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Jack Dorsey. Photo by Getty
True Value

Block Stock is Stalled As Side Bets Distract From Core Businesses

By Anita Ramaswamy · Jan 16, 2025 7:00am PST · 1 comment
Of Jack Dorsey’s two business creations, only one looms large in the public consciousness: the company previously known as Twitter. But by some measures, his other company, Block, has been a more successful enterprise. Dorsey has built Block’s original business—Square, which gives small businesses a way to accept credit card... Of Jack Dorsey’s two business creations, only one looms large in the public consciousness:...
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Microsoft’s Gaming Business Falls Short, Despite Activision

By Aaron Holmes · Jan 14, 2025 12:23pm PST · 4 comments
In 2021, Microsoft CEO Satya Nadella faced a choice involving the company’s Xbox and cloud gaming business. The company could either acquire major game studios to drive more subscriptions to its nascent Game Pass subscription service. Or it could wind down its games business entirely, Nadella told two people at the time. Nadella took the... In 2021, Microsoft CEO Satya Nadella faced a choice involving the company’s Xbox and cloud...
Hock Tan, CEO of Broadcom. Photo by Getty
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Why Marvell Will Overtake Broadcom As Nvidia’s AI Challenger

By Anita Ramaswamy · Jan 3, 2025 6:00am PST · 7 comments
Specialized chip designers Broadcom and Marvell Technology have been getting a lot of investor love lately. Both companies’ shares have surged more than 30% over the past three months as their revenues have soared, thanks to their efforts helping tech giants including Google and Amazon build their own artificial intelligence chips. ... Specialized chip designers Broadcom and Marvell Technology have been getting a lot of investor...
Vimeo CEO Philip D. Moyer. Photo via Vimeo.
What Investors Are Missing About Vimeo’s Potential
By Anita Ramaswamy · Dec 5, 2024 7:00am PST · 1 comment
Vimeo CEO Philip D. Moyer. Photo via Vimeo.
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What Investors Are Missing About Vimeo’s Potential

By Anita Ramaswamy · Dec 5, 2024 7:00am PST · 1 comment
After a long slump, software stocks have gotten a lift from the market euphoria that has followed Donald Trump’s election. The exuberance has even spread to companies that sell video creation and distribution tools, such as Vimeo, despite the very real threat hanging over their business models: artificial intelligence–powered video... After a long slump, software stocks have gotten a lift from the market euphoria that has followed...
Photo via Nasdaq.
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Marketing Software Firm Braze Could Be a Hot Acquisition Target

By Anita Ramaswamy · Nov 21, 2024 6:00am PST · 1 comment
This isn’t the year to be in marketing software. Companies’ marketing spending as a percentage of sales is at a five-year low, according to data from Gartner. That has hurt big software companies like Salesforce and Adobe, which get a chunk of revenue from selling marketing tools. It’s also hurt smaller marketing software firms... This isn’t the year to be in marketing software. Companies’ marketing spending as a...
Chart by Shane Burke
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Why Reddit’s Explosive Growth Could Last

By Anita Ramaswamy · Nov 5, 2024 6:00am PST · 1 comment
Redditors may have their new favorite meme stock—Reddit. The social media platform’s report of a 68% jump in third-quarter revenue sent the stock soaring 40% to around $115 last week, more than triple the price at which it went public in March. Reddit is now trading at a huge premium to other social media stocks—11.2 times next... Redditors may have their new favorite meme stock—Reddit. The social media platform’s...
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Apple’s Low-Cost AI Strategy Wins Over Investors, Despite Risks

By Anita Ramaswamy · Oct 28, 2024 6:00am PDT · 2 comments
Anyone looking at Apple’s recent stock rally—which lifted its market capitalization to $3.6 trillion two weeks ago, a record for any public company—wouldn’t know that the company’s big new product, the Vision Pro mixed reality headset, had sold so badly that Apple is scaling back production. Or that it’s been... Anyone looking at Apple’s recent stock rally—which lifted its market capitalization...
Chart by Shane Burke.
Meta Bulls Are Overvaluing Zuckerberg’s Vision
By Anita Ramaswamy · Oct 10, 2024 6:00am PDT · 14 comments
Chart by Shane Burke.
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Meta Bulls Are Overvaluing Zuckerberg’s Vision

