Square (SQ: $38, up $1) had a good day yesterday, after a rough week last week. We wish we could say the same about Twilio (TWLO) which was down 2% to $25. These are two of our favorites (plus Nutanix, makes three) and Square has been a home run while Twilio has been a strike out. We still believe in Twilio but the market is telling us another story. We can’t quite believe it as revenues for the past few years have been stellar. We saw $90 million in 2014, $165 million in 2015 and $280 million in 2016. And they did $100 million in the 3rd quarter of 2017. We don’t get it. Revenues always win in the end, but Wall Street is making us suffer for the time being.
As to Nutanix (NTNX: $34), the stock is up $2 from where it was at the beginning of November. Yes, it had a run to $38 on Friday, but the stock was at $23 in the beginning of October for heaven’s sake. We’re not worried in the slightest.
Apple and Facebook are doing just fine, with both hovering around the $170 mark. Apple was at $151 in late September, just a little over two short months ago. Facebook was at $148 in July. Things are really quite OK out there.
But if you are afraid of the world at large and concerned about your investments (and not willing to climb a wall of worry with the rest of the market) then take some profits and put your money to work in Annaly Capital Management (NLY) paying over 10% or Government Properties Income Trust (GOV) paying over 9%. Or Pimco Dynamic Income Fund (PDI) paying 8.6%.
Relax – It’s almost Christmas!