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Category: Tech Stocks

Pinterest Stock: Price to Sales Risky

Last month, I wrote an article on how mobile application companies hide user attrition and how Pinterest and Snap bury important key metrics in 10-Ks and S-1 filings. One thing I stated is that financials in tech companies can be misleading when not accompanied by scrutiny of the underlying business. For example, there are a couple of terms that are important to social media growth. I italicized growth because I presume investors will demand growth from Pinterest following the IPO and the nearly 50% rise in stock price we’ve seen over the last month. Interesting enough, despite the stock climbing…

Fundamental Stock Analysis Webinar: May 22nd at 4:30 pm EST

On May 22nd at 4:30 pm Eastern, join four fundamental stock analysts on a webinar where they will discuss stock picks, trends and strategies to help strengthen your personal portfolio. Beth Kindig will discuss how to pick a solid tech growth stock and how to hedge in down market. Specifically, Beth Kindig will discuss the differences between how the financial industry defines growth and how the tech industry defines growth, and why a blend of both is essential for picking stocks in the number one growth sector. Beth predicted the biggest stock drop in history in Q2 2018 with Facebook’s…

Uber IPO: Record-Breaking For All the Wrong Reasons

By now, investors know that Lyft’s ride-sharing IPO didn’t reach $100 per share like many of the media talking heads stated it would, and this will likely weight on Uber’s IPO. Two weeks prior to Lyft’s IPO, I had warned that the risk listed in the prospectus, which warned Lyft may not become profitable, was more than fine print. Ride-sharing companies use investment money to lower the cost of the ride to create demand, which means the ride you take in a Lyft or Uber is not profitable, and will likely never be profitable. Not one analyst rated Lyft as…

Update on $ROKU – Will Roku Miss Earnings?

Will Roku miss earnings? I believe Roku will miss earnings at times, but for the big picture, Roku is at the center of an important trend in advertising and this will make for decent returns now and sizable returns in the future. I also don’t play the earnings game often with stocks as my analysis does not change monthly or quarterly. My conviction on Roku is high and can withstand trade war news or a fledgling quarter, which is normal for smaller companies on the edge of incipient trends. What Investors Got Wrong With Roku The first thing Wall Street…

Why Robotaxis in 2020 Are Impossible and More Truths About Autonomous Vehicles

This last week, we saw Tesla take advantage of the lack of information available on autonomous vehicle technology. Unfortunately, the facts around autonomous vehicles are elusive as PR copywriters fuel journalists, who are churning out content to meet deadlines. For starters, to get machines to respond like humans, within milliseconds, is one of the most difficult problems that technologists have aimed to solve. The truth about autonomous vehicles includes regulations, production cycles, and delays in implementation. I predicted when I wrote my analysis six months ago, that the gap between investor expectations (perception) and commercial deployments (reality) had created an…

Smoke and Mirrors: How Snap and Pinterest Hide User Attrition

Social media companies today are using smoke and mirrors to hide an important key metric. I’m going to pick on Pinterest first because the social media company recently revealed these issues in its S-1 Filing, and meanwhile, Pinterest stock saw a 25% pop on the day of its public debut. To be fair, this 25% IPO pop pales in comparison to Snap’s 135% stock price increase from December lows. My best guess is that investors are hoping for the next Facebook, or perhaps they aren’t reading beyond the financials, which are on page 13 of the prospectus, compared to the…

Alphabet Stock: Keep a Close Eye on Third-Party Ads

Towards the end of March, AdWeek broke the news that “Google Mulls Third-Party Ad-Targeting Restrictions.” Criteo’s stock dropped 30% and TradeDesk saw a 15% drop while Alphabet’s stock showed the least impact at 5%. I believe the market did not fully understand the implications of what advertising experts and insiders had leaked to AdWeek. It is my prediction Alphabet will have to let go of roughly $5 billion in quarterly revenue if the company aims to become a leader in artificial intelligence and sensitive data.

Nvidia Versus Xilinx: Heavy Hitter AI Stocks

This week, I revisited Nvidia for the first time since the crypto bust. If you’re a regular reader of mine, then you’ll remember that I defended Nvidia as having a strong fundamental story due to their developer following and the GPU-powered cloud. We’ve seen the GPU-powered cloud story take shape with the recent acquisition of Mellanox. However, no analysis on Nvidia would be complete without a discussion on Xilinx, which is what I wrote about this week.

Apple Stock: A New Era of Mobile Saturation

There are many positives to Apple’s story, with a wearables business up over 50%, cloud services up 40%, and Apple News readership at 85 million active monthly users. Apple Music is also now the number one streaming service in the United States over Spotify. Most importantly, Apple has a media announcement planned for March 25th, which will add to the growing services revenue. Investors should exercise caution, however, as the broader mobile market is slowing down and is nearing saturation.

Lyft: Risky Valuation and No Intellectual Property

Silicon Valley produces a lot of winners; however, I believe investors should be careful with both of these IPOs due to bubble-like valuations, accelerating net losses, and a lack of geographic expansion opportunities. Yet, another concern is the liquidity event the large cap IPO provides, and the level of PR that can be bought leading up to the IPO, which will likely focus on the growing sales…