1/7 Thread: Home

After three years, I returned to Bangladesh and spent the last three months here. Although admittedly I felt like an outsider in the beginning, Bangladesh felt like my natural habitat just after a couple of days.
2/7 The familiar taste of delicious dishes, the ever so mild winter, warm smiles from the friendly faces, and the the constant cacophony of life made me feel home.

The idea of home, however, has evolved to be a more esoteric topic for me. Bangladesh is where I feel comfortable.
3/7 But it's the confinement of comfort I have always dreaded that can stop me from reaching my potential.

From my late high school days in Bangladesh, I have philosophically become more "American".
4/7 The ideals of freedom of expression, the separation of power in three branches of government, and an economic engine based on capitalism indeed felt (and still does) quite appealing.

In many ways, I had become "American" even before I set my foot in the US.
5/7 Even when I had to leave the US, I never quite felt bitter about the US. I have a surprising amount of affection in my heart for the US. Thankfully, the ever-so-reliable Canada was there to save the day for which I'll forever be grateful to the Great White North.
6/7 The idea of a country itself is perhaps just a meme that exists in the collective imagination of millions or billions of people. I am increasingly comfortable in having multiple "homes" by participating in multiple collective imaginations.
7/7 If everything goes fine, I'll hopefully be flying to the US tomorrow, and reunite with my wife. Here's to new homes :)

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More from @borrowed_ideas

Feb 5
1/11 Thoughts on last week

It was supposed to be a pretty difficult week since I "lost" (unrealized) a bunch of money following earnings last week. But in reality, I felt very engrossed, and energized.

It was a textbook reminder why I actively invest in the first place.
2/11 Why do I actively invest?

Investing is my lens to understand the world. With my money on the line, the stakes are as high as it can possibly go.
3/11 Investing allows and forces me to study the past, observe the present, and ruminate the future of the companies that are shaping the world.
Read 11 tweets
Feb 4
1/12 $AMZN 4Q'21 Update

Market was in such a dour mood before the earnings that even an okay-ish quarter and guidance drove the stock +15% AH.

For the first time, international sales declined in any quarter YoY 😯

I know, I know tough comp. Here's my notes.
2/12 First, here's the breakdown of sales and operating income by NA, international, and AWS. Also, a breakdown by segment. For the first time, advertising revenue was disclosed.
3/12 2020 was extraordinary for $AMZN, so 2-yr/3-yr CAGR is more reflective of underlying health.

Q4: AMZN 2-yr CAGR is still at ~25%. AWS is accelerating growth. Ads 2-yr CAGR ~47%. Hard to complain.

AWS incremental operating margin mid-30s. But a wild swing for AMZN, ex-AWS.
Read 12 tweets
Feb 3
1/17 $SPOT 4Q'21 Update

If someone gave me the call transcript and press release a day before and asked me how do you think the market would react, I would probably say +5%?

In reality, stock went down 22% AH, then recovered to -10%. Investing is hard.

Let's dig in.
2/17 So what spooked the market initially? It's the soft Q1 MAU guidance. After adding 64 mn, 74 mn, and 61 mn MAU in the last 3 yrs, SPOT guided only 12 mn MAU add in 1Q'22. On a run-rate basis, that's material deceleration of MAU add.

Market HATES unprofitable decel narrative.
3/17 Why do I think market's initial reaction was misguided?

"we do not anticipate any material changes in the trajectory for net growth in MAUs and subs in 2022 when compared to the net growth we experienced in 2021."
Read 18 tweets
Feb 3
1/19 $META 4Q'21 Earnings

"although the direction is clear, our path ahead is not yet perfectly defined."

The word "headwind" or "headwinds" appeared 30 times on this call. Market listened. Stock is -23% AH.
2/19 It's the first time Meta has broken down topline into two segments: Family of Apps (FoA), and Reality Labs (FRL).

DAU +4%, MAU +5%
In Q4, # of ad impression +13% YoY; price per ad +6% YoY
For 2021, this was +10% and +24% respectively.
3/19 turns out Meta's core biz is even more profitable (~49% EBIT margin) than Google Services biz (~39% EBIT margin)

Unfortunately, there's no "other bets" in Meta. It's a Hail Mary for what the company wants it to be.
Read 21 tweets
Feb 2
1/12 Thread: $GOOG 4Q'21 Update

Another bonkers quarter for GOOG. Yawn, right?

For the first time in a quarter, revenue from YouTube ads exceeded $NFLX revenue. 15 years ago, GOOG bought YouTube for $1.65 Bn. The king of AVOD *grew* its topline by ~9 Bn in 2021.
2/12 Incremental operating margin went down from the ~50s to ~mid-30s, primarily driven by increasing losses in Cloud and corporate overhead costs. Long-term potential margins for the overall biz remain compelling once cloud reaches scale.
3/12 On YouTube shorts: "We just hit 5 trillion all-time views and have over 15 billion views each day globally."

"Last year, the number of YouTube channels that made at least $10,000 revenue was up more than 40% year-over-year"
Read 12 tweets
Jan 29
1/7 $AAPL generated ~$102 Bn FCF in last 12 months. Even though it handily outperformed the index in almost all timeframes, it still trades at ~3.8% NTM FCF yield, arguably not an egregious valuation level.

In 2012-16, it was regularly trading at ~10% NTM FCF yield. Why?
2/7 One rationale was AAPL was expected to be disrupted. Its hardware margin was always assumed to be unsustainable.

Even Clayton Christensen feared all doom and gloom for AAPL. The consensus seemed to be "good enough" Androids will prove to be existential threat for iPhone.
3/7 It's fun to go back and see what people were worried about a decade ago. Some wondered whether Android is already "good enough" in 2012 which would erode iPhone's dominance.

Today, teens dread the "green text" in Android.
Read 7 tweets

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