What does Jack Dorsey see?

posted in: Blog | 0

At this point, I’m not sure.

Not to say that Mr. Dorsey will not earn his place in the pantheon of Silicon Valley legends.  He will.

What I’m less sure about is his understanding of the capital markets.   So after taking Twitter public, is he going to take mobile payments company Square, public too?

My read of Twitter’s income statement and balance sheet indicates they have not used the proceeds from their $1.8 billion IPO efficiently (or even completely).  Research and development expenses went from $594 mm in 2013 to $691 mm in 2014.  Marketing expenses went from $316 mm to $614 mm.   Even though Twitter posted a $577 mm loss in 2014, on a cash basis, its operating activities threw off $81 mm in cash. read more

FANG Today, Toothless Tomorrow?

posted in: Blog | 0

FANG stands for Facebook, Amazon, Netflix and Google.

The term, emblazoned on the front page of yesterday’s edition of USA TODAY, was popularized by CNBC’s Jim Cramer.

Some think the FANG clan is unstoppable, and looking at the trajectory of technology and commerce at this moment, it’s hard to see the dominance of these companies ever waning.

But many may remember the portmanteau Wintel as well, which referred to the total dominance maintained by Windows (as a proxy for Microsoft) and Intel.

Wintel had meaning inside the tech industry, but in the early 1990s among investors it represented the duopoly that was a ‘must have’ in any growth oriented portfolio. read more