201: Cloudflare Q3 Highlights, Microsoft Q3, Nvidia = Coolest Company in the World?, Facebook/Meta + AMD, US Energy Infrastructure, TSMC & Sony, and Asimov's Foundation
201: Cloudflare Q3 Highlights, Microsoft Q3, Nvidia = Coolest Company in the World?, Facebook/Meta + AMD, US Energy Infrastructure, TSMC & Sony, and Asimov's Foundation
You have convinced me of just how wonderful the Cloudflare business is, but I am truly curious how you think about valuation. I think we would agree that 1x revenue is too cheap and 1,000,000x revenue is too expensive. So somewhere between those two goalposts is a fair value.
As a backwards looking thought experiment, I calculated the IRR one would have generated if they had bought Google at IPO and paid 100x TTM revenue. The result is just under 9% (assuming my data and math is correct) which isn't terrible but isn't exceptional either. Of course we know that Google has become the best or one of the best businesses the world has even seen and was growing revenue above 100% at IPO.
Something I really admire about you is how infrequently you talk about valuation. Ironically, I would be just as happy with you not wanting to answer.
LIBERTY- "Robots and digital twins and games and machine learning accelerators and data-center-scale computing and cybersecurity and self-driving cars and computational biology and quantum computing and metaverse-building-tools and trillion-parameter AI models! Yes plz"
You have convinced me of just how wonderful the Cloudflare business is, but I am truly curious how you think about valuation. I think we would agree that 1x revenue is too cheap and 1,000,000x revenue is too expensive. So somewhere between those two goalposts is a fair value.
As a backwards looking thought experiment, I calculated the IRR one would have generated if they had bought Google at IPO and paid 100x TTM revenue. The result is just under 9% (assuming my data and math is correct) which isn't terrible but isn't exceptional either. Of course we know that Google has become the best or one of the best businesses the world has even seen and was growing revenue above 100% at IPO.
Something I really admire about you is how infrequently you talk about valuation. Ironically, I would be just as happy with you not wanting to answer.
LIBERTY- "Robots and digital twins and games and machine learning accelerators and data-center-scale computing and cybersecurity and self-driving cars and computational biology and quantum computing and metaverse-building-tools and trillion-parameter AI models! Yes plz"
ME- I KNOW, RIGHT!! 😝🤘🤖🤙💥👩🎤👨🎤🚀
Just a boring note: gross margin is not the same as operating margin