MDB ZS AYX OKTA

On this “momentum” kick, why would anyone not want to invest in a business that is hitting the peak of the “S” curve, w business accelerating, with transformative businesses, in enormous markets and LITTLE DIRECT COMPETITION.

Zscaler, at least according to at least two recent analyst reports still has no real competition and a sales pipeline filling faster than they can close deals. Ie, “they are coming to us” as the CEO who refused to sell his business for $3 billion to Cisco has said repeatedly over multiple quarters even as their primary competition has faltered so badly that the board of directors had to intervene. Some here said no correlation…right, riggggght.

Mongo is accelerating its business as it becomes more and more the standard general purpose database w no real competition either except for niche and mundane use cases.

Alteryx remains w out real competition as we discuss “but they are not a real SaaS” to try to find something wrong w it.

OKTA is the standard and growing for identity security.

These stocks keep growing and the multiple gets larger as the market continuously tries to reassess their real business future value, but yet continuously underestimates them. I said before, it takes less than 50% (materially) growth over the next 3 to 4 years to make Zscaler a true value stock. Zscaler will never be a “value” stock unless it’s monopolistic like business model that is completely transforming everything we use to know about corporate data centers suddenly loses its business fundamentals.

Same w Mongo…Mongo starts losing to Amazon or Microsoft or something totally disruptive comes along that does not even exist now.

AYX? Really, is there even an identifiable true SaaS company that can compete effectively w AYX as they become the standard in their field?

OKTA - same thing.

What each of these companies have is tremendous competitive advantages, long term hyper growth, enormous markets, and totally disrupting the way the world works. What, should they be valued at 10x forward revenues? Why? Without any doubt I can say that valuing any of these companies at 10x fwd revs to satisfy someone’s arbitrary notion of proper valuation is absurd. When you have multiple years of hyper growth, why value on one year? Zscaler at 10x revenues, when it turns on the money spigot, and w Zscaler there is no doubt they can at any time, would probably have a price to earning of - 33 or less and likely to chave ntnue to dominate for many years to come. Raise your hands, Zscaler at 10x revs - drop it all and buy buy buy. Or is that just momentum investing still?

Tinker

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