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pongxz

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- pongxzpongxz
  ·2021-06-29
  Still early days...
  Booking Holdings Poised To Emerge Strongly From Pandemic
  Summary Booking Holdings has massive growth potential as vaccine rollouts continue and travel restr
  Booking Holdings Poised To Emerge Strongly From Pandemic
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- pongxzpongxz
  ·2021-06-28
  Nio!
  Ford Or NIO? The Final Verdict
  I am comparing Ford against NIO in different categories.The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.NIO is growing a lot faster than Ford and the high valuation may be justified.With Ford launching a major offensive in the market for electric vehicles, Chinese EV maker NIO will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based
  Ford Or NIO? The Final Verdict
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- pongxzpongxz
  ·2021-06-27
  Noted thanks!
  Sorry, this post has been deleted
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- pongxzpongxz
  ·2021-06-22
  For as long as they continue to innovate and revolutionise.
  Sorry, this post has been deleted
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- pongxzpongxz
  ·2021-06-20
  Like and comment pls!
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- pongxzpongxz
  ·2021-06-19
  Nice ??
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early days...","listText":"Still early days...","text":"Still early days...","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/150650369","repostId":"1171400086","repostType":4,"repost":{"id":"1171400086","kind":"news","pubTimestamp":1624892835,"share":"https://ttm.financial/m/news/1171400086?lang=en_US&edition=fundamental","pubTime":"2021-06-28 23:07","market":"us","language":"en","title":"Booking Holdings Poised To Emerge Strongly From Pandemic","url":"https://stock-news.laohu8.com/highlight/detail?id=1171400086","media":"seekingalpha","summary":"Summary\n\nBooking Holdings has massive growth potential as vaccine rollouts continue and travel restr","content":"<p><b>Summary</b></p>\n<ul>\n <li>Booking Holdings has massive growth potential as vaccine rollouts continue and travel restrictions are lowered.</li>\n <li>Their profitability will improve in the coming years as they shift more focus toward Merchant Revenues.</li>\n <li>They are the dominant leader in the travel industry in terms of market capitalization. They will lead the resurgence in travel.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/4b353272bc77a8652f501a49ab3d082d\" tg-width=\"1536\" tg-height=\"1024\" referrerpolicy=\"no-referrer\"><span>tupungato/iStock Editorial via Getty Images</span></p>\n<p><b>Poised for a comeback</b></p>\n<p>Booking Holdings(NASDAQ:BKNG), the world leader in online travel services, is in prime position to emerge from the pandemic in spectacular fashion and spearhead the worldwide resurgence in travel. They will do this by growing their core business, especially within the U.S. where they currently trail in market share, and by shifting their business model to focus more heavily on collecting merchant revenues, which are far more profitable than the agency revenues that make up most of their current sales figure.</p>\n<p><b>Growth Strategies emerging from pandemic</b></p>\n<p>Booking Holdings is aiming at growth strategies through two main avenues; expanding and solidifying a uniform payment platform, and capturing more U.S. market share. Both of their growth strategies are centered around their move towards an increasingly merchant focused business model.</p>\n<p>Integrating a uniform payment platform can help Booking power the frictionless global marketplace that they seek to create. Booking is trying to alleviate the problem of foreign exchange complications and users not being able to pay how they want for travel. The current payment platform is catching on, but slowly. Only 22% of gross bookings in 2020 were processed on Booking's integrated platform. However, this is up from 15% in 2019, and the figure is expected to grow in the coming years. Implementing this platform will enable merchandising capabilities that Booking hasn't had access to historically. Most importantly, it is foundational for the \"connected trip\" strategy; a seamless offering of multiple elements of travel, and Booking's long-term strategic goal.</p>\n<p>Capturing a greater share of the U.S. market is an imperative growth strategy for Booking for numerous reasons. Firstly, Booking trails competitors Expedia and Airbnb in terms of U.S. market share. While the U.S. hotel market is not quite as profitable for travel fare aggregators like Booking and Expedia when compared to the European market, mainly due to the dominance of hotel chains in the U.S., the potential for Booking to tap into the U.S. alternative accommodation market is promising. And this is what leadership is trying to do. In order to penetrate the market Booking will focus on product improvements, raising consumer awareness of this type of inventory, and supply acquisition. They are planning to work with professional property management partners to grow and acquire a supply of single-home properties. Additionally, as a result of the covid-19 pandemic and associated regulations there has been a shift in favor of domestic travel and alternative accommodations, a signal for Booking to enter into the U.S. space where they currently lack market share. To paint a picture of the growth potential; 41% of Airbnb's revenue comes from its U.S. segment. That 41% is larger than the entire European market where Booking currently has a strong foothold. This implies thatBooking has an opportunity to double their alternative accommodation businessby penetrating into the U.S.</p>\n<p>The growing trend of homeowners leasing out their unused living spaces is staggering, and it is what pumps Airbnb's valuation up so high to its current Enterprise Value of $114B. Even though Booking records 3x Airbnb's pre-pandemic revenues, their Enterprise Value is 15% less. Many indicators point to Airbnb being overvalued, but one thing is clear; the market for alternative accommodations is growing at immense rates worldwide, and Booking is well poised to dig their teeth into a large chunk of that market share.