By Anita Ramaswamy · Oct 10, 2024 6:00am PDT · 14 comments
Investors may be viewing Meta Platforms’ stock through rose-tinted glasses. Meta’s shares have soared over 70% this year, more than those of any other big tech stock except Nvidia, giving Meta a premium valuation next to comparable stocks such as Alphabet’s. Shares of the Facebook and Instagram parent now trade at 14.2 times... Investors may be viewing Meta Platforms’ stock through rose-tinted glasses. Meta’s...
Photo by Smith Collection/Gado/Getty.
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Why Waymo Could Speed Past Uber

By Anita Ramaswamy · Sep 30, 2024 6:00am PDT · 4 comments
The race to get self-driving taxis on the road is accelerating. Elon Musk’s Tesla plans to reveal its long-awaited prototype of one such vehicle on Oct. 10, while Alphabet-owned Waymo announced last month that its autonomous vehicles soon would be available for Uber customers in Austin, Texas, and Atlanta. These moves, along with... The race to get self-driving taxis on the road is accelerating. Elon Musk’s Tesla plans to...
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GoDaddy Is Having a Moment: Why It Might Not Last

By Anita Ramaswamy · Sep 12, 2024 6:00am PDT · 1 comment
Grabbing attention is in GoDaddy’s DNA. The web domain hosting company that skyrocketed to widespread fame in the 2010s with a series of provocative Super Bowl ads is having another moment in the limelight, this time with Wall Street investors. After stagnating at the same level for five years, GoDaddy shares doubled between last November... Grabbing attention is in GoDaddy’s DNA. The web domain hosting company that skyrocketed to...
Chart by Shane Burke
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Temu’s Biggest Bargain: Its Parent Company’s Stock

By Jing Yang · Sep 9, 2024 7:21am PDT · 1 comment
If you’re looking for a bargain backpack or pair of shoes, Temu might seem like the ideal place to look. If you’re looking for a bargain stock, the price tag on Temu’s parent, PDD Holdings, certainly seems tempting. Since PDD’s top management warned two weeks ago that rising competition would put downward pressure on its... If you’re looking for a bargain backpack or pair of shoes, Temu might seem like the ideal...
Palantir CEO, Alex Karp. Photo by Bloomberg via Getty.
Patriots Pile Into Palantir, Driving Its Stock Too High
By Anita Ramaswamy · Aug 29, 2024 6:00am PDT · 3 comments
Palantir CEO, Alex Karp. Photo by Bloomberg via Getty.
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Patriots Pile Into Palantir, Driving Its Stock Too High

By Anita Ramaswamy · Aug 29, 2024 6:00am PDT · 3 comments
Salesforce’s Marc Benioff and ServiceNow’s Bill McDermott are master salespeople. But neither has developed a cult following among individual investors as successfully as Palantir CEO Alex Karp. With his proclamations on patriotism—“We founded this company to be a ray of light to America and our Western... Salesforce’s Marc Benioff and ServiceNow’s Bill McDermott are master salespeople. But...
Arm CEO, Rene Haas. Photo by Annabelle Chih/Bloomberg via Getty.
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Arm Stock Is Pricier Than Nvidia’s. It Shouldn’t Be

By Anita Ramaswamy · Aug 20, 2024 6:00am PDT · 1 comment
Since chip-design firm Arm Holdings went public last September, excitement around generative AI has sent its stock soaring, to a high last month of $188, more than triple its initial public offering price. While the stock has since fallen back a bit, investors are still valuing Arm at a big premium to Nvidia both on a multiple of future revenue... Since chip-design firm Arm Holdings went public last September, excitement around generative AI...
David Zaslav at the "House of the Dragon" red carpet premiere. Photo by Kristina Bumphrey/Variety via Getty.
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What Warner Bros. Discovery Haters Are Getting Wrong

