I still like Amazon. What do you like most about it currently? I think it actually doesn’t matter at what speed they grow to a 600B cloud business. I think automation will significantly improve their profitability in the next 2-3 years. And no one has more revenue than Amazon. And a margin improvement on such a large business will have a meaningful impact on their bottom line
I agree, and actually, it's one of the things I like most about it. Potential for margin expansion is insane for Amazon. What I like is dominance in several markets that will still be here 20 years from now.
I absolutely agree with you! I think especially the physical locations, and especially after having them mostly automated, will make it incredibly hard for competitors to compete with Amazon in the long run. I can’t say the same about their cloud business. Sure, it’s the biggest, and I like, that they focused on inference compute early on, and not on training the best model. And being the cheapest will be a competitive advantage, because inference compute will mostly likely be commoditized over time - BUT it’s only my opinion or best guess. I am really not sure about it. I may sound smart on the topic but am probably off by a mile. What I can say though is that Amazon physical dominance will likely not be competed away. What do you think?
As I said in the article, I like SoFi and own it and will probably increase it for myself. But NU is very undervalued here relative to both peers and its own future prospects. NU is just an easier buy given the valuation. This doesn't mean SoFi is not a "buy". It's just NU is way more undervalued in comparison.
The only factor against Amazon is the loss of revenues due to raising unemployment rates due to automation. Agree automation helps margin expansion but at the same time we need to factor in the top line compression due to deflation on the risk box.
Very interesting cases. Thanks for the good job. Just one remark : 3i uses a 18,5 ebitda multiple ( 'normal' retailers have a 5-8 ebitda multiple) for the calculation of the Action NAV-valuation. As Actions' LFL-growth is coming down the last quarters, personally I would be more reassured with a somewhat lower multiple..
I still like Amazon. What do you like most about it currently? I think it actually doesn’t matter at what speed they grow to a 600B cloud business. I think automation will significantly improve their profitability in the next 2-3 years. And no one has more revenue than Amazon. And a margin improvement on such a large business will have a meaningful impact on their bottom line
I agree, and actually, it's one of the things I like most about it. Potential for margin expansion is insane for Amazon. What I like is dominance in several markets that will still be here 20 years from now.
I absolutely agree with you! I think especially the physical locations, and especially after having them mostly automated, will make it incredibly hard for competitors to compete with Amazon in the long run. I can’t say the same about their cloud business. Sure, it’s the biggest, and I like, that they focused on inference compute early on, and not on training the best model. And being the cheapest will be a competitive advantage, because inference compute will mostly likely be commoditized over time - BUT it’s only my opinion or best guess. I am really not sure about it. I may sound smart on the topic but am probably off by a mile. What I can say though is that Amazon physical dominance will likely not be competed away. What do you think?
I think Tasmea should be in this list as well 😊 I own all the others except NU
Would love to know why Nubank and not Sofi. Thanks for the info
As I said in the article, I like SoFi and own it and will probably increase it for myself. But NU is very undervalued here relative to both peers and its own future prospects. NU is just an easier buy given the valuation. This doesn't mean SoFi is not a "buy". It's just NU is way more undervalued in comparison.
The only factor against Amazon is the loss of revenues due to raising unemployment rates due to automation. Agree automation helps margin expansion but at the same time we need to factor in the top line compression due to deflation on the risk box.
Very interesting cases. Thanks for the good job. Just one remark : 3i uses a 18,5 ebitda multiple ( 'normal' retailers have a 5-8 ebitda multiple) for the calculation of the Action NAV-valuation. As Actions' LFL-growth is coming down the last quarters, personally I would be more reassured with a somewhat lower multiple..