Technology ("Bubble") Companies Corner - Investeerimine - Foorum - LHV finantsportaal

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Technology ("Bubble") Companies Corner

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  • Went through last 4 pages and found no specific topic on technology companies. So either no one is making money there and there's an educational gap how to value unprofitable multi-billion market cap companies, or conversely, everyone IS busy making money, in which case I congratulate you.

    Increasingly my focus shifts away from Baltic Equities to technology asset-light, high gross margin businesses. 2020 was a steep learning curve year and I summarized my learnings in an article called:
    Value Investor's "Expensive" Fallacy which goes into more detail about SaaS business model and shortfalls of traditional valuation methods.

    Obviously times are very accommodative, and change in central banks policies might put a paw on SaaS valuations, but I guess there's no denying tech stocks and their business are economically superior.

    Additionally, technology sector as a whole experiences secular growth, with plenty of growth left.

    Cloud adoption:

    Ecommerce in UK:


    So I hope moderators and the public will not be mad if I share my observations and articles here from time to time.

    Safe and profitable 2021!
  • It's quite natural to invest heavily in early stage to build business scale and moat, which in turn leads to pricing power in later stages. Netflix was a front runner for a long time, but "streaming wars" now get very competitive with highly capitalized players trying to get a slice of consumer attention (Apple TV, Amazon Prime Video, Disney+). Anyway, this concept translates into most of technology businesses.

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