Sectors: Technology
Hi MM Team, thank you for your amazing work to help us understand the market. I just have a question on an international share, NU Holdings (NU:NYS). Please ignore this question if it is inappropriate. It is a Brazil-based digital banking platform which had extraordinary growth. I find it really easy to buy shares but very difficult to know when to sell as I have made many mistakes in the past. I just want to ask if you would consider this share as a ‘bottom drawer’ share or will it prudent to take some profit?
We haven’t touched on our position in The Trade Desk (TTD US) since they reported a strong 2Q result and good guidance for Q3 around six weeks ago, with the stock up ~25% in that time frame to be now testing all-time highs. While our position is up ~150% since first buying into TTD in April of 2020, it has been somewhat of a wild ride, more so with regards to the multiple the market is prepared to pay for TTD more than the underlying performance of the business.
G’day Esteemed Team,
Microsoft Corp. (MSFT US) rose in premarket trading after boosting its dividend by 10% and unveiling a $60 billion stock-buyback program overnight. However, like much of the market, it surrendered ts early strength ahead of the Fed. This was another example of phenomenal numbers being delivered from a “Super Six” US tech stock:
Bloomberg Intelligence tells us that the waiting time on the new model is 21.5 days for orders taken within 72 hours of launch which compares to 32.5 days for the iPhone 15. That highlights weaker demand, and the shares fell as a consequence. This is all very micro, and we caution against being so short-term in nature, particularly given this is such a monumental launch for Apple – their first AI-enabled iPhone, built from the ground up, according to Tim Cook, though the AI part (Apple Intelligence) is not quite ready!
NXT slipped 1.3% on Monday, 15c below where it recently raised $750mn to fund its expansion into Asia. It made us revisit how this data-centres shares performed after its previous raises:
XRO continues to trade around its two-year high, and while it would be easy to grab our profits (~40%) and move on to fresh pastures, we see no reason as the business successfully pushes price hikes onto its growing number of customers. MM uses XRO, along with another 4.16m subscribers across 180 countries, and once it’s all setup, it’s hard work to move elsewhere, which equates to a sticky revenue stream
CAR and REA have performed strongly through 2024, gaining +18.3% and +12%, respectively. The primary reason CAR is currently outperforming is REA’s ~$11bn bid for UK-based Rightmove (RMV LN). As is the norm, the bid has already been rejected, and the market is now considering REA’s next move—the stock’s pulled back almost 12% since the announcement.
We increased our existing position in US based property platform Zillow last week for the International Equities Portfolio, up from a 3% weighting to a 5% weighting. Overnight, Wedbush Analyst Jay McCanless became the most bullish on the street, increasing his price target from $US50 to $US80 underpinning a 4.8% rally in the shares.
Hi, just wondering on the future of this hit list company. Very strong recent run. Is there any data analytics investigating how far it could run.
Is there still an outstanding legal matter hanging over it?
