Starting to feel like I hate my money buying Teladoc one last time -- but I swear this will be my final purchase unless things improve over the coming quarters. If not, and I buy again, I need everyone that reads this to come back and tell me I'm a phony 😂
As for Crowdstrike, its appeal is pretty straightforward and adds much-needed exposure to the cybersecurity space for my core 34 holdings.
Lastly, for Adyen, I continue to hear intriguing arguments for their business across Motley Fool and here on Commonstock. Specifically, @invesquotes's recent pitch on Adyen fascinated me enough to make my starting purchase today.
I will undoubtedly continue adding to Crowdstrike over time but will likely let Teladoc and Adyen run out from here. However, should Adyen's price improve over the next few quarters, I will do a deep dive and consider adding more.
Who will be the best performer of this group over the next decade?
Adyen provides merchants with a payments platform to allow them to receive digital payments. This in itself is nothing too special, but there's something really special in how Adyen does it that really differentiates it from the rest. So historically the payments value chain had lots of different parts and each was conducted by a specific company.
This structure created two main pain points:
1) Merchants needed to partner with several players to process payments.
2) Data was cluttered around the value chain, which made driving insights difficult.
Adyen was basically born to fix this.
Adyen provided all the services in a unified platform, which gave its customers a data advantage, and simplified the process of setting up payment processing.
Merchants now only needed to partner with one company which was Adyen and not ten.
That's high visibility across the whole value-chain was also important for Adyen, because it allowed it to increase authorization rates for its customers.
Thanks to this value proposition, Adyen soon started to gain enterprise customers, because with Adyen, they had higher authorization rates. They could quickly expand to additional geographies.
They had access to all the payment data to drive actionable insights, and they were also able to see this data across channels.
Adyen followed a land and expand model.
It would typically start processing payments in one geography or channel, and then customers would incrementally give payment volume to Adyen by opening new geographies or new channels.
It's in their best interest to do so because the more payment volume you give to Adyen, then the better authorization rates you get.
And you can also drive more actionable insights because you will see all the data in the same place.
Since Adyen, historically targeted enterprise customers, it faces competition from incumbents and not disruptors. However, as the company goes down market, it will increasingly face disruptors. I think Adyen has several competitive advantages.
It's loyal customer base,
It's unified platform,
It's focused on organic growth, and
It's global footprint.
It's also important to put some numbers behind this value proposition. I think the company scale is pretty big and it's growing very fast. The company process half a trillion last year with translating into 1 billion euros in revenue.
Thanks to its capital light and scalable model, Adyen was able to post a 63% EBITA margin.
Revenue is fueled by two metrics:
1) Process volume, and
2) Take rate
Process volume is the payment volume that flows through Ayden's platform. And take rate is basically what percentage of that volume Adyen gets to keep.
Management's goal is to grow process volume, not take rate.
This is their way of incentivizing merchants to bring more volume to the platform.
I think there are three ways to keep fueling volume growth.
First, continuing to grow with enterprise customers, both existing and new. This is what the company has been doing historically.
Another one is further penetrating the unified commerce trend by adapting to new customer journeys. This way, Adyen will be desirable for new customers, such as retailers.
And the third one is targeting the mid-market through Adyen For Platforms.
With these growth drivers, management expects to translate into a mid twenties to low thirties revenue figure over the medium term.
I think there's no doubt that Adyen is a high-quality company and the market knows, which is why it trades at a premium.
You can see here, the multiples.
When it comes to the bull case, I would definitely focus on Adyen's customer base, it's management, and the secular tailwind of cashless payments.
As stressing as this market is, it's important to focus on what really matters for investors - longer term fundamentals. That's why I'm here for you with brief news that happened recently, here we go:
$ADYEY's payment platforms chosen by Amazon's Japanese branch to optimize checkout experience.
$AFRM released an another consumer spend study, saying:
66% of Americans worry about rising costs
62% have more goals they want to accomplish this year than ever before
44% hope to travel domestically; 39% abroad this year. Most of those plan to spend more than usual on their next trip
34% plan to furnish a new home/apartment this year
31% planning to move to a new city/state
Average consumer to spend about $4000 on home upgrades
38% of respondents planning to buy a car this year
37% to attend a festival/concert
About 65% of Americans plan to use BNPL solution like Affirm for purchases this year with 29% about to use it for travel, 28% on wardrobe updates and 34% on luxury items.
$ASML announced an installation of first HMI eScan 1100 multibeam system which should bring high-throughput, high-resolution e-beam inspection into volume manufacturing.
