US Stock Market. 30th November 2023

The US stock market is poised to finish higher today, the 30th November, 2023 as part of the Christmas rally, according to Wolfteam Ltd.'s view.

The Personal Consumption Expenditure, the inflation gauge watched by the Federal Reserve eased more than expected, while core inflation also slowed down more than expected in Europe.

All this pushed the narrative and market forecasts into The Federal Reserve,The European Central Bank cutting interest rates earlier, which is very supportive for stocks, technology stocks, especially.

Cognizant Valuation

Cognizant Technology Solutions Corp, the American multinational technology services and consulting company is undervalued, according to Wolfteam Ltd.'s projections and estimates.

With 19.43 billion USD in revenue, growing at 4.98 %, net profit margin of 11.79 % for 2022, Cognizant's intrinsic worth is 57 billion USD compared with its market capitalization of 35.16 billion USD.

In addition, Cognizant's dividend yield of 1.63 % is not low.

All in all, Cognizant is undervalued according to Wolfteam Ltd.'s revenue and profitability projections and comparables estimates.

Coinbase Is Undervalued

Coinbase Global Inc, the cryptocurrency exchange platform's intrinsic worth is 85 billion USD, compared with Coinbase's current market capitalization of 30.56 billion USD, according to Wolfteam Ltd.

Coinbase's revenue of 3.15 billion USD fell -59.81 % in 2022 and Coinbase's net profit margin of - 83.35 % was deeply negative in 2022. That said, in the last reported quarter Coinbase's revenue of 623 mln. USD started growing with 8.09 % year on year and the net profit margin significantly improved to -0.36 %.

Binance, Coinbase's biggest Chinese competitor has significant problems with the US law enforcement agencies, which is a great advantage for Coinbase. Binance was a big competitor of Coinbase.

In addition, the overall stock market sentiment is positive since the Federal Reserve is expected to either hold or even cut the key Federal Funds Rate in the coming months.

Coinbase also has legal problems of its own. Once Coinbase's legal problems are clear Coinbase's intrinsic worth can surpass 120 billion USD, according to Wolfteam Ltd.'s revenue and projections estimates.

TE Connectivity Valuation

TE Connectivity Ltd, the American Swiss domiciled manufacturer of connectors and sensors is undervalued according to Wolfteam Ltd.

With 16.28 billion USD in revenue, growing at 9.10 % and net profit margin of 14.91 % for 2022, TE Connectivity's intrinsic worth is 57 billion USD compared with TE Connectivity's current market capitalization of 40.46 billion USD.

Adding to that a dividend yield of 1.81 %, TE Connectivity is undervalued according to Wolfteam Ltd.'s revenue and profitability projections and comparables estimates.

Carnival Corporation Valuation

 

Carnival Corporation, the cruise ships company is undervalued according to Wolfteam Ltd.

With revenue of 12.17 billion USD which grew 537.79 % in 2022 and negative net profit margin of  - 50.07 % USD, Carnival Corporation's intrinsic worth is 24 billion USD, compared with Carnival Corporation's current market capitalization of 18.23 billion USD.

Gold Is Undervalued On Money Creation, Political Instability

 

Gold is stably over 2000 USD a troy ounce currently.

According to Wolfteam Ltd.'s corporate view a new bull market for gold has begun driven by the more than 10 trillion USD created by world's central banks and geopolitical conflicts, military in that matter, as well.

It has been a conundrum why gold's price is not above 2 500 USD a troy ounce, for example, given all that money printing by central banks which has finally invoked the long forecast inflation. One explanation is that gold is not an interest bearing asset. And with the leading key rates of the Federal Reserve and the European Central Bank at 5.50 % and 4.50 % respectively this is only part of the explanation of the stagnating gold price. The global stagnation, especially in India and China, huge gold consumers is another factor explaining the slow rise of the price of gold. However, these factors are not enough to explain the gold price stagnation.

In short, gold has accumulated huge pent up demand, which could cause a mini boom in gold's price, according to Wolfteam Ltd.'s estimates and projections of gold demand and supply, central bank policy and gold buying and consumer sentiment towards gold.

Market Open 27th November 2023

 

The US stocks market is structurally undervalued in the short-term.

So in Wolfteam Ltd.'s view today will be another up day for the US stock market. Christmas rally is pending.

