Let’s play a little game.
Suppose I were to tell you about a tech company with a $68 billion market cap boasting some seriously impressive financials.
I’m talking about a 14.27% profit margin on almost $29 billion of trailing 12-month (ttm) revenue. $5.49 billion EBITDA. Trailing 12-month operating cash flow of $4.32 billion. $4.08 billion net income available to common shareholders. 417% year-over-year EPS growth as of their most recent earnings report. It’s a solid large-cap performer that’s making great money with plenty of room to stretch its proverbial legs.
And now suppose I were to tell you that 435 million people take advantage of its services daily.
How much would you imagine that stock has risen in this year’s tech-driven rally that’s sent the Nasdaq Composite soaring up over 30% since the beginning of the year? 20%? 30%? 50%?
You’d be wrong on all counts. It’s down 18% since January 2023, and down over 79% from its highs two years ago. And it has one of the ugliest charts you’ve ever seen on a company that’s doing so well.
What gives? Well, in a nutshell, the stock is, for lack of a better term, boring. It’s so ubiquitous that it fades into the background of everyday life, and investors just don’t have a whole lot of interest in it.
But I think they’re missing out on a huge opportunity to pick up an incredible company at an enormous discount. Especially because there’s a catalyst waiting in the wings that’s very likely to send it flying high once more.
You see, this particular company’s bread and butter is payment solutions, and it has the potential to do something no other company has done so far – establish a stablecoin (a cryptocurrency that is indexed to a real asset) for the U.S. dollar that’s got legitimate enough backing to drive widespread adoption.
And if they pull it off, we’re going to see this beaten-up fintech stock take flight again. You want to own it now, while it’s still on sale.
For all the details, check out today’s video:
— Shah Gilani
Source: Total Wealth