M&M Lion Fund
Small-Fund Portfolio Manager Since 2023, IE Business School & Javeriana Background
GE Vernova's buybacks look poorly priced relative to its borrowing cost. At $895, repurchases yield about 2.6% on my 2027 EPS estimate of $23.09 and 3.5% on 2028 earnings, below the 3.8% after-tax cost of debt issued in February. The quarter was strong, but this buyback pace is hard to like. x.comÂ
GE Vernova's valuation looks like irrational exuberance: after rising 9x since its 2024 spin-off, it trades at 70x EBITDA with just 8% EBITDA margins. A value investor shifting methodology to start accumulating it at these levels, as in the Fundsmith letter @UpslopeCapital flagged, is the kind of thing seen in such markets. x.comÂ
GE Vernova is not worth owning even after its pullback, because at 45 times forward earnings it looks expensive when Celestica and Bloom Energy offer much better growth at half the multiple. x.com x.comÂ
GE Vernova is a cyclical gas-turbine manufacturer priced as a secular compounder, the basis for a sell rating. Per @StockWorthyApp, the stock fell 8.62% in a day and 9.43% over a week on concerns about an AI development slowdown. x.comÂ
GE Vernova's turbines and grid equipment make it a clear winner from the AI data-center power crunch. Q3 equipment sales rose 42%, total revenue 27% and operating income 281% as margins expanded. Grade: A. x.comÂ
GE Vernova's tanking earnings are a dealbreaker, even after the stock's 60% gain in six months. It had been an earlier pick for 2026 as the year of energy following AI's year in 2025. x.comÂ
GE Vernova is highly expensive, and infrastructure booms always look unstoppable until they stop; a cyclical boom-bust stock should not need a three-years-out view to reach a 20 P/E. Gordon Johnson's $470 price target is right in theory. Barring a crash, it is probably among the safer expensive stocks through year end as fund managers pad top holdings, but the cycle will pass, as similar ones did before the financial crisis. x.comÂ
GE Vernova sits at the center of the most capital-intensive buildout in a generation because AI data centers need massive power and it builds the gas turbines that make it. Every new hyperscaler data center is effectively a new order. Its backlog is $150B and already booked, orders rose 71% last quarter, and Q1 2026 free cash flow exceeded all of 2025's. It has zero debt and $8B in cash, doubled the dividend, expanded buybacks to $10B, and targets $44-45B of revenue in 2026 and $56B in 2028. … Show more
GE Vernova doesn't look bullish, and unusual bearish options flow backs that up. An $18M put buyer rolled from August 21 $1,100 puts down and out into October 16 $1,000 puts. x.com x.comÂ
GE Vernova and Siemens Energy are far too expensive relative to the value of power generation assets, and something has to give. x.com x.comÂ
GE Vernova is poised to make massive profits because energy is the key bottleneck for the hyperscalers it supplies. Its EPS numbers are huge, and MarketSurge charts recently flagged a buy signal. x.comÂ
Netflix's 24x free-cash-flow valuation is still rich for its growth, so buybacks lack punch at that price. The stock looks headed down over the next five years: missing the early period prevents compounding, and even buying early is no guarantee of it. x.comÂ