Indeed, inflation is flaring up again, but the Federal Reserve will hold rates for the next few months, which is positive for US and global stocks.

Illumina Valuation

Illiumina Inc., the American biotechnology company that designs and manufactures sequencing platforms and micro array scanners is undervalued, according to Wolfteam Ltd.'s revenue and profitability projections.

With revenue of 4.53 billion USD, growing at 39.73 %, net profit margin of 16.84 %, Illumina Inc's intrinsic value is 21 billion USD, compared with Illumina Inc's current market capitalization of 15.62 billion USD.

Alphabet, Google Owner Is The Leader In Artficial Intelligence. AI

 

Alphabet Inc, the owner of the Google search engine is the leader in the deep technology field of artificial intelligence, AI both with DeepMind, Boston Dynamics and the Google search engine.

 

Alphabet Inc, previously Google Inc is the real pioneer in artificial intelligence, AI. After the acquisition of the cutting edge technology of DeepMind the algorithms underpinning the Google search engine are mostly based on neural networks, which is deep AI, according to various media reports. Google keeps a secret on the technology underlying its algorithms. Google in its nascent form was based on crowd sourced links to sites, that is how Google ranked sited and achieved supremacy in the search engine and thus internet advertising world. However, not all sites have enough links to them initially, which makes it difficult for Alphabet, Google designer to rank them. That is where recurrent and other neural networks come into force. According to Wolfteam Ltd., actually these neural networks are based on a multi parameter linear regression model.

 

Now OpenAI's GhatGPT is touted as having 2 billion parameters. In Wolfteam Ltd.'s corporate view the underlying Large Language Model is nothing other than a linear regression model with 2 billion parameters.

Google because of its years of data gathering, basically 'downloading the whole internet' as Larry Page, Google's initial founder together with Sergey Brin put it, possesses huge advantage on its nearest competitor Microsoft. All this treasure trove of data can be better analyzed, sorted and used to enhance the internet advertisement business Google, the business of Blogger sites, Ad Sense revenue and other Alphabet, Google owner's bets.

According to Wolfteam Ltd. the information inherent in Alphabet can be utilized much better and according to Alphabet's business goals.

In Wolfteam Ltd.'s corporate view Alphabet, Google Owner's intrinsic value is 7.2 trillion USD in the long-run, if the company is managed well. The information is there, on Alphabet's servers. It just has to be better sorted, analyzed and the relevant insights must be drawn.

Alphabet had some governance problems in the past, but it seem s now they are behind the company. YouTube is another underutilized treasure trove of information for Alphabet Inc. Videos are the new mega trend and the underlying information YouTube has gathered could be better used to create more relevant algorithms with which to power YouTube's video recommendations and thus increase the viewing of YouTube videos and associated internet video advertisement's revenue, which could finally make YouTube inherently profitable.

Android, the mobile phone operating platform is another revenue avenue, which could be maximized if the underlying data is sorted according to better algorithms. Android phones and tablets are used daily for hours by billions of people all over the world. These people create millions of terabytes of information every day by sharing videos, photographs, messages. All this information, big data is stored on Alphabet, Android owner's servers. All these data can be analyzed better. Android has also access to millions of applications via the Google Play store its billions of users utilize every day, which on their turn create huge amounts of data. Actually, it could turn out that Alphabet Inc is understaffed both in terms of data scientists, as well as AI software engineers.

All in all, Alphabet Inc, the owner of the Google search engine is arguably the most valuable contemporaneous internet company, according to Wolfteam Ltd.'s analysis and revenue and profitability projections.

Did The US Taxpayers, The US Government And Warren Buffett Prevent A Global Great Depression?

https://markets.businessinsider.com/news/stocks/warren-buffett-hank-paulson-financial-crisis-stimulus-saved-us-economy-2020-10-1029667870?utm_medium=referral&utm_source=yahoo.com

Well, well, well. Lookey here. It seems Warren Buffett was the de facto architect of the Great Bailout during the Great Recession! I did not know.

Why is more, George Soros wrote an op ed in the Financial Times around that time that the capital of US Banks should be increased. So let’s say thanks 70 % to US taxpayers’ money, 20 % to Warren Buffett, 3 % to George Soros and 7 % to the US government, the world was saved!

Kudos 😀🎉✅👏👍

@Wolfteam Ltd. 

