Blogs -Investing in Tech Stocks (Podcast)

Investing in Tech Stocks (Podcast)


June 11, 2020

author

Beth Kindig

Lead Tech Analyst

The average cloud software company reported 10% growth during the 2008-2009 recession. Meanwhile, we’ve seen the market react harshly towards companies guiding for 25% growth (such as Elastic). We know the winners from shelter-in-place but we are still sorting out what growth should look like in the middle of the category. My guess is that 25% is going to be higher than average by the time we exit this year.

I spoke about this and other topics this week on a podcast with Simon Erickson from 7 Investing. Simon Erickson is the CEO and Founder of 7 Investing, a company that releases stock tips for long-term investing. The monthly recommendations come from a team of four advisors with a track record of beating the market.  

We discussed how cloud software is hot right now but that there are issues boiling beneath the surface. For instance, the upcoming renewal of large annual contracts that may be negotiated down in price or term, which payment model will be more resilient (usage based or per employee), and whether a cloud software company appeals to new subscribers or existing subscribers for upgrades (the latter may be stronger this year). We also discuss how to look for key metrics to help maintain conviction, such as Slack’s engagement 90 minutes per user.

Simon and I cover another topic around IPOs and why a buy and hold investor has different goals than a venture capitalist who is bringing the company public. In many ways, we are in the middle of a grand experiment where VC firms grow the top line at the expense of the bottom line with hopes the revenue growth will drive the public market interest. Over the last ten years, growth hacking has become a popular way of mechanically pumping the numbers through marketing rather than R&D. Uber was a supreme example of this as venture capital dollars were used to subsidize the rides rather than focus on achieving product-market fit, which is often determined by an equilibrium between supply and demand in the pricing.

We also discuss what’s next in tech investing with a discussion on connectivity. In order for most emerging technologies to become a reality, we need a better network layer. I believe we will be lay the groundwork for faster speeds and lower latency this year and next year to prepare for artificial intelligence and machine-to-machine communications. While some will call this 5G, I believe it also includes last mile connectivity and virtualizing infrastructure with software to lower capex.

Lastly, we talk about Roku, a stock that I covered very early after the company IPO’d and well before the market saw the potential. I explain why my conviction on Roku remains steady. Although Roku is an excellent operating system, a full tech stack, and an option for cord cutters, I see the real sticking point being the influx of pay TV advertising dollar over to Connected TV advertising.

View the full 30 minute video here.

Download the podcast here:

Apple Podcasts
Spotify

Interview timestamps:

0:00 – Introduction: Beth’s “micro trend” investing philosophy
3:00 – Valuation for cloud computing companies
7:56 – Net Retention Rate metrics and Slack
9:28 – Product-Market Fit and Investing Internationally
11:07 – Venture Capital and the Current IPO Market
16:17 – The Importance of Developers: “Bottoms Up” Investing
18:50 – Roku and the Shift to Digital Advertising
24:36 – Trends Investors Should be Watching: Connectivity and Chipmakers

Please Subscribe and Leave a Review for the Podcast Here

https://images.prismic.io/bethtechnology/e2076ff3-5a25-4e94-b401-0810489993bc_apple-podcast.png?auto=compress,format
https://images.prismic.io/bethtechnology/b75633c5-3c0c-414c-a215-759412b1ad24_google-podcast.png?auto=compress,format
https://images.prismic.io/bethtechnology/f9febb5f-0fb7-4d18-8fbf-bb023ef3db4e_spotify-podcast.png?auto=compress,format
https://images.prismic.io/bethtechnology/d9a2d803-1dcf-459a-a4ce-88f616ea857c_stitcher-podcast.png?auto=compress,format
head bg

More To Explore

Newsletter

CoreWeave technology with rising stock performance

CoreWeave Stock Soars 200% Since IPO — Can It Defy the Odds?

CoreWeave saw muted price action following the latest earnings report; yet the soft price action is rare for the AI darling. The company went public in March and has stood out as the premier IPO among

October 02, 2025
Meta logo on center smartphone with other Mag 7 tech company logos on surrounding phones.

Meta Stock Emerges as a Strong Mag 7 AI Leader

The AI frenzy has investors fixated on revenue growth as proof of returns on AI spending that can be as high as $100 billion per year, depending on the company. Yet, Meta is proving that a stronger si

September 25, 2025
Nvidia logo illuminated inside a modern data center, representing AI growth and Nvidia stock outlook

Updated Nvidia Stock Price Target - AI “Bubble” Narrative Ignores Re-Acceleration in Big Tech Capex 

In the analysis below, my firm crunched the hard data on Q2 capex numbers and what is coming down the pipe for Q3. If you are an AI investor like we are, this is an analysis you will not want to miss

September 18, 2025
Oracle logo glowing above a digital platform with circuit patterns, symbolizing technology and AI growth.

Oracle Soars After Earnings – Is ORCL Stock Still a Buy?

The market is clearly excited about this report, and for good reason. Remaining performance obligations (RPO) grew 359% YoY with cloud RPO growing “nearly 500%” on top of 83% growth last year. Another

September 11, 2025
a futuristic crystal ball displaying Nvidia with digital circuit patterns and stock market graphics.

Nvidia Stock Forecast: The Path to $6 Trillion

Two years ago, the April 2023 quarter delivered a historic 18% beat, followed by an even bigger 30% beat in July 2023. Compare that to the most recent quarter ending July 2025 — just a 4% beat, the sm

September 05, 2025
A close-up, low-angle shot of a physical Bitcoin coin surrounded by a glowing, intricate circuit board.

Bitcoin Bull Market Guide: When to Hold, Trim, or Re-Enter (Webinar) 

Our track record including a more recent 600% move in Bitcoin is not the product of hype but of a systematic framework—one built on technical analysis, on-chain metrics, and a close watch on global li

August 28, 2025
A smartphone with the Reddit app open, from which a rising stock chart graph is emerging.

Reddit Stock Blows the Doors Off - Can it Last?

Reddit’s stock has surged 62% in one month, easily placing the company’s earnings report as one of the best to come out of the tech sector this quarter. The world’s leading forum site has only 416 mil

August 20, 2025
Orange toolbox labeled 'ServiceNow' with digital interface displaying AI and data analytics dashboard, surrounded by various tools.

ServiceNow Q2 Earnings: Inside the AI Push Toward $1 Billion ACV by 2026

Last month, after ServiceNow reported second quarter results that exceeded expectations on multiple fronts, shares of NOW rose by 6%. The company is attempting to reposition itself beyond a provider o

August 14, 2025
Silhouette of a bull in front of a glowing Bitcoin coin, symbolizing a cryptocurrency bull run with potential market risks.

Is Bitcoin’s Bull Run Nearing a Top? What the Herd Missed at $16,000 and is Missing Now 

In late 2022, when Bitcoin was trading near $16,000, the I/O Fund issued a Strong Buy Alert. At the time, many of the market’s biggest crypto bulls were silent. Fast forward to today, Bitcoin is up ov

August 08, 2025
S&P 500 market forecast showing potential correction signs and key buy levels for 2025, based on technical analysis and investor sentiment trends.

Is the S&P 500 Overdue for a Correction? 2025 Forecast & Buy Levels to Watch

In our last Broad Market Report titled, Historic Uncertainty Meets $7 Trillion Dollar Debt Wall: What Comes Next For The S&P 500, the S&P 500 was trading near 5800 and still well below its February hi

August 01, 2025
newsletter

Sign up for Analysis on
the Best Tech Stocks


Copyright © 2010 - 2025