Authored By Louis Stevens
If you've not already, I would encourage you to read the first installment of this series. Here's the link to that installment.
This Brief will be briefer and will simply act as a continuation of the latter half of its predecessor installment.
Let's begin!
While Coupang's share price has mostly declined over the last three years, its WOW members (Coupang's version of Prime) continue to soar.
Coupang WOW Member Count Is Growing
Coupang recently hiked its WOW membership fee by 58%, which demonstrated the exceptional value that this membership offers to its subscribers, and its subscriber counts is likely set to continue growing at an incredible rate in the years ahead.
Similar to Coupang's share price experience, Affirm's share price has been in a mutli-year downtrend, but this belies the fact that the business has made massive progress.
Specifically, in addition to its 51% sales growth recently while maintaining very healthy credit metrics, Affirm's latest product, the Affirm Card, eclipsed 1M active accounts just one year after being made generally available to its active customer base.
Affirm Card Active Consumer Count Is Growing
This has quietly been one of the greatest consumer product successes of the 2020s, and it is indeed growing.
Crowdstrike's recent misfortunes have brought the cybersecurity market into very public focus.
While the Crowdstrike publicity hasn't been exactly positive, it should serve as a reminder that the industry is growing at incredible rates, and many companies within it are growing at incredible rates.
While Datadog is not traditionally seen as a cybersecurity company, it has expanded into security products in recent years. With Crowdstrike's momentum slowing a bit, CISOs and IT directors around the world will be open to discussions around unique security configurations for their enterprises, such as one that Datadog's cloud security product might offer them.
To this end...
Datadog's Security Business Is Growing
- (Datadog has not broken out its cloud security business yet, but it did share this chart in its most recent investor presentation that depicts the growth of the cloud security market)
Like the Cloud Security market, Latin America's financial technology (FinTech) market has been rapidly growing, a primary beneficiary of which has been MercadoLibre.
MercadoLibre's FinTech Business Is Growing
Lastly, despite already awesome scale, Meta's Family of Apps users continue to grow, now at well over 3B daily active users.
Meta's User Count Is Growing
So these are some things that are growing, and these things serve to drive free cash flow per share growth for these businesses, and, as we know well, stock prices always follow free cash flow per share over time.
Disclosures:
L.A. Stevens has rated Meta and Coupang a "buy."
L.A. Stevens has not rated Datadog, Affirm, and MercadoLibre.
