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Recent Articles
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Amazon Expects Elevated Capital Spending in 2025
Feb 10, 2025
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Image: Amazon's stock has done quite well in recent months.
Amazon’s operating cash flow increased 36%, to $115.9 billion for the trailing twelve months, while free cash flow for the trailing twelve months was $38.2 billion compared to $36.8 billion for the trailing twelve months ended December 31, 2023. Purchases of propery and equipment were $27.8 billion in the fourth quarter of 2024, up from $14.6 billion in the same quarter last year. Capital spending is expected to be north of $100 billion in 2025. Looking to the first quarter of 2025, Amazon’s net sales are expected to be between $151-$155.5 billion (below the consensus forecast of $158.3 billion), or to grow between 5%-9%, while operating income is expected to be between $14-$18 billion, compared with $15.3 billion in the first quarter of 2024. Cash and marketable securities at the end of the calendar year totaled $101.2 billion, while long-term debt was $52.6 billion. We continue to like Amazon as a holding in the Best Ideas Newsletter portfolio.
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Dividend Increases/Decreases for the Week of February 7
Feb 7, 2025
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Let's take a look at firms raising/lowering their dividends this week.
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Chipotle's Long-term Growth Prospects Are Impressive
Feb 6, 2025
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Image Source: Valuentum.
During the fourth quarter of 2024, Chipotle bought back ~$330 million of stock, and as of the end of last year, the company had $1 billion remaining available under share repurchase authorizations. Looking to 2025, management expects full year comparable restaurant sales growth in the low to mid-single digit range and plans for 315-345 new company-owned restaurant openings with over 80% having a Chipotlane. At the end of 2024, Chipotle had 3,746 total restaurants, and the firm is targeting as many as 7,000 restaurants in North America alone. We like Chipotle’s long-term growth potential, and the firm remains a holding in the Best Ideas Newsletter portfolio.
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Alphabet’s Cash Flow Soars in Fourth Quarter
Feb 5, 2025
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Image Source: TradingView.
Google Search and other revenue advanced 12.5% in the quarter on a year-over-year basis, while YouTube ads increased 13.8%. Total Google advertising revenue increased 10.6% in the quarter year-over-year. Total Google Services revenue edged 10.2% higher, while Google Cloud revenue increased 30% from the same period last year. Alphabet ended the quarter with $95.7 billion in total cash and marketable securities and long-term debt of $10.9 billion, good for a robust net cash position. Net cash provided by operating activities soared to $39.1 billion in the quarter versus $18.9 billion in the year-ago period. Free cash flow in the quarter was $24.8 billion, up from $7.9 billion in last year’s quarter. We continue to like Alphabet as a top weighting in the Best Ideas Newsletter portfolio.
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