Thread by @RamBhupatiraju

What was I up to in the last two weeks? Just putting my head down and buying some stocks for the long-term.

Added to : $FVRR $TWLO $TTD $ROKU $NET $U $CRWD $SE $TDOC

New : $DDOG $SKLZ $ABNB

This mini crash in growth names over the last 6 weeks has obviously been very different from the COVID crash which was much wider, deeper and offered a lot more choice in picks...

..but it's good that business on sale this time were from many of my fav sectors.

SaaS 📊
E-Commerce 🛒
AdTech 📱
FinTech 💳
Gaming 🎮
Digital Services 🌎

Looked thru a 3-5 year lens, many of these Co's display many of the quality characteristics I look for in long-term holdings.

✔️High Quality Products/Services delivering value to their Customers.

✔️Founder led, high innovation, med-high growth.

✔️Significant tailwinds due to secular Tech/Demographic changes

✔️Recurring Revenues, with lot of runway ahead

✔️Very sticky, Switching costs, Network Effects (due to Data, or Two sided Marketplace nature)

✔️No Financial (Balance sheet) risk.

✔️Margin improvement, Evidence of FCF generation (or moving in right direction).

An awesome Company with rapidly growing Financials (with huge runway ahead) along with a rapidly shrinking multiple (due to various Macro fears) is a bet I'll take any day (especially if the Stable or slow growth businesses are already at a normalized valuation levels).

I try to focus on the simpler questions that are important for the long-term trajectory of the Business (intrinsic) value and not on the countless factors that determine the stock price in the short term.

With that said, below are quick thesis I have for these purchases. Some are in more detail than others (some were already explained in older threads).

I'm under no obligation to defend or dive deeper into these "you call that a thesis?" thesis.🙂

$FVRR : Add at $197

Bringing E-Commerce level choice/convenience and lowering the friction for the Gig Economy. A global talent pool of Sellers and Buyers. Good diversified Revenues from NA, Europe and Asia.

Waiting for traction/details on Fiverr for Business & Regional/Language portals. Great Rev growth, Gross Margins & proof of profitability. Yes, some competition from Upwork, LinkedIn and others, but let's see.

If they execute well on the opportunity ahead, ~$8B is not that high.

$TWLO : Add at $308

Well, all that Digital Transformation has to be done along with building tools for communicating & engaging with the Customers across all the Channels and Twilio is the de-facto standard for that.

$TTD : Add at $617

The flood of Ad-Dollars from Linear/Offline to Digital/CTV & into Programmatic is not going to stop anytime soon. Jeff Green & Team will continue to innovate, deliver transparency and results while navigating the challenges thrown by AAPL/GOOG/FB & others.

$ROKU : Add at 297

Ad-Dollars chasing all those eyeballs into streaming/CTV for a long-time to come. Lot of product development in the Ad/Tech stack (I'm not an up-to-date expert on the topic).

$DDOG : New at $77

With the ongoing Cloud migrations, all that Infrastructure, Logs and Applications aren't going to monitor themselves, produce KPIs and give you actionable insights...

..You will need a good Observability platform and this is my favorite play for that. Good growth, Financials, sticky products and expansion opportunities.

It'll continue to be a dog-fight in the areas overlapping Observability and Security but I got my dog ready.

$NET : Add at 64.75

I'm not smart enough (or have enough time) to keep up with their incredible product development velocity or understand all the technical details, but I believe this'll be a critically important Co for the Internet delivery infrastructure for the next decade.

$U : Add at 89.75

The picks/shovels play to create and monetize games on pretty much all platforms. One of my highest conviction names for the next 5 yrs from a Competitive standpoint. Not too worried about the lower guidance and short-term IDFA impact.

$CRWD : Add at $182.50

Really? No. The thesis for Crowdstrike should already be known all across FinTwit by now.

$SE : Add at 203

The six headed monster that's not stopping growing anytime soon. Will have to watch the Cash cow (Garena) that feeds all their other efforts.

$TDOC : Add at $182
Yes, yes all that Competition from $AMZN and commoditization of TeleHealth (Video)... but solving the friction in Healthcare, improving the convenience & quality of care, addressing the pain points in both acute, chronic and preventative care...

..all while lowering the costs is not something that will be solved quickly. This will take time, patience, consumer acceptance and results.

$SKLZ : New at $24.50 (ouch!) & Add at $21

Democratization of Gaming and Competition for the normal folks. Excited to see their growth, Margins & User metrics, but I'll need to learn more on their dependence on Mobile Platforms (iOS & Android), quality of games, durability etc.

$ABNB : New at $186

Incredible pent-up demand in the short term, and long tail-wind from demographic preferences (Millennials and GenZ are not exactly clamoring to check into commoditized hotel experiences for their travel needs).

The verb status (like Google, Uber, Zoom, Docusign...), terrific Network Effects (globalized, hosts/guests can switch roles..) and many other qualitative factors here (watch regulations, but should be OK) should take it a long way over the next decade.