</p>\n<p><b>Shift from Agency to Merchant Revenues</b></p>\n<p>The most exciting thing on Booking's horizon, however, is their focus on becoming more profitable by shifting revenues to weigh more heavily on the merchant segment. Booking has scaled up to be the world leader in market share, and now they are prepared to capitalize on their huge size and reach. Below, I will break down the differences between the two significant revenue items that Booking recognizes, Agency Revenues and Merchant Revenues. Figure 3 shows 2019 revenue breakdown.</p>\n<ul>\n <li><p>Agency Revenues make up the bulk of Booking's total revenue figure. These revenues are derived from transactions in which Booking does not facilitate payments for services, and consist almost entirely of travel reservation commissions invoiced to service providers after travel is completed. This type of revenue model is what helped Booking scale up to attain the market share they have today. However, since they don't facilitate the payments, they are limited on fees and other benefits like increased float.</p></li>\n <li><p>Merchant Revenues make up the second largest chunk of Booking's total revenue figure, but are growing at a faster rate. These revenues are derived from transactions in which Booking facilitates the payment of services, generally at the time of booking. From a cash flow perspective, since Booking gets money upfront and doesn't relinquish it to the service provider until the time of stay, they are able to hold onto this cash for months, mostly for free, and can use it to invest and grow the business. These revenues are also more lucrative because Booking charges fees on top of already higher commissions.</p></li>\n <li><p>Advertising &amp; Other Revenues make up the smallest portion of Booking's total revenue figure. These revenues are largely derived from referrals, subscription fees, and advertising placements.</p></li>\n</ul>\n<p>Under CEO Glenn Fogel's leadership, Booking Holdings istaking strides to grow their merchant revenues at rapid rates. The merchant business model is far more lucrative for Booking on a commission basis, and it also improves their cash flows, allowing them to invest more heavily into future projects. The agency model is great for cheap growth; it is what helped Booking reach the dominant market position that it has today. But the time to capitalize on their massive scale has come, as leadership takes them in a more value-productive direction. Increasing merchant revenues will make them more profitable, improving their already above-average EBITDA margin. Figure 4 shows Booking's growing focus on merchant revenues since Glenn Fogel became CEO in 2017.</p>\n<p>Keep in mind, Booking's largest competitor, Expedia, has a closer split between Agency and Merchant revenues than they do. Despite this, Expedia only has an average 15% EBITDA margin across the last twelve years, compared to Booking's 37%, which will only go up as Booking narrows the field between Agency and Merchant revenues (industry benchmark is 30%). This demonstrates how much more efficient Booking is at turning sales into profits, and highlights the fact that they consistently outperform their competitors in doing so. Moving forward, they will only widen this gap.</p>\n<p><b>There</b>&nbsp;<b><i>are</i></b>&nbsp;<b>Risks</b></p>\n<p>Reliance on an industry bounce back is one. Booking has a heavy reliance on the overall travel industry getting back on its feet as soon as possible. If government regulations and social distancing sentiments continue to stifle the travel industry at large, it will take Booking longer to return to their pre-pandemic scale.</p>\n<p>Competitors are another. Booking faces competition from all angles. Expedia is their main direct competitor, and currently holds a majority U.S. market share. If Booking fails to expand more prominently into the U.S. and stagnates growth in other global markets, their overall industry market share dominance could be threatened. Airbnb is spearheading the rise of alternative accommodations, a market that Booking is also competing in. Google could continue its dive into successful reservation meta-search applications such as Google Flights. Their continued expansion into the space could take significant market share away from Booking. Lastly, many hotel chains, especially in the U.S., are developing and facilitating their own direct channels for travelers. If they can create enough consumer awareness and drive enough traffic to their own flagship sites, there would be no need for a majority of Bookings services.</p>\n<p>COVID-19 Effects on Finances cannot be omitted. The adverse impacts of the covid-19 pandemic could distress liquidity, credit rating, and foreign exchange rates. The ensuing volatility in global markets has made access to capital less certain and more costly. Booking currently has $2B available under its revolving credit facility, representing around 15% of their total liquidity, with a $4.5B minimum liquidity covenant. A downgrade in credit rating from their current A- status could likewise harm access to capital. Lastly, because a large majority of Bookings business comes from outside the U.S. they are exposed to swings in currency rates, which are amplified by pandemic-driven market uncertainty.</p>\n<p><b>But an industry bounce-back is inevitable</b></p>\n<p>It is no secret that Booking, along with the entire travel industry, took heavy hits as a result of the covid-19 pandemic. 2020 brought the biggest disruption to modern global travel the world has ever seen. But there is light at the end of the tunnel. Travel restrictions within the domestic U.S. are already largely lifted, but many international limits are still in place. Keep in mind that Booking gets most of their business from outside the U.S. Once international limits are relaxed, Booking is sure to reap the benefits. Meanwhile, experts are aiming at areturn to somewhat normalcyby the end of 2021 and into 2022, as vaccine rollouts rapidly become more widespread and pent up demand for travel is unleashed. To paint a picture, in March 2021 U.S. travel spending tallied $69.5B, significantly higher than the previous four months, but still 31% below March 2019 levels.