Twitter (TWTR), is not willing to be more forthcoming in its M&A due diligence process with Elon Musk because the company knows it has a Bot problem. Twitter knows that a 20-40% Bot problem will result in a similar haircut by Mr. Musk to the deal's total purchase consideration. Twitter CEO Parag Agrawal is spinning … Continue reading Twitter Is Lying Through Its Teeth
Broadcom Agrees To Acquire VMware
Broadcom agrees to acquire VMware for $61 billion As we wrote previously, we believe this acquisition is a strategic blunder on the part of Broadcom (AVGO). Broadcom's acquisition of VMware (VMW) is essentially a "bet the company" type of acquisition given the amount of purchase consideration ($61 billion) and also given the fact that the … Continue reading Broadcom Agrees To Acquire VMware
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
Elon Musk Does Perform Due Diligence
It appears that Elon Musk does perform due diligence. Today the market freaked out when Elon Musk essentially said his Twitter (TWTR), acquisition is on hold pending due diligence. Specifically, as common sense would suggest, Musk does not take Twitter at face value when the company says that fake accounts are less than 5% of … Continue reading Elon Musk Does Perform Due Diligence
Between Here and The Metaverse
Facebook needs to build a bridge between its present product portfolio and a Metaverse-centric future. iOS users began to opt out of iOS app tracking when iOS 14.5 was released in April 2021 as part of Apple's App Tracking Transparency policy. iPhone, iPad, and Apple TV apps are required to request users' permission to track … Continue reading Between Here and The Metaverse
The Stock Buyback Scam
Prior to the 2008-2009 Financial crisis, stock buybacks were typically used by management teams to offset options dilution and to acquire undervalued company shares. Today, companies primarily use stock buybacks to goose the value of CEO options packages as well as to goose the value of shares held by CEOs and large institutional holders. The … Continue reading The Stock Buyback Scam
Technology Platform Companies Include More Than The Usual Suspects
Technology platform companies include more than Alphabet, Amazon, Apple, Facebook and Microsoft. We contemplate a few FinTech platform companies below. PayPal (ticker: PYPL): A "Payments" platform company that re-invented itself by acquiring another payments company - Venmo - that was built on top of another platform company - Facebook. The architect that drove PYPL's strategy … Continue reading Technology Platform Companies Include More Than The Usual Suspects
A Win for Intuit. A Loss for Facebook
Intuit (ticker: INTU), recently announced that it had agreed to acquire Mailchimp, the marketing platform used by small and medium-sized businesses (we are a Mailchimp customer). Intuit is in the business of serving the SMB market. Facebook (ticker: FB), also serves SMBs and made a smart acquisition last year (Kustomer acquisition) to bolster its SMB … Continue reading A Win for Intuit. A Loss for Facebook
Big Tech’s Hunger For Talent
Alphabet, Amazon, Apple, Facebook and Microsoft each grew headcount in 2020 with all but Alphabet accelerating headcount growth. Big Tech has a hunger for software engineers, architects, designers and data scientists. These skilled employees are working to scale sophisticated cloud platforms, applications and services that increasingly leverage advanced automation and analytics powered by artificial intelligence/ … Continue reading Big Tech’s Hunger For Talent
A Vaccination Passport Is Coming. Digital Currency and A National ID Card Are Next.
Cerner, Epic, Microsoft, Oracle, Salesforce and more will spearhead the Vaccination Passport. Tickers mentioned: AAPL, AMZN, CERN, CHNG/UNH, CRM, FB, GOOG, MSFT, ORCL, RAMP One could argue that we already have National ID cards. Our digital footprint serves as a unique identifier and is easy to aggregate using cross-device tracking technology served up by Google, … Continue reading A Vaccination Passport Is Coming. Digital Currency and A National ID Card Are Next.
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