TSLA
Tesla
-- 421.060 PLTR
Palantir
-- 80.550 NVDA
NVIDIA
-- 134.700 OXY
Occidental Petroleum
-- 47.130 AMD
Advanced Micro Devices
-- 119.210 
$AXON Added to the S&P 500: Who's Next?
Early last week, once it was clear that $First Republic Bank (FRCB.US)$ was heading out of the $S&P 500 Index (.SPX.US)$ , I started thinking out loud about who may be the next addition.
I (selfishly) settled on four I liked: $Axon Enterprise (AXON.US)$ , $The Trade Desk (TTD.US)$ , $Veeva Systems (VEEV.US)$ , and $Airbnb (ABNB.US)$ , and started researching for an article.
I (selfishly) settled on four I liked: $Axon Enterprise (AXON.US)$ , $The Trade Desk (TTD.US)$ , $Veeva Systems (VEEV.US)$ , and $Airbnb (ABNB.US)$ , and started researching for an article.
Here's some reasoning for why each would be interesting for the S&P Index, as all three seem to meet the necessary market cap and profitability requirements.
- Trade Desk - The Index's primary exposure in advertising comes in the form of two ad agencies -- $IPG and $OMC -- and all the massive "walled gardens." As a result, TTD seems like a better modern fit for the index, particularly considering its young Unified ID 2.0 solution looks like it could become the standard in the industry, being adopted by AWS, Snowflake, Adobe, and Salesforce recently.
- Veeva Systems - Providing R&D and Commercial software solutions to the life sciences industry, Veeva recently signed a 10-year contract with behemoth pharma $MRK. This success with large customers and the company's stellar 23% net income margin point to a widening moat and a powerful land-and-expand growth strategy.
- Airbnb - This may be the most apparent selection of the group (AXON actually would've been my least confident of these 4 -- here we are anyways), but Airbnb being a verb speaks to most of the core reasons why this is an obvious pick for many. Asset-light and sporting an incredible ROIC of 26% in its last quarter, the company should continue growing stronger as younger generations embrace the "work from anywhere" lifestyle and embrace longer-term stays.
Curious to know what you all think of these picks -- or who you might add instead.
- Trade Desk - The Index's primary exposure in advertising comes in the form of two ad agencies -- $IPG and $OMC -- and all the massive "walled gardens." As a result, TTD seems like a better modern fit for the index, particularly considering its young Unified ID 2.0 solution looks like it could become the standard in the industry, being adopted by AWS, Snowflake, Adobe, and Salesforce recently.
- Veeva Systems - Providing R&D and Commercial software solutions to the life sciences industry, Veeva recently signed a 10-year contract with behemoth pharma $MRK. This success with large customers and the company's stellar 23% net income margin point to a widening moat and a powerful land-and-expand growth strategy.
- Airbnb - This may be the most apparent selection of the group (AXON actually would've been my least confident of these 4 -- here we are anyways), but Airbnb being a verb speaks to most of the core reasons why this is an obvious pick for many. Asset-light and sporting an incredible ROIC of 26% in its last quarter, the company should continue growing stronger as younger generations embrace the "work from anywhere" lifestyle and embrace longer-term stays.
Curious to know what you all think of these picks -- or who you might add instead.
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