</p>\n<p><b>A quick look at key Financials</b></p>\n<p>The pandemic drained Bookings revenues by a staggering 55% from their 2019 highs. However, despite months of the worst travel stagnation in history, Booking still collected industry leading revenues, a testament to management's relentless efforts to keep the ship afloat. Also, revenue is expected to rebound nearly 40% in 2021 as vaccine rollouts and regulation leniency spur a resurgence in travel demand (per Factset.com). I don't think I'm alone in believing that covid fears are dissipating and the world will get back on its feet sooner rather than later. Figure 7 shows revenue growth and segment breakdown since 2016.</p>\n<p><img src=\"https://static.tigerbbs.com/cd73c67b97083d7b253d5013d7cfe91a\" tg-width=\"640\" tg-height=\"541\" referrerpolicy=\"no-referrer\"></p>\n<p><b>A quick DCF valuation</b></p>\n<p>I believe Booking Holdings is undervalued at their current share price. My valuation is based on a discounted free cash flow model that projects ten years into the future and arrives at a terminal value into perpetuity. Other metrics used in the model are the company's WAAC of 6.5% (as of June 19, 2021), total debt of $12.54B, and total cash of $11.08B. These numbers are courtesy of FactSet.com The speed at which Booking can return to pre-pandemic levels of revenue is the main driver of each case.</p>\n<p><b>Base Case</b></p>\n<p>Is meant to reflect the current market share price of around $2,242.61. This case sees modest 2021 revenue growth as travel begins to make a comeback. FCF's will settle slightly under historical averages. Revenue will reach pre-covid levels by around 2026. Booking will then grow revenues at 2% and collect FCF's at 30% into perpetuity.</p>\n<p><img src=\"https://static.tigerbbs.com/38880160c2b34ac87bdbf49c369f58dc\" tg-width=\"640\" tg-height=\"58\" referrerpolicy=\"no-referrer\"></p>\n<p><b>Bear Case</b></p>\n<p>Is meant to reflect an environment heavily effected by covid for years to come. This case sees tiny revenue growth in 2021, and taking until 2028 to reach pre-pandemic levels. FCF's will remain constant. This case results in a share price of $2,002.53, representing a potential loss of 10.7%.</p>\n<p><b>Bull Case</b></p>\n<p>Is meant to reflect an environment quickly emerging from the pandemic. This case sees a significant bounce back in 2021 revenues, per FactSet analyst consensus, as travel restrictions and sentiments continue to dissipate. Pre-pandemic revenues will be exceeded by 2024. FCF's will remain constant. This case results in a share price of $3,514.63, representing a potential gain of 56.7%.</p>\n<p><b>Most importantly,</b></p>\n<p>When considering how soon the world will return to \"normal\", the disparity between expert forecasts and current public sentiment is brutally wide. The current market valuation suggests a return to pre-covid revenues by around 2025-2026. Keep in mind, the CDC expects a return to normalcy by the end of this year and potentially into 2022. Even adding on a year or two and chalking it up as a forecasting error doesn't yield the same fear-driven timeline predictions that the market currently holds.</p>\n<p><b>Overall,</b></p>\n<p>As vaccine rollouts continue worldwide and travel restrictions are lowered, the travel industry is gearing up for a major rebound. Booking is in a perfect position to capitalize. They are the worldwide market leader. They are expanding into new markets effectively. They have demonstrated solid financial success through the pandemic. And they are becoming vastly more profitable. To me, this is a no-brainer. Booking.com,<i>Booking yeah!</i></p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Booking Holdings Poised To Emerge Strongly From Pandemic</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBooking Holdings Poised To Emerge Strongly From Pandemic\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-28 23:07 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436923-booking-poised-to-emerge-strongly-from-pandemic><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nBooking Holdings has massive growth potential as vaccine rollouts continue and travel restrictions are lowered.\nTheir profitability will improve in the coming years as they shift more focus ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436923-booking-poised-to-emerge-strongly-from-pandemic\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BKNG":"Booking Holdings"},"source_url":"https://seekingalpha.com/article/4436923-booking-poised-to-emerge-strongly-from-pandemic","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1171400086","content_text":"Summary\n\nBooking Holdings has massive growth potential as vaccine rollouts continue and travel restrictions are lowered.\nTheir profitability will improve in the coming years as they shift more focus toward Merchant Revenues.\nThey are the dominant leader in the travel industry in terms of market capitalization. They will lead the resurgence in travel.\n\ntupungato/iStock Editorial via Getty Images\nPoised for a comeback\nBooking Holdings(NASDAQ:BKNG), the world leader in online travel services, is in prime position to emerge from the pandemic in spectacular fashion and spearhead the worldwide resurgence in travel. They will do this by growing their core business, especially within the U.S. where they currently trail in market share, and by shifting their business model to focus more heavily on collecting merchant revenues, which are far more profitable than the agency revenues that make up most of their current sales figure.\nGrowth Strategies emerging from pandemic\nBooking Holdings is aiming at growth strategies through two main avenues; expanding and solidifying a uniform payment platform, and capturing more U.S. market share. Both of their growth strategies are centered around their move towards an increasingly merchant focused business model.