Finding The Edge
Flat, even worse, decreasing earning – is the thing that investors never want to see. Warren Buffett called the firm characteristic to preserve earning as an economic moat – or, formally in business school terms: durable competitive advantage.
Losing steam of the earning could be stem from several situations. It could be due to lower sales prices – like Amgen or other drugmakers when they lose their patent. It could be due to lower volume sold like Nokia and Blackberry RIM when iPhone and Android come in. Or both, as Xerox business gets disrupted by Japanese copiers. As Darwin says, it is survival for the fittest.
Like Darwin, Americans saw so many businesses collapsed – and they will see it again and again. Our post under the competitive advantage category helps the investor to recognize the business advantage of the company – how strong it is and, how long it could retain the customer. The first thing you need to know about your investment is they still exist today and tomorrow – not extinct in the midst of the business wilderness.
Competitive advantage is one of the most crucial aspects of your valuation. All calculation basis – whether it is earning, operating cash flow, or even free cash flow is merely a product. It is management, strategy, policy, demographic, so many factors that affect these groups of financial numbers. Understanding this – and your calculation won’t be too difficult.
So many investing blogs and channels out there – some of them are really exceptional. But few, just a few, cover the competitive advantage in detail. We are here, to bridge that gap.
Analysis of Netflix Stock is focused on answering this question: It loses 200 million subscribers in the first quarter of 2022. The streaming giant plan to launch an ad-supported program to cut the expense and offer lower subscription fees for the customer. Will this decision help company to regain or at least retain its customer?
Continue reading “Analysis of Netflix Stock: Ads. New Chapter of Streaming”
If we inspect carefully the number of subscribers lost, actually Netflix is just fine. The streaming giant only lost 200 thousand subscribers from a total of 221 million. It is a tiny fraction, less than 0.1%. It is no big deal. Netflix said that number comes from 700 thousand losses due to Russian things. If we neglect Russia – Ukraine number, Netflix has an additional 500 thousand subscribers. Not bad. Far from it. Case closed. So, why we are here? To address a more important issue: Netflix’s Competitive Advantage.
Continue reading “Netflix’s Competitive Advantage is Losing?”
In the last sequel of the Tesla episode, we know that Tesla has an impenetrable economic moat and promising earning power. But, with a sky-high valuation, is it worth buying? Our stock analysis of Tesla tries to shed the light.
Continue reading “Stock Analysis of Tesla: Risk. Opportunity. Valuation”
The third quarter of 2021 illustrates the competitive advantage of Tesla due to its integrated business. In the midst of a chip shortage that trims the production of almost all automakers, Tesla still breaks the record in terms of production units. This article is the sequel to talk about Tesla’s economic moat that discussed brand power, direct sales, and low-cost producer.
Continue reading “Competitive Advantage of Tesla: Chapter II”
Tesla surely leads the way for the next-generation vehicles. It has the most advanced battery, most covered charger facility, cool car, price advantage, and strong brand. We will take a closer look at those aspects to get a better insight into the Economic Moat of Tesla.
Continue reading “Economic Moat of Tesla: Musk’s Relentless Effort”
Some investors may confuse differentiation products with a durable competitive advantage. They assume that the production and fixed costs could be distributed among different kinds of products, thus could sell their product lower than competitors. Well, is it true? Starting from this, we are going to develop some competitive advantage analysis of differentiation.
Continue reading “Competitive Advantage Analysis of Differentiation”
How far does Amazon leave its competitor? Or, does it? Testing the economic moat of Amazon Stock will allow us to get a better understanding of the largest retailer’s competitive advantage.
Continue reading “Testing The Economic Moat of Amazon Stock”
Moderna is one of the most discussed companies in 2021 due to its COVID-19 vaccine. What makes it more special is, it is not a conventional one like AstraZeneca or SINOVAC. It is RNA – based. A messenger of life. And the potential expansion of this new kind of biotechnology is almost limitless. Through this Moderna stock analysis post, we bring you to reality.
Continue reading “Moderna Stock Analysis: Boost Your Portfolio?”
During Black Friday, the PayPal Buy Now Pay Later (BNPL) Program experienced a 400% surge from the previous year. Are these jumps could attract investors to hold or even buy its stock? Through Our PayPal Stock Analysis, we address that question.
Continue reading “PayPal Stock Analysis: Taming The Magic Card?”
Leonardo da Vinci is the first who performs an autopsy on the human body. That brave – and maybe a blasphemous decision by religion was taken in 1490. Hundreds of years later, the Da Vinci robot, under the Intuitive Surgical company, becomes the first robot that delivers surgery (with the man behind of course). We invite you to get closer to the Intuitive Surgical Business Model through this article. Spoiler alert: we love its recurring income.
Continue reading “Intuitive Surgical Business Model: Da Vinci Code”