ThesisIn my opinion, Rivian (NASDAQ:RIVN) is a speculative story-based long-duration asset that is priced to perfection.Valuedat a one-year forward EV/Sales of about x10, the company has arguably little room to misstep.But on 10 Octobera major misstep happened: Rivian hasannounceda recall ofnearly allof the company's past EV deliveries. The trading day following the news, RIVN shares have lost as much as 11%.I don't think Rivian's long-term prospects will be severely impacted by the EV vehicle recall. But still, the company's valuation is simply too high for investing with the risks associated to a story-led business case - especially given the current environment with depressed sentiment towards growth stock.Rivian stock is down some 80% YTD. But there is still excessive risk in the compa

Li Auto is too cheap to ignoreLi Auto’s EPS predictions imply that the market expects the company to achieve its first small profit in FY 2022… which means Li Auto is expected to reach profitability sooner than its rivals NIO and XPeng. NIO is expected to see its first profits in FY 2024 while XPeng is expected to turn a profit in FY 2025.Based off of revenue predictions, Li Auto has a P-S ratio of 1.6 X which makes the EV company cheaper than NIO which has a P-S ratio of 2.2 X.Risks with Li AutoLi Auto has two main commercial risks: (1) The slowdown in delivery growth is set to impact the speed with which revenues are ramping up,(2) Vehicle margins for Li Auto have started to drop which indicates growing cost and margin pressures… in both cases this could translate to a lower valuation fa

Advanced Micro Devices, Inc. (NASDAQ:AMD) is scheduled to host its Q3 earnings call after market close this Tuesday, November 1. Although the company has already released a dismal set of preliminary Q3 numbers, there’s still a lot of uncertainty aboutthe extent of its sales slump. So, in addition to tracking its headline financial figures, investors may also want to monitor its purchase commitments, guidance for the next quarter or two and its management's comments about their production trends amidst a recessionary environment. These items will better highlight where AMD and its shares may be headed next. Let’s take a closer look at it all.The Preliminary NumbersFor the uninitiated, AMDpre-releasedits Q3 financials earlier this month on October 6. Its top brass was forecasting revenue of

As predicted, Occidental Petroleum(NYSE:OXY) has rallied to $70 providing an ideal exit point. Warrant Buffett has continued snapping up shares, but the investment guru shows no interest in paying premium prices for the energy stock. Myinvestment thesisis Bearish on Oxy now trading at levels where Berkshire Hathaway(BRK.B) appears uninterested in snapping up shares.Buffett Not Paying Above $60Warren Buffett clearly wants to purchase as much of Oxy as possible with his investment firm now owning 194 million shares. Berkshire Hathaway last bought1.7 million shareson September 28 at an average price of $60.71.Source: FinVizThe company bought all of the previous shares since March in the $50 price range. Amazingly, Oxy hasn't traded below $60 for many days since March, yet Berkshire

IntroductionIn this article, I would like to start with a recent announcement that Microsoft (NASDAQ:MSFT) made and then show how, even though it may be of little relevance, it offers once again the opportunity to understand how Microsoftruns its business and, most important, defends its wide moat.I really enjoy carrying out this kind of research, especially when I have to deal with a very large company such as Microsoft. In fact, I think that very often, understanding well how one particular choice works, enables me to get a grasp of the whole company better than if I were to analyze only its financials without diving into some of its operations.Microsoft DesignerLet's get to the announcement:Microsoft is launching Microsoft Designer, a graphic design app in Microsoft 365 that helps users