Twice the Revenue at Barely a Third of Its Peak Share Price

What Is Wall Street Missing?

Look beyond the business that made this stock a household name, and you’ll find a growing AI contender at a surprising price. Discover the opportunity—and where to find more like it.

Dear Investor,

At the beginning of this decade, the world’s shopping habits changed almost overnight.

Storefronts went dark and families stayed home. Purchases that once meant a trip across town happened with a few taps on a screen.

For one company, it was the kind of moment investors dream about.

It had spent years building a business around the way people were now being forced to live. Suddenly, the future it had been preparing for was arriving on everyone’s doorstep.

Investors wanted in.

By October 2020, they had pushed its shares to a record high. Owning a piece of that business meant paying a substantial price, but it seemed more than worth it for the growth everyone expected.

Sounds familiar, doesn’t it? But the company we’re talking about is NOT Amazon.

Then the story became more complicated.

Supply-chain disruptions and weaker consumer spending tested the business. Investors who once saw enormous opportunity found plenty of reasons to look elsewhere. Share prices plummeted.

The Company is Not the Stock

While the stock was losing its following, the company was becoming something more than the business that made it famous.

It was building out the computing infrastructure other businesses need to operate. And as artificial intelligence created new demand for that infrastructure, a different growth opportunity began to emerge.

Today, companies pay to use its cloud and AI technology. It is expanding its capabilities and planning new data centers beyond its home market.

It’s a strong company and a great opportunity … and it isn’t Amazon.

Meanwhile, its total annual revenue has essentially doubled from fiscal 2020 to fiscal 2026.

The share price?

Barely more than a third of its October 2020 peak.

Six years ago, investors paid a premium for the future they envisioned. Today, you have an opportunity to get in on a future they may be undervaluing.

That’s what makes this setup so intriguing.

Let me say it again. A company with a substantial existing business is expanding into AI, and its valuation remains below its own historical average. You have a chance to get in on that growth before the market decides it deserves a premium.

And that kind of opportunity reaches well beyond this one stock.

Some of the most rewarding buys start when you recognize something valuable—before other investors are willing to pay what it’s worth.

The Price of Waiting Until Everyone Agrees

A promising company rarely comes with an invitation that says, “Now is the perfect time to buy.”

When its shares look cheap, there are usually reasons investors are hesitant. An earnings disappointment or a struggling division. Maybe questions about whether a new infrastructure investment will pay off.

You read the headlines and think: Maybe I should wait until things look better.

But as those issues get resolved, the price goes up.

The next earnings report shows progress. Analysts raise their estimates and investors who wouldn’t touch the stock a few months earlier begin competing to own it.

And the price that once made you nervous starts to look like the opportunity you wish you had taken.

Greater confidence usually comes at a much higher price.

Of course, buying simply because a stock has fallen can be an expensive mistake, too. Some companies are losing customers, falling behind competitors, or watching their profits disappear. Those shares may deserve to be cheap.

The opportunity lies in figuring out where the price has fallen further than the business’s prospects justify.

That means looking beyond what went wrong and asking what your money would buy now. How much is the company earning? Where could those earnings go? What are you paying for your share of them?

For the technology company we’ve been discussing, its growing cloud and AI operation adds another question: How much could that business contribute to company value in the years ahead—and how much of that potential is already reflected in the stock?

You don’t need every investor to recognize the opportunity today. You need a sound reason to believe you’re getting more value than you’re paying for.

That is where disciplined research can give you the conviction to act while others are still looking elsewhere.

Find the Growth and Put a Number on It

This is the work Chris Preston does for subscribers to Cabot Value Investor.

As Cabot’s Editor in Chief and the advisory’s Chief Analyst, Chris looks for businesses whose earnings prospects make their current share prices attractive.

Growth is part of his analysis from the beginning. Even when he’s considering a company most investors would call a traditional value stock, he wants to see a path to higher earnings.

Then he asks what you have to pay for that growth.

