Here’s what I’ve done:
Sold ZS - they may be fine, but I see a company that’s slowing down really fast. A company-wide security product is a big thing to sell, and I can’t see their sales cycle getting shorter. I’m just not sure they can do well enough please the market going forward.
Doubled DDOG - I took a look at the product and I can see why it’s really user-friendly. They seem to be doing everything right, as Saul has pointed out. The accelerating growth and profitability metrics went a long way for me. Still only a 6.5% position for me, but I’m adding on dips.
Added to ESTC and CRWD - Thought their quarters were both very good. I can see why ESTC sold off but I think it was overdone. CRWD should be up a bunch on their report – it was fantastic. (BTW, one thing I didn’t mention…their 98% subscription growth could mean that their overall 88% growth is artificially low. Prof Serv only grew 25% – that’s great! We don’t care about that. We want high-margin subscription revenue to grow, and it basically doubled.) (Oh, and one other thing – CRWD’s lockup expiration is Monday. Short squeeze next week?)
Added to AYX - yes, it’s now a 24% position, but I don’t lose a minute of sleep over it.
Trimmed SMAR a bit. Just felt a little uneasy with the growing losses. But it’s still a top 5 position for me.
Added a tryout position in ZM. It’s down to a PS of 34, almost exactly the same as DDOG’s.
Bear