I think Opendoor has at least three challenges in the future.
- Relying too much on the price of housing. The risk of holding lots of real estate will be magnified as long as the housing price drops.
- Operation cost. The taxes, transaction fees, commissions, insurance fees, etc., those unavoidable costs in buying and selling houses for Opendoor will generally increase its operation cost.
- Entry barrier is low for Opendoor. To be honest, Opendoor is like a normal trading company. Two competitors Redfin and Zillow have the same programs right now. How Opendoor could stand out and occupy more market shares is a required reveal from its CEO.
More and more social forums are vertically specialized in different industries, such as Github and StackOverflow for engineering, Behance, and Dribbble for designing. And Doximity ($DOCS) has the strong desire to be the top-notch social networking forum among doctors, trying to be the 'facebook' or ' LinkedIn in the pharmaceutical industry. In the 3 years since it builds up, the user has reached the 30% of all U.S. doctors and specialists. The users can find colleagues to work together. It currently has two major competitors, QuantiaMD and Sermo. But, 80% of its revenue comes from medical commercials. Frankly speaking, it is a company depending much on advertising. It is hard to say Doximity would go much much further if it keeps this profitable model in 5-10 years from my point of view. However, the concept that to be the doctor's social networking is a buying by market and accelerates the growth in users at the early stage, making the straight jump in its price.
Due to the spread of COVID all over the world, Disney $DIS has closed almost half of its theme parks in Shanghai, Hongkong, Tokyo. Disney owns six entertainment parks, and I believe the rest parks will face the same threaten sooner or later. Some of the 2020 Disney movies showtimes, including 'Mulan', are postponed because of the coronavirus. Obviously, we could predict the 4 Disney star cruises regarding what happened in Princess Diamond Cruise. Disney has four main business segments: Media Network, Parks and Resorts, Studio Entertainment, Consumer Products, and interactive entertainment. Except for the new arising consumer products and interactive entertainment (streaming) probably could stay what it stands( $NLFX), the other three parts are going to take a substantial pressure, which definitely impacts the coming Q2-Q3 in 2020. I am always a fan of Disney and I hope the combat to coronavirus could be ended soon and Disney will be awakened from the dormancy.
I am probably a little late to get the news about 4 days ago. Model 3 in China has been cut its price substantially, which means TSLA starts its war against the Mr. Bigs (ex. Audi, BMW...) for the market share. 'Our true competition is not the smalltrickle of non- Tesla electric cars being produced, but rather the enormous flood of gasoline cars pouring out of the world's factories every day.'
After I tried 7 days trial for Disney+, I cancel the subscription. I have to say if you have a family with kids, that may be your choice, otherwise it is hard to compete with $NFLX with few adults movies. If $DISDisney still focus on kids for streaming business, it has to think about it. But I think it has a big plan for the late stage.
$Baba made up Nov 11 as the shopping holiday and got a big win. This year GMV has reached 10B in RMB in 1m36s, which breaks the record 2m5s in 2018. I like shopping in Taobao (it's an online C2C store in Baba). The shopping experience is very good for searching for products, comparing prices and making the payments. And recently I shipped some stuff from Alibaba, which is a pretty overwhelming place for trading globally. I encourage everyone to take a peek at one of Baba's sites, either Aliexpress or Alibaba, you will believe it is a decent company like me.
Its lock-up period ended on Oct 28 with insiders actively selling. The price of beyond meat has dropped over 65% since the last peak at 239.71. I believe the market is in some sort of bubble around that peak and overevaluated this company just because the concept of artificial meat looks good. $BYND is a company for processing food after all. Give the market some time I believe the company will be valued at a fair price or a little bit higher than the fair price just like all other food processing companies should have.
$WORK drops down over its IPO price $26, I believe it is still overestimated though. And the growth rate of income is gradually slowing down, 110% in 2018 vs 82% in 2019 and, the expected growth rate is 51% to 52% in 2020. Being more specifically, new users are not growing as fast as before and the speed of increasing premium clients with over 100K annual payment is slowing down. Slack has 720 premium clients currently, which is less than 1% of its total users (total users with payments is around 100k). But the total number of premium users and free subscribers for the similar service that Slack provides has reached to 500K, which apparently Slack didn't account for a lot. If in this case, Slack hasn't been dominant the business communication platform, instead of as a 'back-up' option for most companies. I think that's a challenge for Slack right now.
$Cost keeps pushing up towards 300 area in the past two days and I don't see anything dragging it back currently especially considering the holiday season is coming. I guess there's nowhere better than Costco to cross off the stuff on your Christmas gift list.
In 2019 most IPOs have a remarkable feast. IPO ETF, managed by Renaissance Capital (NYSE:IPO)is a fund focusing on IPOs investment, which has a double return than that of the S&P 500 until June this year.
If fearing of the potential recession threatening, I may be interested in this IPO ETF.
$cost is a good place that our family always like to hang around. I have a few Costco by hand but wondering why the insiders keep selling shares? The insiders sold more than they bought over the last year that bothered me a lot.
Comparing the same size of Saas IPOs, Datadog stands on the third place of the speed of increasing ARR after Zoom and CrowdStrike.
Shockwave Medical is granted FDA breakthrough device designation for coronary IVL system earlier. However, this news came at a bad time and is around lock-up expiration so it get battered. But regardless $SWAV Q2 performance looks great and so is the core technology, which may become the future industrial standardized for cardiovascular surgeries. Price is around $30 now I think it's about time to buy.
GH drops almost 45% from the peak of 113 to the support trendline around 61-62 in a short period of time. I believe there are two main reasons for the drop. One is on May 22, GH issued about 4.5 million new shares at $ 71 to raise capital for its operation. The lock-up period for these shares is just expired, which means some of the insiders who are satisfied with current profit may be selling. The other reason I believe is the market has heavy selling from Softbank, Franklin, and Orbimed, and all those big financial institutions stakeholders. However, once the dust settles it will be the fundamentals to move the price again. In Q2, GH revenue increased 178%, which is 50% above the expectation. Gross margin raised from 48.6% to 68.8% and operation numbers are also outstanding. JP morgan rates it a "buy" after reviewing Q2 performance. And I think now it almost touched the previous low and the trading vol increase is a good BUY signal so GH looks to me like a solid long position in the long run.
A totally defensive stock, including lots of famous brands we have to rely on in our daily life, such as Brita, Burt's Bees, Glad. Clorox's recent performance is stable and good that worths an attention. The dividend yields even reaches to 2.6%!
