Rational Domain

Ex-HF analyst now working in tech. Random thoughts on stocks and markets

[Rational Domain @Rationaldomain1]

@GabGrowth Really wish they did more...

[Rational Domain @Rationaldomain1]

@ReneSellmann They’re redirecting traffic from SEO and organic to paid ads. It’s a function of increasing monetization. Unfortunately this is compressing ROAS for their customers, and why they’re losing share

[Rational Domain @Rationaldomain1]

@firstadopter I mean highs

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@firstadopter It was based on high water mark when I was at p72

[Rational Domain @Rationaldomain1]

@SnoopyPartners I flipped to long at the bottom moron, skate to where the puck is

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@DratchCap It’s a good thought experiment though. Doing Meta AI implies that they believe ROIC is higher, and therefore the abisolute steady state earnings lift is higher than the MS math

[Rational Domain @Rationaldomain1]

@mathlonning How can you tell that? Is it the order book?

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@bobspaysubstack @SnoopyPartners

[Rational Domain @Rationaldomain1]

You’re not saying anything new man, this is pretty well known, and why street estimates for fintech were for neg margins and why $SE fintech margins were negative YoY as well. My point is that street doesn’t like that $MELI is loosening standards to fund growth, while $SE fintech growth was strong despite credit standards not worsening.

[Rational Domain @Rationaldomain1]

Just took a look. The big delta is that $MELI missed EBIT estimates while $SE smashed them. EPS doesn’t really matter for SE given how much of it is driven by Garena, where the accounting is messy (I.e. difference between bookings and revenue can drive eps delta, even though bookings is forward looking and revenue is backwards looking)

[Rational Domain @Rationaldomain1]

@contextinvestor @GabGrowth $MELI got punished because of fintech. If I recall, they also missed, meaning investment impact larger than expected, vs here, where it’s lower than expected (or we’re seeing it in the results more, implying better or higherROI)

[Rational Domain @Rationaldomain1]

@the_zack_zhu More importantly, margins seem to have bottomed at 0.6%

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@P_Remarks The lads pushing $GTLB to green the last minute

[Rational Domain @Rationaldomain1]

@Midnight_Captl @dennisihong No drops, only ramps

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@the_zack_zhu This used to be a core feature in Alphasense that you had to pay $50K a year for 😂

[Rational Domain @Rationaldomain1]

@the_zack_zhu @e_commerce_king Frankly same with $CPNG (though I know your opinions there haha). I’ve always thought of the margin profile as pure AMZN retail and FDX (over the long term), given how strong their Korean logistics platform is

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@CompoundingLab Yup that’s right

[Rational Domain @Rationaldomain1]

@the_zack_zhu Not sure the branding is like WeChat? I’ve used it when traveling in SEA; I think of it as just another $UBER plus eats, with cross sell on fintech

Not to say that’s bad, still think there’s tremendous value there