Victor Pedersen @Miyoshi: "Hi everyone, A lot of investors..."

Denmark

Hi everyone, A lot of investors are feeling uneasy right now, and for good reasons if their portfolios are loaded with speculative bets. But we’re in a strong position. Our portfolio is backed by better valuations, and on top of that, our two biggest risk factors, Unity and Roku, just delivered great confidence-boosting earnings. $ROKU (Roku Inc) had a massive Q4, surpassing $1 billion in Platform revenue for the first time, up 25% year over year. They’re now in over half of U.S. broadband homes, with The Roku Channel’s streaming hours skyrocketing 82%. In 2024, revenue hit $4.1 billion, streaming households climbed to 89.8 million, and they sold over a million Roku-branded TVs. Looking ahead, they’re rolling out AI-powered recommendations, expanding live sports (NBA G League, X Games), and strengthening ad partnerships. They expect to be operating income positive by 2026. I continue to believe that Roku is poised for one of two outcomes: either it will be acquired given its vast trove of user data and vast market share, or it will experience a steady climb in valuation as it capitalizes on its presence in over 90 million households through enhanced monetization strategies. $U (Unity Software Inc.) surged following stronger-than-expected earnings and the debut of its AI-powered Vector ads platform. In a strategic move to close the gap with UA market leader $APP (Applovin Corp), Unity is transitioning its ad network into Vector, aiming to enhance performance and competitiveness. For comparison, Unity has a market cap of $12 billion, while AppLovin’s market cap is $110 billion. The migration is set to begin in late Q1 2025, with the initial phase expected to be completed by the end of Q2 2025. The CEO emphasized the need for patience, acknowledging that Vector will take time to "mature." However, he expressed confidence that the platform will ultimately position Unity as a fundamentally stronger competitor in the user acquisition space. Meanwhile, the $SPX500 CAPE ratio climbed above its 2021 peak last week, which made me even more cautious about large-cap valuations. Small caps look better, but in a correction, markets tend to move down together before diverging. Expecting this, I took some profits from our equity positions where it made strategic sense and increased bond exposure before the recent market dip, so we’re well-positioned. We've also gained from the decline in 20-year Treasury bond yields, as the bond swap strategy continues to deliver solid results. I’m actively trading through volatility and capitalizing on opportunities. I feel good about our primary growth stocks and the road ahead. Thank you for copying.

4 Mentioned

ROKU

Roku Inc

Unity Software Inc.

APP

Applovin Corp

SPX500

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