Summary Shares of High-Growth software companies have led the market down so far in 2022. The decline in valuations and absolute share prices has been at rates that rival anything in the recent past. This decline has occurred against a background of strong and growing demand in the Information Technology (IT) space. Ironically, software demand…
The tide of earnings is at flood, with results of several companies coming daily. I obviously can’t review all of the earnings in which subscribers have interest. I will, over time, review the results of the companies in the high-growth portfolio and will also review names that I have recommended but which are not currently…
I am sure that subscribers will recognize that the last few days have seen a rather substantial pull-back in high growth tech names. Some losses have been greater than others. None of the valuation contraction has been based on some particular changes in the outlook for growth names, or their overall operational performance. We will…
Summary Both Fastly and Cloudflare released earnings earlier in August. Cloudflare’s release was another quarter of beat and raise-typical for this company. The Fastly release was yet another disappointment highlighting lingering effects from a network outage as well as customer delays. My view is that the different valuation paths of both companies have set up…
Summary Fastly reported its Q1 earnings on May 5th. Quarterly results were a small beat. The Q2 outlook was below the consensus, the full year estimate for revenue growth was increased. The shares plunged 27% after the release of the earnings report and they are now down 40% since early March. Investors and commentators are…
Earnings season got underway in earnest last week. It was not a great week for the software names. The IGV fell a couple of percent and the CLOU index was unchanged. The CLOU index benefited significantly from the announcement that one of its heavily weighted constituents, Proofpoint, is being acquired by the PE firm, Thomas…
Summary Fastly reported its year end results and provided forward guidance on 2/17/2021. The quarterly results were a modest beat; the guidance was considered disappointing. The company is forecasting 32% growth for the year which includes about 400 basis points from the acquisition of Signal Sciences. The forecast includes headwinds from the revenue decline of…
Several subscribers have asked me to comment about the share price implosion in the IT space this past week and what names can be bought to take advantage of this panic. I do think that this is a panic that presents some opportunities for subscribers with spare cash. The concept of this panicis is that…
We are selling 400 shares of FSLY in our portfolio at an early morning price of $103.89. This was a trade limit we set pre-market and as such it may be different than the price of the shares at the time readers receive this post. The net value of the sale was $41,540 and the…
We added 400 shares of Fastly to our high-growth portfolio this morning at a price of $70.49. The cost of this purchase was $28,196 and this reduced the cash balance to $159. We took advantage of this morning’s share price pullback of the shares of company’s whose business has benefitted from demand vectors created by…