• What are the differences vs similarities btw both companies?
• 🚨Revenue Growth rates over 281% & 152% respectively
• What are the risks of Investing? Can we trust both?
• $FUTU Earnings Recap
• Are they worth it?
Biz Thread below👇
0/ Thread Overview [Skim to your sections]
1: Financials Overview
2-3: $FUTU vs $TIGR Competitive advantages
4-5: Financial Analysis Summary
5-6: Management Teams
8: The Risks to Weigh
10: Industry and market Opportunity
1/ Company Overview: Super easy, nothing much.
$FUTU & $TIGR - Platforms that enables buying & selling of equities.
* $FUTU has more of a growing Wealth Management biz
2/ $FUTU's Competitive Advantages:
i) First Mover Advantage
ii) Superior technical know-how around clearing & more vertically integrated
iii) Better Customer Demographics?
iv) Popular brand associated with providing market data
v) Bigger Social Media Platform for customer data
3/ $TIGR Competitive Advantages:
i) More International focus and brokerage licenses
ii) Diverse client base and exposure to more markets:
iii) Slightly diversified base of revenue streams than Futu - $TIGR relies less on commissions [76% vs 90% of Total Revs for Futu)
4/ $FUTU Q4/ 2020 Financial Results announced today.
Important metrics:
• Revenues: $153M [281% YoY]
• Total No of paying clients 516K [161% YoY]
• Registered clients 1.5M [98% YoY]
• Total Users 12M [58% YoY]
• Daily trading volumes [438% YoY]
• DART's - $462M [214%]
4i/ $FUTU vs. $TIGR Financial Summary: I put it together.
Big picture: Both companies are growing rapidly, but $FUTU edges out $TIGR on Top-line growth rates as well as bottom-line.
* Represents 3rd Qtr Revs/Incomplete data for $TIGR since they have less info.
5/ $FUTU Mgmt
• CEO/Founder: Leaf Hua Li owns 40% of shares
• Tencent $TCEHY – 30% ownership stake
- Recently announced another
*This is what convinced me about both companies - I'll imagine with such large ownership stakes, they can't afford to screw up? I tend to think so
6/ $TIGR Management & Leadership:
• CEO/Founder - Tianhua Wu owns 25% of shares
• Xaomi and Interactive Brokers own 20% ownership stake
Decent too & solid backers!
7/ Market Opportunity: Prize is big!
• According to Credit Suisse’s, China is now home to the second largest amount of aggregate household wealth in the world (after the US).
• Over a billion population especially considering the country is experiencing rapid economic growth
8/ Risks:
• The Chinese Gov't & geopolitics
• Competition from the biggest banks in China, including WeBull, eToro (SPAC'd today!- $FTCV & growing >137%)
• Race to Zero Commission erode Revs
• Is this a short-term trend in trading?
• Tigr had issues with the New Zealand Govt
9/ Macro factors/Tailwinds:
There is evidence suggesting money is flowing into
- Financials/Broker dealers
- $JPM Morgan says over $100B in 2021 are flowing into Emerging markets and Non-US stocks
These guys have been outperforming the markets!
Charts h/t @allstarcharts
10/ $FUTU vs $TIGR Comparisons:
For a full write-up & in-depth analysis of both companies - they can be found in my newsletter I sent out last week or read my Seeking Alpha later this week:
• Both are good companies growing rapidly in a BIG under-served market
• There are more similarities than differences
• Great customer demographics and fundamentals
• Both are Founder-Led with big ownership stakes
• Faced by risks
Thoughts?
$FUTU / $TIGR - I don't have a position yet - This is all for informational purposes for all my followers to assess both companies with great fundamentals and make a decision.
What do you guys think? What have I missed out?
Thanks for reading and share if helpful.
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Why I've been bullish on this leader in AI disrupting the Trillion-dollar Consumer Lending Market!
✅What is so special?
✅What are the Competitive advantages?
✅ $LMND of Lending?
Let's explore in this deep thread👇👇
1/ Thread Overview:
2- Company Overview
4-Competitive advantages & Emerging Moats
5 -Financials & Customer Growth
7 - Market Opportunity
8 - Management Team 9- The bear thesis & Risks
2/ $UPST Overview:
A lending platform that applies AI & machine learning to improve the consumer lending and underwriting process for making effective credit assessments.
They help their bank partners by referring loans, creating a seamless and simple consumer facing app.
Key Highlights:
✔️Q4-2020 Revenue: Actual $139M vs. Est. $130M (53% YoY Growth) (7% Surprise)
✔️EPS: Act. $0.10 vs Est. $0.12
✔️Q4- GAAP Ops. Income Margin of 21% and Adjusted Margin of 45%
✔️FY 2020: 63% YoY Growth
This is a Top-class company-✅🔥
Part 2 - $ZI
- Cash flow from operations of $169.6 million, and Unlevered Free Cash Flow of $243.7 million.
- $ZI closed the year w. >20,000 customers, including more than 850 customers with $100,000 in annual contract value
- FY 2021 Guidance below
Part -3: - $ZI
* I may start another position again as I sold my position a few weeks ago.
- Top-line Revs growing >50% consistent
- High gross and ops margin
- Founder-Led with three awards for 2020 culture & placed No. 15 on for Best Company Culture
- Moat within sales teams
Weekly Fundamentals✅: $VUZI Corp was 🆙 over 30% today.
I've been talking about $VUZI since it was $9 b'cos of the capability to solve key problems across multiple verticals.
So here below was my thesis (maybe its why $ARK Invest bought? or $AAPL is investing here)
Thread👇:
This $VUZI thread contains of the following
1-5: Overview & industry use-cases
7 - Financials
8 - Industry
10 - Competitive advantages I believe makes $VUZI maintain a good position in the AR Market
*There are risks, but you'll need to be open-minded & be big picture minded*
1/ $VUZI
They design, manufacture, market and sell Augmented Reality (AR) Smart-Glasses display, wearable computing, AR optics technologies, display engines and products for the consumer and enterprise markets.
*No, this is a real product being used today, not a story stock*
$PLTR Investors should focus more on Foundry, the commercial business and leave behind the past $PLTR of US Gov’t
In this analysis, I utilize my experience as a Product Lead for AI projects to highlight factors I believe differentiates Palantir.
Below is a thread of the report-
1/ The best way to understand $PLTR software philosophy. Think of it as a funnel.
i) Data Integration to absorb data
ii) Knowledge & Data Management
iii) Advanced search and discovery
iv) Intuitive app to drive collaboration
It goes back to the early days with Peter Thiel.
2/ The Four Tenets that guide Foundry:
i) Ontology of data and wide-ranging use case templates
ii) Advanced AI Capabilities and simulation modelling from the ontology
iii) Modularization with a variety of software apps
iv) Interoperability with any data platform such as IBM’s