Operating at the Intersection of Technology and the Capital Markets
Tag: Venture Capital
AR, VR and other new product initiatives are not the answer for fixing SNAP. Ad Revenue lost to iOS changes is not coming back. Further, SNAP lacks META's scale and TikTok's "cool" factor which makes it impossible to command top Ad rates. Last, this is not exactly the optimal environment to be pitching Ads. Small, … Continue reading M&A Is The Answer For Snap
The Fed has created more zombie companies than any zombie apocalypse. The late great George Romero has nothing on the Fed. We are praying, crossing fingers and toes that the Fed will end QE and not support Government-led corporate bailouts with its money printing ability. Wishful thinking? Maybe. However, if nobody pushes back on the … Continue reading Allow Zombie Companies To Fail & Sanity To Return To The Markets
The grow-at-all-costs venture capital culture of the past 20-plus years ruins companies. How? Far too much focus is placed on revenue growth at the expense of sound operations and profitability. Too many venture-backed companies grow at a pace that far outstrips those companies' ability to scale operations in a manner that supports growth. The result … Continue reading VC Culture Ruins Companies
META's remake is no sure bet. The Facebook blue business is yesterday's business. Its best attribute is that it generates significant free cash flow that may be deployed toward remaking the company.Instagram is in the process of being retooled. IG's recommendation algos are being rewritten to more closely match TikTok's - meaning users would see … Continue reading META’s Remake Is No Sure Bet
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
Amazon is developing a reputation for poor deal etiquette. Specifically (as reported by the WSJ), Amazon is using intelligence gathered by its venture arm during deal due diligence to develop competitive offerings. Microsoft, Google, Walmart, Alibaba, Shopify and others will likely capture a percentage of venture and M&A deal flow that otherwise would have gone … Continue reading Poor Reputations Travel Quickly
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
Layoffs are not only taking place across the retail, restaurant, travel and hospitality industries. A number of other industries including the Technology industry have absorbed their fair share of layoffs as well. Some early-stage Technology companies are conserving cash by replacing cash compensation with equity. The list below includes approximately 60 companies (primarily Tech companies) … Continue reading Layoffs Have Extended Beyond Hotels and Restaurants
A recession is defined as an economic period where GDP declines for two consecutive quarters. We believe the next recessionary period will be different as a result of artificially low interest rates. The United States' proclivity to print money and maintain artificially low interest rates makes it difficult for institutional investors to find yield. Gone … Continue reading The Next Recession Will Prove Different for U.S. Equity Markets
Many of our readers are Technology CEOs and institutional investors. If you wish to tell your company's story, or a portfolio company story let us know. Beginning in 2019 we plan to occasionally profile Technology companies in these pages and on our CEORater Podcast. Send me a note directly at jmaietta@ceorater.com. Thanks for reading! … Continue reading Share Your Story with Us
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