The growth potential of a company can be an important consideration when making investment decisions, as it might help investors determine whether a company is likely to offer potentially higher returns in the long run. But how can we assess a company's growth potential? We can focus on the following three key indicators. 1. Revenue Growth Revenue growth can be an important indicator of a company's performance. When assessing a company's revenue growth, here are three key considerations to keep in mind. First, the absolute value of the growth rate. A company might look more attractive if its revenue grows more than 20% on a year-on-year basis with steady and consistent quarterly growth. Second, the growth rate change: an increase in the growth rate over time is more ideal. Third, industry

Fundamental investors generally base their investment decisions on the intrinsic value of a stock. They tend to believe that when investing in a stock that is perceived to be undervalued, they are more likely to make a potential profit. Conversely, they believe that buying an 'overvalued' stock poses a higher risk of loss. The company's earnings report can provide insight into a stock's value, and fundamental investors commonly consider the following four methods. 1. PE Ratio The PE ratio measures a company's stock price relative to its earnings per share (EPS). EPS is calculated by dividing a company's net income by the number of outstanding shares of its common stock. It can also be calculated by dividing a company's market cap by its net income. The PE ratio is a widely used financial m

When earnings season comes around, publicly traded companies will announce their financial reports to the public. With so many financial data and performance figures in the report, one ratio tends to get the most attention from investors. That's the earnings per share. Earnings per share, or EPS, measures a company's profitability per outstanding share of common stock. In other words, it shows how much a company earns for each share. You will often see two EPS measures in a company's earnings report — basic and diluted. Basic EPS is computed by dividing a company's net income by the number of outstanding common shares. For example, if Company A has a net income of $10 million and has 5 million shares of common stock outstanding, it has an EPS of $2 per share.   If the company has

Picking stocks in the stock market is like picking items in a supermarket. Among various items, shoppers will see whether they get the best deals based on factors like brands, unit prices, and coupons. So how do investors know if they get a good deal or not in the stock market? In financial analysis, we can use two metrics to measure a company's fundamentals: return on assets (ROA) and return on equity (ROE). ROA is a profitability ratio calculated by dividing net income by a company's total assets. It measures how efficiently a company uses its assets to generate profits. In general, the higher the ROA ratio, the better, as it indicates that a company is making more profits from its assets. On the contrary, a low ROA means a company's management is not using its assets effectively. For ex

Cash flow is considered a very important aspect of any company's financial stability. Positive and stable cash flow can be crucial to maintain financial health, while cash flow disruptions can lead to bankruptcy risk. Moreover, cash flow often has a significant impact on stock valuation.  To evaluate a company's cash level, it's important to consider focusing on five key areas which we'll explore in more detail below. 1. Cash flow from operating activities This section shows the cash inflows and outflows from the company's daily operations, such as sales income and cash paid to suppliers. Subtracting cash outflow from cash inflow, we can get the net cash flow from operating activities.  If the number is positive, it means the company's operating activities generate more cash than

Maintaining a sound financial position is crucial for a company's growth. A company's solvency informs our investment decisions. It's better for investors to avoid companies struggling to pay off their debts as they may face the risk of bankruptcy due to disrupted capital flows. Generally, we use four indicators to measure a company's creditworthiness. 1. Debt-to-Asset Ratio The debt-to-asset ratio defines the proportion of a company's debt to its assets, reflecting its potential ability to meet its obligations. The formula for calculating this ratio is to divide total debts by total assets. Companies with heavy assets or poor cash flow often need to rely on debt to sustain operations, resulting in a higher debt-to-asset ratio. On the other hand, companies with lighter assets or better cas

The growth potential of a company can be an important consideration when making investment decisions, as it might help investors determine whether a company is likely to offer potentially higher returns in the long run. But how can we assess a company's growth potential? We can focus on the following three key indicators. 1. Revenue Growth Revenue growth can be an important indicator of a company's performance. When assessing a company's revenue growth, here are three key considerations to keep in mind. First, the absolute value of the growth rate. A company might look more attractive if its revenue grows more than 20% on a year-on-year basis with steady and consistent quarterly growth. Second, the growth rate change: an increase in the growth rate over time is more ideal. Third, industry

When a company released its financial report, how do we determine if it's good or bad? There are many indicators to consider, but we can simplify and focus on the following 4 key points. 1. Revenue growth The absolute value of the revenue growth rate may be a reliable indicator to help determine a company's growth momentum. The higher the growth rate compared to its peers in the industry, the more significant the company's growth potential. 2. Net income growth The absolute value of the net income growth rate is another key variable to consider when evaluating a company's growth.  Moreover, it's important to compare the net income growth to that of revenue. If the net income growth rate exceeds the revenue growth rate, it suggests that the company is becoming increasingly pr

$Palantir Technologies Inc.(PLTR)$  I would think that Palantir could continue to do well with the demand for more focus on data, but we need to be aware of the competition Palantir faces from established tech giants and new startups in the AI and data analytics space. And also a global economic downturn could affect demand for Palantir's solutions and impact its financial performance. Increased regulations related to data privacy and AI could pose challenges for Palantir and Attracting and retaining top talent in the competitive tech industry is crucial for Palantir's success. One important point is Palantir's high valuation is a key point to watch. While the company has strong growth potential, its stock price reflects high expectations. So

$Microsoft(MSFT)$  shares gained 1% after the company revealed plans to invest $80 billion in fiscal 2025 to expand data centers for AI model training and cloud application deployment. $Meta Platforms, Inc.(META)$  Analysts expect Meta to report Q4 revenue of approximately $46.9 billion, representing a year-over-year growth of about 17.1%. Earnings per share (EPS) are anticipated at $6.75, a 26.73% increase from the previous year.

