Why Do Companies Issue Shares?
Introduction When a company issues shares, it is essentially selling a part of itself to the public. This allows the company to raise money, which can be used to expand and hire more people. It also makes it easier for the company to access capital markets, allowing them to raise more funds as needed. There […]
Former PayPal CFO’s Thoughts On The Twitter Layoffs
The Wall Street Journal article: “Elon Musk Says Twitter Has Had Massive Revenue Drop as Layoffs Begin” Chief of social-media company cites activist groups pressuring advertisers, as many staffers brace to lose jobs Twitter is an incredible company with a bright future. But they have done an incredible-ley BAD job of managing their expenses, […]
Where and How to Start Investing? Advice For Beginners
SVIC Facebook Q&A Discussion: Advice on Where and How to Start Investing Question for the group: *This question was asked to the community last March 22, 2022: I earn almost 7 figures at a FANG company but have made almost no investments other than retirement accounts and a personal home. I just don’t know […]
Analyzing Private and Public Valuations in 2022
Price Tags on Tech Companies As investors, we are always paying attention to the valuations that are being set by both public and private markets. Today’s post is a review of current public market valuations, how we see that flowing through to private markets, and where we see things going from here. Background: Government policy […]
How Netflix Lost the Squid Game
Practical Summary: NFLX has lost a cumulative 62% of its value since the start of 2022 While I have a high regard for Netflix management and the company that they have built, projected continued losses of subscribers in Q2 2022 make near-term recovery extremely difficult. Longer term, NFLX now appears to have shifted from playing […]
Why Is Instacart Repricing Its Shares?
Practical Summary: Instacart recently repriced its shares to reduce its valuation by 40%. This move makes great sense for the company, given where all of its public market comparables have traded since the company’s last financing in early 2021. This voluntary re-pricing is a great recruiting tool for the company. We don’t think that Instacart […]
What’s Going on at Peloton? Breaking Down the Growth Strategy (and Growing Pains) of a Subscription Darling
*This article was originally published on Medium.com Why Peloton’s Growth Hit a Wall Peloton’s stock is down, after quite a ride. Peloton (PTON) is widely expected to deliver a year-over-year decline in earnings even though revenues are up, for the quarter ended December 2021. And the stock has been in a steady decline […]
Future Proof Your Investments Effectively
Leaders often assume that rules of competition will stay the same, even though they know the future is a volatile place. This is true for mature companies with rigid approaches to planning, but it’s also true of nimble startups. At the end of the day, nothing is more valuable than survival. If you invest in […]
Should You Buy or Sell Meta?
Practical Summary: Of all of the beaten down tech stocks that have taken their lumps since November, this is the one that Ben Graham would pick. Meta is no longer a compelling “growth” story, but it will make an excellent “value” play once it rotates to investors who like that kind of thing. With a […]
Why Companies Buyback Their Shares
What are corporate stock buybacks (also known as share/stock repurchasing programs)? Should you choose dividends or special distributions when excess capital is on the company balance sheets? This article will provide an overview of stock buybacks and both their advantages and disadvantages to shareholders. What are Stock Buybacks? Imagine there is a public company called […]
