Grab Peak Mindshare? - WR2
Stock Coverage: SE, GRAB, PDD, COIN
Hi all,
Welcome back to the 2nd edition of the Weekly Roundup!
Docket:
Shopee continues to dominate
Grab: Stock of the Week?
PinDuoDuo: The Most Undervalued Stock in NASDAQ?
Coinbase tanks on impressive earnings
1) Shopee continues to dominate
SMEs in Singapore can now sell their products to customers in Malaysia, Thailand, and soon the Philippines, at no extra cost on Shopee.
Shopee partnered with EnterpriseSG to launch the new Shopee International Program (SIP) that was launched on Friday, 7th February.
The SIP allows sellers in Singapore to manage their digital storefront, with Shopee Singapore overseeing cross-border logistics. This allows Shopee to leverage its economies of scale to enable seamless transactions for buyers and sellers.
The pilot program was first launched in September last year, onboarding over 8,000 Singapore sellers onto the platform. Collectively, their orders and GMV grew 8x.
SE 0.00%↑ had a strong week, with the stock up 8%.
2) Grab: Stock of the Week?
Grab has stolen the headlines this weekend with every major FinTwit influencer seemingly onto the stock.
It will be an exciting watch this week as the company gears up for earnings after the market close on 19th Feb, Wednesday.
ICYMI: Here are my thoughts on the key points to look out for in the earnings report.
https://x.com/GabGrowth/status/1890385136295739464
3) PinDuoDuo: The Most Undervalued Stock in NASDAQ?
PDD has had an extremely strong run this year, with the stock up 28% YTD. It is the 8th best performer of the top 100 stocks by Market Cap.
Also the 7th best performing company in the Nasdaq 100.
As some who have followed me for awhile may recall, I first got interested in November last year and started a position in December and fully scaled into my position at the end of January.
IMO, this is a great business and very undervalued trading at roughly 8x FCF and growing revenue at 25% with 35% FCF margins.
With China sentiment picking up, I view PDD 0.00%↑ as one of the key beneficiaries.
4) Coinbase tanks on impressive earnings
Coinbase tanked 8% on Thursday following its earnings report despite a huge beat on both revenue and EPS.
I shared my thoughts on this post-earnings on X but will repost here:
COIN 0.00%↑ was up 8% in RH trading into -1.5% AH.
HOOD 0.00%↑ was up 5% in RH trading into +15% AH.
Both companies had massive earnings double beats.
This is not the first time it's happened for COIN 0.00%↑ where the results came in way higher than expectations but the stock went nowhere or down.
Essentially, what the market is telling us is that they simply do not care about the current earnings results.
And frankly it makes sense. With a large % of revenue still coming from transaction revenue, COIN 0.00%↑ 's business is inevitably tied to the immediate future of BTC.
Past performance simply isn't an indicator of future results in this case. COIN 0.00%↑ will therefore move in synchrony with $BTC, likely up till 2026-2027, when subscription revenues make up a more substantial portion of the business.
For me, I will be exiting most of my $COIN position as planned. I believe there will be future opportunities to re-enter into $COIN before the next $BTC cycle and we could then see a real exponential move in the stock.
That is all I have for this week. Thank you for reading and I hope it’s brought some value to you.
Until next time!
Disclaimer: The content presented in this thesis is for informational and academic purposes only and does not constitute financial advice. The analysis and opinions expressed are based on research and should not be interpreted as a recommendation to buy, sell, or hold any security. Readers should conduct their own due diligence and consult with a qualified financial advisor before making any investment decisions.