Category: Information Services

The Economic Genie Is Out Of The Bottle

The Economic Genie Is Out Of The Bottle

It does not matter what the Fed does with the Fed Funds Rate at this point, the global economy is softening and is likely to get worse. Whether the Fed ultimately takes rates to 3.5% or 4.0% will have little effect on the macroeconomic backdrop (QT is a different story). More job cuts. Large Tech … Continue reading The Economic Genie Is Out Of The Bottle

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Amazon (ticker: AMZN), announced that it plans to acquire healthcare provider One Medical (ticker: ONEM), for approximately $3.9 billion. Some of the analysis we have seen misses the big picture. One Medical has approximately 180 clinics: Amazon could incorporate additional clinics into its Whole Foods and Amazon Fresh locations, thereby growing the number of consumer … Continue reading Amazon’s One Medical Acquisition – Analysts Are Missing The Boat

Independence Day Edition

Independence Day Edition

To celebrate Independence Day we give you Milton Friedman's 10-part "Free To Choose" video series. Free To Choose – Vol. 01: “The Power of the Market” https://youtu.be/dngqR9gcDDw Free To Choose – Vol. 02: “The Tyranny of Control” https://youtu.be/CWgNe8v6KFc Free To Choose – Vol. 03: “Anatomy of Crisis” https://youtu.be/fKz6KrMGj3I Free To Choose – Vol. 04: “From Cradle to Grave.” https://youtu.be/ysf-5MdWDt0Continue reading Independence Day Edition

One Company Won’t Build The Metaverse

One Company Won’t Build The Metaverse

Meta Platforms (META) will not single-handedly build the metaverse, nor will Microsoft (MSFT), nor Apple (AAPL), nor Autodesk (ADSK), nor Amazon (AMZN)... We think of the metaverse as a series of interconnected digital worlds where people engage in recreational and commercial activity. Everything from gaming to purchasing a house to leasing commercial space, to buying … Continue reading One Company Won’t Build The Metaverse

Facebook and The Blockchain

Facebook and The Blockchain

Here is our follow-up to our recent article Facebook Will Be Next. We have stated on a number of occasions that social media companies such as Meta/Facebook and Twitter overstate the number of active users given that the active user metric is a self-reported figure and given that no outside firm has the ability to … Continue reading Facebook and The Blockchain

Focus On Quality Management Teams

Focus On Quality Management Teams

As equity valuations pull back and recession looms investors ought to take cover by investing in industry-leading companies led by quality management teams. The universe of such investment opportunities can't be identified by PE or cash flow multiples, dividend yields or the like. While valuation metrics are a decent filter (example: I would never pay … Continue reading Focus On Quality Management Teams

More Irrational Exuberance: Thoma Bravo to Acquire Anaplan for $10.7 Billion

More Irrational Exuberance: Thoma Bravo to Acquire Anaplan for $10.7 Billion

PE firm Thoma Bravo is set to acquire Anaplan (tkr: PLAN) for $10.7 billion. That valuation implies an 18x Enterprise Value to Revenue (EV/Revenue) multiple on trailing revenue of $592 million. To us 18x revenue is a rich valuation in this environment where interest rates are climbing and recession is around the corner. Even if … Continue reading More Irrational Exuberance: Thoma Bravo to Acquire Anaplan for $10.7 Billion

Blockchain and Cybersecurity

Blockchain and Cybersecurity

Our recent Blockchain article touched on the superior digital security offered by Blockchain/ Distributed Ledger Technologies ("DLT"). Over time we anticipate that legacy payment systems, workflow software and general transaction processing systems will be replaced by dedicated blockchain/ DLT networks. The Internet in its present form is riddled with cybersecurity risks. The current crop of … Continue reading Blockchain and Cybersecurity