The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
Sheltie, did you mean... Move on... to over stocks? Move on ... with life?
The update is inline with my expectation. The business is fine but massive headwind in the UK financial market. Check out the news headlines. I do not expect Darktrace share price to rise today on the trading update.
We all knew about impact of strong dollar. Short term trader and pessimist would buy despite all stocks reporting in dollar. How i see it is that the update further cement Darktrace as 'defensive' stock in high inflationary time. The business maintain its outlook despite everything that is happening in the world now.
sheltie, the real issue is not the rate itself but the increase of the rate that result in having to pay hundreds if not thousan pound more every month. The mortgage interest rate may be higher 20 years ago but the house price was a lot cheaper, so you can't really compare that. I would be terrifying if my mortgage rate doubles but luckily there is still about 2 years before my fixed rate ends. Even if the rate remain high, I at least have time to plan for that. It will be hell for those whose fixed mortgage about to end.
Darktrace's low valuation is mainly attributed to the Mike Lynch factor. There were several occasion where SP fell because of ML court case. Also, indirectly, any bad news get amplified due to ML, for example, ShadowFall's shorting. Traders short stocks every day but most of them do not get reported by national newspaper. He may also be the reasons why some investors are wary of buying Darktrace shares. I personally think Darktrace should worth 500p now if not ML.
Despite the huge drop in last month, Darktrace actually fares better than many other stocks. Perhaps the companies in loss are more attractive targets for shortsllers. As I previously said, unless the macro economy changes, the SP is unlikely to have meaningful rise even with good trading update. The price will be rocketing, but now is not the time, it really depend a lot on the US (to lesser extend UK) market and interest rate policy.
I can understand their view on valuation but expecting a company to have no competition is plainly stupid.
Unless a company has market monopoly for some political reasons, a market without competition is a bad market. Even Google had to compete with Yahoo (for younger people, Yahoo dominated the search engine in 90s). The important thing is, the market is growing and/or you are ahead of your competitors and I think Darktrace is doing very well with revenue rising EVERY SINGLE QUARTER. If you use Google Finance to plot the annual revenue, you can see the growth is astonishing.
Agree with old gold.
UK financial outlook looks like two worlds apart merely from a month ago - mortgage interest doubled, bond Nd pension almost collapsed, UK credit rating downgraded. You should assume all analyst reports obsolete.
It is not about Darktrace now. Many non tech, established companies shares dropped sharply in last 2 weeks. Even cash rich Microsoft fell 5% yesterday. Things are unlikely yo turn around before the war ends. Hope is that Russians get pushed out of Ukraine by Christmas.
In long term, Darktrace revenue growth is good, debt free, so there is no worry of company going bankrupt like made.com, cinemeworld or Aston Martin. All we can do now is ... wait.
https://darktrace.com/newsroom/darktrace-cyber-ai-loop-wins-cybersecurity-breakthrough-awards
Can't see the content but thought its rather rare for mainstream US media to report on things like this
https://www.cnbc.com/2022/10/07/sliding-uk-markets-saw-darktraces-ceo-and-three-others-snap-up-their-own-stock.html
Rising rates and macro uncretainty upset dealmaking activity
https://www.bloomberg.com/news/articles/2022-10-06/uk-tech-m-a-spree-pauses-as-buyers-pull-out-amid-chaotic-markets
Just use the total shares number of approximately 720M, so 1.5% is about 10.8M shares. The volume was low in the last week, so all the SP fall must have been caused by it. The collapse of pound must have spooked oversea investors. Now that it is a done deal, hopefully SP will start going up.
This happens a lot and almost always before or shortly after US market opens. I think it is either work of individual traders (small volume), or market makers marking the price down due to US. Although didn't beat the market but yesterday's 3% and today's -2% are roughly inline with the market movement. Unlike previously, I do not sense foul playing in the last 2 days.
Without exception, the share price rose in the week leading to trading update, but we are not seeing it this time. Perhaps the big players have pulled their money out of UK market to buy US bonds. Now it really isn't about Darktrace anymore but more tied to global market sentiment.
SP was holding up nicely till late afternoon, perhaps affected by US markets. However, Nasdaq has regained much of today's loss, so hopefully won't drag down FTSE tomorrow.
Very low volume indeed with very few trade that exceed 8k shares. So, no action from big players, which is good but it won't recover until the global markets rebound.
One way or another, the Ukraine war should cone to an end before the winter arrives. Either Russia admits being defeated, or start a nuclear war and all end in a day or two.