The "Best" is such a subjective descriptor. However, if pressed to select the best operating CEO our vote would go to Amazon founder & CEO Jeff Bezos. A sure fire bet to be a first ballot Hall of Famer in CEORater's CEO Hall of Fame. Amazon is perhaps the most practical of the Technology giants. … Continue reading The World’s Best Operator
Given Snowflake's rich valuation, it may be time for Alphabet, Amazon and Microsoft to spin-off GCP, AWS and Azure. Snowflake priced its IPO yesterday and the stock closed up 112% to $253.93 for a valuation of approximately $70 billion. Assuming calendar year 2020 revenue of $500 million implies a MV/Revenue multiple of 140x. The combination … Continue reading Time to Spin-Off AWS, Azure and GCP
Powell is a paper-loving, paper-printing Fed Chair. Powell has never hesitated to print his way out of a tough spot. We predict that should the equity markets roll over another 10-15 percentage points Powell and his band of merry Federal Reserve Board members will seek to support the equity markets with Equity ETF purchases. Tickers … Continue reading Powell Is A Paper Fed Chair. That’s Good News for Stocks.
Tickers mentioned: AAPL, AMZN, FB, GOOG, MSFT, VMW, TWTR Deep-pocketed companies such as Alphabet, Amazon, Apple, Facebook and Microsoft have a competitive advantage in the Talent War - especially during the Work-From-Home era. On that front, VMWare and Twitter just shot themselves in the foot. VMWare and Twitter said they will adjust compensation downward for … Continue reading Competing for Employees in the WFH Era
Market leaders may iterate and experiment with less risk of customer churn than upstarts working to establish market position. Amazon Prime is a good example. I am toying with the idea of grouping some of our TEK2day writings as an Amazon Kindle book. While playing with the Kindle direct publishing feature I noticed a new … Continue reading Market Leaders Should Experiment Like Amazon
Unlimited cash and an army of talented data scientists and engineers does not ensure AI success. This is especially true when the first mover and market leader (Google) has yet to remove its foot from the accelerator. Microsoft recently stood down in the Voice Assistant wars. Cortana was never going to catch Google Assistant (Google … Continue reading The Voice Assistant Wars Lost A Combatant
Regardless of who wins November's general election we expect higher corporate income tax rates in 2021 or more likely 2022. Today's 21% U.S. corporate tax rate will likely climb back to 35% or higher should Trump win re-election or to 40-45% should Biden win the Presidency. We expect companies to control expenses as a result … Continue reading Higher Corporate Income Tax Rates and Advanced Automation Are Coming
Social media advertising revenue will likely take a prolonged hit as Ad buyers curb spending and in some cases go out of business Facebook (tkr: FB) and YouTube (tkr: GOOG) are best positioned to sustain a weak economic backdrop. Facebook is the dominant social media platform from a revenue standpoint and YouTube benefits from being … Continue reading Social Media Ad Revenue & the COVID Recession
Sellside analysts have too much time on their hands. There is zero logic as to why Apple should acquire a search engine. If Apple (tkr: AAPL), were to acquire a search engine it would have a difficult time taking market share from Google (tkr: GOOG). It is more likely that an Apple-owned search engine would … Continue reading Apple Is Not Going to Acquire A Search Engine
Broadly-defined Financial Services and Healthcare are two giant, slow growth industries that could potentially kick start revenue growth by leveraging a variety of video and audio-based technologies. Financial Services & Insurance contributed $1.2 Trillion to GDP in Q1 2020 and Healthcare contributed $2.4 Trillion during the same period (table 1). Both industries are bogged down … Continue reading Financial Services & Healthcare – Sleeping Giants Ready to Awake?