ASML: DOUBLE BEAT & RECURRING VIBES
The past week, ASML reported impressive Q3 results with strong bookings — proving once again why it’s indispensable for the next generation of chips What often goes unnoticed, though, is the continuous growth of its services segment, which provides recurring and stable revenue streams As the installed base grows, so do revenues from maintenance, spare parts, field upgrades, and uptime contracts Every six months, we see an increase in the average selling price of its EUV machines — a clear sign of remarkable pricing power On top of that, management is delivering a masterclass in capital allocation, having ramped up share buybacks precisely when the stock was trading at overly depressed levels For perspective, the stock is up +53% in the past six months.
**IS VISA BACK IN THE BUY ZONE? **
Visa’s stock has corrected about -10% from its June highs So far this year, it’s up +6.13% YTD, while the S&P 500 is running at +13.5%. Could one of the world’s highest-quality companies be offering a new entry opportunity? Visa is a cash-generating machine Every year, it brings in billions in free cash flow — which it returns to investors through buybacks and steady dividends It’s a business that grows consistently, has massive profit margins, operates in an oligopoly, and has a truly global presence Currently, the stock trades at a P/E of ~32x and P/FCF of ~29x — both below their multi-year averages (34x and 31x respectively) In other words, the “premium” built into the stock’s price has eased.
WHY I INVEST IN GOOGLE
It owns 14% of Anthropic It owns 8% of SpaceX It runs Gemini It powers Claude with TPU chips It covers 90% of all online searches It owns YouTube, Maps, and Android It runs Waymo It manages over 3 billion Google-powered devices Advertising, email, cloud, browser Wherever you go online… Google is already there And that is the real moat It’s not just a tech company — GOOGLE IS THE INTERNET.
**IS AI TAKING OUR JOBS? **
Over the past 3 years, META has increased total revenue by 50%, while its total workforce has decreased by -9% Looks like Zuck kept his promise when he called 2023 “the year of efficiency” The recovery in operating margins since late 2022 has been truly impressive META, like most of the MAG 7, is investing aggressively in AI development And it’s doing so with cash it already has, thanks to the massive inflows pouring into its balance sheet This could very well allow it to reduce its workforce even further as AI automates more and more functions How does META look to you from an investment point of view?
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