Lots of earnings to look at and many to admire. This is turning out to be a quarter for most enterprise software companies in which growth rates and margins were both rising and guidance was better than had been anticipated. 1) Pagaya I think the best way to describe the results and the guidance of this…
The stock market, after making several daily records, is under pressure today. Hi-growth software stocks have fallen and ServiceNow shares along with shares of IBM have seen significant drawdowns. I strongly felt that the sell-off in Service Now was not a reasonable interpretation of the quarter just reported and added to the position. And overall, I used the proceeds…
Earlier this week, Cloudflare shares had been upgraded by the analysts at Piper Sandler with a price target of $255. Initially the shares spiked by about 10.6% in reaction to the upgrade and the general recovery in the space. Subsequently the shares have consolidated. We took advantage of the consolidation to add 80 shares of…
I made some changes in the high growth portfolio this morning. I decided to sell 500 more shares of Nebius shortly after the opening and I got a fill at $167.29. There is an old Wall St. saying about trees not growing to heaven. Nebius is up 95% so far this year. I have presented my model…
We made some changes in our cyber-security holdings in the high growth portfolio. We eliminated the starter positions we had in both Palo Alto and Cloudflare. We also eliminated the position we had in Arista Networks. The positions were too small to be meaningful. The shares of Palo Alto and Cloudflare had appreciated modestly since…
This morning the release of an exceptionally poor employment situations report has precipitated what I might call a “risk-off” panic. The Ticker Target High Growth portfolio is down 3.7% at this writing. Some constituents are down more, or course. That is about 2X the loss in the QQQ and 3X the loss in the S&P. …
Axon’s run: What should readers do now? It has been little more than a year since I first recommended Axon (AXON) shares. So far in 2024, the shares are up 68% and they have consistently been making new all-time highs. The quintessential pattern of a momentum growth stock. Much of the share price increase has come since the latest earnings…
I usually cover earnings releases as part of the weekly commentary. But sometimes, I feel a separate update is warranted. This is one of those times. Before turning to company commentary, I think it is relevant to note the context. After several months of strong growth in new jobs and in other labor metrics, the…
Summary The best strategy to invest in the AI revolution is to focus on the pick and shovel vendors in the space. These companies serve as toll takers on the road to the deployment of AI based applications. AI needs lots of storage and thus we recommend shares of Pure. AI needs unified storage/compute and…
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…