MP1 has been a drag in MM’s Flagship Growth Portfolio however we’ve held on for a couple of key reasons. As a refresher for new subscribers, MP1 essentially enables companies to dial up or dial down their network capacity through a user driven interface. In an environment where more flexibility in working arrangements has become the norm, you’d think MP1 would be doing better.
The current issue is that there hasn’t been a big COVID bump as many other technology companies have enjoyed so growth is okay, but it hasn’t shot the lights out. Overlay that with rising bond yields which creates a headwind for high value growth and MP1 has struggled. Looking forward though, the investments they’ve been making in R&D and new products in recent times, the more than $100m cash on their balance sheet and the hiring of a new Head of Revenue globally points to better growth ahead.
MM remains bullish MP1 despite recent weakness
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