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No. of Recommendations: 4
If there's an obvious choice, why make a difficult choice?

One rule of board I like is: No turn around stocks which I coincidentally employed this rule myself for many years. so I don't buy into turn around stock like Digital Turbine, Inc. (APPS). Strictly speaking, a 40% grower suddenly become a 100% grower is also a turn around stock. I didn't buy any Fastly because of the hype or promise. it was just a 40% grower. CEOs tend to tell us what we want to hear. Sophistication of technology doesn't equal to superior business result. Some people even engage in HOPE investing which just hope. e.g. SITIME who's revenue has gone downhill for couple years. You don't buy on stock price performance alone. Good fundamentals and stock price need to synchronize.

For sudden slowdown, how to determine if it's temporary or big trend set in motion?
Recently, I realized that in order for a slow down growth to get back to previous growth rate, it has to grow at a rate much higher than previous growth. Think of a stock that dropped 50%, it needs to double, not just increase 50%, in order to reach the previous level! Same with revenue growth rate. So for a growth stock that has revenue slow down, its revenue needs to increase substantially on a QoQ basis coming from a lowest growth rate.

Case in point: DDOG, its recent acceleration out of COVID is just 49% annualized. It's not fast enough to get back to previous growth rate. It needs to grow at 100%, 200% annualized QoQ to get back. So I think DDOG is slowing down. Market thought so too. DDOG stock went up just 11% over the past 6 months. That's half a year. Just my opinion, i can be wrong on DDOG.
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