#stocks #investing #greatrecession #stockmarket #ustreasury #usgovernment #stocksandshares #capitalmarkets #wallstreet #equities #warrenbuffett #georgesoros #valueinvesting #investingstrategy #banks #finance 

Tesla Is Grossly Overvalued. Tesla Must Achieve A Tech Breakthrough

Tesla’s intrinsic worth is 120 billion USD, according to Wolfteam Ltd.

This reflects the value of Tesla’s technology and staff. Without the carbon tax credits Tesla is unprofitable. Tesla must achieve a technological breakthrough in electric car production to achieve profitability and become long-term viable.

Ones Tesla becomes inherently, self-sustained profitable, Tesla’s intrinsic worth could change dramatically.

Binance. Will Bitcoin, Cryptocurrencies Survive The Current Regulatory Crackdown?

Yesterday Changpeng Zhao, CEO, founder and owner of the largest cryptocurrencis exchange pleased guilty for money laundering allegations.

This is a watershed moment for the free wheeling cryptocurrencies, Bitcoin industry, which has enjoyed light touch, if any regulation until now, according to Wolfteam Ltd. It looks like the United States Attorney General, the Federal Reserve and other law enforcing US agencies in the USA are trying to clean the cryptocurrencies scene from potentially bad actors. Sam Bankman Fried's sentencing, which is pending is a case in point.

But after the clean up the Bitcoin, cryptocurrencies industry will emerge much stronger than before, according to Wolfteam Ltd.'s corporate view. Bitcoin and underlying algorithm are already profoundly changing finance and the world and this is yet to mature and come to fruition. There will be cryptocurrencies futures, exchange traded funds based in Bitcoin, Ethereum and other cryptocurrencies, which will be perfectly legitimate and regulated by the Commodities Futures and Exchange Commission, The Securities and Exchange Commission and the Federal Reserve, which will make for their viability.

Finance, Wall Street is set for a new age in which Wall Street investment banks will thrive supported by the Bitcoin, cryptocurrencies industry growth, according to Wolfteam Ltd. The blockchain algorithm, underlying Bitcoin will change the back office, risk management, accounting functions and investment banking, mergers and acquisition advisory, equity and debt capital raising business lines of investment banks by simplifying and cheapening the was securities trades are settled and accounted for using the crowdsourced, public vetting blockchain algorithm. Private blockchains are a case in point, but more importantly Wall Street investment banks will be able to utilize the wisdom of the general investing public to research companies, account and settle securities trading.

Asset Management of Wall Street investment banks is also set to thrive as cryptocurrencies tokens, which are tokens coupled with companies that have issued cryptocurrencies' investing projects are a totally new asset class in between commodities and technology stocks in terms of volatility, which will increase several times the number of publicly available investing instruments for asset management professionals to choose from. Add to that existing cryptocurrencies as Bitcoin, Ethereum, Ripple, Dogecoin and other leading and more obscure cryptocurrencies and the investing universe increased significantly.

There is always the risk that leading global governments could outright ban cryptocurrencies, but as long as the general public and corporations see value in issuing, trading and exchanging wealth into cryptocurrencies, this risk is not that big, since physical and corporate tax payers support governments with their taxes.

 

 

Up until now, Bitcoin, Ehtereum, Ripple, Dogecoin etc cryptocurrencies have been traded mainly by individual investors, but more and more institutional investors, hedge finds at first, but now venture capital funds, asset managers, pension funds and ultimately banks are investing into cryptocurrencies. Many of the leading Wall Street banks as Goldman Sachs, Citigroup, Morgan Stanley have cryptocurrencies trading departments which are growing. The whole of Wall Street sees the potential of Bitcoin, cryptocurrencies. Wall Street investing banks are just waiting for the asset class to mature and be regulated.

Silicon Valley and venture capital funds could also benefit substantially from cryptocurrencies. Cryptocurrencies issued by companies are a financing vehicle that stands on the line between angel investing and series A investing by venture capital funds. Leading venture capital funds like Andreesen Horrowitz' are planning of investing in cryptocurrencies. Actually, cryptocurrencies issuance went through a great boom in 2015, only to be curtailed by law enforcement actions by the Securities and Exchange Commission against Telegram, the messaging application's initial coin offering, ICO which could have raised 2 billion USD. Once the ICO field gets normalized further Initial Coin Offerings could again proliferate. New cryptocurrencies increase immensely the investing field and could provide for new ways to transfer risk and accumulate wealth. 

