Nayut

Large cap tech multiples have contracted--what can drive better valuations? Here is one idea- for science projects that are not core to long-term viability of the company, large cap tech should not do it all or do it all off balance sheet--a minority interest in a start-up. Why?

@EricJhonsa I don't think they are looking to make much money from the logistics offerings as much as they are looking to get the data/customer to feed to ads business. A lot of good and unused inventory in prime video & other properties.

This is quite the late-night announcement from $AMZN. press.aboutamazon.com/news-releases/…

@pmje73 Systemically undervalued. Supply-demand issues of being tn $ mkt cap company that won't behave like a mature co.

@JasonRReedIV1 I just come across the reply. Do you mind sharing the reason they would consider selling out the position? I think it may be one of the most undervalued positions in the portfolio but I would be quite interested to hear from people with different opinions.

@NayutSitachitt This is exactly the thesis that one of my students has in our long-only, US equity, investing class aim.nd.edu. I'm going to pass this along. $FB is looking like it might be kicked out of the portfolio.

1/ $FB was down as much as 42% in the weeks post its 4Q21 earnings announcement. In the thread, I explain that the fundamental reasons may play a much smaller role in its decline than the non-fundamental factor; mainly supply-demand dynamics of mega-cap stock

@alexgeana I think the stat they release shows that the audience is flat in the US and still growing in other places. But think about traditional media co that has seen a decline audience for years trading at double the multiples.

@NayutSitachitt Through all the bumps in the road the company has had. The audience has fundamentally been there. There has been a steady decline in the past three/four years of use and engagement

@AMobin That's an interesting point. Thanks for sharing. Interesting how sheets design can give them a customer acquisition advantage in such a way.

@NayutSitachitt We use Google sheets instead of excel at work and there’s no easy way to automate a data feed into it through AWS or Snowflake. For that reason we’re exploring GCPs Big Query for specific use cases.

1/ Understanding GCP - while competitively disadvantaged vs. AWS and Azure, GCP is still a high-quality asset that may be under-appreciated by $GOOG investors. In the thread below, I dive into GCP to show why it is a valuable and strategic part of Google.

@NestBetter Google cloud is Gsuite + GCP. Gsuite side should run at least 20-25 pct operating margin. I think GCP profitability is still a long way off but don’t mind.

@NayutSitachitt Gcp profitability coming twitter.com/NestBetter/sta…

24/ With a strong core advertising business benefiting from ATT, a strong non-advertising business like GCP, and much-improved execution/ efficiency/capital allocation under Pichai, Google shares seem to be undervalued despite its run-up last year.

23/ If we compare GCP to AWS or Azure, it's very difficult to make a case that it has anywhere near the quality. But being a hyperscaler is a very good business. So good that the worst of the big 3 probably still has better quality than 95% of all the listed companies.