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-$7.79 -69.18%
$APP withdraws buyout offer for $U, clear pathway for $U x $IS, I am concerned about $U management
$U is betting on $IS which I think is a subpar team, similar to $U itself which also sucks at execution.

I am a shareholder of $APP and $IS so this result works incredibly well for me in the long term as I have access to two giants $APP and $U x $IS

I am happy that this works out in my favor but kinda disappointed as $U x $APP would have been a monopoly of $META scale(probably bigger over the next 10+ years), let's see, fun times ahead.
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🤝 Deal or No Deal? 🤝
In July, Unity $U announced a deal to buy ironSource $IS. On Tuesday, AppLovin $APP made a bid to acquire Unity for $58.85/share, 18% above the stock’s price at the time. Under the terms of the deal, Unity would have to abandon its deal with $IS.

What should Unity $U do, acquire, or get acquired?!


Leader of the pack?

AppLovin $APP generates $3.42B in revenue which is almost three times Unity’s $U $1.2B and almost five times ironSource’s $IS $623m.

You can look at the detail here.

Or falling behind?

AppLovin $APP has the slowest revenue growth rate at 3.6% compared to Unity $U at 36.3% and ironSource $IS at 58.4%. $APP isn’t exactly operating from a position of strength based on how it stacks up.

Cash is king

Growth aside, AppLovin $APP has generated the greatest cash flow over the past 12 months.

You can view these companies' FCF details here.

If you want to see the complete analysis of these deals, you can read it in our newsletter 👇.

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$U is drama queen of the stocks world
Another day, another Unity drama. Unity seems like it can’t catch a break 😂. A few of the Unity dramas in the past month are:

I think $U needs a new CEO. The company has so much potential with their solutions, but the execution is quite bad
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Seeing a lot of bad takes on $U and $APP merger
The premium looks small to $U shareholders, but if you are willing to take the long view this is an incredible merger building a business that can effectively trade punches with $AAPL and $GOOG

I am a shareholder in $APP and $IS both and I think $APP x $U is an incredible opportunity for the long term.

I hope it goes through, if you are a shareholder of $U or $APP and have any questions/concerns please leave a comment and I can help you see the light.

Take the long view.
Don't you see this proposed deal as $APP not wanting to be left behind when Unity merges with $IS ?

And as $U holder, of course I'm looking at the premium and how much power Unity shareholders will have after the merger (in this case, less than the ironSource deal)
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I’m out on $U. The last few months have been a mess. I’ll wait for the dust to settle and reevaluate the landscape with $APP, $U, $IS later. I’m going to pass on sitting through another earnings report.
This was an unsolicited proposal from a rival company basically asking to be taken over as $U would be the majority shareholder of the combined company. It's interesting that would be a catalyst to push you out.

I personally will vote against it if the Unity board puts it to shareholder vote. I want to see what U can do with the IS purchase. This feels desperate to me from APP, and the market seems to agree with APP getting pummeled right now.
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My Portfolio: 08/02/22 -- A Battle for 2nd
With $SHW (of all stocks) bombing after earnings and $PINS (of all stocks) jumping, my 2-4 spots are jostling around.

Pinterest, $TDOC, and $ME scare me allocation-wise, but not enough to sell any yet.

  1. $KNSL - Firing on all cylinders, 30%+, profitable growth in insurance is bananas.
  2. $PINS - All about ARPU and shoppable content -- doing what it needs to for now.
  3. $ABNB - Reporting earnings tonight -- curious to see any new product ideas/tweaks.
  4. $SHW - Dreaded supply chain issues -- will be safe long term.
  5. $BTC.X - Just holding 🤷‍♂️
  6. $U - This may sound dramatic, but the $IS deal could be make-or-break -- need more time.
  7. $NDAQ - SaaS and ARR operations continue expanding -- AntiFin crime investment for me.
  8. $V - Steady as ever, as dull of dividend growth play as I had hoped so far.
  9. $TTD - Looking pretty interesting at today's prices, especially with the $DIS deal.
  10. $ZTS - Another boring pick seeming to execute well -- animal wellness play.
  11. $TDOC - Oh boy. Not adding to the position currently. Not dead, but not worth any new money. The thesis is intact for the most part but not nearly as bright.
  12. $ME - Probably over-allocated to this one, but still an exciting idea when looking decades out. It needs to manage its cash burn better, though. What will happen post $GSK?
Which allocation scares you the most?
33%Pinterest
5%Unity
50%Teladoc
11%23andMe
18 VotesPoll ended on: 08/05/22
I hold $U also and it definitely isn't too dramatic to say the $IS acquisition will only bolster or break the thesis. If management can't pull this off, it'll be major dilution with nothing to show for it. A massive setback and a loss of trust in the executives in my book. However, a successful integration could cement Unity's place as an industry-leader.
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$U x $IS update
Supersonic, the publishing arm of $IS is now the #1 game publisher in the world. This means $U will have more data for the contextual ads.

I was surprised to see it being more than $APP. Now with that:
#1 game publisher
#1 game engine
and a good ad company
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