 

In addition, if ICO regulation eases up, companies will start again issuing cryptocurrencies en masse and individual investors first, than hedge funds, than asset managers and last endowments and pension funds will quickly snap them up, depending upon liquidity, Cryptocurrencies low liquidity is the main deterrent for institutional investors from investing intensively in the crypto asset class. However, from stock market investing it is clear that liquidity begets liquidity and once the amount of assets invested into the cryptocurrencies asset class starts increasing, cryptocurrencies trading liquidity will also increase exponentially. Cryptocurrencies investing offer an interesting part of risk. In between stocks, small capitalization stocks and series A, B, C, D investing by venture capital funds. Many individuals with significant part of their portfolios and many institutional investors with a small chunk of their portfolios will gladly take upon themselves that risk, if offered in a proper form.

Some analysts claim that Bitcoin is USD 2.0. That may well be true, but Bitcoin, cryptocurrencies are still far away from becoming a viable global reserve currency. Money has three characteristics. Namely, unit of account, store of wealth and means of exchange. The high Bitcoin, cryptocurrencies volatility due mainly to their relatively low liquidity prevents Bitcoin from becoming real money. And the shadow of central governments outlawing directly Bitcoin, cryptocurrencies hangs over the crypto asset class. Essentially, that is a risk investors must take. But rest assured, as long as Bitcoin, cryptocurrencies create significant value for individual, institutional investors and small and medium companies and large corporations as they do now, it will be very difficult for governments to ban cryptocurrencies investing and exchange since they create huge tax money inflows.

If Bitcoin, cryptocurrencies are regulated by a central authority, outside financial supervisors like the Federal Reserve, the European Central Bank, that will diminish the attractiveness of cryptocurrencies. The general public basically mistrusts governments and wants a financial and investing product, free from government intervention.

Bitcoin, cryptocurrencies fulfill that potential for now, but they are still dangers as  Changpeng Zhao, CEO, founder and owner of the largest cryptocurrency exchange pleased guilty for money laundering allegations shows.

The Gold Rush in Alaska and California also had its pitfalls, however. But ultimately many people, a small percentage, it must be said, though got rich, huge wealth was created, which transformed California into the USA's largest economy and  thriving technology state.

The Binance lawsuit is a case in point. Despite the crackdown entrepreneurship in the cryptocurrencies sector is flourishing. A so called emerging technology

Bitcoin, cryptocurrencies future is bright in the long-term, according to Wolfteam Ltd.

Chubb Ltd. Valuations

Chubb Ltd., the property and casualty insurer is undervalued according to Wolfteam Ltd.

With revenue of 42.73 billion USD, growing at 5.23 % with net profit margin of 12.43 % for 2022, Chubb Ltd.'s intrinsic value is 124 billion USD, compared with Chubb Ltd.'s market capitalization of 91.73 billion USD, according to Wolfteam Ltd.'s revenue and profitability projections and comparables estimates.

Bitcoin Christmas Rally?

 

Wolfteam Ltd. holds the corporate view that indeed we could see a Christmas rally in Bitcoin, cryptocurrencies along with stocks.

Markets seem to be in a risk on mode now, driven by the promise of artificial intelligence.

Stock Market Opening View. 21st November 2023

 

The US stock market is on a positive trend ever since there emerged signs that the Federal Reserve is done raising rates in the short-term.

Until the end of the year, we could experience the usual Christmas US stock market rally, which could raise the current S&P 500 level 10 % from here, undeterred by geopolitical issues.

AI, artificial intelligence technology stocks should continue to benefit, today, the 21st of November, including.

Applied Materials Valuation

 

Applied Materials Inc, the American corporation supplying equipment, services and software for the semiconductor computer chips and computer, smartphones displays industry is undervalued according to Wolfteam Ltd.'s revenue and profitability projections and comparables estimates.

With revenue of 26.52 billion USD, growing at 2.84 % with net profit margin of 25.86 %, Applied Materials' intrinsic worth is 154 billion USD compared with Applied Materials' current market capitalization of 127.63 billion USD.

Alphabet, Google Owner Valuation

Alphabet Inc,  Google owner is undervalued on artificial intelligence, AI potential.

Alphabet Inc's intrinsic value is 4 trillion USD. Alphabet Inc, mainly via Google possesess huge trove of information which is yet to be fully monetized. Via AI Google's visits can be increased significantly.

