Key Points
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Netflix’s management has shown discipline, which bodes well for its Stock.
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Microsoft is well diversified, and its AI business is growing especially briskly.
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Nvidia shares have surged, but its Stock still seems appealingly priced.
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As of June 30, Netflix’s shares dropped approximately 47% over the past year, despite seeing a 16% year-over-year revenue increase and an 18% rise in operating income in its first-quarter report. The company’s current forward P/E ratio stands at 22.4, below its five-year average of 31.3.
Microsoft’s shares fell about 24% during the same period. The company reported an 18% increase in revenue and a 23% rise in net income in its latest third-quarter report. Its AI business has surpassed an annual revenue run rate of $37 billion, marking a 123% year-over-year increase. The current forward P/E ratio is 16.7 versus a five-year average of 28.9.
Nvidia has seen a 27% share price increase as of June 30, with a market value of approximately $4.8 trillion. The company reported an 85% revenue growth year-over-year in its last quarter. Nvidia’s forward P/E ratio is currently at 22.8, lower than its five-year average of 35.4.
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