\nIntegrating a uniform payment platform can help Booking power the frictionless global marketplace that they seek to create. Booking is trying to alleviate the problem of foreign exchange complications and users not being able to pay how they want for travel. The current payment platform is catching on, but slowly. Only 22% of gross bookings in 2020 were processed on Booking's integrated platform. However, this is up from 15% in 2019, and the figure is expected to grow in the coming years. Implementing this platform will enable merchandising capabilities that Booking hasn't had access to historically. Most importantly, it is foundational for the \"connected trip\" strategy; a seamless offering of multiple elements of travel, and Booking's long-term strategic goal.\nCapturing a greater share of the U.S. market is an imperative growth strategy for Booking for numerous reasons. Firstly, Booking trails competitors Expedia and Airbnb in terms of U.S. market share. While the U.S. hotel market is not quite as profitable for travel fare aggregators like Booking and Expedia when compared to the European market, mainly due to the dominance of hotel chains in the U.S., the potential for Booking to tap into the U.S. alternative accommodation market is promising. And this is what leadership is trying to do. In order to penetrate the market Booking will focus on product improvements, raising consumer awareness of this type of inventory, and supply acquisition. They are planning to work with professional property management partners to grow and acquire a supply of single-home properties. Additionally, as a result of the covid-19 pandemic and associated regulations there has been a shift in favor of domestic travel and alternative accommodations, a signal for Booking to enter into the U.S. space where they currently lack market share. To paint a picture of the growth potential; 41% of Airbnb's revenue comes from its U.S. segment. That 41% is larger than the entire European market where Booking currently has a strong foothold. This implies thatBooking has an opportunity to double their alternative accommodation businessby penetrating into the U.S.\nThe growing trend of homeowners leasing out their unused living spaces is staggering, and it is what pumps Airbnb's valuation up so high to its current Enterprise Value of $114B. Even though Booking records 3x Airbnb's pre-pandemic revenues, their Enterprise Value is 15% less. Many indicators point to Airbnb being overvalued, but one thing is clear; the market for alternative accommodations is growing at immense rates worldwide, and Booking is well poised to dig their teeth into a large chunk of that market share.\nShift from Agency to Merchant Revenues\nThe most exciting thing on Booking's horizon, however, is their focus on becoming more profitable by shifting revenues to weigh more heavily on the merchant segment. Booking has scaled up to be the world leader in market share, and now they are prepared to capitalize on their huge size and reach. Below, I will break down the differences between the two significant revenue items that Booking recognizes, Agency Revenues and Merchant Revenues. Figure 3 shows 2019 revenue breakdown.\n\nAgency Revenues make up the bulk of Booking's total revenue figure. These revenues are derived from transactions in which Booking does not facilitate payments for services, and consist almost entirely of travel reservation commissions invoiced to service providers after travel is completed. This type of revenue model is what helped Booking scale up to attain the market share they have today. However, since they don't facilitate the payments, they are limited on fees and other benefits like increased float.\nMerchant Revenues make up the second largest chunk of Booking's total revenue figure, but are growing at a faster rate. These revenues are derived from transactions in which Booking facilitates the payment of services, generally at the time of booking. From a cash flow perspective, since Booking gets money upfront and doesn't relinquish it to the service provider until the time of stay, they are able to hold onto this cash for months, mostly for free, and can use it to invest and grow the business. These revenues are also more lucrative because Booking charges fees on top of already higher commissions.\nAdvertising & Other Revenues make up the smallest portion of Booking's total revenue figure. These revenues are largely derived from referrals, subscription fees, and advertising placements.\n\nUnder CEO Glenn Fogel's leadership, Booking Holdings istaking strides to grow their merchant revenues at rapid rates. The merchant business model is far more lucrative for Booking on a commission basis, and it also improves their cash flows, allowing them to invest more heavily into future projects. The agency model is great for cheap growth; it is what helped Booking reach the dominant market position that it has today. But the time to capitalize on their massive scale has come, as leadership takes them in a more value-productive direction. Increasing merchant revenues will make them more profitable, improving their already above-average EBITDA margin. Figure 4 shows Booking's growing focus on merchant revenues since Glenn Fogel became CEO in 2017.\nKeep in mind, Booking's largest competitor, Expedia, has a closer split between Agency and Merchant revenues than they do. Despite this, Expedia only has an average 15% EBITDA margin across the last twelve years, compared to Booking's 37%, which will only go up as Booking narrows the field between Agency and Merchant revenues (industry benchmark is 30%). This demonstrates how much more efficient Booking is at turning sales into profits, and highlights the fact that they consistently outperform their competitors in doing so. Moving forward, they will only widen this gap.