By Martin Peers · Aug 13, 2024 9:21am PDT · 3 comments
If there’s one sector of the stock market that is repellent to investors right now, it’s traditional entertainment. And if there’s one company that sums up how out of favor the sector is, it’s Warner Bros. Discovery. The owner of HBO, Warner Bros. and the Max streaming service—once one of the premier entertainment... If there’s one sector of the stock market that is repellent to investors right now,...
Photo by Getty
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Why Uber is a Better Bet Than DoorDash

By Anita Ramaswamy · Aug 8, 2024 10:54am PDT · 3 comments
For almost the entire time since DoorDash went public in late 2020 the restaurant-delivery service has traded at a premium valuation to Uber. Lately the gap between the two stocks has nearly closed, although the much bigger ride-hailing and delivery firm remains the underdog of the pair. While that made sense early on, when the pandemic blitzed... For almost the entire time since DoorDash went public in late 2020 the restaurant-delivery...
This Fintech Stock May Not Be the Deal Its Executives Say It Is
By Anita Ramaswamy · Jul 26, 2024 7:00am PDT · 2 comments
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This Fintech Stock May Not Be the Deal Its Executives Say It Is

By Anita Ramaswamy · Jul 26, 2024 7:00am PDT · 2 comments
In the world of online lenders, Enova International stands out. It has been growing rapidly, lending more money last year than ever before even as rising interest rates caused competitors to cut back. Meanwhile, Enova executives have repeatedly argued the company’s stock was “undervalued,” and the company has spent heavily on... In the world of online lenders, Enova International stands out. It has been growing rapidly,...
Art by Mike Sullivan
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Why OpenAI Could Lose $5 Billion This Year

By Amir Efrati and Aaron Holmes · Jul 24, 2024 6:00am PDT · 14 comments
OpenAI has built one of the fastest-growing businesses in history. It may also be one of the costliest to run. The ChatGPT maker could lose as much as $5 billion this year, according to an analysis by The Information, based on previously undisclosed internal financial data and people involved in the business. If we’re right, OpenAI, most... OpenAI has built one of the fastest-growing businesses in history. It may also be one of the...
Chart by Shane Burke.
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For LendingClub and SoFi, a Rate Cut Rally Is Coming

By Anita Ramaswamy · Jul 16, 2024 6:00am PDT
Last week’s upbeat inflation report raised hopes that the Federal Reserve will start cutting interest rates in the fall, which will be good news for pretty much every business. But companies in the business of lending money—in particular digital lending firms such as LendingClub and SoFi—may be the stocks to get the fastest... Last week’s upbeat inflation report raised hopes that the Federal Reserve will start...
Alexandr Wang, co-founder and CEO of Scale AI. Photo by Getty
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The Fuzzy Math Behind Scale AI’s Valuation

By Cory Weinberg · Jul 8, 2024 9:01am PDT · 14 comments
Scale AI’s 27-year-old CEO, Alexandr Wang, used to compete in national high school math competitions. His latest math-related victory may have been convincing investors in Silicon Valley to stretch his own company’s numbers. The startup’s $13.8 billion valuation, from a billion-dollar round it raised in May, is almost certainly... Scale AI’s 27-year-old CEO, Alexandr Wang, used to compete in national high school math...
Microsoft Chairman and CEO, Satya Nadella. Photo by Ethan Miller/Getty Images.
Why Microsoft Shouldn’t Be the Top Choice for AI-Focused Investors
By Anita Ramaswamy · Jul 3, 2024 6:00am PDT · 6 comments
Microsoft Chairman and CEO, Satya Nadella. Photo by Ethan Miller/Getty Images.
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Why Microsoft Shouldn’t Be the Top Choice for AI-Focused Investors

By Anita Ramaswamy · Jul 3, 2024 6:00am PDT · 6 comments
Microsoft is second only to Nvidia in the eyes of investors looking to benefit from the generative artificial intelligence boom. But its deluxe valuation suggests the market is underestimating the challenges it could face in its AI expansion, including possible profit margin declines or losing market share in enterprise software. Those looking... Microsoft is second only to Nvidia in the eyes of investors looking to benefit from the...