The hottest Companies Substack posts right now

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Why I Don't Read Reddit

The Honest Broker • 14196 implied HN points • 27 Feb 24
💼 Business Technology Finance Management Companies Economics
  1. Reddit relies heavily on unpaid labor with 60,000 daily active moderators compared to around 2,000 employees.
  2. After 18 years, Reddit still isn't profitable, accumulating a $717 million deficit, but it shows potential for profitability with increasing revenues and reduced losses.
  3. Reddit's CEO earned $193 million last year, prompting questions about excessive compensation, and Reddit is heavily reliant on advertising for revenue, putting it in a risky position concerning Google competition.

After Musk’s Lawsuit, No More Illusions About OpenAI

Big Technology • 4753 implied HN points • 08 Mar 24
🕹 Technology AI Legal Business Companies Innovation
  1. Elon Musk's lawsuit against OpenAI revealed that the company's open promise was more of a ploy for recruitment than a true dedication to open-source.
  2. OpenAI's deal with Microsoft has created a situation where it must balance being close to AGI for profits while keeping its research proprietary, as Musk's lawsuit claims AGI has been reached.
  3. Musk's case against OpenAI showcases his concerns about Google's AI advancements and his efforts to shape the narrative around his relationship with OpenAI.

100 Years of 'IBM'

The Chip Letter • 1849 implied HN points • 15 Feb 24
🕹 Technology Computing Companies History
  1. IBM has had a significant impact on the development of computer systems over 100 years.
  2. IBM's influence extends to technologies like mainframes, personal computers, and databases.
  3. The history of IBM shows both positive contributions to technology and darker aspects like the association with controversial events.

Internal Slack Messages Reveal Riot’s Messaging About Saudi Arabian Tournament`

Richard Lewis • 1631 implied HN points • 21 Jan 24
💼 Business Companies Ethics Partnerships Esports Diversity
  1. Riot Games faced internal conflicts over participation in a Saudi Arabian tournament due to LGBTQ+ concerns
  2. There was controversy over Riot's decision to work with a government that criminalizes homosexuality
  3. Internal messages revealed mixed feelings within Riot about business relationships with Saudi Arabia
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Why the low multiple series: Rental Car companies edition, part 2

Yet Another Value Blog • 1631 implied HN points • 11 Jan 24
💰 Finance Investing Companies Market Analysis Economic Trends Financial Strategy
  1. Rental car companies are currently trading at low multiples, making them a potentially cheap investment.
  2. Despite the persuasive bear case, the bull case for rental car companies includes aggressive capital returns to shareholders and potential for sustained earnings.
  3. Structural improvements in the rental car industry, such as consolidation and disciplined supply, could support profitability even if current high levels are not completely sustainable.

Hong Kong's death has been exaggerated

Asian Century Stocks • 471 implied HN points • 11 Feb 24
💰 Finance Investing Economy Markets Taxation Companies
  1. Investor sentiment in Hong Kong is currently negative, but the perception of the city changing or dying may be misplaced due to its advantages like low taxes, currency stability, and efficient infrastructure.
  2. Despite economic struggles in China, Hong Kong's economy is recovering with tourist returns, retail sales growth, and positive net migration, with potential for lower interest rates in the future.
  3. Hong Kong remains vital in Asia, benefiting from low taxes, reliable legal system, and financial hub status, even amidst challenges like interest rate impact and risks from geopolitics and National Security Law.

22nd Century Group: Answering the Wrong Question

Invariant • 609 implied HN points • 14 Jan 24
💰 Finance Stocks Investing Regulation Companies Market Analysis
  1. 22nd Century Group focused on developing low-nicotine cigarettes but didn't consider if consumers wanted the product.
  2. The company struggled with profitability and faced challenges even after receiving authorization for their products.
  3. Shifting focus to a different product with conventional nicotine levels came too late for the company to recover.

How Crowdstrike fails

Frankly Speaking • 305 implied HN points • 15 Feb 24
🕹 Technology Cybersecurity Companies Cloud Acquisitions Challenges
  1. Crowdstrike initially succeeded by focusing on incident response, not just products, which differentiated them from competitors like Symantec.
  2. The company's expansion into adjacencies and acquisitions, like PAM and logging, is an effort to move from endpoint protection to a broader platform play for sustained growth.
  3. Crowdstrike may face challenges if they don't adapt successfully to selling to DevOps, security engineers, and managing acquisitions, risking plateauing growth and loss of market interest.

