$Vertiv(VRT.US) A good company. Ugly reaction. Classic high multiple trap.
- Adj EPS $1.52 beat. - Margins strong. - FCF strong (~$925M). - Raised the year to ~$14B sales and ~$6.70 adj EPS at the midpoint. But revenue ~$3.27B missed, organic growth lagged what the Street wanted. Management called it timing, supply chain congestion and multi-phase project rollout.Why I think it dropped? Perfection was priced in. A revenue miss, even with a raise, sounds like slippage before it sounds like “temporary.” Multiple compressed first, story second.What to expect? Fundamentals aren’t broken if H2 converts those delayed projects. CEO is loud that demand is fine. Don’t catch the falling knife. Let the price settle, then decide if you’re buying the AI infra reset or fading a name that needs a clean print to earn the multiple back. There are other good DC plays thats showing strength.
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