Thoughts on the recent Rolls Royce sell-off? ($RR $RYCEY) I dug into the fundamentals and found a few things most people are missing.

Hey everyone, been watching the price action on Rolls-Royce this past week and it’s been a bit of a rollercoaster. I wanted to see if the sell-off was actually justified by the fundamentals or just a market overreaction. The war is seemingly over so you'd think they'd be fine...

After looking into the recent news with the war, I realised how much their flying hours are affected, and a few things stood out to me:

• That 60% of revenue is made up from their engines (total Care contracts and LTSA) and with the war grousing a lot of their Trent engines, there is less flying so less servicing. Also with the fact they only just recently topped pre covid flight levels.
• Data Centres : With the whole supply chain of AI from CPU's to GPU's, Memory and data centres, they are critical in powering (backup generators with their MTU engines) to the whole AI compute stack. Names like Intel, Nvidia, Micron, Nebius are thrown around, but Rolls Royce is key in this all.

I actually put together a full breakdown if anyone wants to see the visual evidence behind this: YouTube Vid: https://www.youtube.com/watch?v=QaFHL17aOaY

Curious to hear if you guys think this is a "buy the dip" moment or if there's more pain coming?