PANW - Network Effect And How Not To Bet On The Global Economy
Source: euromoney
Unprofitable cloud stocks (SKYY) are more expensive than their profitable counterparts. While there is little difference in the total addressable market of top stocks in both groups, unprofitable SaaS plays seem to have a better ability to rake in international revenue. This exposes them to global macro risk factors, which are mostly country-specific. A self-serve revenue-generating platform which is devoid of regulatory risks is the best way to enjoy the benefits of the global network effect. In the absence of supporting investing factors besides growth, investors should demand a better risk