Salesforce dot com blew away numbers again — because the SAAS model cannot be stopped. Technologists and data analysts have hacked the human psyche and are using tech to buoy growth in a repeatable business approach that increases vertically with every dollar invested into it. These companies do not give a shit about the economy, for they have salesmen pounding the phones — making sure Mr. Jones buys.
This is the new boiler room and it’s very profitable and it’s very easy.
Ergo, I added to my SAAS portfolio, which right now only has ZEN, buying HUBS at these levels. Granted, Exodus flagged it oversold a short while ago, with haunting accuracy, I am buying here higher nonetheless because nothing can beat this business model. It cannot be stopped.
Other SAAS plays on the radar include NEWR, VEEV, TWOU, and SMAR.
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You should take a look at $TTD, they are a basically saas play for the ad industry (one of the most inefficient industries). It’s ran quite a bit recently but high level it’s a play on advertising getting more efficient, the shift to digital video (from linear TV) and the growing power of the FB / GOOG duopoly (ad buyer’s are using TTD to diversify away from the duopoly). They’ve been crushing numbers, and I think the street is way too low… especially on multi year basis. They trade cheaper than all the Saas guys but have better growth. It’s ad tech so it gets a terrible rep, but it’s a sticky and critical software product and it’s a much better business than the street believes (literally nothing like the other ad tech blow ups). The big driver right now is growth in the amount of ads to sell from video products like sling TV and Hulu – spending here was up 21x (!) y\y in 1Q for TTD. I fully expect most TV ads to start being sold digitally because the targeting is so much better and it’s a lot more efficient and flexible. TV is like a $180B ad market that TTD is about to attack and it’s going to be a 10 year secular story (this is multiples of their current tam). There’s nothing in most estimates for this. Also google just shut down use of its User ids for use on stuff outside its products and TTD offers one of the next biggest user data bases so that will lead to share gains in its existing market. I’ve done a lot of work on it and talked to a lot of people throughout the supply chain… their customers love it, they are getting more locked in every day and rollout new features like no one else in the space. I’m long from $47 back in dec-Jan and have been adding on the way because it keeps getting better. I think it does the $100 roll over the next couple months and could be a double over the next year.
will do
Thanks for the excellent info.
No problem! This site has provided a lot of value to me over the years so I decided it was time I try to give some back
$OKTA