months for its shareholders and the stock may go down further. However, this company may be down but certainly NOT OUT for long run!! Bottom line is all Semiconductor stocks are now stinking to Wall Street and they are decimated! But let’s not forget AI is not gone and many of these company will bounce back huge! Probably it's a matter of time and patience...

AirBnB (ABNB)
  • Earnings per share: 86 cents vs. 92 cents expected
  • Revenue: $2.75 billion vs. $2.74 billion expected.
For Q3, company guidance was revenue of about $3.7 billion but warned that they are seeing shorter booking lead times globally and some signs of slowing demand from U.S. guests. So, obvious sign of slowing economy! I SOLD all my positions and updated the Blog Portfolio.

Zillow (Z): Beat on top and bottom line. 

  • Revenue: $572 million vs analyst estimates of $538.2 million (6.3% beat)
  • EPS: -$0.07 vs analyst estimates of -$0.16 ($0.08 beat)

Stock was up 11.8% in the AH trading. I like this company for future. Once interest rate comes down this should be a winner!


Fluence Energy, Inc. (FLNC)

This is another stock in my blog portfolio. The company reported break-even quarterly earnings per share versus the estimated -$0.12. This compares to loss of $0.20 per share a year ago. It reported Revenue of approximately $483.3 million, which represents a decrease of approximately 10% from the same quarter last year. The stock was up 15% in the AH trading.


After having holding Luminar (LAZR) for years, I have finally SOLD all the stocks. I have also updated my blog portfolio. I have some options left. I will wait for PLUG earnings for tomorrow morning and depending on that I may sell that too. I want to clean some of the under performers. The WS approach has changed, so I am doing some restructuring!

Cassava Sciences (SAVA) is expected to provide an update tomorrow. Let's see what they say and how the stock behaves!! It may fluctuate either way...

Disclaimer: Above are just my personal opinion and not a suggestion to buy/sell any equity. 

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