Summary AppLovin has become the leading independent vendor of in-game, mobile advertising solutions. Its success is primarily a factor of the exceptional success of AXON 2.0, an AI engine that powers the company’s AppDiscovery platform. Basically, AXON 2.0 is an AI engine which uses machine learning to provide advertisers exceptional accuracy in forecasting how users…
Summary Zscaler and Crowdstrike are leaders in two different segments of the cyber security space. Both companies have achieved rapid growth, with the advantage slightly to Crowdstrike recently. Both companies are achieving significant free cash flow margins. Zscaler shares have seen a material valuation compression, both on a relative and absolute basis. At this point…
Summary Snowflake and Palantir are two of the leading software companies offering generative AI solutions to enterprises. Both companies have strong offerings-although most of what is being offered by Snowflake is just now generally available. Investors are very concerned about Snowflake’s competitive positioning, particularly vis-a-vis Databricks, still a private company. We believe that many investor…
Sale of 150 shares of Dynatrace (remaining position); Purchase of 30 shares of Datadog; Purchase of 150 shares of Nutanix. Dynatrace: We eliminated the last of our Dynatrace (DT) position this morning. We were sorry to have to eliminate the position, but at this point the growth divergence between Dynatrace and Datadog was just too great to…
Sales of 1500 shares of UiPath and Sale of 150 shares of Dynatrace: Purchase of 300 shares of Nutanix, Purchase of 200 shares of GitLab As we had indicated, we have now eliminated UiPath from the portfolio. Its latest earnings report and guidance were very disappointing, and while the narrative may play out, we simply…
The divergence between Crowdstrike and Zscaler (and most everything else). The misunderstood quarter of GitLab; Pagaya raises EBITDA guidance-hopefully construed positively. 1. Crowdstrike Pattern recognition is supposed to be the mainstay of analysis. Most of the time, when I attempt to write an article about a company, or an event, I try to compare it…
Summary Shopify shares have experienced significant volatility, with a recent implosion in share price following a disappointing earnings report. Despite this, Shopify has consistently adapted to changing ecommerce environments and has become the largest competitor in its space. The company’s ability to add new merchants at an accelerated pace and its focus on providing a…
Sale of 100 Dynatrace and purchase of 200 shares of Confluent The market continues in a risk off pattern this Monday morning. Many stocks are still reacting to the perceived read-through from the results of MongoDB. As I tried to suggest, Mongo’s issues are grossly exaggerated, and really are not representative of what is actually…
Change to the Income/Stability portfolio: Sale of 95 shares of IBM and Purchases of 70 shares of Salesforce As discussed; we have eliminated our holding of IBM shares. We sold the position this morning at a price of $166.54. The sale eliminates the 95 shares of IBM (IBM) we previously held and raised $15,795. We…
Sale of remaining position in Crowdstrike; Purchase of additional shares of SentinelOne Shares of SentinelOne are under extraordinary pressure this morning. A minor guidedown in revenue of less than 0.5% has led to an extraordinary valuation implosion. I usually wait these things out, but a limit order I had was filled. After yesterday’s precipitous fall,…