Monopoly, Duopoly,Oligopoly And Stocks

🫎 LUCKIN COFFEE VS STARBUCKS

The Chinese coffee chain Luckin Coffee is rapidly closing the gap with Starbucks

1️⃣ 26 new stores per day! It opened 9,499 new locations over the past 12 months
2️⃣ 33,596 stores in total, now directly challenging Starbucks' 41,129 locations
3️⃣ Revenue has surged 187% since 2023, with annual growth running at 47%. Starbucks, by comparison, is growing at a modest 2.1%
4️⃣ Better profitability margins: EBIT margin of 9.6% versus 7.6% for Starbucks

Despite its impressive growth, Luckin Coffee trades at a much more attractive valuation compared with Starbucks, which is currently in a turnaround phase

On the other hand, Luckin Coffee does not offer the attractive dividend yield that Starbucks provides

How do you view the coffee sector from an investment perspective?

---

DELL IS DRIVING WALL STREET CRAZY

Remember Dell as the company that supplied reliable PCs and office monitors? 💻

Forget that image. What we've been witnessing over the past few months is not just a recovery, but a complete transformation

In just one year, Dell's stock surged by an extraordinary 277%, reaching an all-time high of $419

Last week, the company reported remarkable results

1️⃣ Revenue climbed to $134 billion
2️⃣ Earnings per share soared to $12.59

Today, we are seeing a clear and aggressive re-rating by investors

Dell's forward P/E ratio has jumped to 23x. The market is no longer valuing Dell as a traditional hardware company focused on PCs. Instead, it is increasingly pricing the company as a high-growth AI leader

What is your investment view on Dell?

---

OLIGOPOLIES AND INVESTING

In the investing world, Warren Buffett calls it an Economic Moat

The deeper the moat, the harder it is for competitors to threaten a company's profits

And where do the deepest moats exist? In monopolies, duopolies, and oligopolies

###Monopolies

1️⃣ TSMC: Advanced semiconductor manufacturing
2️⃣ ASML: EUV lithography systems
3️⃣ Fair Isaac: Consumer credit scoring in the United States
4️⃣ CoStar: Commercial real estate data in the United States

###Duopolies

1️⃣ Visa / Mastercard: Electronic payments
2️⃣ Airbus / Boeing: Commercial aircraft manufacturing
3️⃣ PepsiCo / Coca-Cola: Soft drinks and beverages

###Oligopolies

1️⃣ Alphabet / Microsoft / Amazon: Cloud infrastructure
2️⃣ Fortinet / CrowdStrike / Palo Alto Networks: Cybersecurity
3️⃣ AT&T / Verizon / T-Mobile: U.S. telecommunications

Do you follow any of these markets?