Overview: MKTX, GOOGL, MEDP, XYZ, and FSLR
Below is a summary of the most significant news and events from the past six months, as I see it, for the third group of covered companies (first, second). Additionally, I will also add charts to compare the current prices with my fair price estimates and current valuation ratios (Price/Forward Earnings, Price/Forward Sales, and PEG).
I would like to remind you that the fair value (fair price) is reassessed after quarterly reports. Fair-to-Current Price: 🟢 undervalued, 🔵 fairly valued (+/- 5% is “fairly”), 🟡 overvalued.
Some companies will deliver earnings results this week (LRCX, V, ASML, LVMH) and others have already (TSM), so please wait for fair price valuation updates (preliminary on Saturday).
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🟡 MarketAxess (MKTX)
Next earning report: Feb 6, 2025 (confirmed)
Fair Price: $200
Current Price/Fair Price: 1.12 (-11.84%)
Management change: MarketAxess announced that Founder and Executive Chairman Rick McVey was retiring at the end of 2024. Carlos Hernandez succeeded him starting January 1, 2025. Hernandez has a strong background, having previously served as a Director and Executive Chair at JPMorgan.
New share repurchase program: In August, MarketAxess announced a new share repurchase program worth $200 million, indicating confidence in its financial health and commitment to returning value to shareholders. The program has no termination date.
Expansion of AI technology: MarketAxess expanded its AI-powered pricing engine to cover municipal bonds, enhancing its trading capabilities and offering more advanced solutions to clients.
Increased trading volume: MarketAxess reported record portfolio trading average daily volume (ADV) of $1.1 billion, reflecting strong market activity and demand for its services.
Integration of acquisitions: The successful integration of Pragma, a recent acquisition, contributed to the company's growth in commission revenue and overall performance.
🟢 Alphabet (GOOGL)
Next earning report: Feb 4, 2025 (confirmed)
Fair Price: $220
Current Price/Fair Price: 0.91 (+9.28%)
Renovation of AI portfolio: Google completely updated its AI offerings, launching numerous innovations under the Gemini brand. This includes the introduction of Gemini Ultra, advanced AI models, and enhancements to existing products like BigQuery and Looker.
Record performance in Google Cloud: Google Cloud achieved a historic milestone by surpassing $10 billion in revenue for the first time. This success highlights the growing demand for cloud services and AI solutions.
Failed acquisitions of Wiz and HubSpot: Google attempted to acquire cybersecurity startup Wiz and CRM platform HubSpot (HUBS), but both deals fell through.
Major data center investments: Google announced plans for significant investments in data centers across various locations, including a $1 billion campus in Kansas City and expansions in Finland, Mexico, and other countries.
Ongoing antitrust challenges: Alphabet continues to face antitrust scrutiny with ongoing lawsuits regarding its market practices. These legal challenges could influence future business strategies and operational decisions.
YouTube monetization updates: YouTube launched new monetization tools for creators, including improved ad formats and subscription features, to attract more content creators and boost advertising revenue.
Focus on sustainability: Alphabet aims for net-zero emissions and 24/7 clean energy by 2030 but faces rising emissions, driven by energy-heavy AI data centers. Shareholders request better disclosure of their progress, strategies, and plans to meet these goals.
🟢 Medpace (MEDP)
Next earning report: Feb 10, 2025 (confirmed)
Fair Price: $381
Current Price/Fair Price: 0.90 (+9.67%)
Investigation into financial performance: Hagens Berman, a shareholder rights firm, launched an investigation into Medpace's recent financial disclosures and performance, particularly focusing on discrepancies between prior growth assurances and actual results.
🟢 Block (XYZ)
Next earning report: Feb 20, 2025 (confirmed)
Fair Price: $100
Current Price/Fair Price: 0.89 (+11.3%)
Ticker change: Block changed its ticker symbol to XYZ from SQ, reflecting its broader range of businesses beyond its original Square payment system.
$80M fine to state financial regulators: Block agreed to an $80M settlement with 48 state financial regulators who found that one of the company's payment ecosystems, Cash App, lacked adequate anti-money laundering measures.
Partnership with food-service distributor Sysco: Block's Square merchant payment system formed a partnership with food-service distributor Sysco (SYY) to expand its presence in the restaurant industry, and announced new features to help restaurants run more efficiently.
Bitcoin reached $100K+: Below are the TOP 10 Bitcoin holding stocks:
10: Hive Digital (HIVE): 2,287 total bitcoins.
9: CleanSpark Inc. (CLSK): 6,154 total bitcoins.
8: Block Inc. (XYZ): 8,038 total bitcoins.
7: Riot Platform (RIOT): 8,490 total bitcoins.
6: Hut 8 Mining Corp (HUT): 9,102 total bitcoins.
5: Coinbase Global (COIN): 9,183 total bitcoins.
4: Tesla (TSLA): 11,509 total bitcoins.
3: Galaxy Digital Holdings (BRPHF): 15,449 total bitcoins.
2: Marathon Digital Holdings (MARA): 26,842 total bitcoins.
1: MicroStrategy (MSTR): 252,220 total bitcoins.
Cash App + Lyft partnership: Cash App, the payment ecosystem of Block, teamed up with transportation network Lyft (LYFT) to allow consumers to pay with Cash App Pay when taking a ride, marking the first-ever rideshare partner for Cash App Pay. As such, riders can now seamlessly link the Cash App to the Lyft app rather than pulling out a card and entering their information.
Launch of Orders Platform: Square launched a commerce platform designed to offer sellers more flexible checkout options. The new Orders Platform provides payments and ordering capabilities for sellers using Square.
TIDAL’s songwriter tools: Block's TIDAL platform introduced new tools for songwriters to track royalties in one place.
🟢 First Solar (FSLR)
Next earning report: Feb 26, 2025 (estimated)
Fair Price: $373
Current Price/Fair Price: 0.45 (+54.97%)
First Solar endows Missouri S&T professorship: First Solar established an Endowed Professorship in Critical Energy Materials at the Missouri University of Science and Technology's materials science and engineering department. This initiative builds on a decade-long collaboration focusing on critical minerals, particularly tellurium. The endowment aims to strengthen critical supply chains and support research in extractive metallurgy.
Solar manufacturing facility in Lawrence County: First Solar inaugurated its new $1.1 billion fully vertically integrated thin-film solar manufacturing facility in Lawrence County, Alabama. The facility adds 3.5 gigawatts (GW) of solar manufacturing capacity in the United States and is expected to create over 800 new energy technology manufacturing jobs in the state.
New industry benchmarks: First Solar's Series 6 Plus and Series 7 TR1 modules are the world's first to achieve the EPEAT Climate+ ultra-low-carbon designation. The company leads in high-value solar recycling with a 95% global average material recovery rate and operates facilities in five countries.
This is not a financial or investing recommendation. It is solely for educational purposes.
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Thanks, Dan, for your work!