\nThere are Risks\nReliance on an industry bounce back is one. Booking has a heavy reliance on the overall travel industry getting back on its feet as soon as possible. If government regulations and social distancing sentiments continue to stifle the travel industry at large, it will take Booking longer to return to their pre-pandemic scale.\nCompetitors are another. Booking faces competition from all angles. Expedia is their main direct competitor, and currently holds a majority U.S. market share. If Booking fails to expand more prominently into the U.S. and stagnates growth in other global markets, their overall industry market share dominance could be threatened. Airbnb is spearheading the rise of alternative accommodations, a market that Booking is also competing in. Google could continue its dive into successful reservation meta-search applications such as Google Flights. Their continued expansion into the space could take significant market share away from Booking. Lastly, many hotel chains, especially in the U.S., are developing and facilitating their own direct channels for travelers. If they can create enough consumer awareness and drive enough traffic to their own flagship sites, there would be no need for a majority of Bookings services.\nCOVID-19 Effects on Finances cannot be omitted. The adverse impacts of the covid-19 pandemic could distress liquidity, credit rating, and foreign exchange rates. The ensuing volatility in global markets has made access to capital less certain and more costly. Booking currently has $2B available under its revolving credit facility, representing around 15% of their total liquidity, with a $4.5B minimum liquidity covenant. A downgrade in credit rating from their current A- status could likewise harm access to capital. Lastly, because a large majority of Bookings business comes from outside the U.S. they are exposed to swings in currency rates, which are amplified by pandemic-driven market uncertainty.\nBut an industry bounce-back is inevitable\nIt is no secret that Booking, along with the entire travel industry, took heavy hits as a result of the covid-19 pandemic. 2020 brought the biggest disruption to modern global travel the world has ever seen. But there is light at the end of the tunnel. Travel restrictions within the domestic U.S. are already largely lifted, but many international limits are still in place. Keep in mind that Booking gets most of their business from outside the U.S. Once international limits are relaxed, Booking is sure to reap the benefits. Meanwhile, experts are aiming at areturn to somewhat normalcyby the end of 2021 and into 2022, as vaccine rollouts rapidly become more widespread and pent up demand for travel is unleashed. To paint a picture, in March 2021 U.S. travel spending tallied $69.5B, significantly higher than the previous four months, but still 31% below March 2019 levels.\nA quick look at key Financials\nThe pandemic drained Bookings revenues by a staggering 55% from their 2019 highs. However, despite months of the worst travel stagnation in history, Booking still collected industry leading revenues, a testament to management's relentless efforts to keep the ship afloat. Also, revenue is expected to rebound nearly 40% in 2021 as vaccine rollouts and regulation leniency spur a resurgence in travel demand (per Factset.com). I don't think I'm alone in believing that covid fears are dissipating and the world will get back on its feet sooner rather than later. Figure 7 shows revenue growth and segment breakdown since 2016.\n\nA quick DCF valuation\nI believe Booking Holdings is undervalued at their current share price. My valuation is based on a discounted free cash flow model that projects ten years into the future and arrives at a terminal value into perpetuity. Other metrics used in the model are the company's WAAC of 6.5% (as of June 19, 2021), total debt of $12.54B, and total cash of $11.08B. These numbers are courtesy of FactSet.com The speed at which Booking can return to pre-pandemic levels of revenue is the main driver of each case.\nBase Case\nIs meant to reflect the current market share price of around $2,242.61. This case sees modest 2021 revenue growth as travel begins to make a comeback. FCF's will settle slightly under historical averages. Revenue will reach pre-covid levels by around 2026. Booking will then grow revenues at 2% and collect FCF's at 30% into perpetuity.\n\nBear Case\nIs meant to reflect an environment heavily effected by covid for years to come. This case sees tiny revenue growth in 2021, and taking until 2028 to reach pre-pandemic levels. FCF's will remain constant. This case results in a share price of $2,002.53, representing a potential loss of 10.7%.\nBull Case\nIs meant to reflect an environment quickly emerging from the pandemic. This case sees a significant bounce back in 2021 revenues, per FactSet analyst consensus, as travel restrictions and sentiments continue to dissipate. Pre-pandemic revenues will be exceeded by 2024. FCF's will remain constant. This case results in a share price of $3,514.63, representing a potential gain of 56.7%.\nMost importantly,\nWhen considering how soon the world will return to \"normal\", the disparity between expert forecasts and current public sentiment is brutally wide. The current market valuation suggests a return to pre-covid revenues by around 2025-2026. Keep in mind, the CDC expects a return to normalcy by the end of this year and potentially into 2022. Even adding on a year or two and chalking it up as a forecasting error doesn't yield the same fear-driven timeline predictions that the market currently holds.\nOverall,\nAs vaccine rollouts continue worldwide and travel restrictions are lowered, the travel industry is gearing up for a major rebound. Booking is in a perfect position to capitalize. They are the worldwide market leader. They are expanding into new markets effectively. They have demonstrated solid financial success through the pandemic. And they are becoming vastly more profitable. To me, this is a no-brainer. Booking.com,Booking yeah!","news_type":1,"symbols_score_info":{"BKNG":0.9}},"isVote":1,"tweetType":1,"viewCount":1651,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":127930965,"gmtCreate":1624811051457,"gmtModify":1703845458177,"author":{"id":"3577745719913810","authorId":"3577745719913810","name":"pongxz","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3577745719913810","idStr":"3577745719913810"},"themes":[],"htmlText":"Nio!","listText":"Nio!","text":"Nio!