- Carbon Finance
- Posts
- 🏋️♂️ These Companies Have The Most Debt
🏋️♂️ These Companies Have The Most Debt
1) Top 10 Companies With The Most Debt 2) 21 Stocks Ranked By Revenue Growth, 3) Just How Big Is Microsoft, and more!
Happy Tuesday.
I hope you all had a relaxing weekend and got to spend time with friends and family on Thanksgiving. The market was closed on Thursday and closed early on Friday, but there were still some notable updates.
Some key data bites you should know:
Black Friday e-commerce spending in the U.S. increased by 7.5% from last year, reaching a record $9.8B.
Apple iPhone maker Foxconn will invest $1.54B in India as part of its expansion plan.
Hedge funds have suffered an estimated $43B in losses on short bets in US and European markets due to the recent sharp rally.
Chinese leaders are intensifying efforts to resolve the property crisis by urging banks to fund an estimated $446B shortfall for the industry.
U.S. consumers are expected to continue robust holiday spending this year, bolstered by $433B in excess savings.
In today’s newsletter:
🏋️♂️ Top 10 Companies With The Most Debt
📈 21 Stocks Ranked By Revenue Growth
🎮 Just How Big Is Microsoft
Let’s dive right in!
Not subscribed yet? Sign up today!
🏋️♂️ Top 10 Companies With The Most Debt
Here are the top 10 companies with the highest amount of debt.
We see them falling into distinct industry sectors, each using debt for sector-specific purposes:
Telecommunications ($VZ, $T, $TMUS): Large debt is often used to fund network expansions and technology upgrades like 5G.
Technology ($AMZN, $AAPL, $MSFT): Debt is typically used for diverse purposes like research and development, expanding digital infrastructure, and venturing into new market segments.
Automotive ($F, $GM): Debt is used primarily for manufacturing advances, developing electric and autonomous vehicles, and coping with the cyclical nature of the auto industry.
Media and Broadcasting ($CMCSA, $CHTR): Debt is used for content acquisition, infrastructure development for broadcasting, and competing in the rapidly evolving digital media landscape.
Accumulating debt can increase a company's financial risk, especially if a company has variable-rate debt, as rising interest rates can significantly increase its debt cost.
Key indicators like the debt-to-equity ratio and the company's ability to generate increasing revenue and cash flow are the key metrics to look at when determining if a company can manage its debt.
📈 21 Stocks Ranked By Revenue Growth
Now that most major companies have reported earnings, we can take a look at their 5-year revenue compound annual growth rates (CAGR).
As we see, companies with smaller market caps typically exhibit faster growth rates. While many investors focus on one-year revenue growth, which can vary for numerous reasons, a 5-year CAGR provides a more stable representation of a company's growth trajectory and long-term trend.
It's important to note that slowing revenue growth isn't necessarily the end of the world. Companies can compensate by improving their profit margins and operating efficiency, which can lead to increased cash flow and profits despite slower growth.
For example, Salesforce quickly achieved over 30% non-GAAP profit margins in Q2 by cutting costs, laying off staff, and raising product prices. Similarly, Meta Platforms enhanced operating efficiency by cutting annual expenses to $87B - $89B and reducing headcount by 21,000, resulting in a 40% operating margin.
🎮 Just How Big Is Microsoft
Microsoft has experienced remarkable growth this year, with its stock climbing 58.03% year-to-date, bringing its market capitalization to $2.81T. This is just shy of Apple’s $2.95T market capitalization. In January of 2022, Apple became the first company to hit a $3T market cap during intraday trading.
The enormity of these values, often overlooked by investors, highlights the staggering scale of these tech giants. To put it into perspective, Microsoft's current market cap is comparable to the combined market cap of 33 of the most recognized companies in the world, underscoring its significant presence in the market.
💾 H20 Delay. Nvidia $NVDA is delaying the launch of its new H20 AI chip in China until Q1 2024 due to U.S. export rules compliance - R
🇨🇳 Alibaba Restructure. Alibaba $BABA is in the process of revamping its cloud computing unit with new leaders, focusing on AI and public cloud to rejuvenate the division - CNBC
🚕 Uber To Raise Money. Uber $UBER is planning to sell $1.2B in bonds to raise money for its operations and growth - BB
Notable Companies Reporting Earnings This Week:
Monday:
Zscaler $ZS
Tuesday:
Intuit $INTU, PDD Holdings $PDD, Workday $WDAY, CrowdStrike $CRWD, Splunk $SPLK
Wednesday:
Salesforce $CRM, Synopsis $SNPS, Snowflake $SNOW, Dollar Tree $DLTR, Okta $OKTA, Pure Storage $PSTG, Foot Locker $FL, Victoria’s Secret $VSCO
Thursday:
Dell $DELL, Marvell Technology $MRVL, Kroger $KR, Ulta Beauty $ULTA, UiPath $PATH
Friday:
Genesco $GCO
All of the companies that are reporting earnings this week can be viewed here.
