Tag: Amazon

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Fundamental Analysis of Rivian: The Next Tesla?

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Key points of Fundamental Analysis of Rivian:

  1. Unlike other EV makers, Rivian has a durable competitive advantage with Amazon on its side. But we don’t know how much this edge contributes to Rivian’s revenue.
  2. We are still curious about how Rivian will transform in the future. Will it be Amazon’s arm for delivery or become an EV maker that specializes in SUVs?
  3. Conservative management, we like it. Low debt, and a high amount of cash – may be due to part of the Amazon deal and other investments. Unlike the other start-up.
  4. The business model has not yet been proven.
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Competitive Analysis of Amazon: Against The Blue Sky

Amazon Competitive Edge
  1. Amazon Web Services (AWS) offers an intuitively easy User Interface, flexibility, affordability along with more features. But this isn’t enough to prevent its customer to use the competitor Microsoft Azure (or even Google Cloud) as a secondary cloud provider (as backup). This circumstance allows customers to migrate completely to AWS rivals.
  2. Amazon is busy building economies of scope as a competitive advantage like its acquisition of Medical One, a telecare company, instead of creating or strengthening its cloud ecosystem.
  3. In the long run, we believe the market share of AWS could be slightly eroded gradually by more intense competition due to a lack of switching costs. We think Amazon should take care of this issue seriously, especially when the cloud is its most prolific segment.
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Analysis of Netflix Stock: Ads. New Chapter of Streaming

Analysis of Netflix stock need to consider the ads-supported plan.
image sources: freepik.com

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?

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Basic Investing Strategy: How to Win The Game

A basic investing strategy is about durability.
Investing is about keep walking, not sprinting, and quit
images source: freepik.com

Too Long Didn’t Read: for Basic Investing Strategy:

  1. In the long run, earnings and cash flow matter most.
  2. An economic moat – or technically, competitive advantage, is a factor that could preserve (or even grow) earnings and cash flow.
  3. Time plays an important role, a high number of ROIC is useless if it can’t last in the long run. Time becomes the test for ROIC.
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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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Warren Buffett Investing Strategy. Berkshire Monopoly

Warren Buffett Investing Strategy could be seen in Berkshire Portfolio
Mapping Berkshire Portfolio

Many resources – whether it is Reddit thread, YouTube video, or blog – often quoted what Warren Buffett says and what he writes. Unfortunately, only a few (including us) give a deep analysis of Oracle’s portfolio. We believe, looking carefully at his portfolio, investors could understand more about Warren Buffett Investing Strategy.

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