🍿 Netflix Hits 270M Subs

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Some key data bites from this week that you should know: 

• Tesla $TSLA plans to ask shareholders to reinstate Elon Musk’s $56B compensation package.

• U.S. digital ad revenue increased 7.3% to $225B in 2023.

• Amazon $AMZN Prime Memberships increased 8% to 180M US shoppers.

• ASML’s $ASML net sales fell 21.6% YoY in Q1 2024.

• Microsoft’s $MSFT AI Copilot now has 1.3M customers.

• Micron $MU is set to receive $6.1B to build semiconductor plants.

• GTA publisher Take-Two $TTWO to lay off 5% of staff.

In today’s newsletter:

• 🍿 Netflix Hits A New Record

• 💾 TSMC Cuts Its Forecast

• 📈 10 Baggers Of The Last Decade

Let’s dive right in!

Netflix and chill is back on the rise.

The streaming giant reported Q1 2024 earnings last night with strong performance across the board.

Here’s a rundown of the key figures:

• Earnings: $5.28 (+83% YoY, vs. $4.52 Est. from LSEG)

• Revenue: $9.37B (+15% YoY, vs. $9.28B Est. from LSEG)

• Global Paid Subscribers: 269.6M (+16% YoY, vs. 264.2M Est. from Street Account)

The company's operating income jumped by 54% YoY, with operating margin expanding from 21.0% last year to 28.1% this year.

This, coupled with free cash flow of $2.1B, marked a robust quarter from Netflix.

The company also added 9.33M net new paid subscribers, reaching a total of 270M paid subscribers globally.

However, it's worth noting that the company plans to stop reporting subscriber numbers next year, shifting the focus to revenue and operating margin as key indicators of its health and growth.

This strategic pivot and a slightly below-estimate revenue growth forecast of 13% to 15% for 2024 likely contributed to the stock's after-hours decline.

TSMC just signaled a warning.

The world's largest advanced chipmaker also reported Q1 2024 earnings yesterday.

Although TSMC exceeded quarterly expectations, their less optimistic outlook led to a near 5% drop in shares for the day.

Here’s a rundown of the key figures:

• EPADR: $1.38 (+8.9% YoY)

• Net Income: NT$225.49B ($7.17B USD) (vs. NT$213.59B Est.)

• Net Revenue: NTS$592.64B ($18.9B USD) (vs. NTS$582.94B Est.)

• Operating Margin: 42.0% (-3.5 ppts)

• Cash On Hand: $53.1B

• Return On Equity: 25.4%

In NTS$, revenue and net income increased 16.5% YoY and 8.9% YoY, respectively.

Looking ahead, management expects revenues of $19.6B to $20.4B and an operating profit margin of 40% to 42%.

Despite this, the stock decline as TSMC revised down its overall semiconductor growth forecast, excluding memory chips, to about 10%.

This was primarily due to unexpected declines in the automotive sector.

Given the stock's 52% rise over the past year, any hint of a weaker than expected forecast likely rubbed investors in the wrong way.

Finding a 10 bagger is basically like winning the lottery.

And if you do it consistently enough, you’ll become the next Warren Buffett.

But what exactly is a 10-bagger? Coined by the legendary investor Peter Lynch, it refers to a stock that has increased 10x its initial value.

Here, I’ve compiled a list of 10 stocks that have achieved this tenfold growth over the last decade, as as you’ll see, the list features a wide range of companies.

Noteworthy mentions include Celsius, known for its energy drinks; FICO, the credit scoring giant; and Eli Lilly, which has benefited from its obesity drugs.

And of course, Nvidia, Supermicro, and AMD also make the cut, thanks to their pivotal roles in the AI revolution.

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Notable Companies Reporting Earnings Next Week:

• Monday (4/22):

  • SAP $SAP, Verizon $VZ, Cadence Design Systems $CDNS, Truist Financial $TFC

• Tuesday (4/23):

  • Tesla $TSLA, Visa $V, Pepsico $PEP, GE Aerospace $GE, Danaher $DHR, Texas Instruments $TXN, Philip Morris $PM, UPS $UPS, Lockheed Martin $LMT, Spotify $SPOT, General Motors $GM

• Wednesday (4/24):

  • Meta Platforms $META, Thermo Fisher $TMO, IBM $IBM, ServiceNow $NOW, Lam Research $LRCX, AT&T $T, Boeing $BA, Waste Management $WM, Chipotle Mexican Grill $CMG, Ford $F 

• Thursday (4/25):

  • Microsoft $MSFT, Merck & Co $MRK, Astrazeneca $AZN, T-Mobile $TMUS, Caterpillar $CAT, Intel $INTC, Altria $MO, Snap $SNAP

• Friday (4/26):

  • Exxon Mobil $XOM, Chevron $CVX, AbbVie $ABBV, Colgate-Palmolive $CL, Phillips 66 $PSX, AON $AON

All of the companies that are reporting earnings next week can be viewed here.

Buys

• Tommy Tuberville (R)

  • Company: Federal Home Loan Mortgage Corp ($FMCC)

    • Amount Purchased: $100K - $250K

  • Company: Humacyte ($HUMA)

    • Amount Purchased: $32K - $130K

• Doug Lamborn (R)

  • Company: NetApp ($NTAP)

    • Amount Purchased: $45K - $150K

Sells

• Doug Lamborn (R)

  • Company: NetApp ($NTAP)

    • Amount Sold: $45K - $150K

• Tommy Tuberville (R)

  • Company: Apple ($AAPL)

    • Amount Sold: $15K - $50K

  • Company: Qualcomm ($QCOMM)

    • Amount Sold: $15K - $50K

🤝 Review of the Week