“Constellation Software Stock Crash is Not Because of AI!”
CSU is a bad bet due to low organic growth (3%) and risky M&A strategy; wait for market cap to drop to 30-40B CAD.
Constellation Software stock has rebounded a little bit, but is still significantly down from the previous highs. I have put it on my bets side of the quadrant, which I'm going to update tomorrow, but Constellation in this case deserves a specific video.
If you look at revenue growth, great numbers, 17% growth. You're saying, "Sven, 17% growth, how can that business be down so much? Everything looks great, cash flows up 10%, free cash flows to shareholders 57%." All those numbers look really, really good.