In a series of posts over the course of the last year, I argued that you can value users and subscribers at businesses, using first principles in valuation, and have used the approach to value Uber riders, Amazon Prime members and Spotify & Netflix subscribers. With each iteration, I have learned a few things about user value and ways of distinguishing […]
On May 9, 2018, Walmart confirmed officially what had been rumored for weeks, and announced that it would pay $16 billion to acquire a 77% stake in Flipkart, an Indian online retail firm, translating into a valuation of more than $21 billion for a firm founded just over ten years ago, with about $10,000 in […]
It was just over two weeks ago that I started my posts on the FANG stocks, starting with Facebook, which I decided to buy, because I felt that notwithstanding its current pariah status, its user base was too valuable to pass by, at the prevailing market price. I then looked at Netflix, a company that […]
In my last two posts, I looked first at the turn in the market against the FANG stocks, largely precipitated by the Facebook user data fiasco and then at the effect of the blowback on Facebook's value. I concluded that notwithstanding the likely negative consequences for the company, which include more muted revenue growth, higher […]
For better or worse, Netflix has changed not just the entertainment business, but also the way that we (the audience) watch television. In the process, it has also enriched its investors, as its market capitalization climbed to $139 billion in March 2018 and even after the market correction for the FANG stocks, its value is […]
In my last post, I noted that the FANG stocks have been in the spotlight, as tech has taken a beating in the market, but it is Facebook that is at the center of the storm. It was the news story on Cambridge Analytica's misuse of Facebook user data, in mid-March of 2018, that started […]
If there is one thing that I have learned about markets over the years, it is that they have a way of leveling egos and cutting companies and investors down to size. The last three weeks have been humbling ones for tech companies, especially the big four (Facebook, Amazon, Netflix and Alphabet or FANG) which […]
In my last post, I valued Spotify, using information from its prospectus, and promised to come back to cover three loose ends: (1) a pricing of the company to contrast with my intrinsic valuation, (2) a valuation of a Spotify subscriber and, by extension, a subscriber-based valuation of the company, and (3) the value of […]
In the last few weeks, we have seen two high profile unicorns file for initial public offerings. The first out of the gate was Dropbox, a storage solution for a world where gigabyte files are the rule rather than the exception, with a filing on February 23. Following close after, on February 28, Spotify, positioning […]
I am quoted in this U.S. News and World Report/Yahoo Finance article: “Pros and Cons of Buying Berkshire Hathaway Stock”. Berkshire is currently selling at a below market average price/earnings ratio and its earnings are projected to grow at an above market average rate over the next few years, says David Kass, a finance professor […]
Seeking Alpha published my presentation before the Chartered Financial Analysts Society of Washington, DC on June 6, 2018. Summary (1) The outlook for U.S. equities is very bright. (2) Interest rates are likely to remain at historically low levels after several gradual increases in the Federal Funds rate in 2018 and 2019. (3) Corporate profits will […]
From the Omaha World-Herald: Some Berkshire shareholders stiffed an Omaha waitress. So Warren Buffett sent her a check By Steve Jordon / World-Herald staff writer 7 hrs ago From the it’s-a-small-town department: Some Berkshire Hathaway Inc. shareholders weren’t patient in a downtown Omaha restaurant. Despite their waitress’ best efforts to serve a full house of […]
Warren Buffett and Jamie Dimon were interviewed on CNBC on June 7. Three highlights were: (1) Public companies should eliminate the practice of estimating quarterly earnings. They have also published an op-ed in today’s Wall Street Journal. (2) Buffett and Dimon are very optimistic about the economy. Buffett: ‘If we are in the sixth inning (of the […]
CATALIST-LISTED Chaswood Resources Holdings is to serve the scheme for the new proposed debt restructuring on the scheme lenders, the firm said in an update on its restructuring proceedings that have commenced in Malaysia.
[HONG KONG] Hong Kong and mainland Chinese stocks rose Wednesday on bargain buying after tanking the previous day but investors remain nervous about a possible trade war between China and the United States.