Disruption stories always inspire people, and investors are no exception. The story about Tesla and Elon Musk is told in the book about business, inspiration, motivation, and even about life. This is the American way, more than decades ago we have Steve Jobs, Jeffrey Bezos, Sergey Bin, Larry Page, Mark Zucks. Long before, we have Bill Gates, Alfa Edison. All of these men lead his company far away from its competitor, disrupting the existing incumbent, take the market share, and – deliver satisfying returns for shareholders. This is disruption stock.
Disruption Stock: An Obsession
Investors are poised to put their money on disruptive stock. They hunt for the big catch, fat pitch. Everyone now is obsessed with the new Apple, the next Tesla, The Next Massive trend.
Unfortunately, finding the real disruptor is difficult. making better products from competitors doesn’t guarantee the result. Making an app as an ecosystem as a new business model doesn’t sufficient too.
The success of Apple, Amazon, Google, Facebook is a combination of several factors. We are here to inspect whether new disruptive candidates obey that factor. Do they can really be disruption stock?
We will try to analyze several factors that can deliver the disruption to happen. How does the newcomer change the business, how about infrastructure, do bottlenecks happen?
We will examine matrices needed, such as the growth of a number of customers, market share, cash flow, product position, strategy, acquisition. We try to distinguish between one-season wonder with true game-changer.
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.
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.
Here is the transcript (edited – smoothed – filtered) version of the discussion about Tesla revenue analysis in our small-hidden group. As usual, our answer always tries to give insight beyond the number that is written in the financial report.
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.
With pandemics begin to fade – Thanks, God – people mobility will be unlocked. Travel-related companies like Airbnb will enjoy the momentum. But, could it grip the advantage in the long run? To answer that question, Today we give you insight into the competitive advantage of Airbnb.
Google is a search engine and the search engine is Google. That is the unbreakable spell of customer recognition that help Google retain its user. But, what if, the customer recognizes Google is about search engines only? Surely this will resist the expansion of growth stock – Google in this case.