This morning DigitalOcean announced that it was spending $500 million to retire its current convertible debt outstanding. This is to be funded by simultaneous offerings of shares. The net of these transactions will leave the implied outstanding share count alone. The press release called out that this transaction might result in some share price volatility and that…
There was positive news regarding two companies we hold in the high growth portfolio: Digital Ocean and Figma. Neither company’s share price has responded hugely to positive developments leaving them relatively attractive. a) Digital Ocean Digital Ocean pre-announced a substantial upside for its June quarter and essentially raised future guidance. The headline is that the company…
It is a busy week for earnings and in order to keep up I try to work on some comments about companies in our portfolios as they report results. a) DigitalOcean DigitalOcean shares rose by more than 40% on Tuesday in the wake of reporting a very strong quarter-or better said, a strong quarter and guidance…
Shares of Nebius have spiked significantly this week. The spike carried the shares to a portfolio weight that was simply too high for comfort. We sold 500 shares of Nebius in the high growth portfolio at $148.99 and that raised $74,495. We now have a 2700 share position in Nebius which is a weight of 22.7% in…
This has been yet another week of pain and disappointment. Despite seeing some strong performance because of upside earnings from Braze, Navan and Unity, the high growth portfolio has depreciated. Stocks are being sold more or less independent of valuation or business outlook. Sentiment seems to be stuck in negative. The war, the SaaSpocalypse theory, interest…
blackdovfx/iStock via Getty Images Digital Ocean: A somewhat unique strategy and a somewhat unique AI infrastructure investment Depending on definition, it’s been about 2.5 years since AI first emerged as the investment theme of the decade and perhaps the century. Since then companies of various stripes have emerged in the space with incredible valuations. The two leading…
Sale of 1200 shares of Shift4 (entire position); Purchase of Digital Ocean-Starter position; Adding to positions in Snowflake, Figma and Samsara. We made some changes in the high growth portfolio today. We eliminated the Shift 4 position. We got impatient and despite not getting the dead cat bounce, we decided to take the medicine and eliminate the…