4 Comments

Hi, Robert!

Thanks for reading, really appreciate it! I do not plan to provide a price target (or direction). Price target without a timeline is useless, price target with a timeline is a pure guess.

My intention with this newsletter is a) help investors understand the fundamentals of Fintech companies (i.e. many people think that Affirm only provides 0% APR loans, and thus, very few understand how they make money), b) provide a facts-based opinion on mid-term prospects of income (and free cash flow) growth for a particular company.

I believe in the idea that a growing income (and FCF) will eventually translate into higher stock price. Hope this helps!

As per Robinhood holding. I have a tiny position, but purely to understand the price dinamics. As I wrote in this earnings review, at this point I don’t have a view on what is the “normalized” level of earnings for this company, and thus, it is impossible to form an opinion on future growth prospects.

Expand full comment

price targets are always speculations, but they are fun though & its always nice to take a look back on how well/bad did the prediction pan out, yet your positions makes sense.

re Hood, their price always make you think that it caant really go any lower, but then they do it once again & probably will keep on diving deeper for the next months to come :))

Expand full comment

I hear you (and totally agree) about the fun part of making price predictions:) Perhaps, I am taking my newsletter too seriously, but at least I will try making it about fundamentals. In a sense, it is kind of a prediction of which companies will survive.

Regarding Robinhood: Schwab has a market cap of $123 billion. I illustrated some numbers showing how far Robinhood is behind Schwab. If you believe Robinhood is hear to stay, then Schwab is a good loooooong-term target.

Expand full comment

good read - for me it would be interesting if you added two things at the end (1) do you have the company in your portfolio, (2) where do you see it going (buy, neutral, sell)

Expand full comment