#108 - #ELXN44 Update, Nifty Corporates Join Web3, Financial Services For All in SAAS 3.0, and $PTON Giving Away Bikes
In this week's episode of Reformed Millennials, Broc and Joel discuss business model innovation and how companies are evolving with web3 and what is labeled as saas 3.0 by Stripe. We look at some of the trends that are enabling this shift and including Buy Now Pay Later & NFT's - then some specific examples of corporations who hare already started rolling out their own strategies like Budweiser and Shopify. Lastly, we end with some earlier stage startups that we think are poised to benefit from these trends the most.
Listen on Apple, Spotify, or Google Podcasts.
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👉 For specific investment questions or advice contact Joel @ Gold Investment Management.
Earnings season continues with major enterprises software companies such as Zoom Video and Okta reporting their quarterly performance this week. On the economic front, Non-farm payrolls for the month of August are due from the U.S. Bureau of Labor Statistics on Friday.
Key Earnings Announcements
Monday: Zoom Video Communications (ticker: $ZM)
Yesterady: CrowdStrike (ticker: $CRWD), Anaplan (ticker: $PLAN), PVH Corp (ticker: $PVH)
Today: NetEase, Veeva Systems, Okta (ticker: $OKTA), Chewy (ticker: $CHWY), Asana
September 2nd: Broadcom (ticker: $AVGO), DiDi Global (ticker: $DIDI), Guidewire Software (ticker: $GWRE)
September 3rd: MongoDB (ticker: $MDB), PagerDuty (ticker: $PD)
September 4th: DocuSign (ticker: $DOCU)
Investor Events To Watch Out For
Yesterday: NXP Semiconductors (ticker: $NXPI) presents at Jefferies Semiconductor, IT Hardware Communications Infrastructure Summit
Today: AutoDesk (ticker: $ADSK) Digital Investor Day
Today: Costco (ticker: $COST) August 2021 Sales Report release
We have created a portfolio on Unhedged that you can use to access quarterly earnings results, press releases, tweets, transcripts (for investor events and earnings) for all the companies mentioned in this newsletter in one place.
Major Economic Releases
September 2nd - U.S. Balance of Trade for July 2021 from the Bureau of Economic Analysis
September 3rd - U.S. Non-farm Payrolls for August 2021 from the Bureau of Labor Statistics
💸Reformed Millennials - Post of The Week
How To Value A Business 101:
The valuation work we do generally stems from the Pat Dorsey idea of understanding how the revenue and profits for a business scale.
What are the fixed costs, variable costs, and opportunity set?
In my humble opinion, this is really all you need, especially if you are attempting to value a high-growth business.
PTON, PENN, SNOW, AMZN, etc...
read more at the attached link…
How to think about NFT’s from Clint Kisker:
NFTs and pet rocks
Some people on the internet are very excited about NFTs, and Visa bought one for $150k. If you’re not keeping up, an NFT is a way to attach a digital file, generally an image, to a blockchain, making it unique, collectible, and tradable, and perhaps attaching some lightweight software (for example, the original creator might get a share of any future sale).
You could compare this with signing a photographic print, and there is plenty of cultural basis to the idea these might be collectible, just as sneakers or rare vinyl can be. But the current market looks more like a simple speculative frenzy, with people who made notional fortunes in other crypto-assets swapping them for a new one that might go up more, a lot of other people buying whatever they think might go up, including, yes, pictures of rocks, and all the usual ramping and self-dealing behind the scenes. It’s a pity, because NFTs as a concept is interesting and useful, but that’s not why most people are buying them. LINK
A Playbook For Startups:
We rate this a top 25 ILTB episode… must listen if you are trying to start or grow a business. They cover Mike's early insights and secrets to value hypothesis testing, and how he found himself building businesses in Silicon Valley.
🌊Canadian Companies & Links Mentioned
Zapper.fi - Track all your DeFi portfolio from one place. Invest into the latest opportunities in open finance.
Proof.xyz - Kevin Rose’s new podcast dedicated to NFT’s
Nifty Corporates - Packy McCormick’s latest Not Boring article.
Rarecircles - New startup to help companies launch NFT project sites.
🌊 Best Links of The Week🔮
OnlyFans pivots back to porn? Last week OnlyFans said it would ban porn, blaming this on banks refusing to process its payments to performers. Now it’s reversed course, saying it will carry on hosting porn after all, after resolving the problem. This seems like an incomplete narrative. Either way, as I wrote last week, porn is huge but problematic and we mostly pretend it isn’t there, so things like this will keep happening, potentially leading to some very big arbitrage opportunities.
Amazon moves on BNPL - Amazon has partnered with Affirm to offer instalment payments. Square bought a comparable company for $30bn earlier this month - it’s a hot space, and an example of fintech startups unbundling traditional financial services.
World’s Largest Chip Maker to Raise Prices and Threatening Costlier Electronics
Why Is the Supply Chain Still So Snarled? WSJ Explains… With a Hot Tub
Snapchat’s New AR Feature Can Identify The World Around You.
Alibaba Deep Dive with Steven Hromin, Analyst, JPMorgan -