The New Normal Big Tech and the emergence of internet-era aggregators and platforms require a fundamental rethink in how we structure an investment portfolio. We are in the early stages of this fundamental rethink, which has caused shares of the most successful aggregators and platforms, i.e., Big Tech, to be continually undervalued, although they are the most well-researched stocks. This systemic undervaluation will likely persist and only gradually reduce over time as these companies mature and investors better understand this new market landscape. The current supply-demand imbalance of Big Tech shares provides a significant opportunity for unconstrained investors (i.e., retail and HNWIs) to buy these companies at a deep discount today.
AMZN share price has been relatively static over the past 1.5 years. META is selling for the same price it had in mid-2018. Neither would have been a good investment.
This is a brilliant analysis. I never imagined the lack of investment dollars to be an issue.
Thank you for the analysis krub!
Great article! very good analysis!
More on Meta would be great as well
See the thread I wrote here on systemic factors behind Meta post earnings declines https://twitter.com/NayutSitachitt/status/1505179940890693638
Big changes to my outlook from this. Thank you!
AMZN share price has been relatively static over the past 1.5 years. META is selling for the same price it had in mid-2018. Neither would have been a good investment.
Which is the point of the article... they are undervalued. Had they 10x on the same fundamentals, I would not have said that they are undervalued.
That's the growth of net income in the last 5 years. As mentioned in the article, next few years, growth will likely be in the teens.