ASML in October trimmed its sales forecasts for 2025, saying some areas of the semiconductor industry aside from AI were taking longer than expected to recover. The company is forecasting between 30 billion euros and 35 billion euros in sales this year, down from previous guidance of up to 40 billion euros. The long-term outlook for the chip industry remains promising as it believes AI creates a significant opportunity that should help push global semiconductor sales to more than $1 trillion by the end of the decade.

$Netflix(NFLX)$  The company behind the world's leading premium video streaming service reports its fourth-quarter results on Tuesday afternoon, the first trading day of the holiday-abridged market week. Expectations are high, but so is Netflix's share price. Netflix stock soared 83% in 2024, hitting a new all-time last month. Netflix is now a 17% gain away from crossing the $1,000 mile marker. A strong financial update this week could make that happen. If not, a couple of analysts believe that the shares will be trading in four figures later this year. It wouldn't be a surprise if Netflix goes ahead and announces a stock split.

$Tiger Brokers(TIGR)$ Analysts estimate TikTok U.S. could be valued between $20B and $100B. So far, real estate mogul Frank McCourt - joined by Canadian investor Kevin O'Leary - has made an offer for the app, while former U.S. Treasury Secretary Steven Mnuchin previously showed interest.

$Apple(AAPL)$  The company is dedicated to integrating AI across its product lines, and has invested approximately $20 billion in AI, with an estimated $4 billion invested in 2024 alone. We acknowledge the potential of AAPL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than AAPL but that trades at less than 5 times its earnings.

On a monthly basis, the Consumer Price Index surged by 0.4%, the largest increase since March and higher than the anticipated 0.3%. The energy index alone rose by 2.6%, contributing to over 40% of the monthly rise, primarily due to a 4.4% increase in gasoline prices. Food prices also saw a modest increase of 0.3%, and shelter costs edged up by the same margin. Investors still expect a low probability of a rate cut in January. However, interest rate futures traders increased their bets on the Federal Reserve's interest rate cut in June, and the probability of a second Fed rate cut in 2025 rose to about 50%.

Quantum computing is an emerging field with huge potential to revolutionize industries like AI and cryptography, but it's also very risky since many companies are still in early development Investing in quantum shares could bring massive gains if the technology succeeds, but it requires:  1. Understanding the field to pick promising companies.  2. Patience because the technology might take years to mature.  3. Smart risk management, like diversifying your investments. In short, it's about being bold but smart -- accepting risks for the chance at transformative wealth.

$Taiwan Semiconductor Manufacturing(TSM)$  The world's largest supplier of made-to-order chips gave investors an upbeat outlook and delivered fourth quarter earnings that beat analysts' estimates.  The supplier to $Apple(AAPL)$ , and $NVIDIA(NVDA)$ known as TSMC forecast revenue in the first quarter to reach $25 billion to $25.8 billion, bolstered by robust demand for chips that power artificial intelligence (AI) applications. That exceeded the $24.6 billion Bloomberg consensus.  The company also predicted gross margin could be between 57% to 59%, the midpoint of which is higher than the 57.2% analysts were anticipating, according to estim

$Advanced Micro Devices(AMD)$  AMD's delay to the AI market could be interpretated in two ways. On one hand, the company has been carefully studying its target niche, refining its AI solutions to avoid rushing into the market and risking product failures. Alternatively, AMD may be taking a cautious approach by observing and identifying AI needs that promise the greatest returns before making significant investments. Over the past quarters, AMD has seen steady growth in its data center revenue, while profits have surged significantly due to improved production yields. The company's strategy of outsourcing manufacturing to TSMC has been beneficial, enabling AMD to reduce fixed overhead costs. As the company looks toward 2025, it remains optimist

The TikTok drama took another twist Tuesday amid reports that billionaire entrepreneur Elon Musk is being discussed as a potential buyer. The popular social-media platform is facing a ban unless it sells its U.S. operations. Legislators have cited national security concerns as the basis for banning the app under its current ownership -- it is owned by ByteDance, a Chinese company. The Supreme Court is now set to make a decision by Jan. 19 on whether to uphold a bill passed by Congress.

Taiwan Semiconductor will host its fourth-quarter analyst meeting on Jan. 16. Lu expected another year of solid revenue growth in 2025E by 26.8% for Taiwan Semiconductor, following 29.4% revenue growth in 2024E (all in USD terms), driven by strong demand in leading-edge nodes mainly supported by continuous strong momentum from AI. The analyst also noted a more favorable competition landscape, with $Samsung Electronics Co., Ltd.(SSNLF)$ foundry and $Intel(INTC)$   foundry facing more difficulties as they move to more advanced nodes. Therefore, he modeled a mid-high single-digit price hike for 3nm and 5nm nodes and a 10%+ price hike for chip-on-wafer-on-substrate starting in 2025.