Just had a long convo about the dominance of $wday, $crm, $msft, etc. the question I can’t ever understand is why $wday has ALL (or damn close) if it’s OCF in SBC.
The answer must lie in a sales force sized for a ramp and developers in anticipation of operating leverage.
The answer must lie in a sales force sized for a ramp and developers in anticipation of operating leverage.
However, you’re paying like $40Bn for a company that generates no real FCF. So, what’s the underlying assumption of an optimized cost structure and/or terminal margins and FCF?
And why don’t some of these companies end up with viable competitors after they raise price? Or...
And why don’t some of these companies end up with viable competitors after they raise price? Or...
Is the bet that they are going to be winner take all and scale is going to enable them to price at a sustainable advantage?
Any help on the framework of how to think through which moats are the most durable, terminal vs current economics, etc would be greatly appreciated.
Any help on the framework of how to think through which moats are the most durable, terminal vs current economics, etc would be greatly appreciated.
