Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>Notwithstanding bright spots and positive long-term outlook, the ESG gold rush has created an acute state of chaos. Regulatory flux. Rampant greenwashing. ESG litigation. Elon and S&amp;P.</li>
<li>The silver lining? New ESG-<em>related</em> investing opportunities emerging from all the chaos; stocks poised to benefit, regardless of who else wins or losses. The new shovel-sellers, as it were.</li>
<li>One large opportunity is driven by new greenhouse gas (GHG) reporting regulations, specifcally leading GHG emissions software-as-a-service (SaaS) and platform-as-a-service (PaaS) stocks.</li>
</ul>


Notwithstanding bright spots and positive long-term outlook, the ESG gold rush has created an acute state of chaos. Regulatory flux. Rampant greenwashing. ESG litigation. Elon and S&amp;P.
The silver lining? New ESG-related investing opportunities emerging from all the chaos; stocks poised to benefit, regardless of who else wins or losses. The new shovel-sellers, as it were.
One large opportunity is driven by new greenhouse gas (GHG) reporting regulations, specifcally leading GHG emissions software-as-a-service (SaaS) and platform-as-a-service (PaaS) stocks.


Selling Shovels in a Gold Rush: SaaS Stocks Cashing in on Emissions Reporting Rules

TMT & Consumer Independent Equity Research Analyst, Obex Capital Research

Aaron Gabin

TMT & Consumer Independent Equity Research Analyst

TMT & Consumer Independent Equity Research

Obex Capital Research

“Obex” is Latin for Barriers to Entry. Obex Capital Management’s investment philosophy is driven by an intense focus on which business model’s Barriers to Entry are able to withstand the ever increasing competitive disruption in the TMT and Consumer Sectors.

Equity Bottom-Up

<ul>
<li>Pinterest co-founder/CEO Ben Silbermann is replaced by Google exec Bill Ready.</li>
<li>Ready is a payments industry veteran and is perfectly suited to drive commerce adoption at Pinterest. </li>
<li>Unique pay package incentivizes Ready to succesfully pivot the business. </li>
</ul>


Pinterest co-founder/CEO Ben Silbermann is replaced by Google exec Bill Ready.
Ready is a payments industry veteran and is perfectly suited to drive commerce adoption at Pinterest. 
Unique pay package incentivizes Ready to succesfully pivot the business. 


<ul>
<li>Indian Premiere League cricket auction has brought in $6.6B thus far, up 3x from the 2018-2022 package, though the per game increase is closer to 2.3x.</li>
<li>Disney was smart to relinquish the digital rights, saving itself $3.6B in cash (~$2/share) rather than spending to drive worthless Hotstar+ subs (~$0.26/share).</li>
<li>Google may open up YouTube advertising to 3rd party platforms to settle EU antitrust...a potential boon for The Trade Desk.</li>
</ul>


Indian Premiere League cricket auction has brought in $6.6B thus far, up 3x from the 2018-2022 package, though the per game increase is closer to 2.3x.
Disney was smart to relinquish the digital rights, saving itself $3.6B in cash (~$2/share) rather than spending to drive worthless Hotstar+ subs (~$0.26/share).
Google may open up YouTube advertising to 3rd party platforms to settle EU antitrust...a potential boon for The Trade Desk.


TMT Quick Hits: DIS/Cricket Rights, GOOGL/TTD/EU

Global Emerging Market Equities, Propitious Research

Wium Malan, CFA

Global Emerging Market Equities

Independent, Fundamental Quantitative Research

Propitious Research

Fully independent, fundamental and quantitative equity research, focused on companies in the Telecommunication, Media, Technology, Internet and Healthcare sectors in the Global Emerging Markets. Idea generation focused on Quality stocks, trading below their intrinsic Value, with sound Corporate Governance.

