Talk Tech with the Financier
This was a major week for the technology sector so I'll highlight the major market movers.
Record year for Cybersecurity
With everyone online cyber security is the number one threat with digital business today. Crowdstrike is solving this problem, fast.
Crowdstrike races to the finish line
Crowdstrike IPO’d last year with significant press. It’s tough to make cybersecurity sexy but the CEO, George Kurtz, does it well. This week the company had record earnings with YoY revenue almost doubling to $232.5 million. Since I met George last fall, the company's market value has gone from $10 billion dollars to over $35 billion. Pretty impressive for an accounting major from Seton Hall.
And he keeps breaking records
Crowdstrike is the sponsor for the Mercedes Benz Formula 1 racing team a.k.a. Lewis Hamilton. Last month Lewis achieved a record-tying seventh world title in his last month. This put Lewis, Mercedes Benz, and Crowdstrike on the map. Lewis caught Covid-19 last week so I wish him a speedy recovery to break more records!
Stripe is taking over Finance
This week stripe announced a major initiative for banking as a service. The company has standardized access to banking through multiple channels. The Collison Brothers make fintech look easy.
Not Everyone can build a platform
Payment processors collect pennies on every transaction. 4 years this looks like an unprofitable business model. But at one point in time the compounding machine takes over.
Stripe Treasury will now enable business customers to easily send, receive and store funds. This does not mean stripe is a bank. In fact, stripe is now partnering with Goldman Sachs and other financial institutions to deliver this service. According to recent Stripe, opening a bank account can take up to five days and they want to remove all the barriers.
It's about time someone challenges the status quo.
Stripe will be a Big Tech company this decade
Today the company is worth over $70 billion in the private markets. Stripe will have to IPO at a certain point to access more capital. If you can, this is the time to buy shares from Stripe employees Before the company goes public.
I recommend reading Stratechery’s article on Stripe as a platform business. Ben Thompson has done a terrific job of breaking down the company's business model and future platform partners. There are very few companies today that have the same Dynamics as Stripe.
So 2021 will be a record year for the company. The company will continue to gather momentum next year. Stripe’s core mission is to increase the GDP of the internet and there is no doubt that e-commerce is still increasing.
Office gossip is now online
Salesforce is becoming the cool uncle at every family gathering. The company has struck a $27 billion deal to acquire Slack, everyone's favorite work communication tool. I never met anyone who enjoys using Salesforce products but Slack is a very easy to use tool.
Salesforce needed this deal to compete with the big boys. Microsoft and Google dominate this market with their enterprise products. I don't think Salesforce will be able to do much with this deal but it's a good attempt to stay relevant.
Now Zoom needs a good messaging tool and it’ll be a party.
Elon is Unstoppable
Tesla will join the S&P 500 on December 21st. The company has gained billions of dollars in value since the announcement but the momentum hasn’t stopped.
And then Elon tweeted that he’s open to merging with another auto company. This is a big chess move.
After hitting all-time highs, Tesla is now worth more than every other auto manufacturer. He can use the stock as currency to acquire smaller players. It will be a big advantage to take over old legacy assets to expand Tesla's product line. This will be a great long-term move to stabilize the business model .
Tesla also has the ability to sell secondary shares to raise more capital. The company did this in August to raise $5 billion. Now Elon has the ability to raise tens of billions of dollars with the overvalued stock price and never worry about a cash shortage again. Read more why one other hedge fund manager agrees with me.
New trends in ecommerce
I want you to make money this holiday season. So, next week I’m moderating another event to To discuss new trends in online shopping. I've invited three industry experts to breakdown the opportunities in ecommerce. Click here to register for the event.
We had a prep call for the event yesterday so I'll give you a sneak peek on two topics. First, shopper fatigue is real online. Consumers are tired of Black Friday deals. Next we can expect in-store grocery prices to increase in 2021. To learn more, sign up for the event to attend with the +100 other people already registered to attend.
Weekend ecommerce projects
If you are interested in online businesses, here are two ways to begin today. First, I recommend watching Noah Kagan’s videos on how to validate an idea in 48 hours. In One weekend. Noah runs a $30 million software business and validates side hustles all the time.
Second, check out Ryan Kulp’s course to learn how to acquire online businesses. I bought this course this summer to learn how to source new ideas and manage teams virtually. This course gives you access to a deal sourcing link so you can find the best online businesses across the internet. This is an affiliate link so I recommend checking out all the courses. Ryan only publishes his best ideas that have worked for him and his students.
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