He examines the stock’s price relative to expected earnings and sales, weighs the problems keeping investors away, and looks for developments that could help the company realize its potential.

The goal is to buy while the price leaves meaningful room for you to profit.

Here’s why that matters.

It gives you two potential sources of gains.

As the company earns more per share, its stock price can rise along with those earnings. And if investors become more confident in its future, they may be willing to pay a higher multiple of those earnings—giving your shares an additional boost.

Chris looks for opportunities where both could work in your favor. Then he sets a price target based on what he believes the shares could reasonably be worth.

That gives subscribers something more useful than a prediction that a stock will “go up.” It gives them an investment case they can understand and a target against which to evaluate the opportunity.

And the analysis continues after the recommendation.

As earnings reports arrive and conditions change, Chris reassesses the business, its valuation, and the remaining upside. Subscribers receive his updated guidance on whether to buy, hold, or sell.

Buying at an attractive price is the beginning. Knowing when the opportunity has changed is part of the service.

This approach has led Chris to opportunities across very different industries—including these two closed positions that show why growth and value can be such a rewarding combination. I’ll get to them in a minute, but first, let me tell you a little about Chris.

Who is Chris Preston?

But what matters most to you is how he puts that experience to work.

Chris looks for the combination every value investor wants: something worth owning at a price worth paying.

For him, that means examining a company’s earnings prospects just as closely as its valuation. A low price gets his attention. A growing business at that low price gives him a reason to investigate further.

As Warren Buffett says, “There is no such thing as growth stocks or value stocks as Wall Street generally portrays them, as contrasting asset classes. Growth is part of the value equation.”

Two completed Cabot Value Investor trades show how rewarding that combination can be.

It’s Not Growth Versus Value—It’s Growth and Value

BYD Returned 77.4% in Six Months

BYD’s annual revenue had surged from $22.7 billion to $85 billion as its electric and hybrid vehicles gained ground. Yet its shares traded at roughly half their five-year average price-to-sales valuation—a chance to buy rapid business growth at an unusually modest price.

By the time Chris recommended selling BYD, the stock had gained 77.4% in just six months.

United Airlines Returned 78.8% in 10 Months

United was generating record annual revenue, surpassing its pre-pandemic business levels. Yet its shares traded at barely more than half their former peak and just 7.7 times expected earnings.

Chris’s United Airlines pick went on to deliver a 78.8% gain from recommendation to sale—in just 10 months.

In both cases, Chris saw a gap between the business’s progress and the stock’s valuation. That same kind of mismatch is what makes his newest recommendation worth a closer look.

These are two successful recommendations, not a promise of what the next stock will return. But they illustrate the potential Chris seeks when he brings growth prospects and purchase price together.

Now he has made a new recommendation—and the company’s expanding AI business is a major part of what caught his attention.

Let’s take a closer look at what you would be buying.

What Are You Getting at Today’s Price?

The company behind our newest recommendation built its reputation in e-commerce. But look inside the business today, and you’ll find a growing operation supplying the computing power and AI technology other companies need.

That matters because it gives investors another way to evaluate what this business could be worth.

Its cloud computing revenue grew 45% in the latest reported quarter. AI-related product revenue grew at a triple-digit rate for the twelfth consecutive quarter.

Businesses are already paying for this technology—and demand is growing.

Now the company plans to expand its data center presence across Europe, the Middle East, and Asia, competing for customers well beyond its home market.

Building that capacity is expensive. The spending has weighed on near-term profits, while weakness in Chinese consumer spending continues to challenge its familiar e-commerce business.

Those are real concerns. Chris has weighed them against the company’s growth prospects—and believes today’s valuation offers an attractive opportunity.

The shares trade at approximately 16.5 times projected earnings, below their five-year average of 19. Their price-to-sales valuation is also below its historical average.

Meanwhile, annual revenue nearly doubled between fiscal 2020 and fiscal 2026. And analysts expect revenue growth to accelerate further.