<ul>
<li>Chinese digital advertising revenue growth has slowed down considerably over the past 4 quarters and Baidu has continued to consistently lose market share to the broader industry.</li>
<li>Non-Marketing revenue has led the growth for Baidu over the past 2 years and now contributes roughly 26% to Baidu Core (excludes iQiyi) revenue.</li>
<li>On a PE basis, Baidu is trading at only a slight discount to global giant, Alphabet, which testifies to the negative impact on earnings expectations from Baidu’s growth engines.</li>
</ul>


Chinese digital advertising revenue growth has slowed down considerably over the past 4 quarters and Baidu has continued to consistently lose market share to the broader industry.
Non-Marketing revenue has led the growth for Baidu over the past 2 years and now contributes roughly 26% to Baidu Core (excludes iQiyi) revenue.
On a PE basis, Baidu is trading at only a slight discount to global giant, Alphabet, which testifies to the negative impact on earnings expectations from Baidu’s growth engines.


Baidu: Can AI Cloud, Intelligent Driving Save the Day as Marketing Continues to Lose Market Share?

<ul>
<li>Snapchat's guidedown resulting in a 30% drawdown is fantastical.  6x sales is now 4x sales, near alltime lows.</li>
<li>Was guide down worth 30% drawdown given already valuation compression and  volatility of Snap guidance? Sour grapes here.</li>
<li>Of course macro deteriorated. Who is doing Snap's forecasting? We think forecasting easier to fix than LT competitive moat. We'd buy SNAP...but buy FB first!</li>
</ul>


Snapchat's guidedown resulting in a 30% drawdown is fantastical.  6x sales is now 4x sales, near alltime lows.
Was guide down worth 30% drawdown given already valuation compression and  volatility of Snap guidance? Sour grapes here.
Of course macro deteriorated. Who is doing Snap's forecasting? We think forecasting easier to fix than LT competitive moat. We'd buy SNAP...but buy FB first!


Snapchat Guidedown: Overdone, But Buy FB/AMZN First

United States

Alphabet Inc. operates as a holding company. The Company, through its subsidiaries, provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce, and hardware products.

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Alphabet (GOOGL US)

Selling Shovels in a Gold Rush: SaaS Stocks Cashing in on Emissions Reporting Rules

ESG investing has been complicated by evolving emissions reporting regulations. With the chaos, comes new investment opportunities. Such as in...

Kyle Rudden

Pinterest "Ready" For Commerce

We think Pinterest's hiring of Google Exec Bill Ready is an excellent choice. He scaled Braintree and Venmo and has run Google's commerce...he...

Aaron Gabin

TMT Quick Hits: DIS/Cricket Rights, GOOGL/TTD/EU

Disney was smart to relinquish IPL digital rights, the $3.6B in cash is worth more than the value of low ARPU Hotstar+ subs. Google opening up...

Aaron Gabin

Snapchat Guidedown: Overdone, But Buy FB/AMZN First

Snapchat guidedown costs 30% on its already massacred share price. We think this is overdone. SNAP has a bad history of volatile financial...

Aaron Gabin

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Selling Shovels in a Gold Rush: SaaS Stocks Cashing in on Emissions Reporting Rules

ESG investing has been complicated by evolving emissions reporting regulations. With the chaos, comes new investment opportunities. Such as in...

Kyle Rudden

Pinterest "Ready" For Commerce

We think Pinterest's hiring of Google Exec Bill Ready is an excellent choice. He scaled Braintree and Venmo and has run Google's commerce...he...

Aaron Gabin

TMT Quick Hits: DIS/Cricket Rights, GOOGL/TTD/EU

Disney was smart to relinquish IPL digital rights, the $3.6B in cash is worth more than the value of low ARPU Hotstar+ subs. Google opening up...

Aaron Gabin

Baidu: Can AI Cloud, Intelligent Driving Save the Day as Marketing Continues to Lose Market Share?

In this insight, we look at the Chinese digital ad market, Baidu’s market share loss, and analyse whether AI Cloud and Intelligent Driving could...

Wium Malan, CFA

Snapchat Guidedown: Overdone, But Buy FB/AMZN First

Snapchat guidedown costs 30% on its already massacred share price. We think this is overdone. SNAP has a bad history of volatile financial...

Aaron Gabin