With AI, Google's search results can become better. AI could increase the visits and viewtime for YouTube, which could make YouTube profitable, which will increase immensely Alphabet Inc's value.

Bitcoin As An Agent For Change In Finance

Bitcoin and especially the underlying blockchain algorithm could change finance and financial markets.

Via the Blockchain algorithm financial transactions can be validated and confirmed only with supervision from back office and risk management, free from additional reporting.

In addition, financial instruments based on Bitcoin such as futures, stocks and exchange traded funds create basically a new, not so much correlated with equities asset class. According to guidelines by the Securities and Exchange Commission, Bitcoin is considered an energy commodity due to the high amount of energy utilized to create Bitcoins. In addition, cryptocurrencies tokens are similar to equities in the sense their price performance is tied to company projects. Companies that have issued cryptocurrencies.

So cryptocurrencies have a risk or volatility in between stocks and energy commodities, which suits many investors' needs. Many new institutional investors are finding the benefits of investing in cryptocurrencies.

The blockchain hashing algorithm, which is essentially a tree algorithm is a huge innovation, since the tree, random forest algorithm is not left on calculated on itself, but is vetted by the general public. It is crowdsourced, that is. This makes it unique, since the underlying artificial intelligence, AI is randomized and validated by many different, unique users.

Stocks that are set to benefit from the rise of Bitcoin, cryptocurrencies include Robinhood Markets Inc, a trading and investing platform, brokerage, where users can invest in stocks and cryptocurrencies, Coinbase Inc, a cryptocurrency exchange, where users can buy and sell cryptocurrencies, Nu Holdings Ltd., a Brazilian cryptocurrencies bank, where Warren Buffett's controlled Berkshire Hathaway has invested around 1 billion USD.

In addition, exchange traded funds, ETFs that invest in cryptocurrencies are in the works, waiting to be approved by the Securities and Exchange Commission to start trading on financial markets. Much as the exchange traded funds revolution changed financial markets, a cryptocurrency, Bitcoin ETF could disrupt, transform financial markets. Actually, exchange traded funds made financial markets more volatile, according to Wolfteam Ltd.'s corporate view.

In short, the Bitcoin blockchain could automate away many of the tedious tasks in back office, risk management, even trading and investment banking functions of Wall Street investment banks, thus saving huge amounts of time for more productive, analytical tasks and thus transforming finance and capital markets. The problem is Wall Street investment banks seem inclined to want to bring Bitcoin and cryptocurrencies totally under their control, which would be a mistake.

In Wolfteam Ltd.'s corporate view Bitcoin should remain crowdsourced, produced by billions of individuals and Wall Street investment banks could overlay other layers of vetting on top of that. There are private blockchains, but the general public does not trust them. And thus the tens of trillion of USD of public money will not be able to help Wall Street banks become more efficient, increase their revenue and ultimately make them more profitable and increase the dividends Wall Street Banks distribute to shareholders.

An aspect of Bitcoin, cryptocurrencies creation and transactions is that they consume huge amounts of energy. Not surprisingly, the Securities and Exchange Commission is inclined to view Bitcoin as an energy commodity. Stock alternatives like Bitcoin ETFs and stock trading actual Bitcoin, Ripple, Ethereum and other cryptocurrencies will be ultimately beneficial, for the whole of society, according to Wolfteam Ltd.

Actually, if Bitcoin, cryptocurrencies are allowed to flourish with the proper regulation and upholding the law Wall Street investment banks, regional banks, corporate banks, investment banks the world over and common individuals are very likely to benefit and increase their standards of living, according to Wolfteam Ltd.

AI Stocks Are Overvalued In The Short-Term

Artificial intelligence, AI stocks like Microsoft, Alphabet, NVIDIA, Amazon, Arista Networks, Palantir etc. are overvalued in the short-term by between 30 % and 70 %. 

If in the next 7 to 15 years AI goes on growing exponentially, the aforementioned stocks can rise in market capitalization between 3 and 8 times in the next 10 to 12 years, according to Wolfteam Ltd.'s revenue and profitability projections and estimates.

NVIDIA Is Overvalued

NVIDIA's intrinsic value is 720 billion USD in the mid-term, according to Wolfteam LTD.