Major Trades Published Since 11/20. Trades may be those of family members. [Source: 2iQ]
Buys:
Michael McCaul (R)
Company: JPMorgan Chase ($JPM)
Amount Purchased: $2M - $4M
Company: Taiwan Semiconductor ($TSM)
Amount Purchased: $250K - $550K
Company: AT&T ($T)
Amount Purchased: $115K - $300K
Company: Alphabet ($GOOGL)
Amount Purchased: $95K - $250K
Sells:
Michael McCaul (R)
Company: JPMorgan Chase ($JPM)
Amount Sold: $2M - $4M
Company: Microsoft ($MSFT)
Amount Sold: $350K - $750K
Company: Nvidia ($NVDA)
Amount Sold: $200K - $500K
Chuck Fleischmann (R)
Company: SPDR Portfolio Developed World Ex-US ETF ($SPDW)
Amount Sold: $15K - $50K
How was today's newsletter?We value all of feedback we receive. Let us know how we did so we can continue to make this the best investing newsletter available! |
🤝 Review of the Week
Disclosure: I own shares of Apple ($AAPL), Amazon ($AMZN), and Microsoft ($MSFT)
Disclaimer: The publisher does not guarantee the accuracy or completeness of the information provided in this page. All statements and expressions herein are the sole opinion of the author.
Carbon Finance is a publisher of financial information, not an investment or financial advisor. We do not provide personalized or individualized investment advice or information that is tailored to the needs of any particular recipient.
The information contained on this website/newsletter has been crafted with the assistance of an AI language model to enhance the content of this newsletter. We have made efforts to ensure the quality and reliability of the information presented, but we cannot guarantee its absolute accuracy. Therefore, readers are advised to exercise their own judgment and seek additional sources if necessary.
THE INFORMATION CONTAINED ON THIS WEBSITE/NEWSLETTER IS NOT AND SHOULD NOT BE CONSTRUED AS INVESTMENT ADVICE, AND DOES NOT PURPORT TO BE AND DOES NOT EXPRESS ANY OPINION AS TO THE PRICE AT WHICH THE SECURITIES OF ANY COMPANY MAY TRADE AT ANY TIME. THE INFORMATION AND OPINIONS PROVIDED HEREIN SHOULD NOT BE TAKEN AS SPECIFIC ADVICE ON THE MERITS OF ANY INVESTMENT DECISION. INVESTORS SHOULD MAKE THEIR OWN INVESTIGATION AND DECISIONS REGARDING THE PROSPECTS OF ANY COMPANY DISCUSSED HEREIN BASED ON SUCH INVESTORS’ OWN REVIEW OF PUBLICLY AVAILABLE INFORMATION AND SHOULD NOT RELY ON THE INFORMATION CONTAINED HEREIN.
No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned.
Any projections, market outlooks or estimates herein are forward looking statements and are inherently unreliable. They are based upon certain assumptions and should not be construed to be indicative of the actual events that will occur. Other events that were not taken into account may occur and may significantly affect the returns or performance of the securities discussed herein. The information provided herein is based on matters as they exist as of the date of preparation and not as of any future date, and the publisher undertakes no obligation to correct, update or revise the information in this document or to otherwise provide any additional material.
The publisher, its affiliates, and clients of the publisher or its affiliates may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.
Neither the publisher nor any of its affiliates accepts any liability whatsoever for any direct or consequential loss howsoever arising, directly or indirectly, from any use of the information contained herein.
The views and opinions expressed in this newsletter are solely those of Carbon Finance and do not reflect the official policy or position of any other agency, organization, employer or company.
By using the Site or any affiliated social media account, you are indicating your consent and agreement to this disclaimer Unauthorized reproduction of this newsletter or its contents by photocopy, facsimile or any other means is illegal and punishable by law.