They’re talking about growth, of course. ALWAYS talking about growth. But the air is THINNING. Competition? It’s a goddamn free-for-all out there. Disney, Apple, Amazon… they’re all circling, snapping at Netflix’s heels. And when the sharks start smelling blood, things get… messy. Pricing power? Forget about it. Churn? It’ll be a revolving door of disgruntled subscribers, switching services faster than you can say “binge-watch.”
A curious report from CryptoQuant draws our attention to a most intriguing trend that has been unfolding since 2022-Bitcoin is fleeing centralized exchanges, slowly but steadily. After the great collapse of FTX in November 2022-a calamity that shook the very foundations of the crypto ecosystem-investors scurried like ants, withdrawing over 325,000 BTC from exchanges, desperately rushing to move their precious holdings into private custody. Oh, the sweet taste of security! How it must have felt then.
And what a business it is! Datadog, you see, operates in that peculiar realm of software where artificial intelligence is less about thinking machines and more about automating the anxieties of IT departments. A most profitable endeavor, wouldn’t you agree? The company isn’t merely selling tools; it’s selling peace of mind, a commodity always in high demand, particularly when servers threaten to spontaneously combust.
The chaps at Apple recently unveiled a collection of new contraptions, as they are wont to do. New products, naturally. However, amongst the usual assortment, a particularly interesting development emerged, a catalyst for growth that might just justify a spot of investment at this very moment. Let us delve into the details, shall we?
Let’s look at three stocks. Three. Don’t get your hopes up too much.
Wall Street, a place populated by gentlemen in pinstripes and even fewer scruples, has decided these shops are terribly clever. Consequently, the price of a tiny sliver of ownership – a ‘share’, they call it – is rather inflated. This means we, the sensible folk, must examine things very closely indeed. Which shop is the least likely to fleece you completely?
One observes, with a certain detached amusement, the eagerness with which the market embraces novelty. Yet, true wealth is not built on fleeting trends, but on enduring foundations. I suspect, over the long term, Alphabet will prove the more substantial investment. To mistake current performance for future destiny is, if one may be blunt, rather vulgar.
For thirteen consecutive quarters, Berkshire has been a net seller of stocks. Apple and Bank of America seem to be the designated donors, consistently offloading shares. It’s a bit like my aunt Mildred, perpetually “downsizing” her porcelain doll collection. You start to wonder if there’s a deeper meaning, a secret message encoded in the sales. Though, realistically, it’s probably just accounting.
The fourth quarter’s accounts revealed a revenue of $106.3 million, a sequential increase of sixteen percent. A respectable growth, perhaps, if one considers the long, slow gestation of this technology. It is not the explosive growth of a summer storm, but the steady seep of water wearing away at stone. Sales of new printers, and the ever-hungry consumption of materials by those already installed, fueled this advance. One detects a pattern – a slow, deliberate building, like the accretion of sand forming a dune.
The pitch is this: AST is building a satellite constellation to beam cellular service directly to your phone. Like, no towers needed. It’s ambitious, bordering on “let’s just solve world hunger while we’re at it.” Their partners read like a who’s who of mobile carriers – AT&T, Verizon, Vodafone, and now TELUS. Collectively, they serve billions of subscribers, which is a lot of potential bill-paying customers. If this actually works, we’re talking about recurring revenue in the tens of billions. They’ve also snagged a defense contract, because apparently, even the military wants to be able to Instagram from anywhere. It’s a bold strategy, Cotton, let’s see if it pays off.