Morning, alla you all sleepers! Time for us Value Hounds to start waking up.
I have taken a break from these boards for a long spell because there just wasn’t anything compelling or clarifying. Everything has just seemed so wrong for too long.
As my previous post here suggests, I started on Saul’s board. The last thing I looked at was this thread about ZM in 2020. By golly I could have made a ton of money…in retrospect. There are also a lot of tears being shed by folks who were late to that party and there are likely to be more tears still.
Anyhoo, the point of this post is that I have looked at just a few of the popular names on Saul, including CRWD and DDOG. What I notice is that they have grown tremendously in the past couple of years…and earned not one penny. How does a company, in the case of DDOG have Cost of Sales of $46XXL in one money-losing year (but lost only 4 cents), and two years later spend $208XXL (and lose 20 cents per share)?
But who the heck is getting all of that money? It’s thus all through the NASDQ. Is AWS getting it? What will happen to those earnings when so many of these companies evaporate overnight, and not necessarily DDOG or CRWD? But in the case of DDOG, how long can they grow and grow and lose more and more? That’s a business model?? Sure it has been for the past few years, but…
Wakey-wakey!!
-Randy
it’s good to be back…but probably still 50% “early.”