$ABNB's teams now working to support Toronto and communities across Canada + North Carolina to boost tourism and spotlight economic opportunities.
$COIN Coinbase Cloud announced support of liquid staking through collaboration with the Acala Foundation, starting with KSM liquid staking on Karura. Liquid staking lets token holders stake their tokens while still putting them to work in DeFi - without being subject to unbonding periods. This offers token holders more opportunities to participate in the crypto economy.
$PATH launched "Automation in a Box" managed service on Finastra's Cloud Platform to deliver automation to banks and credit unions. With the new offering, UiPath and its partners can design, install, deploy, run, and maintain automated processes to enable the banking sector to leverage the power of automation along with the security and compliance of cloud-based infrastructure from Finastra, a leading pure-play financial services software provider.
$QCOM appointed Jim Cathey as Chief Commercial Officer, Before joining Qualcomm, Cathey served as an executive at Micron Technology and MicroDisplay, as well as the head of Investor Relations for PixTech.
$ROKU Lionsgate and The Roku Channel Close Multiyear Output Agreement for Lionsgate Theatrical Films - The agreement will include properties such as the blockbuster JOHN WICK action franchise starring Keanu Reeves, EXPENDABLES 4, featuring an A-list cast of action stars, and BORDERLANDS, directed by Eli Roth and starring Academy Award winner Cate Blanchett, Kevin Hart, Jamie Lee Curtis and Jack Black.
Hello CommonStock, I saw multiple posts from my fellow colleagues sharing their portfolios, explaining their intent and seeking feedback from the community. I believe this is a great place to share knowledge and learn, we all have something to gain one from another, so I thought it'd be a great idea to do my iteration of this concept.
Here's my portfolio:
To put things into a perspective, I'm 19yo student whose mission is to invest in a great tech businesses that change our life for the better.
My portfolio is built around these themes:
Internet of Things
My portfolio therefore consists of mainly high growth, disruptive technology companies. A simple reason why is that I know technologies the best from all sectors and I believe its a very diverse approach in order to catch most of our civilized world progress as those technologies pretty much are used across sectors, whether we talk agriculture, mining, etc. The goal of the portfolio is to invest in great companies who I can let run for years to come which can eventually secure me an earlier retirement 😃
I like to invest in:
software companies primarily with an expected growth of greater than 15% over a few years out,so basically there's a greater chance they can outperform the market even without a multiple expansion
companies with a great culture and great ratings from employees across Glassdoor/Comparably
founder-led mission driven companies with significant insider ownership
companies producing FCFor at least those who I believe will produce FCFs in the future
leaders in their respective sectors(so the best of bread)
It's worth mentioning that I plan to make some changes to my portfolio soon, so this isn't a final look, and so to make this clear, I plan to:
Seeing lots of people sharing their portfolios so I thought I may share as well. Still looking to trim $AFRM eventually if we go higher, but overall I'm basically where I want to be. I'm looking to complete my position in $ADYEY soon, though I added a few days ago, looking to initiate $AMZN$MDB and complete positions in $COUR and $MNDY, too. Otherwise I'd say my portfolio is at exactly what I determined it to be back in January when I started buying back in.
I initiated a position in $ADYEY $ADYEN.AS today. I believe this one is overlooked by the investing community, but otherwise a very important company in a fintech space. They are a payment processor for the likes of Booking.com, Etsy, Amazon, Ebay, Spotify, McDonalds, Wix, LinkedIn, HelloFresh, FarFetch, Domino's, Uber Eats, Pinterest, and many more...
The numbers just speak for themselves.
They just recently announced another strategic push forward, the first since 2018, now about to offer banking services to underbanked businesses.
I'm letting you know in a specific post as this position won't be visible in my portfolio on CS as those are European shares bought via Trading212 which is a broker I'm unable to link with either CS or Plaid.
With recent results continuing to impress on almost all fronts, and outlook for the next 2-3 years this felt like a good time to DCA (maybe another add in the next 6-8 weeks and another one between q3&4, depending on the continued belief in my thesis for the company) target 1.5-2% for my portfolio (at cost)
Commonstock is a social network that amplifies the knowledge of the best investors, verified by actual track records for signal over noise. Community members can link their existing brokerage accounts and share their real time portfolio, performance and trades (by percent only, dollar amounts never shared). Commonstock is not a brokerage, but a social layer on top of existing brokerages helping to create more engaged and informed investors.