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Subject:  Re: Fastly - Four Concerns Date:  10/15/2020  4:25 PM
Author:  BroadwayDan Number:  72394 of 75190

Only Captain point I find valuable is they have been more innovative than I may have given them credit for. Fair enough. But I'm responding to the exceptional performance by Cloudflare in terms of rolling out new products lately.

As for calling the evaluation of a CEO "mostly irrelevant" I strongly disagree. Bezos, Hastings, Benioff have been critical to their respective company's success. If Captain is saying my evaluation of Bixby is irrelevant or wrong, that's fine. If he feels the man deserves more credit, make the case. But to say evaluation of leadership is most irrelevant beggars thought itself.

SHOP and TTD have valuations that are largely fueled by their ultra elite CEOs and their ability to tell the story. This is what Stock Novice calls the "narrative premium." This is not only relevant it's arguably the single most important factor in evaluating a company. I admit it's a fuzzy area but I don't see Bixby as big league CEO material and he is, as of now, unproven in the role. He's not the founder. His background is in venture capital, though he's been part of Fastly for awhile. He may end up being a great leader. I'm just saying I don't find him impressive during interviews, nor do I think his PR particularly helped in this instance. I find it entirely believable that a better CEO would have laid out this information in a way that didn't cause such an ugly drop nor invite speculation and sow doubt. We have to demand candor, plain English and conviction from our CEOs. I saw none of that here.

But to each his own! For me, evaluating leaders of TTD, ZM, NET, TWLO and others has been invaluable. It helped me recently up my position in NET and hold when all the world was screaming Zoom was overvalued. And had I listened to my gut here I'd have trimmed prior to this 30% haircut.

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