The direction didn’t come as a surprise; the forecast was close to the upper end of the previous guidance range and remains firmly within the new range as well. So, in that sense, our numbers haven’t been beaten, although this certainly indicates that this will likely happen tomorrow regarding Q3—as I wrote in the comment. At this stage, however, it’s too late to change the forecasts.
Had I known this at the time of the preview comment, I naturally would have raised the forecasts and possibly even flipped the recommendation. Even though, as a rule, we don’t issue weekly recommendations.
More generally, when it comes to Bittium, the crowd seems somewhat divided; some only look at the extremely high valuation and view this pretty much as a bubble, while others only look at the outstanding earnings growth and outlook, unable to fathom how anyone could think this isn’t worth buying.
However, it is completely possible and logical to forecast excellent success for Bittium while still maintaining that the stock’s valuation is overly stretched. And I might not necessarily be right about either, but there is no contradiction there. No company is so great that price doesn’t matter for expected returns.
Tomorrow, we will be wiser once again!