Should you buy ASML stock? (January 2024)

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ASML stock analysis. Ticker: $ASML

ASML makes lithography machines that are used to produce microchips. The company just reported earnings and the stock jumped 10% giving the company a market value of 338 billion dollars. With 8.7 billion of cash and investments and just under 4 billion of debt, the enterprise value is 333 billion.

ASML’s machines are highly complex and sell for hundreds of millions of dollars. But they are also an integral part of the semiconductor industry and the company has a near monopoly in the space. Revenues over the last year increased by 30% to 30 billion US dollars, with net income increasing 44% to 8.7 billion. Gross margins also moved above 51%.

Despite the jump in share price, ASML’s guidance for 2024 looks rather weak. The company thinks next quarter revenue could drop 20% and full year revenue is likely to be flat. A major reason is that export controls with China could affect 10-15% of sales. So if revenue isn’t going to grow this year why is the stock so expensive at 11 times revenue, and 40 times earnings?

#investing #asmlstock #stockstobuy #stockstobuynow
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Excelent company! I have had shares for more than 10 years and they increase every time they correct. Great video!

sepolopez
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worth noting that they won't be 'taking' market share over the next 10 years like the last 10 years as they have it all now..!

sillyschmeyi
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Great company to hold ! Wide moat, very high barriers to entry and they’re a critical part of the global semiconductor supply chain. Very long on companies like ASML, LAM Research, Applied Materials, KLA Corporation, Synopsys, Cadence Design.

themusic
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Would you buy the stock now after the last climb of 13% last month, or wait for a cheaper entry point?

daniqm
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Hou op! Schei uit! De order portefeuille is nagenoeg leeg. Maar wel bedelen bij de overheid om nog meer geld en nog betere belastingafspraken. En de kleine ondernemer mag dat allemaal gaan betalen. Goed bezig Peter Wennink!

woestewolden
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Excellent company. Thanks for update on this company😊. I personally been looking at a similar company, ASM international. Like 20B market cap so there could be higher upside

oxyl
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Think You need to to new stocks. Not same. I understand that report and stuff can change the outcome but:)

SmoochiepooBaconterror