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":4,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/127930965","repostId":"1137119316","repostType":4,"repost":{"id":"1137119316","kind":"news","pubTimestamp":1624754401,"share":"https://ttm.financial/m/news/1137119316?lang=en_US&edition=fundamental","pubTime":"2021-06-27 08:40","market":"us","language":"en","title":"Ford Or NIO? The Final Verdict","url":"https://stock-news.laohu8.com/highlight/detail?id=1137119316","media":"seekingalpha","summary":"I am comparing Ford against NIO in different categories.The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.NIO is growing a lot faster than Ford and the high valuation may be justified.With Ford  launching a major offensive in the market for electric vehicles, Chinese EV maker NIO  will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based ","content":"<p><b>Summary</b></p>\n<ul>\n <li>I am comparing Ford against NIO in different categories.</li>\n <li>The comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.</li>\n <li>NIO is growing a lot faster than Ford and the high valuation may be justified.</li>\n</ul>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/5033fa117d7852799244b8275bc1000f\" tg-width=\"1536\" tg-height=\"886\"><span>peterschreiber.media/iStock via Getty Images</span></p>\n<p>With Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.</p>\n<p><b>Ford vs. NIO: The battle for the global electric vehicle market is heating up</b></p>\n<p>Although there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing&nbsp;$30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.</p>\n<p><b>Market opportunity</b></p>\n<p>In 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/b48c23b32134542f51227d9b1b612887\" tg-width=\"1083\" tg-height=\"863\"><span>(Source: Wikipedia)</span></p>\n<p>China, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is&nbsp;on the cusp of entering the European market&nbsp;in a bid to grow market share in the world’s second-largest EV market before the competition is ready.</p>\n<p>Beijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a&nbsp;twenty percent share&nbsp;of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/9871e44eaf69adb27151425887870ace\" tg-width=\"739\" tg-height=\"454\"><span>(Source:Schroders)</span></p>\n<p>Turning to growth projections.</p>\n<p>With more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/61d19dff2f34e2d8828aca854e85d84a\" tg-width=\"825\" tg-height=\"565\"><span>(Source:McKinsey)</span></p>\n<p>Since China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.</p>\n<p><b>Scale and manufacturing competence</b></p>\n<p>Ford has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.</p>\n<p>Since NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.</p>\n<p>Winner here: Ford.</p>\n<p><b>Differentiation and BaaS revenue model</b></p>\n<p>Both Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.</p>\n<p>Ford is&nbsp;forming a joint venture&nbsp;with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has&nbsp;formed its own joint venture&nbsp;to secure battery supply.</p>\n<p>The difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.</p>\n<p>The BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.</p>\n<p>Ford and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.</p>\n<p>Battery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/c42acb75905affe7570a2f399ea3192f\" tg-width=\"758\" tg-height=\"449\"><span>(Source: Schroders)</span></p>\n<p>The “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.</p>\n<p><b>Sales growth and valuation</b></p>\n<p>Ford’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.</p>\n<p>Ford's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/df5a0a393e44ed74241c5effcdd92350\" tg-width=\"635\" tg-height=\"419\"><span>Data by YCharts</span></p>\n<p>The difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!</p>\n<p>Due to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.</p>\n<p class=\"t-img-caption\"><img src=\"https://static.tigerbbs.com/817605c6b1e82c03d0473ea570d32b8f\" tg-width=\"506\" tg-height=\"406\"><span>(Source: Author)</span></p>\n<p><b>NIO has larger risks...</b></p>\n<p>NIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.</p>\n<p><b>Final verdict</b></p>\n<p>NIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.</p>\n<p>Ford’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.</p>\n<p>If you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.</p>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Ford Or NIO? 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The Final Verdict\n</h2>\n\n<h4 class=\"meta\">\n\n\n2021-06-27 08:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market ...</p>\n\n<a href=\"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"F":"福特汽车","NIO":"蔚来"},"source_url":"https://seekingalpha.com/article/4436600-ford-or-nio-the-final-verdict","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"1137119316","content_text":"Summary\n\nI am comparing Ford against NIO in different categories.\nThe comparison is intended to improve the understanding of Ford's and NIO's growth potential while highlighting differences in market position and opportunities.\nNIO is growing a lot faster than Ford and the high valuation may be justified.\n\npeterschreiber.media/iStock via Getty Images\nWith Ford (F) launching a major offensive in the market for electric vehicles, Chinese EV maker NIO (NIO) will face one more rival competing for sales in the future. Which vehicle maker offers the best deal based on market opportunity, scale, revenue model, growth prospects and valuation? I will compare Ford against NIO in each category and issue a final verdict at the end.