TEK2day

Operating at the Intersection of Technology and the Capital Markets

    Category: Software

    • A Disney Sale: The FTC and Potential Acquirers.

      A key reason why I wrote yesterday that a Disney (DIS) sale would not be announced until the end of 2024 or in 2025 is that Disney has to be thinking about the Biden Administration’s FTC head Lina Khan blocking a potential deal, whether it be for pieces of Disney such as ABC, or for…

    • Disney’s New CFO Is an M&A Guy

      Disney (ticker: DIS) CEO Bob Iger will sell the company before he walks away. Iger will not appoint another successor after his 2020 appointment of Bob Chapek as CEO failed. Today, PepsiCo (ticker: PEP) CFO Hugh Johnston was named Disney CFO (read more HERE).

    • We Still Don’t Like PAYC.

      PAYC shares are sharply off today, yet trade at 20x calendar year 2023 cash from operations, which we estimate at $450 million. That is a steep multiple for a company that is growing its topline at 10-15% and is likely to see growth further slow in 2024. In addition, I am not a fan of…

    • AI: The Blind Leading The Blind

      AI – what a mess. Executives and investors regularly refer to all advanced automation as “AI”, regardless of whether the technology in question refers to machine learning, deep learning, neural networks, natural language processing, computer vision / image recognition, voice recognition, generative AI and so on. The good folks at Korn Ferry recently published the…

    • We Have Never Liked ZoomInfo (ZI)

      We told you that ZoomInfo (ticker: ZI) shares were overvalued in August (HERE) despite the 25% haircut the day we published. Today’s 15% haircut gets ZI shares in a more rational valuation space. However, I have always questioned how ZI calculates “organic” revenue growth, particularly when it was regularly rolling in acquisitions. Now that it…

    • The Next Steve Jobs?

      When Apple (ticker: AAPL) CEO Tim Cook takes the stage tonight at 8pm ET, recognize that there would be no Apple without co-founder Steve Jobs. There would be no Apple whatsoever were it not for Steve Jobs. Why do I say this? Well, it is easy to predict Apple’s eventual decline given that low interest…

    • The Gen AI Proxy War Fought by Microsoft, Amazon and Google

      Gen AI investments made by Amazon, Google and Microsoft. We recently wrote that Microsoft, Amazon and Google are outsourcing development of Large Language Models (LLMs) to third parties in part to keep the associated expense off Balance Sheet. The table below provides detail as to the billions of Dollars that each of Microsoft, Amazon and…

    • Generative AI Will Not Provide A Meaningful Revenue Boost to AMZN, GOOGL or MSFT

      Generative AI Revenue for Microsoft (MSFT), Amazon (AMZN) and Google (GOOGL) is negligible and will not provide a meaningful revenue boost in the near-to-intermediate term. Nvidia (NVDA) is benefitting from the broad Gen AI infrastructure build given that it is the leading Gen AI chip supplier. OpenAI (private) is benefitting as it deploys its Large…

    • Azure’s Revenue Growth and Generative AI

    • What’s Important To Listen For On Upcoming Tech Earnings Calls

      I don’t believe that management teams will provide investors with formal 2024 guidance on September quarter EPS calls. However, there should be some interesting data points to pick-up on.