Brian Feroldi

"Alphabet is in phase four, the capital return phase."

"Is Alphabet stock cheap or expensive at 339 per share?"

"A good recent case study is Uber. See, when Uber came public in the 2010s, it was losing billions in dollars in profit every year. In fact, its loss hit negative8.5 billion dollars in 2019. But as the company continued to grow revenue and scale operations, those losses actually peaked and started to decline. And as you pass forward the clock, you see that the company eventually reached profitability. And over the last 12 months, it generated $6.7 billion in operating profit. So this is a beautif"

"Think of a company like Rivian as an example. Rivian is a business that is not optimized for profit today. Instead, what the company is focused on is growing its revenue. So, it's very clear that Rivian is in phase two, the hyperrowth phase. Now, Rivian has been producing a loss ever since it was created. And that's something that investors are okay with because it's focused on optimizing for enterprise value, not for near-term profits."

"If you look at some of the most successful companies today like Tesla, Amazon, Meta and Google, this is exactly the strategy that these companies pursued in the early 2000s."

"If you look at some of the most successful companies today like Tesla, Amazon, Meta and Google, this is exactly the strategy that these companies pursued in the early 2000s."

"If you look at some of the most successful companies today like Tesla, Amazon, Meta and Google, this is exactly the strategy that these companies pursued in the early 2000s."

"If you do the exact same analysis on a company like Walmart, you see the exact same results. Revenue is growing. The company is trying to be profitable and it's returning capital to shareholders. So, Walmart is also very clearly in phase four of the capital return phase."

"Take a company like Apple as an example. Apple is a mature business that's trying to grow revenue, generate profits, and return them to shareholders via dividends and buybacks. So, Apple is very clearly in phase four, the capital return phase."

"Which phase of the business growth cycle is Apple in? Figure that out. You need to ask three questions. First, is revenue growing? The answer there is yes. Revenue grew 6% over the last 12 months to 467 billion. Question number two is, is the company profitable? Well, Apple is an asset light business, which means the best profit metric to use is operating profit and that figure was 155 billion over the last 12 months. Final question is, is the company returning capital to sharehold? The answer t"

"And on that front, Microsoft generated 161 billion over the last 12 months."

"Which phase of the business growth cycle is Microsoft in?"

"I wouldn't want to sell any of them to buy a beaten down company like Nike, even though the returns from Nike could be much greater than these businesses if the business can turn."

"companies like Alphabet, Marcato, Libre, and Amazon. These are some of my top personal holdings"

"companies like Alphabet, Marcato, Libre, and Amazon. These are some of my top personal holdings"

"it's possible that the company's brand competitive advantage can be eroded away if the marketing isn't good. And that's truly what you're betting on if you're making a bet on a stock like Nike."

"The entire moat around footwear and apparel companies like Nike and AR Under Armour really boils down to branding."

"Once upon the time, I was a big shareholder of Under Armour."

"So, when I personally weigh the bull and the bear case here, my personal feelings is that Nike stock belongs in my too hard pile today."

"Fixing a damaged brand is very hard to do and it can take a long time and there are no guarantees that the company will be able to do so successfully."

"Companies like Chipotle, Crocs, Best Buy, and Starbucks all went through crisises like this."

"Companies like Chipotle, Crocs, Best Buy, and Starbucks all went through crisises like this."

"Companies like Chipotle, Crocs, Best Buy, and Starbucks all went through crisises like this."

"Companies like Chipotle, Crocs, Best Buy, and Starbucks all went through crisises like this."

"So that is very much the bullcase for buying Nike stock today, that the company could go on a run like these successful turnarounds did."

"Is Nike stock a buy at these levels or is it a sell?"

"I do think that Nike still is in phase 4, although it's definitely teetering on the edge of phase 5."

"Wall Street believes that Nike has now entered phase 5 and is permanently assigning it a lower multiple."

"And that brings us to the final reason that Nike stock has been under such tremendous selling pressure, and that is because of a rerating that is happening."

"But it was that brand marketing that the company had built a name for itself for and had worked so well for years. But Donna Hugh decided to shift away from this marketing"