We share weekly commentaries with investors on stocks in our strategies that have appreciated or dropped more than 15% in a day during the course of the week. We hope you find this commentary useful.
Shares of Monday.com dropped nearly 28% on Wednesday after the company reported fourth quarter earnings that surpassed consensus expectations but guided to wider than expected losses as it reinvests in the business. Revenues and the number of customers generating more than $50,000 in revenues per year increased 91% and ~ 200% on a year-over-year basis, respectively, and net retention rates remained over 120%. We maintain our conviction that Monday.com will continue to increase share in the cloud-based productivity and collaboration market. Monday.com provides cloud-based software applications and work management tools globally.
Shares of Cloudflare traded up nearly 19% on Thursday, benefiting from investor demand in cybersecurity stocks following Russia’s invasion of Ukraine. Cloudflare offers cloud-based security, performance, reliability, infrastructure, and developer solutions globally.
Shares of Kaspi fell 31% on Thursday following Russia’s invasion of Ukraine. Baring Vostok Capital Partners, a Russian private equity firm at which Kaspi’s CEO once worked, is one of Kaspi’s investors. Although the bulk of its business is in Kazakhstan, Kaspi did acquire 100% of Ukrainian payment company Portmone Group in 2021. Russia’s invasion could impact Kaspi’s plans to expand its presence in Ukaraine. Kaspi is the largest Kazakhstan-based digital wallet, serving more than half of the population.
注: 俄罗斯入侵乌克兰后，Kaspi的股价在周四下跌了31%。Kaspi首席执行官曾任职的俄罗斯私募股权公司Baring Vostok Capital Partners是Kaspi的投资者之一。虽然其大部分业务都在哈萨克斯坦，但Kaspi确实在2021年收购了乌克兰支付公司Portmone Group的100%股权。俄罗斯的入侵可能会影响到Kaspi在乌克兰扩大业务的计划。Kaspi是哈萨克斯坦最大的数字钱包，为一半以上的人口服务。
Tinkoff (TCS: LI)
Shares of Tinkoff fell more than 58% on Thursday following Russia’s attack on Ukraine and then rebounded almost 56% on Friday after China modified its stance and urged Russia to negotiate with Ukraine while the United States and many European countries issued sanctions only on the largest banks in Russia. Tinkoff is a digital wallet and financial ecosystem provider based in Russia.
Shares of Opendoor traded up 19% ahead of the company’s earnings report on Thursday, and then dropped more than 23% yesterday in response to lower-than-expected results, particularly a decline in its contribution margin from 13% to 4%. Analysts are concerned about balance sheet risk given the considerable capital and financing required necessary for the iBuying business. Opendoor provides a residential real estate transaction platform and associated services.
Shares of Farfetch appreciated 39% on Friday after the company reported fourth quarter results. Gross merchandise value (GMV) increased 32% last year, and management reiterated its outlook for 30% growth at an annual rate during the next few years. We maintain high conviction in Farfetch’s e-commerce backend solution and sustaining GMV growth via the introduction of luxury beauty products on its platform starting in the second quarter of this year. Farfetch provides a global e-concession platform for the personal luxury goods industry.
Shares of Block traded up 26% on Friday in response to the company’s fourth quarter earnings. Block’s solid performance assuaged analysts’ concerns that, in the absence of COVID-19 government stimulus, the momentum in Cash App, Block’s consumer-focused digital wallet, would slow down considerably. Block’s management also noted continued strong momentum in January and February, citing 21% growth in Cash App’s gross profit on a year-over-year and 73% two-year-annualized basis. Block – formerly Square – offers the Cash App digital wallet, the Tidal music streaming service, Spiral (formerly Square Crypto), and TBD54566975, a decentralized finance system focused on Bitcoin.