There has been lots of volatility since Monday. First the DeepSeek panic and then yesterday the sharp reversal as investors started to refine their view of the likely impact of the cost of cheaper models. Today-at least as I write this-seems to be presenting a bit of a consolidation trade after yesterday’s sharp spike. …
As I write this, some traders and even investors are melting down about the recent release of the R1 model from a Chinese start-up called Deep Seek. This model, which has been reported to have been developed for just more than $5 million, reportedly is the equal or better in terms of performance than from…
We made a couple of changes in the high growth portfolio today. We sold our position in Braze (580 shares) at $43.99. Braze has rallied considerably since we bought the position in late October. While Braze is a leading vendor in the customer engagement space, its valuation is no longer quite the relative bargain it was when…
Summary Nebius offers high-capacity AI-optimized data centers with significant cost advantages, Nvidia partnership, and a skilled engineering team, making it a compelling investment despite risks. The company has ambitious growth plans, projecting ARR of $750 million to $1 billion by end-2025; up about 4X-5X from the end of 2024, driven by substantial capex and Nvidia’s…
Summary Veeva share price has recently been battling concerns that Salesforce will become a more aggressive competitor and take meaningful market share in Veeva’s CRM space. Veeva’s financial performance remains strong with high non-GAAP operating margins and free cash flow margins around 40%, positioning it as a GARP investment. The company’s strategy includes expanding its…
As indicated in the weekly commentary, we wanted to add marginally to the net long position by opening a tiny investment in MongoDB and adding to the Procore position which had a weight of less than 2%. We wound up buying 60 shares of MongoDB at a price of $241.49. This cost $14,495. That…
Summary Despite recent stock declines, MongoDB’s technology remains strong, with substantial growth potential driven by its No-SQL database offerings and AI integration. The company’s current growth malaise is attributed to macroeconomic conditions and slower-than-expected usage growth, particularly among smaller enterprises. MongoDB is pivoting towards enterprise clients and AI-driven legacy app modernization to drive future growth,…
Sometimes it is best to acknowledge a mistake or a misunderstanding, take a loss and move on. I bought Nu understanding that one of the risks of doing so was its domicile in Brazil. Brazil is a lovely country to visit, and it has one of the best resorts at which I ever stayed-Ponta dos…
Summary Monday.com shares are recommended at $278/share due to strong growth prospects, AI initiatives, competitive positioning, and improving cash flow and operating margins. Despite a 20% appreciation in the past four months, Monday’s valuation remains attractive given its 30%+ revenue growth and 30%+ free cash flow margin. Monday’s AI capabilities, including customizable no-code blocks, are…
The first two days of this week featured a consolidation trade after some strong or frothy trading the prior few weeks in the wake of the Trump electoral victory. Some might say a correction is overdue; in my case, particularly, I was struck by the recent nomination of new FTC Commissioners. Ticker Target is not…