Three Stocks on Sale Series - October 2024

Overview

Presenter: Ali
Series: Monthly stock picks categorized by risk level
- Low Risk: Google (Ticker: G)
- Medium Risk: Expedia (Ticker: EXPE)
- High Risk: Super Micro Computer (Ticker: SMCI)

Current Status: Despite climbing, Google trades lower than peers (Amazon, Apple, etc.)
Market Cap: Below $2 trillion
- Amazon, Apple, Microsoft, Nvidia are higher
Performance:
- Strong sales and profitability
- Double-digit sales growth
- EPS growth over 20% expected
AI and Data: Significant player
- Dominates internet markets
- Key assets: Search, YouTube, Android, etc.
Valuation: Cheaper PEG ratio than sector median
Conclusion: Buy on dips; potential to rise significantly

Market Position:
- US market leader in lodging (alongside Verbo, Hotels.com)
- Internationally, Booking Holdings is dominant
Challenges:
- Competition from Airbnb and Booking Holdings
- 30% decline from past highs
Positives:
- Travel recovery post-pandemic
- Attractive valuation compared to rivals
Financials:
- Positive EPS growth
- Trades below average analyst price targets
Future Outlook:
- Travel market strength critical
- Interest rates and recession risks
Conclusion: Contemplating purchase; diversify into travel

Business Model:
- Offers customizable servers for various tasks
- Partners with Nvidia for AI and supercomputing
Technological Edge:
- Advanced cooling technology
- High compute density
Financials:
- Doubling sales and profits
- Current stock performance down over 60%
Concerns:
- Falling margins
- DOJ investigation following short-seller reports
Speculative Factors:
- Upcoming stock split (10-for-1)
- Extremely low PEG ratio
Conclusion: High risk but potential AI market player; added to personal portfolio