DDOG

High Growth tech names have depreciated sharply since the start of the sector rotation in mid-February. Most names have lost more than 20% as investors have fled the space-supposedly fearful of rising interest rates brought on by expectations of higher inflation. The flip side of this, is that companies in the space have seen a…

To access this post, you must subscribe.

Read More

Summary Several months ago, New Relic introduced its second iteration of New Relic 1. The offering is designed to compete more effectively with Datadog. In some ways, it is a case of imitation being the sincerest form of flattery. The quarterly results reported by NR in the first quarter of general availability of the new…

To access this post, you must subscribe.

Read More

Summary Enterprise software turned in a spectacular performance in 2020. My tea leaves suggest that the space will continue to outperform broad indices in 2021. I think a reasonable portfolio should focus on those companies who experienced demand headwinds in all or part of last year. I have taken a portfolio approach to making recommendations.…

To access this post, you must subscribe.

Read More

DDOG-How to value growth

Well, first you have to get growth right. As most readers will know, DDOG shares are down around 12% this morning in the wake of the company’s quarterly earnings release.  The shares are actually down about 20% in the last week and 27% in the last month. That is not pretty performance, although to be…

To access this post, you must subscribe.

Read More

Buying the dip

The last few trading sessions have seen a rather significant reversal of investor preferences. Risk-off is ruling investment sentiment and has pulled down many high-growth IT names by as much as 20% in a few days. Losses, as is typical in a panic, have been fairly indiscriminate although the names with the highest EV/S valuation…

To access this post, you must subscribe.

Read More

Trying to make sense of Datadog’s valuation Making sense of hyper-growth valuations is a fraught undertaking. The problems are manifold in that no one has any real idea as to when the hyper growth phase of a story ends. That would be true even if there were no pandemic, and work-from-home orders. But in this…

To access this post, you must subscribe.

Read More

April showers bring May flowers. Of course in NYC, there are also April flowers, and this year, there were even flowers in March. It is a dark, windy, rainy day here, but life goes on. Livongo Health is a name I reviewed back in January before the virus was a prominent factor in stock selection.…

To access this post, you must subscribe.

Read More

As I write this post this morning, much news again is centered on the Covid-19 impact. Apple has announced that it will not meet its sales and earnings forecasts for this current quarter due to the impact of the virus. There will, no doubt, be other vendors similarly situated. The reports I get are from…

To access this post, you must subscribe.

Read More

I do not always get to write everything I wish in a timely fashion. Lots of companies, a fair amount of volatility and loads of data through which to sift as well as conference call transcripts to which I listen and read. Many subscribers are interested in getting updates on some of the names I…

To access this post, you must subscribe.

Read More

Zscaler/Crowdstrike-some thoughts about their announcement Yesterday, as part of an investor event, ZS and Crowdstrike announced what could be an interesting integration of the two solutions. While some of what I write here might be considered an over-simplification, the two companies offer complementary solutions to different parts of the cyber-security problem. The core of the…

To access this post, you must subscribe.

Read More
{"cart_token":"","hash":"","cart_data":""}