Artificial intelligence, AI is the future, but NVIDIA is overpriced currently, according to Wolfteam LTD.'s revenue and profitability projections and comparables estimates. A classical boom and bust cycle of a new technology. This does not mean that 17 years from now NVIDIA's intrinsic worth will not be 2 trillion USD.

AI should be developed along the lines of non-linear modelling. Non-linear modelling is difficult, almost impossible, by default. Nonetheless, more efforts should be guided in AI nonlinear modelling.

In addition, NVIDIA has competition in AI computer chips, AI GPU chips in the likes of both Microsoft and Apple. Microsoft just in the last couple of days announced a series of computer chips.

It must be said that NVIDIA is the foremost leader in AI computer chips. If NVIDIA becomes the leader in quantum computing chips, than Wolfteam LTD.'s NVIDIA estimate of 2 trillion USD in the long-term, 15 years from now could prove conservative.

Cryptocurrencies Are Undervalued On USD Very Partial Replacement

Cryptocurrencies are at minuscule pace taking market share from the United States Dollar as a reserve currency. USD is still the most widely used global reserve currency.

The current military conflicts are contributing, speeding up a bit that trend.

Crypto acts as a store of wealth, away from government intervention. Akin to gold. Cryptocurrencies’ rise partially explains gold price’s stalemate in the last three years with all the current and past money printing.

Various cryptocurrencies cater for various needs. Cryptocurrencies tokens serve as an investment close to equities, an ability to invest in small projects.

As long as the public is interested in cryptocurrencies, Bitcoins and cryptocurrencies future in general is bright, according to Wolfteam Ltd.’s corporate view.

Will The Federal Reserve Go On Raising Rates?

Wolfteam LTD.'s corporate view is that the Federal Reserve will go on raising the the target for the Federal Funds Rate past 7.00 %

The rise of inflation is not over. There are too many global bottlenecks in the global economy and the military encounters in Eastern Europe and the Middle East are only exposing them.

Oil, base metals, wheat, corn, gold, silver, coffee, cotton, soy beans, orange juice and other commodities prices will continue rising influenced by global geopolitical tension.

Wolfteam LTD. holds the view that we are in a new super cycle in commodities. Base metals and oil form large parts of human lives like construction, mobility, chemicals, industrial components etc.

With all the newly created money around, the excess liquidity will funds its way into commodities.

What is more, the Federal Reserve is aiming to trigger a recession or significant economic slowdown possibly by causing havoc in the banking system. Possible candidates are Deutsche Bank, Citigroup due to the financial restructuring problems both banks are experiencing.

The Federal Reserve could aim to slow down private equity activity, which will also be reflected in higher delinquency loans for banks.

In short, global interest rate levels will go on up further from the current standpoint.

GitLab Is Undervalued On Infrastructure As A Servce Cloud Computing

GitLab Inc, the online code repository cloud software collaboration tool is undervalued on the potential of Infrastructure as a Service Cloud, IaaS computing, according to Wolfteam Ltd.

GitLab Inc, akin to GitHub provides an invaluable tool for programmers to cooperate and work on projects simultaneously and in the cloud from a distance.

With 424.34 mln. USD in revenue, growing at 67.95 % with negative net profit margin of - 40.61 % for the calendar 2022, GitLab Inc's intrinsic value is 47 billion USD according to Wolfteam Ltd.'s future revenue and profitability projections. This compares with GitLab's current market capitalization of 7.54 billion USD. For comparison GitHub was acquired by Microsoft for 7.5 billion USD.

The Infrastructure as a Service, IaaS part of the cloud computing market is forecast to reach 700 billion USD in revenue in 10 years time. Amazon AWS, Microsoft Azure and Google Cloud are the biggest competitors which have turned IaaS into a quasi oligopoly.

Gitlab, however, has carved out an already large, also growing fast niche for itself in the Infrastructure as a Service, IaaS cloud computing market by offering fast execution, stable interface and scalability for software teams collaboration and code storage.

Actually to write the software supporting the APIs, Application Programming Interfaces of Amazon AWS, Microsoft Azure and Google Cloud one needs a service like Gitlab or GitHub to write the code supporting the API. Software programming teams the world over need a git repository, where they can collaborate and store their work and GitLab with its gamified interface fills this void. Together with GitHub. It is remarkable that only two firms, namely GitLab and GitHub hold such a valuable Infrastructure as a Service, IaaS part of the cloud computing market niche as code collaboration and repository.