You’re buying an established business with a growing AI operation at a price Chris believes understates its potential.

His target implies approximately 64% upside from the recent share price.

The stock wouldn’t have to come close to its October 2020 peak to reach that target. It would still trade more than 40% below that former high.

That’s an important distinction when considering the opportunity. Chris’s case doesn’t depend on investors paying the most they’ve ever paid for these shares again. He believes the business deserves a higher price based on its valuation and prospects today.

He has just added it to Cabot Value Investor with a BUY recommendation.

When you become a subscriber, you can read the full analysis, get the company’s name and ticker, and see his price target. You’ll also receive his ongoing updates as the investment develops.

And this is only one of the opportunities waiting for you in the current portfolios.

Another Familiar Name That’s an Unexpected Bargain

Another of Chris’s current BUY recommendations is a streaming powerhouse whose shares have fallen sharply—even as its business continues to grow.

An earnings disappointment and a messy acquisition battle helped sour investors on the stock. But consider what analysts expect from the company this year: revenues up approximately 14% and earnings up 42%.

That is substantial growth for an established business. Yet its shares recently traded more than 40% below their peak.

Chris believes investors have punished it down too severely. His latest analysis explains why he continues to recommend buying—and the October 20 earnings report could give investors fresh evidence to consider.

Both recommendations are included in your Cabot Value Investor subscription—along with access to every stock in Chris’s current portfolios. You’ll get his research, ratings, and price targets for each, plus new recommendations and ongoing updates throughout your membership.

With This Invitation,
You Can Get Access for Less Than $100

Before I reveal the offer, here’s what that access means for you.

You’ll Know What Chris Recommends—and Why

When you join Cabot Value Investor, you can immediately explore the current portfolios and see which stocks Chris rates BUY, HOLD, or SELL.

You’ll have his reasoning in front of you. You can assess the growth prospects, understand why he considers a valuation attractive, and see the price he believes a stock could reach.

Then, as the months unfold, you’ll receive:

• Monthly issues with new recommendations and in-depth research, helping you discover opportunities you might otherwise miss.
• Weekly portfolio updates, explaining how earnings, company news, and market developments affect his outlook.
• Updated ratings and price targets, so you know when his assessment changes.
• Access to Chris by email, so you can ask questions about his research.

That ongoing attention matters. An attractive stock can become expensive. A promising business can disappoint. And a recommendation that reaches its target may be ready to sell.

You’ll have Chris’s guidance as those decisions arise.

Cabot Value Investor subscribers value that depth and communication:

⭐⭐⭐⭐⭐

“Thank you for your detailed explanation in answer to my question. I continue to learn much from your newsletter and bulletins not to mention make money on the recommended investments.”
— Erik L., Thousand Oaks, CA

⭐⭐⭐⭐⭐

“I really appreciate your constant and frequent communications…”
— D. R., San Juan, Puerto Rico

⭐⭐⭐⭐⭐

“My only regret is not having subscribed years ago to your advisory. Your ‘Buy–Sell’ discipline is a methodical money maker. Many thanks.”
— Seagrunt, Coronado, California

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“I appreciate so much the completeness and precision of your commentaries…”
— G. Savant, St-Jean-Sur-Richelieu, QC Canada

An Exceptional Price for Investors Who Appreciate Value

The regular annual price of Cabot Value Investor is $397, but that’s not the price you will pay today.

With this special offer, you have two ways to join:

Get six months for just $99. That’s half off what you’d pay at the regular rate.

For under a hundred dollars, you get the newest buy-rated AI recommendation, access to the current portfolios, and six months of research and ongoing guidance. That works out to just 54 cents a day.

(Offers for new subscribers only)

For your successful investing,

 Ed Coburn
Chairman and CEO
Cabot Wealth Network
Independent Investor Intelligence, Since 1970

P.S.—Remember, this offer ends at 11:59 p.m. on Sunday, October 4, so subscribe now.