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The bear thesis is gen-AI would eat their lunch. How true I don’t know, not sufficiently technical competent to assess.
SaaS customers were optimizing workloads in the last year or so. Things were tough and everyone tries to save money. It seems now the optimization trend is coming to an end. Customers are looking at growth again.
SaaS stocks will likely rocket from this point on.
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NET is 65% below ATH. Need 2.8x to reclaim ATH. Sure it can do that?
SNOW is 60% below ATH. Need 2.5x to reclaim ATH. Sure it can do that?
Stocks that @manch understood, SNOW and NET.
Stocks that @manch doesn’t understand, PLTR and CRWD.
What can we learn?
What he understands is what any mom and pop can understand. Can’t really capitalize on market ignorance. Ofc, this excludes surprise development eg. ChatGPT that propel the demand of datacenter AI chip to stratosphere.
SNOW is copying PLTR 
Disclosure: Own both SNOW and PLTR.
I like Prince’s framing. Some takeaways for me:
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To figure out what a company is about, it pays to see what their KPI’s are.
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If you think of the internet as a graph, the traditional hyperscalers like AWS, Azure and GCP are like the nodes. Cloudflare wants to be the edges. The two approaches are orthogonal.
Matthew Prince on Cloudflare NOT being the “4th cloud”
And I think at various times, people have said, “Oh, Cloudflare is the fourth public cloud,” which actually I think is kind of insulting to the folks at Oracle and IBM and Alibaba and Tencent. But it never quite struck us as exactly right.
Fundamentally, what we’re doing is different than what they’re doing at someone like an AWS or a Google Cloud or a Microsoft Azure, where if you look at someone who’s on the product team at one of those companies, the core KPI that they’re measured by is how much of a customer’s data are they holding on to , have they captured at some level. So some of the what they are almost like captivity clouds where they’re trying to kind of get all of your data in one place. And again, there’s a role for that, and they’ve done some amazing things in what they’ve built.
If you talk to a product manager at Cloudflare, what they are measured, by the KPI that we pay attention to, is how much are we connecting various things together. How much are we making it easy for any device, anywhere in the world for any cloud to any other cloud, to make it easy for that data to flow between those things and give a consistent control plane, consistent security, consistent availability, reliability, make it as efficient as possible.
And so in that sense, we realized that where the traditional hyperscale public clouds are really like captivity clouds, we are much more of a connectivity cloud .
And those 2 things actually work extremely well together. But I think that when you start from that framework, it helps frame how we approach a lot of problems differently and how we have customers that are taking advantage of a bunch of the big hyperscale public clouds, but using us as that connective tissue that makes sure that everything works seamlessly together.
In 2023, CRWD and PLTR outperforms @manch’s hot favorite NET and SNOW. What can we expect in 2024?
Disclosure: My data stock portfolio comprises only these four stocks. Would remain as such. Buy n hold (hopefully forever).
EWT: PLTR almost completed or completed wave 2 according to a certain Xer.
IMHO, could decline as low as $12. For prudence’s sake, didn’t add any. Just hold position.
EWT: Longer timeframe (multi-month to multi-year) preferred count.
Not good. AI is unstoppable in that it would disrupt NET. This stock is put under about to let go pile.
Revenue growth doesn’t mean much if you spend $10 to earn $8.
All these PLTR fanboys remind me of the TSLA fanboys. They even use the same terms like “end to end”.
Wait, they are the same people.
https://twitter.com/arny_trezzi/status/1751939725479322077
Yes. Is pretty difficult and time consuming to understand one company. If you have understood and convinced is a solid compounder, 100% in is not risky, not doing so is foolish.
Told you PLTR fanboys are just like TSLA fanboys. They attract the same crowd. Most just mutter the same marketing phrases fed to them without understanding anything.
You expect him to talk in details whenever he tweets? Is expected you know the basic fundamentals and the background of the ongoing conversation. His current tweet is not a onetime submission of an academic paper or a deep dive. Nor is it targeted to casual readers who don’t know much.
Only for investors with strong technical background.