Last year Broadcom pursued an acquisition of SAS Institute (private) before SAS Co-founder and CEO Jim Goodnight withdrew. Now, the WSJ reports that Broadcom (AVGO) is working to acquire private cloud and infrastructure software provider VMware (VMW). While the SAS pursuit was bold and creative, the prospective VMW acquisition is bold, risky and lacks creativity. … Continue reading Bold Broadcom Pursues VMware
Tag: Enterprise Software
Enterprise Software applications will increasingly incorporate AI to guide users by providing them with real-time actionable information. Such applications will generate enormous value assuming they are able to effectively inform users without becoming an overly-used crutch. Think of the benefit such applications may provide employees that lack customer-specific knowledge, process knowledge, domain expertise and/or general … Continue reading AI-Powered Decision Support Capability Is Only Scratching The Surface
CEORater began an experiment several years ago whereby we built a concentrated "buy and hold" equal-weight portfolio consisting of quality Enterprise Software names that would be held for a minimum of five years. The benchmark is the S&P North American Expanded Technology Software Index (SPNASEUP). CEORater is up 4.2% Year-to-Date vs. 2.0% for the benchmark … Continue reading CEORater Portfolio Ahead of The Benchmark
Coinbase (tkr: COIN) prices today and company co-founder Brian Armstrong made the point that regulation and cybersecurity are two key threats to the crypto industry. We believe that the crypto industry will spearhead cybersecurity innovations that will eventually be adopted by many consumers and enterprises. Tickers mentioned: COIN, MSFT, ORCL, PYPL, SAP, SQ, TYL When … Continue reading Crypto To Drive Next-Gen Security
Salesforce (tkr: CRM) president and Chief Operating Officer Bret Taylor may soon succeed company founder Marc Benioff as Chief Executive Officer. That's the rumor as reported by a number of news outlets this week. If true, Taylor's operating experience - particularly on the product side (Taylor was Salesforce's Chief Product Officer prior to becoming COO … Continue reading Is Salesforce COO Bret Taylor The Company’s Next CEO?
Virtu, SS&C Technologies and Envestnet are among the Capital Markets Fintech names that ought to draw attention from value investors. We have updated our Capital Markets Fintech table as earnings reports have rolled in. If you are a value investor who looks to cash flow-based valuation metrics, Virtu (tkr: VIRT), SS&C Technologies (tkr: SSNC) and … Continue reading Virtu, SS&C Technologies and Envestnet
Over the past 11 months and as recently as Tuesday the Federal Reserve has consistently reiterated its mission to get the U.S. Economy back to full employment. We are not there yet. The labor participation rate remains below 2008-2009 financial crisis levels. Let me know your thoughts on the below (particularly if you are on … Continue reading Is The Fed’s View On The Relationship Between Interest Rates and Jobs Wrong?
Not unlike other Technology companies, capital markets-focused FinTech companies have benefited in recent years from the Fed's persistent low interest rate policy and from the Trump tax cuts. The difference between this FinTech cohort and many Bay Area Enterprise Software companies is that this FinTech group generates meaningful cash flow (29% median Operating Cash Flow … Continue reading Capital Markets FinTech Companies Generate Cash for Your Investment Dollar
Our 2019 Technology CEOs of the Year included Andy Florance of CoStar Group (tkr: CSGP), Lance Uggla of IHS Markit (tkr: INFO), Ajay Banga of Mastercard (tkr: MA), Satya Nadella of Microsoft (tkr: MSFT) and Bill Stone of SS&C Technologies (tkr: SSNC). The risk/reward ratio for the equity markets hasn't been this unfavorable since the … Continue reading Catching Up with CEORater’s 2019 Technology CEOs of the Year
Short-term greed has gripped some of the world's largest Technology companies. A number of CEOs and Boards are guilty of trading long-term innovation and customer value for short-term share price support. Innovative companies (we provide examples), have bucked the buyback trend. Record high corporate debt levels have funded record share buyback activity in recent years. … Continue reading Binging On Buybacks At Innovation’s Expense