Pure and Crowdstrike are the #1 and #2 holdings in our high growth model portfolio. The two companies together account for more than 20% of the value in the portfolio. So it makes sense, I think, to review their earnings sooner rather than wait until the weekly commentary is published. While neither company reported what…
I think all of us have been disappointed by the trading action in the high growth IT space thus far in August. Consolidations are uncomfortable, and this one is being compounded, I believe by the spike in long rates, whether or not justified. I will take a bit more look at the course of long…
This has proven to be a frustrating week through Wednesday. Fears of Jay Powell’s testimony, and then the testimony itself, were factors in creating a risk-off climate in the market. In addition, the ADP jobs report, and the report on job openings were thought to be too hot and the inversion of the yield curve…
Crowdstrike: A less emotional reaction to a “messy” quarter Crowdstrike reported its earnings a little more than a week ago. While the earnings themselves were more than satisfactory, the guidance was judged wanting and the shares plunged 14% on the day after the earnings release. Was the guidance that bad? Objectively, and in context, not really. Does the current…
Cloudflare: When can the company return to high growth momentum? This is an article about the investment merits and demerits of Cloudflare (NET) shares. As an analyst, I look, for the most part, at individual companies. But as an investor, I have to acknowledge that much of the price change or the change in valuation…
Okta-Can this sow’s ear ever return to silk purse status? Stocks have been cratering! IT stocks have been cratering more! Even shares of cyber-security companies have fallen with the HACK (HACK) ETF, which incorporates the major cyber-security vendors down by 30% on a year-to-date basis. But Okta, the leader in the identity management category, has…
How should growth investors position their portfolios to deal with the impending recession Whether the NBER or the president chooses to acknowledge the reality, a recession is either here or shortly impending. It is not, perhaps, a typical recession, but then there is really no such thing as a typical, i.e. inventory based recession any…
Salesforce-A recommendation for a perilous market The title of this article comes from a quote by Ray Bradbury, a well known author, whose most famous work was “Fahrenheit 451.” I thought it particularly appropriate after the months of share price bloodletting. I have not written about Salesforce (CRM) on the SA platform for about 4 years now. I…
Most of the earnings from IT companies with quarters ending April 30th have been reported at this point. Overall, the quarters were not as bad as feared and quite a few companies indicated that business, after being a bit below their plans in April, had seen a snapback in May. Other companies seem not to have…
Rediscovering a reasonably valued cyber-security leader The last 7 months has been an eternity for most investors in the high-growth IT space. At first the issue driving stocks lower was valuation in an environment in which the Fed committed to raising rates to curb inflation. And then, as inflation persisted, and comments from Fed governors…