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Category: Tech Stocks

What’s Next for Tesla? Levels to Watch.

With the NASDAQ100 down about 10%, the current bull market’s darling, Tesla, is down about 27%. Even after a 500% increase over the past year, we believe the current correction will provide a great opportunity to participate in this real trend, which we see accelerating in 2021. The price data with Tesla suggests that a pullback to the $500-$495 region is on the table. This would provide the most ideal entry, and if we do see a drawdown to this level, expect heavy buying. We realize this would be a sizable drawdown; however, a correction to this level would confirm…

What’s Next for Bitcoin? Levels to Watch

With many popular stay-at-home stocks pulling back on heavy volume and Bitcoin testing $50,000, investors are wondering what’s in store for the world’s most popular cryptocurrency. While some traders have been—and still are—calling for a crash in Bitcoin, we see no reason to sell out just yet. View webinar here: Is This the Top?   After reaching a new all-time high of $58,300 over the weekend, Bitcoin is currently trading just under $49,000. The downward move came on the heels of a warning by U.S. Treasury Secretary Janet Yellen that Bitcoin is an “extremely inefficient” way to conduct monetary transactions, and…

Pinterest and Snap Show V-Shaped Recovery; Cloudflare Guns for Zero-Trust

2020 earnings from ad-tech stocks have shown us that digital advertising has rebounded sharply from the pandemic recession lows.  Pinterest’s growth rate dropped to 4% YoY in Q2 but has since rebounded to +77% in Q4.  SNAP’s growth rate bottomed at 17% in Q2 and has recovered to +62% in Q4.  In total, global digital advertising spend grew less than 5% in 2020 but is expected to accelerate with 17% YoY growth in 2021 as we head into a higher GDP environment.       Global digital ad spend now makes up 52% of all ad spend, the first year it has eclipsed…

Why SPACs are (Sometimes) Better than IPOs

SPACs offer retail investors the ability to invest early in a company’s life cycle. In the case of Snowflake, a company that went public via a traditional IPO, retail investors did not have this opportunity. By the time Snowflake debuted on the public markets, the share price had soared over 200% from its indicated opening price. Many pundits and analysts have claimed that the IPO process is broken due to examples like Snowflake and AirBnb. Wall Street institutions and a select group of their top clients can buy shares at discounted prices before they hit the open market. SPACs allow…

The Crucial Difference Between Roku and Netflix

Last week, I posted an article exploring the difference between Roku and Netflix. In the article, I pointed out that because Netflix came in strong with the recent earnings, there is no reason to expect Roku will not also come in strong, especially as Covid and stay-at-home orders have accelerated the shift towards Connected TV. It’s easy to compare Roku’s roughly 50 million users to Netflix’s 200 million and to assume Roku is a much smaller company or lagging the subscription behemoths, such as Disney Plus. This is a mistake as the ad-based video-on-demand (AVOD) market is a newer market…

Podcast: My favorite picks for 2021, Zoom Video, and IPOs/SPACs

Earlier this month, I joined Jason Calacanis and Alex Wilhelm on “This Week in Startups.” We discussed the current state of the IPO market, Zoom’s pricing power, top stock picks for 2021, and some of the most anticipated IPOs of 2021.  The conversation begins with a discussion about the IPO market and some of the recent froth we have seen. The recent offerings of DoorDash, Airbnb, and C3.ai demonstrate how much demand and hype we are currently seeing for new issues. We discuss if this is sustainable and if future companies are better off going public via a direct listing.…

My Early Bitcoin Bull Analysis

I first recommended Bitcoin to my free newsletter readers in June of 2019. Although I was already a proponent of Bitcoin (enough even to attend conferences), I knew it was time to bring the Bitcoin thesis to my readers in the public markets. I was hesitant because it was bold at the time to cover Bitcoin fundamentally for stock investors. In August of 2019, my technical analyst – Knox Ridley — urged me to release a full-length PDF on the premium site with my target market caps so he could start guiding entries. He was adamant we needed to start…

FuboTV’s New Path for Monetization: Sports Betting

Last week, we discussed why live sports OTT presented a unique opportunity for FuboTV and why we think it is positioned well for free-to-play fantasy games and sports betting. Fubo TV announced Q3 results on November 10th, the company’s first earnings report since its October IPO. Management described the quarter as the “strongest in company history.” Revenues of $61.2 million increased 47% YoY on a pro forma basis, or +71% excluding 2019 licensing revenue from the FaceBank AG business, which was sold in July 2020. Subscription revenue increased 64% YoY to $53.4 million, while advertising revenue increased 153% YoY to…

Podcast with Motley Fool: Big Tech Plus the 1 Stock I’d Buy Right Now

I had the privilege of joining Tim Beyers and Brian Feroldi on The Motley Fool podcast earlier this month.  In the hour-long interview, we cover topics such as big tech, my research process, tech valuations, and we also cover a number of individual stocks including Twilio, Bandwidth, Zoom, Facebook, and Palantir. The discussion starts off with big tech and why I believe Google Cloud Platform has missed an opportunity to catch up to Microsoft Azure and Amazon Web Services on cloud IaaS. With that said, all three players are aggressively pursuing edge computing and how to combine the compute and…

Tech Growth Earnings Review for Q3 2020 – Part 3

In the 3rd part of my Q3 earnings analysis, I review reports from Zoom Video, Okta, Snowflake, Crowdstrike, ZScaler and Elastic. Zoom Video Zoom Video provided a nearly flawless earnings report for the first full quarter that followed initial work-from-home orders. The blend of Zoom Video having virality across consumers from its freemium model combined with enterprise is the company’s strength strategically as the competitors do not have the virality component. In Q3, customers with more than 10 employees represented 62% of revenue with net dollar expansion rate of 130%. Globally, Zoom exhibits strong growth, as well, with revenue from…