Simply it can't. To stay GAAP profitable, as it is committed to, it can't increase expenses any further.

Spending more would mean lowering margins, which in turn would bring negative GAAP losses. Clients don't want it.

$SNOW $NOW $DDOG

Not much, but hey!

Virtu at ~$18 is an asymmetric situation: get paid to hedge from a market crash.

In this article, I’ll explain my Virtu Financial thesis in a few charts.

Virtu is one of the rare companies that raise when the VIX (volatility index) spikes and the market crashes.

How is this possible?

Virtu, as a market maker, supports market liquidity by providing a bid and ask price for securities (mainly US Equity).

> It makes money from the spread it is able to capture from people buying and selling.

Virtu makes more money when:

Virtu’s dream situations are crashes like in 2020, which presented an appealing combination of high volatility and wide spreads.

As a market maker, Virtu’s role is to always provide a bid and an asking price to facilitate transactions. This means that Virtu doesn't care about the direction of markets: Virtu cares about investors keep trading.

We could synthesize Virtu’s Trading Income by the following conditions:

Continues at: https://laorca.substack.com/p/virtu-get-paid-to-hedge

> “There’s also something about CEO Alex Karp (“Daddy Karp”—or “Karpetto” as Trezzi likes to call him)” - Fast Company

> “We have a fundamental advantage vs. our peers: 5 years ago we invested in an integrated datalake called Data42 with our partner Palantir and now we are leveraging that datalake to move AI very quickly forward in the company.” -Vasant Narasimhan, Novartis CEO

Continues at https://www.palantirbullets.com/p/we-are-famous-palantir-bullets-36

Tradeweb is a compounding beast eating market share in an inevitable trend in financial markets.

The current price of ~$73 does not reflect the strength of the fundamentals, which thrive amid volatile markets, creating an asymmetric opportunity.

In this article, I’ll explain my Tradeweb thesis in a few charts.

> 35-40% of the US Treasury trading happens on voice calls.

Many fund managers still make calls to brokers rather than a few clicks on a platform like retails do on Robinhood (I’ve seen it!). This is clearly inefficient.

The Fixed Income Market ("bonds") is catching up with electrification:

> ~75% of Equity trading is done electronically vs ~60% in Fixed Income.

This is an immense opportunity for leading Fixed Income platforms like Tradeweb.

Tradingweb as a trading platform, derives 70% of its revenues as a % "bite" of the transacted volume.

As a consequence, Tradeweb makes more money when investors trade more or increase the size of their bond portfolios.

> Revenues grow at ~0% marginal cost. TW has no trading risk. It needs to keep users.

Tradeweb is taking market share in the US Treasury trading market:

> 20% of US Treasury trading is facilitated by Tradeweb

Continues at : https://laorca.substack.com/p/tradeweb-who-said-bonds-are-boring

Palantir last week

> “Every Thurdays for six weeks only. Each session will be unique & industry agnostic.” - Abdelrahman Muneer, Palantir Head of Marketing-MEA

Continues at: https://www.palantirbullets.com/p/that-is-nuts-palantir-bullets-35

> “We've seen a 28% reduction in our patient hold time, and we've reduced the time the nurse managers spend managing patient placement by 83%. So patients are moving into care faster and they're getting the treatment that they need, faster.” - Leah Toms, Tampa Hospital Director

> “The Federal Ministry of the Interior is not completely closed to a solution, but no longer wants to use Palantir's software, but instead wants its own program to be developed within the police force. Even if that were to happen, it would take many years.” - Faz.Net

> “It was highly successful. It was very fast. We are learning that this is possible for us to do.” - Matthew Strohmeyer, US Air Force Colonel

Continues at https://www.palantirbullets.com/p/they-said-no-palantir-bullets-34

Palantir last week:

> "That has the great advantage that you then know exactly what the program is doing.” - Martina Renner, German Domestic Policy Spokeswoman.

> “We look forward to working alongside City of London Police and our technology alliance partner (Palantir) bringing our experience in delivering technology programmes and expertise in managing risks around cyber and economic crime to help deliver this vital service to citizens and businesses.” - Scott Logan, PwC Partner

> “The key differentiators with Mosaic’s approach are two-fold. First, it’s open source. Second, it’s focused on organizations building their own LLMs based on their own data” - Tech Crunch

> “Every Enterprise would like to roll out its own chat GPT they would all like to have their own internal version of chat GPT where their employees for example could ask questions and get answers that's where all the action is right now. Every Enterprise would buy that tomorrow if it existed.” - David Sacks, Craft Ventures Co-Founder

Continues at: https://www.palantirbullets.com/p/competition-is-coming-palantir-bullets

Robinhood at ~$10 offers an asymmetric situation with relatively little downside and potential explosive upside.

In this article, I’ll explain my HOOD -2.92%↓ ’s thesis in a few charts.

Brokers like Robinhood make money when people trade substantially due to high volatility. Brokers don't care if the market goes up or down, they care if it moves.

We can see this dynamic from FlatexDEGIRO, the closest alternative to Robinhood in Europe.

> When VIX explodes -> Revenues explode -> Stock explodes.

For instance, FlatexDEGIRO's Revenue grew +150% in 2020 thanks to the spike in volatility combined with low-interest rates.

> Since brokers benefit from volatility, investing in a broker means being "long volatility".

Currently, VIX is at nearly record low levels, which is a very adverse environment for brokers like Robinhood.

Meanwhile, retail investors are back. After an abrupt 2022 retail investors are returning confident on the market. This is a positive catalyst for Robinhood, which is focused on retail trading.

Meanwhile, retail investors are back. After an abrupt 2022 retail investors are returning confident on the market. This is a positive catalyst for Robinhood, which is focused on retail trading.

Despite the hate after the GameStop saga, Robinhood remains the most loved "neobroker", standing at #33 position on the App Store/Finance. Competitors such as E*trade and TD Ameritrade lag well behind at the #139 and #143 positions respectively.

Continues at: https://laorca.substack.com/p/hood-your-panic-my-gain