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Kratos Defense & Security Solutions Inc. (KTOS $93.04)
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Viavi Solutions Inc. (VIAV $32.44)
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Palantir Technologies Inc. (PLTR $152.77)
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Hydrograph Clean Power Inc. (HG $6.65)
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Symbotic Inc. (SYM $50.06)
Q: WITH THIS VOLATILITY, WHICH STOCKS ARE OVERPRICED AND UNDERPRICED.
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Adobe Inc. (ADBE $246.00)
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Salesforce Inc. (CRM $194.34)
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Shopify Inc. Class A Subordinate Voting Shares (SHOP $170.06)
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ServiceNow Inc. (NOW $113.71)
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CrowdStrike Holdings Inc. (CRWD $435.81)
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Palantir Technologies Inc. (PLTR $152.77)
Q: SaaS and Software Companies at Risk
The software sector has taken it on the chin in the last few weeks based on the "AI will eat software" theme.
In my opinion, you buy software companies that own things AI cannot generate or scrape.
Therefore, the survivor software companies should have two broad “moats” in the new AI age:
1. Data that is unique and private. If an AI can't get the data elsewhere, the value of this data increases.
2. Regulation. Hospitals won't switch to a chatbot that isn't FDA-approved. Same for governments.
Therefore, I wondering which companies will likely face challenges while others will thrive in this new world. I offered a few below, but please feel free to jump in or revise:
Thrive - For example: CSU, TRI, CRWD, PLTR, SNPS/CDNS, SHOP (not sure) etc.
Challenged - For example: CRM, Adobe, SAP, SNOW, NOW (not sure), etc.
Thanks 5i and Cheers.
PK
The software sector has taken it on the chin in the last few weeks based on the "AI will eat software" theme.
In my opinion, you buy software companies that own things AI cannot generate or scrape.
Therefore, the survivor software companies should have two broad “moats” in the new AI age:
1. Data that is unique and private. If an AI can't get the data elsewhere, the value of this data increases.
2. Regulation. Hospitals won't switch to a chatbot that isn't FDA-approved. Same for governments.
Therefore, I wondering which companies will likely face challenges while others will thrive in this new world. I offered a few below, but please feel free to jump in or revise:
Thrive - For example: CSU, TRI, CRWD, PLTR, SNPS/CDNS, SHOP (not sure) etc.
Challenged - For example: CRM, Adobe, SAP, SNOW, NOW (not sure), etc.
Thanks 5i and Cheers.
PK
Q: From Michael Burry.
Palantir’s accounts receivable (AR) is first up. The traditional metric for AR is Days Sales Outstanding (DSO), with higher DSO implying customers are taking their time to pay for Palantir’s services for one reason or another.
In 9 of the last 12 quarters, AR grew faster than revenue – a persistent pattern generally attached to nefarious tricks such as channel stuffing, aggressive revenue recognition, or extended payment terms used as sales concessions. For real subscription businesses, AR growth should track revenue growth closely. When AR is volatile or outgrows revenue, it means the company is booking sales faster than it is collecting cash.
Reason to sell or not, how big a deal is it?
Thank you.
Palantir’s accounts receivable (AR) is first up. The traditional metric for AR is Days Sales Outstanding (DSO), with higher DSO implying customers are taking their time to pay for Palantir’s services for one reason or another.
In 9 of the last 12 quarters, AR grew faster than revenue – a persistent pattern generally attached to nefarious tricks such as channel stuffing, aggressive revenue recognition, or extended payment terms used as sales concessions. For real subscription businesses, AR growth should track revenue growth closely. When AR is volatile or outgrows revenue, it means the company is booking sales faster than it is collecting cash.
Reason to sell or not, how big a deal is it?
Thank you.