@BondKingJanusH1 Hurdle rates are still higher than the irr from a buyback at current fcf yield even with a 15% growth rate. So they’re still better off investing in private companies atm. Buyback doesn’t make as much sense yet.
@varunv_malhotra @MoS_Investing This is part of the debate and a risk. The thing is vms an $csu have a lower reliance on seat based revenue unlike horizontal software. 20-40% and most comes from maintence contracts. As well this was a story on capital allocation. They can pivot.
I’ve owned $nvda for years. It’s trading for approx. 20x ntm p/e. Down 20% from its peak and being handed maybe trillions in capex.
Am I retarded? This was supposed to hedge vms $csu along with $rddt $iren $nbis $app etc. market is humbling.
$NVDA CEO Jensen Huang said the market is wrong to think AI will replace software companies.
He called the market’s fear of software displacement “illogical” and said time will prove the thesis wrong.
Just joined one of the largest commercial banks in Canada. First week in and working on financing a a SAAS deal, valued on MRR ie P/S for nyc transit. I don’t get why NYC doesn’t just use ai and vibe code this as saas is dead.
$csu is a buy.