My youtube channel as:
https://www.youtube.com/channel/UCAPWOEQKCpCWmzKkdo7v-iw/
Do support and subscribe to my youtube channel if you like my analysis.
I had previously written articles on Lemonade, Fiverr and Upwork. What I want to say here is that the high growth tech stocks are experiencing price weakness as the narratives revolving the Federal Res
erve's asset tapering program as well as the 3 rates hike projected in 2022. Well i heard a wharton professor talking about what is a rate of 0.75% when the interest rate environment back in 1980s are over 10%.. Yes that's his message and I do tend to agree with that. The only concern is how fast the rate can get escalated beyond a level of reasonable funding costs. On this point, I will leave it to a discussion later down in the future on my youtube channel...
But the main problem of owning Lemonade now is not about the interest rate hikes or asset tapering program. What I have previously mentioned was that Lemonade has a higher loss ratio, which to me is a worrying sign. Yes they may have acquired a car insurance company thereby enhancing the net premium collected but as long as the aggregate loss ratio remains high, the path to profitability is a long road. True that Amazon uses many years before it turns into profitability and uses its balance sheet to buy growth.. But how many companies are there that are similar to Amazon???
I had in one of my youtube videos post Lemonade's 2q2021 results, mentioned that it would be best to stay out of Lemonade (for myself) until 3Q2021 results. When I saw the 3Q2021 results, I decided that it is not the time to own Lemonade shares and indeed it came down from 80 plus USD all the way to almost BREAKING 40 USD...
Same for Fiverr and Upwork... Both stocks in the freelancing industry had done well in the beginning of 2021 only to see share price coming all the way down by 70%... Just look at Fiverr here. Long time readers of my articles and youtube video audience would know that I have cautioned myself not to chase Fiverr despite liking this business compared to Upwork...
For Upwork, it too is coming down this year, except that it is only down around 40%.. Then again, on this price correction, you may have thought that Upwork is more resilient as compared to Fiverr. The truth is that Upwork has also enjoyed a less than spectacular jump since March 2020... So less jump on the upside therefore less correction on the downside...
I continue to wait patiently for Lemonade and Fiverr shares... I will not buy Upwork... To me, buying Lemonade and Fiverr now is still not the best risk reward bet for me.
As always, this should not be construed as any investment or trading advice.$Lemonade, Inc.(LMND)$ $Upwork Inc.(UPWK)$ $Fiverr International Ltd.(FVRR)$ $Upstart Holdings, Inc.(UPST)$ $SoFi Technologies Inc.(SOFI)$
精彩评论