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…
Microsoft announced what it calls Entra SASE, a solution that is designed to compete with modern security offerings from Zscaler, Palo Alto and Cloudflare. The announcement includes two specific solutions: Entra Internet Access, which is a secure web gateway for SaaS apps and internet traffic as well as Entra Private Access. Internet Access will be…
To say this has been a horrible year for investors in high growth IT space is somewhat akin to the statement made by the Emperor of Japan announcing its defeat and surrender of his country in August 1945 to the effect that the war had developed “not necessarily to our advantage.” This has been the…
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…
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…
March will probably rank as the worst month ever for equity investors, but the last week or so has seen a modest recovery. There appears to be some better news from the war against the Covid-19 virus. The Boston Globe is carrying a story today that new cases in Mass. will peak on about April…
Summary Cloudflare is a company whose corporate mission is to make the internet a better place for its customers. It offers an edge computing service, a dev ops platform, a variety of security solutions and a work from home capability. The company reported a particularly strong quarter in February;it has yet to adjust expectations for…