Workday’s position as a recession impends Workday is not the most obvious pick for investors concerned about the impending recession. After all, this is a company whose raison d’etre is based on providing solutions for HR and for Finance of enterprises of all sizes. It is obvious that with hiring slowing, and with financial apps…
Atlassian-its attractively valued for the first time in years Why write an article about the shares of Atlassian (TEAM) now? I last wrote an article on the company that was published on SA about 2 years ago. The shares are actually higher now, than they were back then, but in the interim, they appreciated substantially before falling…
The first thing to advise subscribers is to maintain some semblance of calm. That can be very difficult to do when headlines are all grim, and ones portfolio has imploded as has been the case for most growth investors. The obvious reaction of many is to take losses and exit the market. And truth be…
Shift4 in the context of rerating and valuation implosion The stock market is an efficient engine for valuing assets. That is one of the first things taught to students of investment management. What is less frequently taught is the role of sentiment, and algorithmic trading in valuation. Currently, the most popular sentiment gauge remains at…
Summary monday shares saw their valuation shredded in the wake of what was construed as disappointing guidance. The company’s guidance is typical of that of many companies these days: revenue growth is less than might be reasonably anticipated, while opex expense growth is elevated. monday is one of the leaders in the workflow management space.…
Last week was one of lots of gyrations, and as the result of a very substantial intraday reversal on Friday, the indices and our portfolios finished with small gains for the week. I am not about to call the bottom, yet. The market in general, and particularly the market in high-growth IT shares was oversold,…
I have been asked by several subscribers what I am doing in this market implosion. Simply put-I don’t sell into panics. I didn’t sell back at the start of the pandemic, although that was pretty uncomfortable. I haven’t sold during other sector rotations. I don’t believe I am being stubborn. I simply try to invest…
The best of times and the worst of times. The phrase is well known, and to an extent, it sums up my feeling about these three names, on which I comment below. The three companies covered in this post to subscribers all had what can objectively be described as strong quarters with revenue growth exceeding…
Summary Twilio reported Q3 results a couple of weeks ago. The results noticeably beat prior expectations, but investors and observers were disappointed with the company’s 38% organic growth. The company actually did increase guidance for the current quarter and it did reaffirm its expectations for sustained growth greater than 30%. The company has achieved noticeable…
It was announced after the close on Wednesday, October 6th, that AppLovin would acquire the MoPub business from Twitter for s bit more than $1 billion in cash. At the end of the last quarter, the company had cash and cash equivalents of $1.2 billion and it generated a bit more than $90 million in cash in the last reported quarter. The company thus has adequate resources to fund the purchase, but despite that, I do expect it will enter into some kind of loan agreement, or sell additional securities, either debt or equity or some combination.