Thomas Chua Profile picture
Aug 12, 2021 11 tweets 4 min read Read on X
🔴App Annie's latest mobile gaming report

🕹 Gaming is larger than the music and move industry combined.

📱 Mobile gaming is 3.1x console spend and continues to grow at a rapid pace! 🤯
One year into the Covid-19 pandemic, demand for mobile gaming remained strong with no sign of slowing down.

🚀🚀🚀
As mobile technology improves, we see a lot of value migrating towards mobile gaming.

There are over 810 games surpassing $1M in consumer spends EACH MONTH.
India is the World's biggest mobile game market by downloads.

Brazil, Indonesia and Russia present a ripe opportunity for publishers.

Find out why Garena Free Fire ($SE) is actively expanding into this region in this mega-thread here 👇

US remains the biggest spender of mobile games.

However, APAC remained the world's biggest region for consumer spend in mobile games - accounting for over 45% of market share!

Mobile offers a unique opportunity to have a portable gaming console in the pocket of every smartphone
This was a lil surprising, there are actually more female mobile gamers in the Western Markets!

Pokemon Go is the most popular game in most western countries.
RPG games are among the most successful genre for app monetization!

Genshin Impact launched on Sep 28, 2020 and generated over 23 million downloads on day one!

As of Jul 2021, Genshin Impact has surpassed Pokemon Go to be #1 game by lifetime consumer spend.
A core reason for RPG insane monetization is that it offers a much wider mix of engagement and monetization features.
Games under Shooting, Action, RPG and Strategy genres made up around half of total time spent!

Social and online features help cultivate deeper play and foster longer retention.
Free Fire ($SE) remains the top game under Battle Royale genre!

Insane execution by Garena in key markets such as Latin America, Indonesia and India.
Here it is!

The top games for H1 2021

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More from @SteadyCompound

May 7
Great insights from InPractise, featuring the Former Head of Global Advertising Partnerships at Meta.

Why Meta holds a competitive edge over other ad tech companies and won't be impacted by the trade war's effect on Chinese advertisers reducing ad spend:
1/ If the overall economy were to slow down, brand advertising will take a hit first over performance advertising.

Meta has stakes in both, but is particularly popular for performance advertising. Image
2/ Meta excel at matching eye balls with the highest value advertisers.

It's a bidding system.

If there's a pull back from Chinese advertisers, there'll be other advertisers who can pick up the slack.

Furthermore, Meta have other levers to pull—such as increasing the ad load to compensate for the CPM drop.Image
Read 10 tweets
Apr 5
The communication on Liberation Day has been an absolute mess.

Treasury Secretary Scott Bessent dove into Trump's tariff plan with Tucker Carlson in a one-hour deep dive.

He broke down the system's flaws and what the administration is gunning for.

A thread 🧵 Image
To start, I want to state that I don't agree with everything said. Some views are simply reframing to make the policies more palatable.

Regardless, this offers us a glimpse behind the curtain of what the administration sees, as opposed to all the speculation online.

Let's begin:
COVID revealed strategic vulnerabilities for the United States Image
Read 13 tweets
Apr 4
Howard Marks just went on Bloomberg to share his views on Liberation Day.

Here are his insights on its economic impact and why he thinks US is still the best investment destination.

A thread 🧵 Image
Recent tariffs represent a major economic paradigm shift Image
Trade restrictions will likely increase inflation Image
Read 13 tweets
Jun 18, 2024
Valuation: why multiples are becoming less useful

Source: Valuation Multiples by Michael Mauboussin & Dan Callahan Image
The rise of intangibles lead to earnings and ROIC looking understated. Image
This isn't to dismiss the use of multiples, but rather to raise the awareness of the limitations and how we think about it. Image
Read 4 tweets
Apr 10, 2024
Meet Allan Mecham.

At 22, he dropped out of college to start his fund, Arlington Value.

And achieved a staggering 30% CAGR from 2008-2016.

He reveals his investing secret in his letters.

Here's the framework he used (that you can too): Image
1. Adopt a mindset for longevity

He focuses on variables that affect a business' durability.

Stuff like valuation doesn't matter if the business quality is misjudged.

Since a company's value is determined by its future cash flows...

Hence evaluating its future is key Image
2. Stay within your circle of competence

Allan is aware that his COC is tiny!

Thus, he rarely buys companies that he:

• Hasn't researched
• Hasn't followed for at least a few years.

Because the best way to study a business is to observe its execution overtime. Image
Read 11 tweets
Apr 1, 2024
The Marathon Asset letters offer a masterclass in investing through the capital cycle.

If you invest in the stock market...

Here are 11 capital cycle patterns you need to know: Image
1/ Periods of high profitability leads to reckless investments.

When profits are high:

-Boost CAPEX with little regard for ROIC
-Competitors will follow suit to avoid losing market share
-CEO's incentives aren't aligned with shareholders

It's a race to the bottom. Image
2/ The capital cycle will swing down when investments are taken too far.

Forecasts that were reasonable will now look overly optimistic.

Profits collapse, management teams are changed, CAPEX is cut, and consolidation begins.

This will pave way for a recovery of profits. Image
Read 13 tweets

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