\nFord vs. NIO: The battle for the global electric vehicle market is heating up\nAlthough there is a world of difference between Ford and NIO, both companies are set to go toe-to-toe in the rapidly growing global electric vehicle market. Ford’s fleet is not yet EV-focused but this is going to change: Feeling that the EV race is heating up, Ford said it is accelerating its electrification plan by investing $30B into its EV manufacturing capabilities until 2025. Ford’s previous capital plan called for a $22B investment in zero-emission vehicles. Ford also set an ambitious sales goal: 40% of its global sales will be electric within the next decade and 33% of pickup truck sales. Electric vehicle sales account for just 1% of Ford's sales today. As Ford is phasing out combustion engines, it is set to evolve into an all-electric vehicle maker by 2040.\nMarket opportunity\nIn 2020, 3.2m electric vehicles were sold in the world which represented a small market share of just 4.2%. China, however, was responsible for buying 41% of all electric vehicles in the world in 2020. Chinese buyers purchased 1.3m electric vehicles last year and sales are set to grow fast as Beijing seeks to boost EV adoption. The second largest market for electric vehicles was Europe which accounted for 42% of global EV sales. The US is only the third-largest market for plug-in electric vehicles in the world.\n(Source: Wikipedia)\nChina, by far, is the fastest growing EV market in the world, although Europe is catching up fast, in part due to a legislative efforts to increase adoption of zero-emission passenger vehicles and because of massive investments in a Europe-wide charging station network. NIO is on the cusp of entering the European market in a bid to grow market share in the world’s second-largest EV market before the competition is ready.\nBeijing is a driver behind the electrification of the Chinese auto industry: The government wants to see a twenty percent share of electric vehicles for new car sales by 2025 which will drive EV penetration in NIO’s home market.\n(Source:Schroders)\nTurning to growth projections.\nWith more favorable government policies for EV makers in places like China and Europe, these markets are poised to see the fastest sales growth and the highest EV adoption rates in the world. China is not only the largest market due to population size but is also expected to outperform all other markets in the world in EV sales until 2030.\n(Source:McKinsey)\nSince China has a larger total market size, a higher EV adoption rate, stronger expected sales growth and a more favorable regulatory framework, the winner here would be: NIO.\nScale and manufacturing competence\nFord has a century’s worth of manufacturing experience. But Ford, so far, has only one all-electric vehicle in its product line-up that compares to NIO: The Mustang Mach-E SUV. In 2022, Ford will begin to sell the all-electric F-150 Lightening which builds on the success of Ford’s best-selling pick-up truck. NIO already has a stronger product catalog including the 5-seater ES6 SUV, the 5-seater coupe SUV EC6 and the ES8, a 6-seater and 7-seater full-sized SUV.\nSince NIO is solely focused on producing EVs and occupies a very small and defined niche, the Chinese firm has an advantage as far as EV-manufacturing expertise goes. The question is how long this advantage can last. Ford has extensive experience in building cars and can leverage a global manufacturing base to ramp up EV production faster than any niche EV maker could ever hope to achieve. This makes Ford a very serious rival not only to Tesla (TSLA) in the US, but also to NIO abroad. Ford is accelerating its electrification plans and it has the resources and the ambition to become a leader in EVs within the next decade. Ford’s proposed $30B spending on the electrification of its fleet will accelerate its transformation and turn Ford into a long term threat to other EV makers.\nWinner here: Ford.\nDifferentiation and BaaS revenue model\nBoth Ford and NIO know about the importance of differentiation in a market that will only get more competitive over time, which is why both companies are investing heavily in a related field that can break or solidify dominance in the EV market: Battery technology.\nFord is forming a joint venture with South Korean battery technology company SK Innovation to secure supply of traction battery cells and array modules. The joint venture is meant to accelerate battery deliveries and will produce approximately 60 GWh annually, enough to cover 25% of Ford’s estimated annual energy demand by 2030. NIO is also investing in battery technology and has formed its own joint venture to secure battery supply.\nThe difference to Ford is that NIO’s battery investment strategy revolves around a battery subscription model, also called “battery-as-a-service”, which creates a strong, long term revenue opportunity for the Chinese vehicle maker. Under this “BaaS” model, users who buy a NIO electric vehicle get a 70,000 RMB initial discount, equivalent to $10,800, and can sign up for a monthly subscription to rent a rechargeable 70 kWh battery. Batteries can then be exchanged at one of NIO’s battery-swapping stations which can be found in most big Chinese cities. A battery subscription costs 980 RMB monthly which is the equivalent of $150.\nThe BaaS model has a couple of benefits for both the vehicle maker and the user: Purchasing an electric vehicle from NIO gets a lot more affordable due to the up-front discount and the subscription model ensures that users benefit from advancement in battery technology and better performance over time. Decoupling battery costs from vehicle prices creates an entirely new revenue stream on a subscription basis for NIO. Revenues from “BaaS” subscriptions could be used to increase the density of NIO’s network of charging/replacement stations. The battery subscription model also binds customers to NIO, potentially increasing customer lifetime value.