General 11 months ago

MrBeast and cloud kitchens  

MrBeast broke the internet over the weekend announcing a burger biz burgers/app/nationwide coverage via cloud kitchens and food delivery apps. An amazing culmination/summary of the relative "ease" of starting a business currently, and cloud kitchens probably continue to see growth if this is just the beginning. 

What are the stocks with the most exposure to cloud/ghost kitchens?


futurist1 futurist1 2    1

General 11 months ago

Brexit-related trades  

Pretty cool site! Reddit brought me here...

Is there any interesting trade around brexit? Seems like the market is yet again not pricing in much (if at all) stress from a potential "hard brexit". 

Short EWI/Long SPY? Are there any specific trades on people's radars?

pjs pjs 1    1

General 11 months ago

Cloudflare & Fastly  

In 2020, COVID-19 forced the world to go through many years’ worth of digital transformation in a span of a few months. Unsurprisingly, most human activities normally done in person have shifted online, ranging from work to entertainment. In the US, online news consumption grew by 215%,  E-commerce 44.4%, streaming entertainment 57%, and most importantly 42% of the entire U.S. labor force work from home full-time. It is an indisputable fact that we spend, work, and play online significantly more than in person. Recent earnings from related companies like Walmart, Netflix, and Slack have clearly reflected those changes. And they are not temporary and will outlast this pandemic. This is the precursor of how the world will operate in the coming decade. 

Supporting the dramatically increased online activities also poses difficult challenges. The first is security. For instance, the number of DDoS attacks increased in direct correlation to the increased internet usage. Hackers target high-stakes entities like vaccine makers and important events like elections. The second is latency. Consumers have a high expectation for the quality of their digital experience, yet their activities are more data-heavy and distributed than ever before. More concretely, 2 seconds can cut conversion rate by half. This equals lost revenue. 

It is imperative for companies to solve these challenges even though they are not directly related to their core business problems as they have legal and economic consequences. However, building out a secure and performant infrastructure is a non-trivial problem and most companies cannot afford to solve it because it is too costly and time-consuming. We know this personally because we spent a lot of time optimizing performance on our own site and it took time away from working on our core problem. Therefore, outsourcing this task is inevitable. 

This is why we believe that CDN providers will play a key role in facilitating business operations in virtually every major industry and directly benefit as a result. They essentially own the highways, railroads, and airports in the digital world. In particular, there are two companies that stand out to us: Cloudflare and Fastly.

Cloudflare provides security-first CDNs. They help other companies run their applications on a secure and reliable network. Currently, their network handles more than 10% of all global traffic and 16% of Fortune 1000 companies’ traffic. Their notable customers include but are not limited to IBM, Shopify, Zendesk, and Hubspot. The numbers are growing fast based on their recent Q3 earnings which grew 57% year-to-year. With the biggest market share in CDN, they are already a part of the pantheon of Big Cloud (AWS, Google Cloud, Azure). They also provide a unique value proposition to enterprise customers who want data sovereignty from the public clouds. 

Fastly stands out with their emphasis on edge computing. Newer applications, especially with IoTs and deployable machine learning models, are becoming increasingly complex and require more computation power. The traditional way of relaying the requests between the central server and clients is slow and not sustainable. And their solution to this problem is top-notch and received a 95% customer satisfaction score. They charge a fee based on traffic and service some of the most recognized internet businesses such as Stripe, Pinterest and Reddit that are growing rapidly. 

jacob jacob 0    1

General 11 months ago

LGVW - Butterfly Network  

70-80% of diagnostic problems can be solved by simple ultrasound imaging, yet ⅔ of the world lacks access to it because of its cost, portability, and required training. Specifically, the machines cost $115,000 on average, are cart-based and operated in central locations. Most importantly, the training typically takes 12-18 months and 13 years of education/training for sonographers and radiologists, respectively. 

Butterfly Network manufactures FDA-cleared and CE-marked ultrasound devices that cost $2000, fit in a pocket, and provide guided assistance with machine learning and remote monitoring. It’s the world’s cheapest and first whole-body scanner. Their product is revolutionizing the healthcare system and will soon replace stethoscopes as the new hallmark of physicians. We can already see the early adoption of this technology in the research community in addition to Butterfly’s existing footprint in the top 100 health systems and 4 out of top 5 medical schools in the US. Here are a few of the organizations we could identify:

  • Atrium Health
  • NASA
  • Harvard Medical School
  • European Society of Radiology
  • Royal Melbourne Hospital

POCUS: point-of-care ultrasound

The wide adoption of their product will also provide them an unfair advantage to be one of the top medical AI companies through the virtuous cycle of data aggregation, model development, distribution and feedback. Due to the amount of data and annotations from their wide user network, Butterfly’s machine learning models are likely to outperform other competing models and will be able to address the key issue of user training in scaling up the adoption of ultrasound across many different medical settings. 

Additionally, Butterfly’s cloud platform will not only provide recurring revenues but also play a crucial role in connecting to existing EMR systems, processing charges, and building an application ecosystem. Lastly, Butterfly’s founder Jonathan Rothberg has a proven record of not only achieving remarkable technical feats such as sequencing the human genome for the first time in history by scaling previously unscalable technologies, but also building viable businesses around the solutions.

genesis genesis 0    0

General 1 year ago

Spotify is entering the TV and film arena.  

WSJ Article

As more people go remote, streaming service is now the main source of entertainment content. Spotify, Netflix, Disney, and Amazon are already positioned to play a big role in this trend. Another category of companies that warrants an equal amount of attention is content delivery service providers.

jacob jacob 0    0

General 1 year ago

Google will try ‘hybrid’ work-from-home models  

CNBC article

Google is now one of the latest companies shifting to a decentralized workforce model for post-pandemic work. Some obvious winners are communication providers like Slack and Zoom. Companies that can also benefit from this trend are data security providers, remote engagement providers, identity management service providers

jacob jacob 1    0

General 1 year ago

Nike Stock Jumps Nearly 10% After Reporting Surge In Online Sales  

Forbes Article

As clearly shown by Walmart and now Nike, the increase in digital sales is accelerating. Here are some categories of companies that I believe will play an important role in this new environment:

  1. Cloud infrastructure providers
  2. Logistics service providers
  3. Digital payment processing providers
  4. eCommerce platforms

jacob jacob 0    0