For the last reported quarter, namely the Second Quarter for the Fiscal Year 2024 ending on July 31st 2023 GitLab reported revenue of 139.6 growing at 38.14 % quarterly year on year when the technology business was slowing in the United States and globally and many leading large, medium or small technology firms reported revenue growing only in the single digits or even falling revenue

Second Quarter Fiscal Year 2024 Financial Highlights (in millions, except per share data and percentages):   Q2 FY 2024   Q2 FY 2023   Y/Y Change Revenue $ 139.6     $ 101.0       38 % GAAP Gross margin   89 %     87 %     Non-GAAP Gross margin   91 %     89 %     GAAP Operating loss $ (54.1 )   $ (65.3 )   $ 11.2   Non-GAAP Operating loss $ (4.3 )   $ (27.0 )   $ 22.7   GAAP Net loss attributable to GitLab $ (50.1 )   $ (59.0 )   $ 8.9   Non-GAAP Net income (loss) attributable to GitLab $ 1.9     $ (21.5 )   $ 23.4   GAAP Net loss per share attributable to GitLab $ (0.33 )   $ (0.40 )   $ 0.07   Non-GAAP Net income (loss) per  share attributable to GitLab $ 0.01     $ (0.15 )   $ 0.16

In addition, GitLab gave very positive guidance numbers for the next quarters: Third Quarter and Fiscal Year 2024 Financial Outlook For the third quarter and fiscal year 2024, GitLab Inc. expects (in millions, except share and per share data): Third Quarter and Fiscal Year 2024 Financial Outlook For the third quarter and fiscal year 2024, GitLab Inc. expects (in millions, except share and per share data):   Q3 FY 2024 Guidance   FY 2024 Guidance Revenue $140.0 - $141.0   $555.0 - $557.0 Non-GAAP operating loss $(6.0) - $(5.0)   $(33.0) - $(30.0) Non-GAAP net loss per share assuming approximately 155 million and 154 million weighted average shares outstanding as of Q3 FY2024 and FY24, respectively $(0.02) - $(0.01)   $(0.08)

For the last reported fiscal year GitLab also reported strong growth of revenue  - 88 % revenue growth for the fiscal year: Fourth Quarter Fiscal Year 2023 Financial Highlights (in millions, except per share data and percentages):   Q4 FY 2023   Q4 FY 2022   Y/Y Change Revenue $ 122.9     $ 77.8       58 % GAAP Gross margin   88 %     88 %     Non-GAAP Gross margin   90 %     89 %     GAAP Operating loss $ (46.3 )   $ (40.6 )   $ (5.7 ) Non-GAAP Operating loss $ (13.8 )   $ (27.4 )   $ 13.6   GAAP Net loss attributable to GitLab $ (38.7 )   $ (45.8 )   $ 7.1   Non-GAAP Net loss attributable to GitLab $ (4.5 )   $ (23.2 )   $ 18.7   GAAP Net loss per share attributable to GitLab $ (0.26 )   $ (0.32 )   $ 0.06   Non-GAAP Net loss per share attributable to GitLab $ (0.03 )   $ (0.16 )   $ 0.13

Fiscal Year 2023 Financial Highlights (in millions, except per share data and percentages):   FY 2023   FY 2022   Y/Y Change Revenue $ 424.3     $ 252.7       68 % GAAP Gross margin   88 %     88 %     Non-GAAP Gross margin   90 %     89 %     GAAP Operating loss $ (211.4 )   $ (129.0 )   $ (82.4 ) Non-GAAP Operating loss $ (87.1 )   $ (98.3 )   $ 11.2   GAAP Net loss attributable to GitLab $ (172.3 )   $ (155.1 )   $ (17.2 ) Non-GAAP Net loss attributable to GitLab $ (67.7 )   $ (95.3 )   $ 27.6   GAAP Net loss per share attributable to GitLab $ (1.16 )   $ (1.95 )   $ 0.79   Non-GAAP Net loss per share attributable to GitLab $ (0.46 )   $ (1.20 )   $ 0.74

GitLab is still unprofitable as are most young, fast growing technology companies. GitLab is heavily investing in growth. If revenue goes on growing so briskly it is a matter of only a couple of years before GitLab turns significant profit which will substantiate its intrinsic value to the 50 billion USD estimate by Wolfteam Ltd.