I know that most subscribers have significant positions in Snowflake shares and are looking at the after-hours price and wondering if this is another leg down. Obviously while the quarter that was reported was more than satisfactory, the recent trends in consumption were such that the company felt obliged to reduce guidance. Just for the…
We have made a change in the high growth portfolio Friday morning. We have sold 80 0f the 180 share position we had in Snowflake at $181.59 which had been our limit, which netted $14,510. We bought 750 shares of Sentinel one at a price of $19.04 which cost $14,270. Overall these transactions resulted in…
Some posts are easier to write than others, and the quarterly results/guidance from some companies are easier to deal with than others. Two of the companies in our high growth portfolio reported Wednesday evening. Both of them are suffering from a difficult environment in which to sell enterprise software and IT infrastructure, and from expectations,…
A safe haven doesn’t mean that rain can’t fall October was a strong month for most stocks. Even software stocks bounced with the IGV (IGV), the software ETF rising about 7%, while the Wisdom Tree Cloud ETF (WCLD) rose about 3.5%. But while October was strong for the market as a whole, it has been…
Taking a look at a very fallen angel Wix, (WIX) the subject of this article, is a very fallen angel. It was one of the first IT vendors to see falling growth, and it has perhaps reached something of a nadir in that category. When the company last reported in August, it commented that it had seen…
How should growth investors position their portfolios to deal with the impending recession Whether the NBER or the president chooses to acknowledge the reality, a recession is either here or shortly impending. It is not, perhaps, a typical recession, but then there is really no such thing as a typical, i.e. inventory based recession any…
The analyst at BTIG, Gray Powell, has downgraded his rating on the shares of Snowflake from buy to hold. He now feels that risks and rewards are fairly balanced. For subscribers who might not be familiar with the company’s business, over-simplified, it is a cloud based data warehousing solution. The analyst said that growth of…
One subscriber suggested to me recently that it was time to adjust the portfolio to the realities of the current environment. Basically, that means more of a focus on free cash flow margins, and less of a focus on turnaround or developing stories. I thank the subscriber very much for giving me a kick in…
SummarySnowflake reported the results of its fiscal Q4 last week. The guidance, calling for 67% revenue growth, was judged to be disappointing and the shares have fallen by 27% since the earnings release. Unremarked, but of significance to any longer-term investor, is that the company’s free cash flow margin is rising at a rapid pace.…
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…