Really enjoyed this analysis Stefan! Your conviction in "comeback stories" versus the seemingly unstoppable Magnificent 7 raises a fascinating question - in today's winner-take-all tech landscape, are we perhaps overvaluing the possibility of turnarounds? While PayPal and Warner Bros still have strong market positions, I wonder if the moats of fallen tech leaders can ever be rebuilt once breached. Would love to hear your thoughts on what makes these particular turnaround stories different from the countless tech companies that never recovered their former glory. Cheers!
Thx Gabs! In the bottom of my heart I am a value investor investing in tech stocks. In the case of PayPal the value lies in the network effect. They don't need to costly aquire any new customers, they just have to serve their customers better than in the past. And in the case of WarnerBros. it's the value of their content library (combined with the worldwide rollout of streaming). In both cases the new management is core of my investment cases. I invest in the people driving the reorgs. It's not just the hope for better days. ;-)
Really enjoyed this analysis Stefan! Your conviction in "comeback stories" versus the seemingly unstoppable Magnificent 7 raises a fascinating question - in today's winner-take-all tech landscape, are we perhaps overvaluing the possibility of turnarounds? While PayPal and Warner Bros still have strong market positions, I wonder if the moats of fallen tech leaders can ever be rebuilt once breached. Would love to hear your thoughts on what makes these particular turnaround stories different from the countless tech companies that never recovered their former glory. Cheers!
Thx Gabs! In the bottom of my heart I am a value investor investing in tech stocks. In the case of PayPal the value lies in the network effect. They don't need to costly aquire any new customers, they just have to serve their customers better than in the past. And in the case of WarnerBros. it's the value of their content library (combined with the worldwide rollout of streaming). In both cases the new management is core of my investment cases. I invest in the people driving the reorgs. It's not just the hope for better days. ;-)
Don’t crash into their stock chart 😊