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Fantastic Four is the new Magnificent Seven

The S&P 500 is up 36% from September 2022 lows and 60% of the unexpected performance is attributed to the Magnificent Seven. The seven stocks — Alphabet (+68% YTD), Amazon (+60% YTD), Apple (+50% YTD), Meta (+196% YTD), Microsoft (+77% YTD), Nvidia (+303% YTD) and Tesla (+70% YTD) — have collectively risen nearly 117%, far … Continued

The Magnificent Seven – how did they get here and where will they go?

Since January 2023 the stock market has been surprisingly strong despite negative macro data points and sentiment heading into 2023. Consider the following forecasts made by investment bank market strategists at the start of the year. The S&P 500 was trading at 4,472 on 13 July 2023 when this article was written. The limited number … Continued

Shopify’s decision to sell Deliverr is a well-planned and thoughtful move

Shopify recently announced its decision to divest its logistics business (including Deliverr) to Flexport, a leading logistics platform with a vision to make global trade easy for everyone. Following the divestment, Shopify will be smaller by 20% and own around 20% of Flexport.   It makes perfect sense for Shopify to divest its logistics footprint … Continued

Don’t miss the long term opportunity for cloud providers

The cyclical nature of enterprise cloud spend is a positive signal. It validates the flexible and scalable nature of cloud computing and thus its long term value to business users. 4Q22 results – slowing growth and cautious outlook Q4 earnings from the largest public cloud providers show a gloomy year ahead for cloud spend. Amazon … Continued

AWS re:Invent 2022 – reinventing cloud growth

In 2012, Amazon Web Services (AWS) held its first cloud computing focused global customer and partner conference in Las Vegas. 5,000 attended more than 100 sessions. Now in its 11th year, the 2022 event drew in excess of 50,000 in-person and 300,000 virtual attendees participating in over 2,000 sessions and events. Every day of the … Continued

Valuing big tech

The downturn in the price of high-growth tech stocks has been sudden and has led some commentators to voice concerns about a tech-driven crash similar to the “dotcom bubble” bursting in 1999-2000. This is simply not a fair comparison for our companies. Big tech value The “dotcom bubble” was characterised by companies with questionable business … Continued

Google Shopping

Continuing our review of Google’s 2021 developer conference I/O 2021, this insight investigates developments in Google’s Shopping applications. We believe the functionality announced at the conference will create paths for long-term revenue growth and solidify the company’s competitive advantage as a platform for shoppers and merchants. Google’s announcement Shopping Graph is a real-time dataset using … Continued

Amazon’s healthcare opportunity

News broke last week that Amazon was planning to expand its virtual health platform for employees, Amazon Care, currently in pilot in Seattle, to all its US employees and to other employers. Often when the $1.6 trillion company has ventured into new segments, stock traders respond, sometimes overzealously, by selling down positions in smaller competitors … Continued

Is the game changing for gaming?

In April last year Travis Scott held a concert on Fortnite. The set lasted around 15 minutes and was viewed simultaneously by over 12.3 million gamers. The artist re-aired the virtual show another four times to a total of 27.7 million unique viewers nabbing him around US$20 million for his time. This equated to over … Continued