Category: Disruption Stock Checklist

The American Way

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?

Methods

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.

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Business Analysis of Teladoc: Live Long, Livongo

Business Analysis of Teladoc should consider the impact of the Livongo acquisition
Cash Flow Analysis of Teladoc

Here are our key takeaways from the business analysis of Teladoc:

  1. Teladoc reported 9.6 losses as impairment due to the Livongo acquisition. But it is noncash, an ‘unreal’ loss, and just an assumption.
  2. Teladoc stock price falls more than 90% from its all-time high at 292 levels (July 2021) to 32 (August 2022). With its advantage as a prime mover, many investors assume that Teladoc is an opportunity.
  3. We beg to differ. The problem of Teladoc is in its underlying business, not Livongo. Livongo is okay, but the acquisition of Livongo can’t help Teladoc cope with the main problem.

Lets elaborate.

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Meta Stock Analysis: Metaverse Do Nothing

Image source: freepik.com

TLDR for Meta stock analysis:

  1. The transformation from social media to the metaverse is still far away.
  2. Apple’s privacy policy or even followed by Google will not slash Meta earning capabilities, it just slows the growth.
  3. Meta’s strong balance sheet will help a lot in the transformation into a meta-universe.
  4. The buyback program gives us a glimpse of the management in shareholder shoes.
  5. Even though Meta has an outstanding competitive edge, when it can’t be monetized, it is useless. In the metaverse case, the situation is worse. Meta has no sustainable competitive advantages. Not Yet.
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Coinbase Stock Analysis: Update May 2022

Trustworthy Perception on Coinbase helps the company to retain its customer.
Customer Perception on Coinbase
images source: freepik.com

Too Long Didn’t Read for Coinbase Stock Analysis:

  1. The competitive advantage of Coinbase is it has a “license” to operate as a crypto hub from the Federal government. This kind of competitive edge is the sustainable one.
  2. Due to that advantage, it is easier for Coinbase to gain trust from the institutional fund that needs to invest in crypto.
  3. The trend of the institutional fund joins crypto investment beginning in August 2021 with a total of $17 billion money poured into crypto assets.
  4. As a result, Coinbase earnings in Full Year 2021 exploded more than ten times from the previous period.
  5. The biggest risk is the core business is tied to the popularity of cryptocurrency. A digital asset with no official or legal backup.
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Netflix’s Competitive Advantage is Losing?

Netflix's Competitive Advantage is decaying due to the competitors don't need to make money.
Source: Freepik

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.

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Moderna Stock Analysis: Boost Your Portfolio?

Moderna Stock Analysis by Looking at Competitor progress
Vaccine Progress by Company

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.

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