JMC Investments Blog

Here are a few of my peak price targets by year end 2024, based on adjusted operating earnings and/or operating cash flow projections along with current valuations.  The percentage increase/decrease is since 930 am CDT on March 12, 2024.  

According to Yahoo Finance , all of the Magnificent 7 stocks (Alphabet, Apple, Amazon, Meta, Microsoft, Nvidia and Tesla) have all reported their fourth quarter earnings as of February 23, 2024.  Amazon's North American revenue topped $100B in the fourth quarter reported earnings, beating analyst expectations. Their operating income and free cash flow have increased dramatically and sequentially since Q4 2022.              Figure1: Amazon's operating income (source: Amazon 4th quarter 2023 earnings conference call)            Figure 2: Amazon's free cash flow (source: Amazon 4th quarter 2023 earnings conference call) Amazon's stock price historically has tended to follow it's operating cash flow (OCF) as can be seen in the FASTgraphs chart below.  This is in contrast to many stocks where the price tends to track basic operating earnings.   Figure 3: 10-year price performance ve...

After the market close on February 21, 2024, NVIDIA reported it's fourth quarter earnings which beat analyst expectations with regard to both EPS and revenue.  According to Seeking Alpha News :  Nvidia ( NASDAQ: NVDA ): Q4 Non-GAAP EPS of $5.16 beats by $0.52 . Revenue of $22.1B (+265.3% Y/Y) beats by $1.55B . Data Center revenue for the fourth quarter was a record, up 409% from a year ago and up 27% sequentially. Gaming revenue was up 56% from a year ago and flat sequentially. Professional Visualization revenue was up 105% from a year ago and up 11% sequentially Outlook for the first quarter of fiscal 2025 is as follows: • Revenue is expected to be $24.0 billion vs. $22.03B consensus, plus or minus 2%. • GAAP and non-GAAP gross margins are expected to be 76.3% and 77.0%, respectively, plus or minus 50 basis points. If the stock price is able to reach $1,000/share, it would be extremely impressive since there was a 4:1 stock split that occurred on July 20, 2021.  Acc...