Opportunity: May 2026

A Long Trip Ahead and Room to Grow

Introduction 

This month’s Opportunity Report features a globally recognized brand whose name is both a noun and a verb, yet whose investment merits seem surprisingly underappreciated. The Company has been quietly running one of the more impressive cash conversion machines in the consumer internet space, generating a >35% free cash flow margin and >5% FCF yield, and using its abundant FCF to repurchase a material amount of its stock over the past 12 months. Meanwhile, its top-line growth reaccelerated in 1Q 2026, with strength expected to continue throughout the year. The shares trade at a discount to some of its closest publicly traded peers despite faster growth and better margins than most in the industry, and a net cash balance sheet.