Offshore
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Clark Square Capital
Small cap investors whenever they get a rare +200 bps small cap factor move
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Small cap investors whenever they get a rare +200 bps small cap factor move
https://t.co/SAx3RFrb3W tweet
Offshore
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Antonio Linares
Acabo de grabar otro pod con los amigos de @10ampro: @holdmybirra, @dariopalacio y @Gordoneaprod.
Están construyendo algo increible en Colombia. Dadles un follow!
Hablamos sobre $TSLA y sobre como está creando una plataforma que promete revolucionar la economía mundial. https://t.co/evMrnbEesx
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Acabo de grabar otro pod con los amigos de @10ampro: @holdmybirra, @dariopalacio y @Gordoneaprod.
Están construyendo algo increible en Colombia. Dadles un follow!
Hablamos sobre $TSLA y sobre como está creando una plataforma que promete revolucionar la economía mundial. https://t.co/evMrnbEesx
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Offshore
Photo
Antonio Linares
A student of my course inquired about how $TSLA could be becoming more efficient while its operating margin is decreasing.
I responded with a quote from $AMZN's Jeff Bezos:
"Percentage margins are not one of the things we are seeking to optimize.
It's the absolute dollar free cash flow per share that you want to maximize, and if you can do that by lowering margins, we would do that [emphasis added].
So if you could take the free cash flow, that's something that investors can spend.
Investors can't spend percentage margins."
Every time $TSLA significantly improves its manufacturing efficiency, it reduces prices.
It then strives to enhance efficiency further to compensate for the price reduction.
This is why its operating margin is declining.
However, you can see $TSLA is becoming more efficient because it's generating more free cash flow per unit of operating margin.
This indicates that $TSLA is more efficient now.
By continuously improving efficiency and lowering prices, $TSLA makes it harder for competitors to keep up.
In this way, $TSLA ensures higher free cash flow per share over the long term, which is what drives the stock and what investors should actually focus on.
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A student of my course inquired about how $TSLA could be becoming more efficient while its operating margin is decreasing.
I responded with a quote from $AMZN's Jeff Bezos:
"Percentage margins are not one of the things we are seeking to optimize.
It's the absolute dollar free cash flow per share that you want to maximize, and if you can do that by lowering margins, we would do that [emphasis added].
So if you could take the free cash flow, that's something that investors can spend.
Investors can't spend percentage margins."
Every time $TSLA significantly improves its manufacturing efficiency, it reduces prices.
It then strives to enhance efficiency further to compensate for the price reduction.
This is why its operating margin is declining.
However, you can see $TSLA is becoming more efficient because it's generating more free cash flow per unit of operating margin.
This indicates that $TSLA is more efficient now.
By continuously improving efficiency and lowering prices, $TSLA makes it harder for competitors to keep up.
In this way, $TSLA ensures higher free cash flow per share over the long term, which is what drives the stock and what investors should actually focus on.
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The Long Investor
RT @kelvinMMGoliath: $BABA announced a proposed offering of $4.5B of convertible senior unsecured notes due June 1, 2031 with an additional $500M option for initial purchasers.
It intends to use the net proceeds from the offering to repurchase its American depositary shares (ADSs), fund further share repurchases, and fund the costs of entering into capped call transactions.
This announcement comes two days after Alibaba's e-commerce competitor $JD, announced a similar convertible bond offering of $1.75B with a five-year maturity and a 0.25% coupon rate.
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RT @kelvinMMGoliath: $BABA announced a proposed offering of $4.5B of convertible senior unsecured notes due June 1, 2031 with an additional $500M option for initial purchasers.
It intends to use the net proceeds from the offering to repurchase its American depositary shares (ADSs), fund further share repurchases, and fund the costs of entering into capped call transactions.
This announcement comes two days after Alibaba's e-commerce competitor $JD, announced a similar convertible bond offering of $1.75B with a five-year maturity and a 0.25% coupon rate.
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Offshore
Video
Q-Cap
$BABA When you buy Chinese equities for the 17th time thinking they are so back https://t.co/yinLN2oP5e
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$BABA When you buy Chinese equities for the 17th time thinking they are so back https://t.co/yinLN2oP5e
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Offshore
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Hidden Value Gems
RT @HiddenValueGems: Ten differences between a good and a bad business.
Quote of the day #7 https://t.co/j0h4zTTaA5
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RT @HiddenValueGems: Ten differences between a good and a bad business.
Quote of the day #7 https://t.co/j0h4zTTaA5
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Offshore
Photo
Antonio Linares
The market perceives $ZM as a declining video-conference company, but it's transforming into something far more substantial as it navigates between two growth phases.
Despite being commonly recognized as a meetings company, $ZM's continuous expansion of its workplace offerings is substantially enlarging its total addressable market (TAM).
According to Gartner, the introduction of $ZM's Contact Center Solution will boost its TAM by $20 billion over the next four years.
$ZM is poised to benefit from the hybrid work trend catalyzed by the pandemic, which has permanently altered work practices. The company is a rapid innovator, capable of transforming minimum viable products into leading-edge solutions within months.
For instance, the $ZM Contact Center is adding approximately a thousand features per quarter, positioning the product years ahead of the competition.
Another example is the AI-powered $ZM Virtual Agent, which has been deployed internally to save 400,000 agent hours per month.
$ZM's customer-centric approach and exceptional brand recognition are likely to drive increased demand from both new and existing customers as it broadens its enterprise solution offerings.
Each new vertical incentivizes customers to expand their services with $ZM, driven by the cost efficiencies and enhanced user experience of consolidating their communications and collaboration solutions onto the Zoom platform.
Despite facing intense competition, particularly from Microsoft, I believe $ZM will expand its market share. Sometimes, a focused approach can be more effective than having vast resources, as seen with $SPOT competing against $AMZN and $AAPL.
———————
This $ZM deep dive is written by @EricSanta98, an alumni of my 2 Hour Deep Diver course.
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The market perceives $ZM as a declining video-conference company, but it's transforming into something far more substantial as it navigates between two growth phases.
Despite being commonly recognized as a meetings company, $ZM's continuous expansion of its workplace offerings is substantially enlarging its total addressable market (TAM).
According to Gartner, the introduction of $ZM's Contact Center Solution will boost its TAM by $20 billion over the next four years.
$ZM is poised to benefit from the hybrid work trend catalyzed by the pandemic, which has permanently altered work practices. The company is a rapid innovator, capable of transforming minimum viable products into leading-edge solutions within months.
For instance, the $ZM Contact Center is adding approximately a thousand features per quarter, positioning the product years ahead of the competition.
Another example is the AI-powered $ZM Virtual Agent, which has been deployed internally to save 400,000 agent hours per month.
$ZM's customer-centric approach and exceptional brand recognition are likely to drive increased demand from both new and existing customers as it broadens its enterprise solution offerings.
Each new vertical incentivizes customers to expand their services with $ZM, driven by the cost efficiencies and enhanced user experience of consolidating their communications and collaboration solutions onto the Zoom platform.
Despite facing intense competition, particularly from Microsoft, I believe $ZM will expand its market share. Sometimes, a focused approach can be more effective than having vast resources, as seen with $SPOT competing against $AMZN and $AAPL.
———————
This $ZM deep dive is written by @EricSanta98, an alumni of my 2 Hour Deep Diver course.
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