I bought ZOOM last month at 130 last month and sold it at 204 which is an achievement giving the analysis on this board as well as my personal intuition and analysis.
I bought just bought into Service now (NOW) with a big chunk of my portfolio given its remarkable 35% revenue year on year increase and its oustanding hedge fund flow as well as outstanding reputation within its industry.
Please comment if guys think its an outstanding choice and its better now compare to ZM, datadog etc? Thank you.
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I bought ZOOM last month at 130 last month and sold it at 204 which is an achievement giving the analysis on this board as well as my personal intuition and analysis. I bought just bought into Service now (NOW) with a big chunk of my portfolio given its remarkable 35% revenue year on year increase and its oustanding hedge fund flow as well as outstanding reputation within its industry. Please comment if guys think its an outstanding choice and its better now compared to ZM, datadog etc? Thank you.
Wow Jason, you almost had me fooled!!! I thought you were serious for a moment. You sold Zoom which increased revenue by 169%, and which will be increase it by about 250% next quarter, and you are asking if Service Now is a better pick because of its “remarkable 35% you revenue growth.” And also compared to Datadog, which accelerated its growth to 87%. What a joker you are!!!
Saul
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Hi Saul,
Sorry if i offended you. It’s just part of my analysis are based on hedge fund flow. Datadog doesn’t have the sort of top hedge fund flow near to service now. The reason on why i sold Zoom is because it’s one of the most expensive stock out there. The market cap in comparsion to its revenue is absurd, I just cannot find any comparsion. I am paranoid it will retrace dramatically like Zscaler did to me months ago.
Market does strange things. E.g. Smartsheet earnings came out to show its business revenue has been growing at 54% quarter by quarter yet it dropped 22% for the day. It’s scary. I am just nervous on holding stocks which seems absurdly expensive.
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It’s just part of my analysis are based on hedge fund flow. Datadog doesn’t have the sort of top hedge fund flow near to service now.
Hedge fund flow is Off Topic for this board. If you want to discuss it, please take it to another board. Further discussion on this board will be deleted.
Saul
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I think there has been a split between growth investors
Now there are “value growth” investors and
“Growth” investors
As far as I understand
50% growth seems to be a baseline for any consideration on this board
50% growth seems to be a baseline for any consideration on this board
Alteryx, Okta, Coupa, etc, are all actively discussed on this board.
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PhoolishPhilip: “A recent post led me to this post on ServiceNow (NOW) as a potential SaaS investment.”
PhoolishPhilip: [Some backhanded snark about NOW being dismissed at the time followed by some numbers to make this look like an effort at honest engagement.]
PhoolishPhilip: “Worth a look?”
PhoolishPhilip (just two sentences earlier no less): “NOW clearly exited its hypergrowth phase in 2015, but has settled into steady growth of 30%+ per year.”
Since this is a hypergrowth board, it seems to me you answered your own question.
Careful, Philip. Your transparency is peeking through. You’re already on record in multiple places that this style is simply too volatile for your ever-so-sensitive investing stomach. While there’s nothing wrong with that, why keep coming back to show how little you understand it? I mean, this latest effort resuscitates a buried thread from out of nowhere that was deemed off topic 17-months ago for recommending a slower-growth company off a study of hedge fund flows. Any chance the “recent post” that led you to it was the one announcing this thread’s original author has been banned for posting nonsense? The fact I can ask after a simple click of “Whole Thread” shows just how shallow this looks from afar. It’s almost enough to make someone doubt your sincerity. 
At some point you’re going to realize how petty and ridiculous you’re making yourself look, right? But maybe I’m being too generous since being called out for past petty and ridiculous posts here or elsewhere hasn’t seemed to slow you down one bit (https://discussion.fool.com/well-hello-there-phoolishphilip-nice…). We get it. This style of investing scares the living crap out of you. It’s been acknowledged multiple times it’s not for everyone. So, could you please just post a link to your favorite GARP or value-investing board already and be done with it? I’m sure anyone interested will meet you there.
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Hi PhoolishPhilip
Whilst I agree 100% with what StockNovice has said in his follow up post, what I did want to comment on was that actually what you have just posted proved of some interesting value but not the conclusion or question that you raised.
What Saul’s method of investing over 30 years - and his data and track record demonstrates that through the ups and downs and in particular in the SaaS era, is that investing in the fastest growing stocks at the point when they are growing fastest and moving on to the next available hypergrowth stock once growth curtails even at a higher valuation produces better returns than looking for a lower growth cohort at a more reasonable valuation.
Just as a recently updated thread on the lessons to be learnt from the SalesForce case study, so your look back at the numbers from ServiceNow proves a useful and interesting case study.
What I took away from it was a lot of re-assurance for our own SaaS hyper growth investing given that:
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back in the day ServiceNow was a hyper growth company during the pioneer SaaS era - which was the time to have been invested. (I actually was invested in ServiceNow but sold out and entered higher growth plays as it fell below 40%).
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whilst during its time of hyper growth ServiceNow was woefully lacking in profitability but that does with time change and acceptable and seriously impressive operating margins can be achieved as routinely claimed by early stage SaaS companies
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hyper growth periods can be followed by many years of ~30% growth years which eventually serve to support and explain what appears to be extreme valuation during hyper growth as there is a long tail of future growth to account for
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ServiceNow was an excellent company helmed by excellent leadership, which can now be followed and invested in at hyper growth phase in SnowFlake
Ant
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