The Razor’s Edge is an investing podcast that combines a prop trader’s viewpoint and deep-dive fundamental research to provide a unique take on the markets. The show is co-hosted by Akram’s Razor, a trader and investor with decades of experience and a track record of truly differentiated ideas and analysis, and by Daniel Shvartsman, an individual investor for the past decade who saw thousands of investing pitches and ideas and how they played out during his previous time at Seeking Alpha.
The duo start with a theme or idea from Akram’s investing, then break it down to understand what goes into the idea, what could go wrong, and what else investors and traders need to know. They also interview industry leaders, executives, and other investors to get a wider perspective. The show has thousands of listeners around the world.
The Latest SaaS Turns: Okta, MDB, Veeva, and Twilio and the Challenges for SaaS 2.0
Q2 earnings season has delivered many surprises on the one hand and continuations of trends on the other hand. For SaaS companies, that has meant continued drifting.
Last week, Okta, MDB, and Veeva reported, and we break down each of those companies on this week's the Razor's Edge (you can also read Akram's take here). We get into the challenges each of those companies face, but also the broader difference between "legacy" SaaS companies like Salesforce and the newer all cloud products like Okta.
2:30 minute mark - Okta’s earnings – what went wrong and what differentiates the Oktas from the Salesforces
10:00 – The value of “the suits” and the challenge of building a microservice-based business model
23:00 – The presumption that software is a great model
28:00 – MDB’s earnings
40:00 – Cutting to profitability amidst the tech recession
52:00 – The consolidation calvary is not about to arrive, and what else to watch
58:00 – Notes on Veeva
1:04:00 – Docusign preview
Roku’s Wipeout and whether the Black Box will Open
Roku's dud of a quarter echoed both Snap's report from the week earlier and the start of the pandemic as the sudden advertising slowdown hit them as well. The issues with Roku go beyond the quarter, starting primarily with how much harder it is to understand the details of their business. Will this quarter force a change? And what else does the advertising slowdown mean for the market? We discuss on this week's The Razor's Edge.
3:30 minute mark – Breaking down Roku’s wipeout
11:30 – How important is the advertising wipeout in general
19:30 – Whisper numbers and the Roku black box
31:30 – Will this force Roku to be more transparent? The Twilio example
39:30 – What makes Roku more interesting?
55:00 – The death of never sell
Twitter Trial Breakdown
It’s all happening: Elon Musk filed to terminate his deal to buy Twitter, Twitter sued him for specific performance, and now the trials begin. Today, not a trial actually but a hearing to see whether the trial should take place on Twitter’s requested timeline, in September, or Musk’s requested timeline, in February.
Still, the two sides are starting to show their hands. While much of this ‘negotiating’ has been done in public, the filings were still revelatory. So, as we approach the endgame of the endgame, Akram's Razor and Daniel talk about what we learned, what happens next, and who has a stronger hand; though I don’t think you’ll be surprised by our conclusions if you’ve listened to us before.
3:30 minute mark – Initial takeaways from the filings
12:30 – Twitter bot approach and response
15:00 – Breaking down Elon’s breach filing
23:30 – Takeaways from Twitter’s filing
29:00 – Recutting a deal and the Anaplan parallel
48:00 – Musk’s motivations and laziness
1:00:00 – What happens next?
1:09:30 – The “the court wouldn’t risk being ignored” argument
1:14:00 – The prisoner’s dilemma result of an actual acquisition
1:18:00 – The size of the deal
1:28:30 – Last thoughts
The Bear Market Is Here: What Next?
On this week’s The Razor’s Edge, we talk about the bear market. It’s here, it’s real, so now what?
Neither Akram nor Daniel are in an apocalyptic mood, so we explain why we’re not, what green shoots there are on the supply side, what risks there are on the demand side, how this echoes 2020 (or not), how much crypto contagion worries us, and why it’s tricky picking individual names.
2:00 minute mark – An apocalyptic moment? Maybe not
10:00 – Is supply solving itself just as demand is weakening?
20:00 – The energy pullback – why was it predictable
23:00 – The echoes of March 2020
30:00 – Crypto contagion and its risks
38:00 – Opportunities in the current market
48:00 – What if inflation doesn’t slow down?
52:00 – The challenge of individual names and the hopes for a quiet summer
The 2022 Whipsaw Market and the Hedgehog: Retail Stocks, Tech, and More
This week's episode picks up where last week's The Razor's Edge episode left off. We talk the current whipsaw/whiplash macro environment, where a smaller, often over optimistic social media company can trigger a panic, and then news that is no worse than expected can fire up a bear market rally.
We discuss tech stocks, retail stocks, and whether it's possible to be too bearish or too bullish as the winds shift.
The Twitter Endgame, Again: Logic & Legality
In part two of our recording this week, we get to Elon Musk and Twitter. Both because how can we not at this point, as the drama continues to unfurl, and also because Akram makes the case for this as a good merger arb play given the strength of contract law. We talk about whether Musk can work his way out of this and why Akram thinks he can’t, and what the next steps of the saga should be, along with a whole lot more.
3:00 minute mark - The logical aspects of the Twitter case
13:30 - Twitter's setting up to go the distance, and the bots issue
30:00 - How material is the bots case
35:00 - What are the next steps, and the role of the equity partners
43:00 - Past precedents
50:00 - The outstanding risks to Twitter as a company and to Tesla as a stock
1:00:00 - Quick comments on the retail sector
Love this pod
This is a very very good podcast. The guys are adding real value and I love how they frame their thoughts.
Keep it up!
Solid Software Investing Podcast
Would appreciate more stock idea discussions. Maybe even an episode overview on top SaaS players (eg Bessemer cloud index)? Al’s definitely needs better audio quality
I like the podcast, but Akram’s audio quality is horrible. I stopped listening since it was too obnoxious to listen to him. Invest in better audio.