Since this last post 10 days ago, the markets have not disappointed and today was no exception. The factors I listed have resulted in continued volatility and a slide in both the market and our portfolio. I have added a bit opportunistically to PTON, DOCU and ZM today. The market hates uncertainty more than anything, so the volatility could continue through the election next week and we could see further drops as investors hedge, but long term our thesis still holds. That said, strap on your seatbelts as earning season starts tomorrow for SaaS companies!! We had a small preview of SaaS today with SAP (Germanys largest SaaS) preannouncing headwinds and lower earnings through H1 of next year. Tomorrow is Microsoft earnings and then later this week is PTON. Next week is NET, FSLY and DDOG. Between the beta (overall market factors) I listed above and all these company’s earnings releases, it’s anyone’s guess where we will end up at year end.
My guess: with a smooth result in the elections (either way) we should see at least one more big rally before year end. All bets are off however if the election is contested for any length of time…regardless of the individual company earnings results.
Who says there are no blockbusters to watch this year. Get yourself a stiff cocktail, strap on your seatbelt and enjoy the ride. Cheers! -V
