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Month: May 2020

Playing Defense With Cloud Software Stocks

Paul Tudor Jones is one of many money managers who believes that protecting your money is more important than making it. In my latest article, I discussed this very concept in relation to cloud software stocks. The main risk to cloud software during a less-than-ideal economy is downgrades and churn. Signing new customers can also be a challenge. How a company is faring will often show up in net retention rates. My guess is we will see some cloud software companies remove this metric from their Q2 earnings report or we will see previously strong net retention rates dip below…

Will Roku Go Boom or Bust This Year

I recently wrote a report analyzing the future of Roku in 2020. My guess is investors will get Roku’s story wrong again this year as the company must choose between its top line and bottom line. Covid-19 offers an important opportunity for Roku as OTT usage is skyrocketing and the company must expand globally for long-term growth. In the earnings report this week, Roku gained 2.9 million incremental active accounts, or a 37% increase year-over-year to 39.8 million total, and streaming hours increased by 1.6 billion to a record 13.2 billion, or a 49% increase year-over-year. Oppenheimer analyst Jason Helfstein…

Why I’m Pivoting Away From The Trade Desk For Now

Last week I wrote an article explaining why I’m pivoting away from the bull thesis for The Trade Desk for 2020. But first, I should discuss my original bullish thesis. It’s important to remember that The Trade Desk is a “demand-side” or “buy-side’ ad platform which allows advertisers to buy ads in auction-like format through real-time bidding. This is an automated method for buying and selling inventory that eliminates the need to call up an agency or salespeople to place the ad. The Trade Desk’s financials and growth remain solid. Revenue grew 33% to $160.7 million with net income and…

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