Logista: Old Roots, Green Sprouts

Invariant • 491 implied HN points • 07 Jan 24
💼 Business Finance Pharmaceuticals Distribution Mergers & Acquisitions Companies
  1. Quaking aspens have a unique way of growing, with all trees in a colony connected as part of the same single organism.
  2. Logista, a Spanish distribution company, is diversifying away from tobacco distribution and focusing more on next-generation nicotine products and pharmaceutical distribution.
  3. Logista is strategically growing through acquisitions, particularly in the pharmaceutical sector, aiming for inorganic growth to expand its reach.

Liquidation.

News Items • 216 implied HN points • 29 Jan 24
💰 Finance Companies Economy Assets Bankruptcy
  1. China Evergrande Group received a liquidation order from a Hong Kong court, amid its massive debt of over $300 billion.
  2. The liquidation process will involve attempting to seize control of Evergrande's assets outside China, including Hong Kong-listed subsidiaries.
  3. The outcome of the liquidation will be a test of Hong Kong court's legal reach and the handling of asset sales in a struggling industry.

🏆 Cannibal stocks

Compounding Quality • 2024 implied HN points • 01 Jun 23
💰 Finance Stocks Investing Companies Market
  1. Cannibal stocks are companies buying back their own shares, increasing your ownership without effort.
  2. Buybacks create value when a stock is undervalued, like investing in your own company.
  3. 15 high quality cannibal stocks have criteria like ROIC, profit margin, EPS growth, and decrease in shares outstanding.

🔍 Screen for Quality Stocks

Compounding Quality • 1788 implied HN points • 08 Jun 23
💰 Finance Stocks Investing Screening Quality Companies
  1. Screen for quality stocks by looking at criteria like revenue growth, earnings growth, FCF/earnings, ROIC, net debt/FCFF, and debt/equity ratios.
  2. Investing in companies with strong financials and good balance sheets is crucial for long-term success.
  3. Tools like Stratosphere can help you screen for quality stocks, even if you don't have access to Bloomberg.

How to Share Bad News with a Newsroom (and How Not to)

Second Rough Draft • 157 implied HN points • 25 Jan 24
💼 Business Communication Transparency Management Companies
  1. Be transparent when sharing bad news with your newsroom - journalists are professional skeptics and value honesty.
  2. If you have multiple problems, address them separately to avoid confusion and speculation among your team.
  3. Establish a culture of transparency in your newsroom to minimize surprises and build trust with your team.

The Profile: The billionaire selling ugly shoes & the TikTok misfits talent factory

The Profile • 412 implied HN points • 05 Nov 23
🎭️ Culture Profiles People Companies
  1. Early success can be extraordinary but also crippling, especially when transitioning to a new phase of life.
  2. Finding meaning beyond your professional identity, like family or personal joys, is important for preventing a sense of emptiness or darkness.
  3. Exploring new chapters in life, such as diving into business, making investments, and fighting complacency, can help navigate transitions and maintain fulfillment.

Hidden Champions among India's ADRs/GDRs

Asian Century Stocks • 353 implied HN points • 10 Sep 23
💰 Finance Stock Market Investing Companies Economy Market Analysis
  1. There are high-quality Indian companies listed overseas that international investors can consider.
  2. Among the 16 Indian companies listed overseas, five were highlighted as having competitive products and potential for growth.
  3. The Indian market has more than 5,000 listed stocks, with Indian ADRs and GDRs having a combined market cap of around US$660 billion.

Is EBITDA Really Bullshit? Answer: "It Depends"

Value Investing Substack • 353 implied HN points • 05 Aug 23
💰 Finance Investing Accounting Economics Companies Metrics
  1. EBITDA can be a controversial metric in finance, with some calling it 'bullshit earnings'.
  2. John Malone successfully used EBITDA to communicate TCI's growth strategy in cable industry.
  3. Valeant Pharmaceuticals' misuse of EBITDA led to financial trouble, highlighting the importance of understanding the context behind EBITDA figures.

The Wile E. Coyote Illusion

The Ruffian • 276 implied HN points • 22 Jul 23
💼 Business Economics Remote work AI Productivity Companies
  1. Economies can experience a 'Wile E. Coyote moment' where everything seems fine but is about to crash.
  2. Working-from-home (WFH) might seem productive at first, but lack of in-person interaction can lead to long-term issues.
  3. The 'Wile E. Coyote illusion' can be seen in various contexts, such as relationships, consumer markets, and AI development.