\nFord and NIO are primed to benefit from falling battery costs for electric vehicles as they ramp up capital allocations. As more investments flow into developing more efficient batteries, performance will go up and costs will go down which should drive EV adoption and benefit all EV makers. This is because lower battery prices make EVs more competitive to passenger vehicles with combustion engines. But since NIO is structuring a part of its business model explicitly around battery subscriptions, NIO could benefit more than Ford.\nBattery costs for EVs have decreased 70% since 2014, based on information provided by investment firm Schroders, and are set to decrease more this decade.\n(Source: Schroders)\nThe “BaaS” model is genius and could develop into a $500M a year revenue opportunity for NIO long term. Although Ford is ramping up its investments in battery technology, the winner in this category is: NIO.\nSales growth and valuation\nFord’s sales in May grew 4.1% Y/Y but electrified vehicle sales (including hybrids) surged 184% Y/Y as Ford sold a record 10,364 EVs/hybrids in May. Escape electrified sales and Explorer Hybrid grew sales at 125% and 132% Y/Y showing strong customer uptake. NIO delivered 6,711 vehicles last month including 3,017 ES6s, 1,412 ES8s and 2,282 EC6s. Total Y/Y delivery growth for May was 95.3%.\nFord's sales are fifty-four times larger than NIO's which creates more sales growth and revaluation potential for NIO.\nData by YCharts\nThe difference in valuation between Ford and NIO is like the difference between night and day. This is because Ford is still seen as a mature vehicle maker with expected enterprise sales growth in the low-to-mid digits, despite explosive growth in the EV category. Ford is expected to grow revenues by 33% until FY 2025 (base year: FY 2020) and NIO by 808%!\nDue to these differences in sales growth, NIO is the complete opposite of Ford, at least as far as valuation goes. The Chinese EV-maker is expected to see sales and delivery growth close to 100% this year and since NIO is only dealing in EVs, NIO gets a much higher market-cap-to-sales ratio than Ford.\n(Source: Author)\nNIO has larger risks...\nNIO is the more risky venture, but also the one that offers the most promise. Government policy favors EV-makers like NIO. The potential for total global sales growth is larger for NIO as it operates from a smaller revenue base compared to Ford. But there are also a few things that work against NIO. For example, recalls due to production defects would be a much bigger challenge for NIO to overcome than for Ford which can rely on a global service and distribution network. NIO’s valuation is also not without risk as an unexpected slowing of sales growth due to production setbacks would leave a much larger dent in the financials.\nFinal verdict\nNIO is definitely the more “sexy” vehicle maker. Strong adoption and sales growth in China and Europe support NIO. Its super smart BaaS model which decouples vehicle purchase prices from battery costs is genius. You pay a high price for this growth but the market opportunity for NIO is immense.\nFord’s EV sales are booming and the percentage of EV sales will increase as the vehicle maker electrifies its fleet. Ford has a lot of potential in the EV market but since EV sales are still a relatively low percentage of total sales, it will take a long time for Ford to complete its transformation.\nIf you believe in the potential of the global EV market, buy NIO. If you believe in the potential of the global EV market and don’t like much risk, buy Ford.","news_type":1,"symbols_score_info":{"F":0.9,"NIO":0.9}},"isVote":1,"tweetType":1,"viewCount":1755,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":124214955,"gmtCreate":1624766760477,"gmtModify":1703844778841,"author":{"id":"3577745719913810","authorId":"3577745719913810","name":"pongxz","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3577745719913810","idStr":"3577745719913810"},"themes":[],"htmlText":"Noted thanks!","listText":"Noted thanks!","text":"Noted thanks!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/124214955","repostId":"2146090006","repostType":4,"isVote":1,"tweetType":1,"viewCount":1386,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":129697655,"gmtCreate":1624370465977,"gmtModify":1703834698623,"author":{"id":"3577745719913810","authorId":"3577745719913810","name":"pongxz","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3577745719913810","idStr":"3577745719913810"},"themes":[],"htmlText":"For as long as they continue to innovate and revolutionise.","listText":"For as long as they continue to innovate and revolutionise.","text":"For as long as they continue to innovate and revolutionise.","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":2,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/129697655","repostId":"1162790761","repostType":4,"isVote":1,"tweetType":1,"viewCount":1574,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":164981443,"gmtCreate":1624165583382,"gmtModify":1703829989215,"author":{"id":"3577745719913810","authorId":"3577745719913810","name":"pongxz","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3577745719913810","idStr":"3577745719913810"},"themes":[],"htmlText":"Like and comment pls!","listText":"Like and comment pls!","text":"Like and comment pls!","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":3,"commentSize":1,"repostSize":0,"link":"https://ttm.financial/post/164981443","repostId":"1199331995","repostType":4,"isVote":1,"tweetType":1,"viewCount":1796,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0},{"id":162394120,"gmtCreate":1624033704760,"gmtModify":1703827323722,"author":{"id":"3577745719913810","authorId":"3577745719913810","name":"pongxz","avatar":"https://static.laohu8.com/default-avatar.jpg","crmLevel":5,"crmLevelSwitch":0,"followedFlag":false,"authorIdStr":"3577745719913810","idStr":"3577745719913810"},"themes":[],"htmlText":"Nice ??","listText":"Nice ??","text":"Nice ??","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":1,"commentSize":0,"repostSize":0,"link":"https://ttm.financial/post/162394120","repostId":"1192473918","repostType":4,"isVote":1,"tweetType":1,"viewCount":1923,"authorTweetTopStatus":1,"verified":2,"comments":[],"imageCount":0,"langContent":"EN","totalScore":0}],"defaultTab":"following","isTTM":true}