Friday, December 29, 2017

Amazon: Happy Loss Season

Amazon released strong metrics for the holiday season.
The online retail giant again highlighted reasons that strong sales are likely to hit the bottom line.
The stock likely continues rallying with sales growth, but the company is in a precarious financial position.
To start the trading week, Amazon (AMZN) released robust holiday shopping numbers. From strong device sales to impressive membership trials, the e-commerce giant saw a not so surprising big boost in sales.
Read the full article on Seeking Alpha. 

Disclosure: No position. Please read the disclaimer page for more details. 


International Blockchain Machines

IBM has longed focused on blockchain technology as a distributed transaction ledger of the future.
The company continues to expand partnerships and develop a robust platform for enterprise customers.
The tech giant is favorably valued for multiple expansion if blockchain becomes the hot technology of 2018.
With all of the hype over cryptocurrencies and blockchain in the last month, International Business Machines (IBM) could make the name change to International Blockchain Machines and see a significant pop in the stock. Such a name change wouldn't be absolutely misplaced either unlike some of the small caps such as Riot Blockchain (RIOT) that recently made such moves and saw substantial stock gains in a matter of days, if not hours.
Read the full article on Seeking Alpha. 

Disclosure: Long IBM. Please read the disclaimer page for more details. 

Monday, December 18, 2017

Glu Mobile: Taylor Swift Is Only A Bonus

Glu Mobile released the long anticipated Taylor Swift app.
The current value is justified by existing game lineup, especially the ongoing success of Design Home.
Success of the new celebrity app would lead to significant multiple expansion.
The long awaited release of The Swift Life by Glu Mobile (GLUU) has the investor base anxious. A big hit would no doubt send the stock soaring while another celebrity flop could sending the stock crashing.
Read the full article on Seeking Alpha. 

Disclosure: Long GLUU. Please read the disclaimer page for more details. 


Monday, December 4, 2017

Snap: Exclusive Engagement Isn't Enough

New report shows Snap has an exclusive user base.
Snap must prove the business model though plenty of revenue upside exists with monetizing existing user base.
Valuation is extremely stretched despite the opportunity to grow revenues due to unconstrained operating expenses.
A new report backs the thesis that Snap (SNAP) has compelling user engagement that remains sticky. Unfortunately, user engagement is only one part of an investable business model that my research has questioned since the IPO.
Read the full article on Seeking Alpha. 

Disclosure: Long TWTR. Please review the disclaimer page for more details.