Tag: updates

Meta Is Down 23% Post-Market, What Happened?

Today, Meta released its Q4 2021 earnings and this is what happened: Despite beating revenue estimates, the company missed on EBIT and EPS estimates. The operating margins compression was largely a result of a temporary increase in general & administrative expenses (primarily legal related expenses which tends to be lumpy) and to a lesser extent a mild increase in R&D and marketing expenses , which ...

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Twilio is Back at Pre-COVID valuations?

Our very first company covered is Twilio, led by the visionary founder CEO Jeff Lawson. When the report was released, the company was great but the valuations were pricey. Today, the valuations have come down to pre-COVID levels of around 11.9x P/S but the company has become stronger than before. Management has guided for 30%+ revenue growth over the next three years and I am ...

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Has The Investment Thesis for Alibaba Turned Sour?

This quarter is important because it is the first quarter where they feel the full impact of the new regulations. And I’m looking for signs as to whether the regulations have permanently impaired Alibaba’s economic engine as Mr. Market has priced it to be.  Financials Let’s dive into the numbers: Excluding their recent Sun Art acquisition, revenue only grew 16% y-o-y.The number of annual active ...

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Facebook Q2 2021 Earnings Breakdown

Earnings Highlight (Italics are my comments) Revenue increased 56% year-over-year (YOY) to $28.6 billion. Amazing how long of a runway they have on their advertising business alone, and they have many optionalities embedded within the business (e.g. AR/VR, payments, commerce)Operating income increased 107% YOY to $12.4 billion Largely from operating leverage, as their cost on security and R&D spreads over a large pool. Facebook’s operating ...

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Top 3 Things About The Latest China Regulations

1. All Platforms Must Open Up! The Ministry of Industry and Information Technology (MIIT) announced that in the next 6 months, they were looking to rectify the following problems in the market (in Chinese): Disturbing market order: malicious blocking of weblinks and interference with the operation of other enterprises' products or services, including restricting normal access to other web links without justifiable reasons, implementing discriminatory ...

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Facebook’s Q1’20 Earnings Update

Increased engagement due to shelter-in-place measures but some of this increased engagement will be lost once measures are relaxed in the future. Engagement increased by ~10% YOY across all measurements, compared to ~7% in the previous period. Demonstrating that Facebook's attractiveness as a platform for users to connect with their friends and family.

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