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Boris Marjanovic

 
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  • The Internet Monopoly I Want To Own Forever [View article]
    MrMatt,

    You are correct, SA definitely does benefit from the network effect. Think about it... SA has a huge audience which attracts thousands of investment bloggers/writers. These writers publish an increasing amount of content on the website every day, which attract an even larger audience. I can safely say that SA has a huge advantage over other investment websites. We can even call it the Google of investment research!
    Aug 14 02:42 PM | Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    "For the majority of search engine ads today the advertiser pays only if someone clicks on their link. This means there is NO moat advantage for Google here."

    There is a moat here actually. Google controls 90% of worldwide search market share. In other words, this means it has the largest audience. A large audience attracts the most advertisers, which allows Google to earn massive profits. These profits get reinvested back to improve the search engine, which in turn attracts an even greater audience and even more advertisers. This is a classic network effect advantage.
    Aug 14 01:33 PM | 2 Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    DFCF is only useful when valuing investments where you know the exact cash flows like bonds and annuities. When it comes to valuing stocks it becomes a huge problem. Change the growth rate by just 1% and you get a completely different answer. Even deciding which earnings number to use is a problem. Should it be net income or EBITDA or free cash flow? Whichever one you decide to use is probably wrong because each one of those numbers can easily be manipulated by companies. Even if you make adjustments to get a more accurate number, in the end it is still an estimate. And just like with growth rates, even if your estimate is off by 1% (will probably be off by more than 10% most of the time) your DFCF model gives you a completely different answer. And what about discount rates? There is more than a dozen different ways to come up with a discount rate. Basically what I'm trying to say is that a simple multiple-based valuation approach is far superior to DFCF.
    Aug 14 11:06 AM | 4 Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    You must pay up for quality. This is literally one of the most dominant companies in history. This kind of global market share cannot be matched by anyone.
    Aug 14 10:49 AM | 4 Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Why buy Netflix when Google owns YouTube? YouTube can do everything Netflix can and has the advantage of having a much larger user base.
    Aug 14 10:46 AM | 6 Likes Like |Link to Comment
  • The Internet Monopoly I Want To Own Forever [View article]
    Thank you!
    Aug 14 10:40 AM | 2 Likes Like |Link to Comment
  • Microsoft's Bing Is No Longer A Money Pit [View article]
    Vandooman,

    Statcounter is actually a very good source for search market share... someone like comscore (widely used by analysts) uses a much smaller sample size and only focuses on desktop searches.
    Aug 11 06:45 PM | 1 Like Like |Link to Comment
  • Google To Expand Market Share In Wearable Technology [View article]
    I don't know how popular Google Glass will be, but I do know that smart-watches have been a huge disappointment so far. A smart-watch is basically a smartphone on your wrist, only with much less functionality. Not many people want to pay several hundred dollars for something like that. I predict Apple's new iWatch will probably be a massive disappointment.
    Aug 6 10:38 PM | Likes Like |Link to Comment
  • SunGame: A Penny Stock Trading For $2.1 Billion [View article]
    The company's CEO is now being investigated by the Canadian version of the SEC. The fraud he committed is in excess of $50M. I strongly urge SGMZ shareholders to sell this house of cards and move on before the collapse happens.
    Aug 5 08:08 PM | Likes Like |Link to Comment
  • Ignore The Bears And Buy Amazon [View article]
    Amazon should focus on continuing to gain market share. You have to understand that retail is not a high margin business. This is why the only way Amazon can create shareholder value over the long-term is to gain additional market share. It's the dollar amount of profits that matters in this case, not high margins.
    Jul 22 10:42 PM | 1 Like Like |Link to Comment
  • Ignore The Bears And Buy Amazon [View article]
    I said Amazon is investing aggressively, which means capex is going up. Higher capex causes D&A to go up over time, which hurts margins. Common sense!
    Jul 22 09:04 PM | Likes Like |Link to Comment
  • Baidu: A Wide-Moat Business With 40% Upside Potential [View article]
    All successful businesses benefited from a lot of luck, it doesn't make them bad investments.
    Jul 21 02:46 PM | Likes Like |Link to Comment
  • Update: Amazon Enters Another Low Margin Business [View article]
    wdchil,

    Wal-Mart and Costco have thin margins... does this mean they have no competitive advantages? Margins depend on the industry the company operates in. Retail is a low margin industry, which is why Amazon (a company with a huge competitive advantage) has low margins.
    Jul 18 04:03 PM | Likes Like |Link to Comment
  • Update: Amazon Enters Another Low Margin Business [View article]
    " I am skeptical as Amazon has yet to establish a competitive advantage in any specific industry."

    Amazon has a competitive advantage in almost every industry it has entered. Take AWS (Amazon Web Services) for example. AWS gives Amazon a huge advantage in the cloud computing space because AWS possess more than five times the computing capacity in use than the next 14 largest providers combined. In fact, AWS is the preferred name for hundreds of thousands of businesses around the world looking to reduce information technology expenditures.

    Saying that Amazon "has no competitive advantage in any industry it has entered" just shows that you know very little about this company.
    Jul 18 10:32 AM | 7 Likes Like |Link to Comment
  • Ignore The Bears And Buy Amazon [View article]
    "What is AMZN's advantage?"

    Over 244 million customers buy things through its website, that's Amazon's advantage. Since all the customers are there, the sellers are there too (nearly 3 million of them). The larger Amazon becomes the stronger its network effect becomes. This is the same advantage Google has. It's extremely difficult to compete against companies like this.
    Jul 17 05:18 PM | Likes Like |Link to Comment
COMMENTS STATS
633 Comments
514 Likes