Keith Richards Vertiv Holdings VRT-N BUY ON WEAKNESS May 22, 2025

It sold nearly 30% today on the DeepSeek news. When a stock falls this sharply, it means the sellers aren't done, and will sell more tomorrow.

He bought it back today on a dip. The quarter was excellent, growing 13-15% in various metrics. Everything is in place for growth. Quarters and reactions to them are fickle.

EPS was 99c, ahead of estimates of 82c; revenue of $2.35B beat estimates of $2.16B. For 2025, forecast is for $9.13B in sales, vs estimates $9.12B. EPS $3.50 to $3.60, vs estimates $3.54. Q1 forecast was mostly in line with estimates. Results are generally good, and the company might be being conservative with its forecast. Investors were looking for more. But good growth is still very much expected, and we would be OK buying a bit into the dip, with the stock at 32X earnings now. 
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We don't know how much they source from China, so we don't know the impact of tariffs. They can pass on prices to customers. Growth is above the market, but sustainable.

This will probably go down 10-15% after today's tariff news. Many feel it's a broken stock, though is doing well, but that doesn't matter now becayse the market is highly emotional.

Today they reported a clean top and bottom line beat, and raised their full-year sales forecast. Shares soared 8.6% today

Still likes it. It's tied to data centre buildout and AI. As the tech sector moves up, so will this. He sees upside.

They just delivered a top and bottom line beat and raised their full-year guidance.

Geared specifically for data centres. Cooling for computers and for the rooms themselves. Already posted fantastic results.