My Stock Portfolio Review, December 2024
Portfolio Performance Overview and Key Stock Highlights
Hello, Investor,
Each month, I provide a transparent update on my portfolio performance, covering the latest news on core stock positions and analyzing recent developments across each holding.
For more frequent updates, follow me on X/Twitter @Sergey_Opl and on SavvyTrader for portfolio changes.
Portfolio Review
Holdings:
Monthly Allocations:
* green (added), orange (trimmed)
Performance (TWR):
Historical performance (TWR):
2020: +110.2%(since 15.04.2020)
2021: +23.7%
2022: -59.6%
2023: +57.3%
Cumulative: +106.2%
A recap of my Portfolio in 2024
January:
⬇️ Trim ZS CRWD NET
⬆️Add TSLA TTD MDB AXON
March:
⬇️ Trim NET MNDY
✅ New position GTLB ~3.1% (after -23% on ER)
May:
⬇️ Trim CRWD MNDY DDOG TTD
⬆️ Add AXON
✅ New position SHOP ~3.2%
June:
⬇️ Trim CRWD MNDY MDB
⬆️ Add NET SNOW TSLA AXON SHOP GTLB
July:
⬇️ Trim NET MDB
⬆️ Add CRWD
September:
⬇️ Trim SNOW MELI TSLA NET MNDY ZS CRWD
⬆️ Add SHOP GTLB
✅ New NOW ~3.7%
✅ New IOT ~2.4%
October:
⬇️ Trim AXON NET TSLA
⬆️ Add MELI GTLB
November:
⬇️ Trim AXON TSLA TTD
⬆️ Add MELI NOW NET
December:
⬇️Trim NET DDOG TTD TSLA AXON ZS
⬆️ Add SNOW CRWD MELI NOW GTLB IOT
Key reasons for changes in my investment portfolio: Increase positions with strong Q3 reports, averaging down on my top 10 positions, and trimming large positions where Q3 results were just "good."
⬇️ Positions Reduced:
NET: The position grew significantly in size due to stock price appreciation.
DDOG: Similar to $NET, its weight in the portfolio increased considerably after a rise in share price, making it one of the largest positions.
TTD: Multiples valuation increased significantly, prompting me to trim the position slightly.
TSLA: The stock price has doubled since its October low. High expectations are now priced in, so I decided to reduce the position slightly.
AXON: Q3 results were mediocre, with noticeable deceleration in Axon Cloud growth. Despite this, the stock price rose significantly and is now trading at historically high multiples for the company. I trimmed the position due to overvaluation.
ZS: Disappointed with the Q3 report. The company needs to demonstrate that its competitive position remains strong. Revenue growth is slowing, as are billings, with no visible improvement in RPO growth, which is flat compared to the previous quarter.
⬆️ Positions Increased:
SNOW: Delivered an excellent quarterly report across all metrics. Investor expectations were low, which led to a significant post-earnings price increase. Despite this, the valuation remains attractive. Leading indicators like billings growth, RPO growth, and new customer additions remain strong. I significantly increased the position, now among my top 3 holdings.
CRWD: The company demonstrated a proactive response to the July 19 incident, showcasing business resilience and the stickiness of its Falcon platform. I decided to add slightly to my position.
MELI: Concerns over inflation in Brazil and currency risks caused the stock price to drop. The company's valuation is at historical lows. Adjusted for FX-neutral metrics, revenue growth has only slightly slowed. As the market leader in Latin America, $MELI continues to strengthen its competitive edge. I consider the stock undervalued and added to my position.
NOW: The company delivered strong Q3 results, and guidance for the next quarter suggests accelerating revenue growth. I increased my position.
GTLB: Revenue growth is accelerating, and GitLab Duo is delivering strong results. Leading indicators like billings and RPO growth, as well as new customer additions, remain at high levels. I significantly increased my position.
IOT: A calendar anomaly with an extra week in last year’s Q4 skewed growth metrics. Adjusting for this, revenue growth is expected to slow slightly to 33%. RPO and cRPO growth are outpacing revenue growth, and the company added a record number of new customers (excluding the additional week from the prior year). Business fundamentals are strong, and the stock price has declined, normalizing valuation. I decided to significantly increase my position.
Commentary on my holdings:
Monday MNDY
Monday Recognized as a Leader in Gartner Magic Quadrant for Collaborative Work Management
monday.com has been named a Leader in the 2024 Gartner Magic Quadrant for Collaborative Work Management for the second consecutive year. The company earned the furthest position for ‘Completeness of Vision’, highlighting its innovative approach to supporting complex workflows at scale.
monday.com strengthened its standing by being named a Leader in Gartner's Magic Quadrant for Adaptive Project Management and Reporting in September 2024, marking the third consecutive year of recognition. The company was positioned highest for ‘Completeness of Vision’ and ‘Ability to Execute’ in both categories.
Crowdstrike CRWD
CrowdStrike Recognized as AWS 2024 Global Security Partner of the Year
CrowdStrike was honored as the AWS 2024 Global Security Partner of the Year, along with awards for AWS North America Marketplace Partner of the Year and AWS LATAM Public Sector Technology Partner of the Year. These accolades underscore CrowdStrike’s pivotal role in securing innovation on AWS and highlight its deep collaboration in technology and go-to-market efforts.
CrowdStrike Expands Integration with AWS to Secure AI Innovation
At AWS re:Invent 2024, CrowdStrike announced an expanded partnership with AWS to deliver end-to-end security for AI innovation in the cloud. The CrowdStrike Falcon cybersecurity platform provides comprehensive visibility and protection across the entire AI ecosystem, including large language models (LLMs) and applications, enabling organizations to innovate securely.
The rapid adoption of AI and cloud technologies introduces risks such as tampering, data poisoning, and misconfigurations. CrowdStrike secures every stage of the software development lifecycle, including build, runtime, and posture management. Solutions like AI Security Posture Management and Falcon Data Protection protect AWS infrastructure and empower businesses to drive AI innovation without compromising security.
CrowdStrike launched AI container scanning capabilities and enhanced support for Amazon SageMaker within Falcon Cloud Security. These innovations help organizations detect vulnerabilities during the build phase, securing AI workloads before deployment. Enhanced SageMaker support allows developers to confidently build, train, and deploy machine learning models in production-ready environments, streamlining operations and reducing risk.
CrowdStrike expanded Falcon Identity Protection by integrating it with AWS IAM Identity Center. This provides a unified view of identities and advanced threat detection for identity-related attacks in the cloud. The integration complements CrowdStrike’s existing solutions for on-premises Active Directory and cloud identity providers like Okta and Microsoft Entra ID.
CrowdStrike’s expanded integration with AWS demonstrates its commitment to advancing secure AI innovation and protecting organizations against evolving threats. By securing workloads and providing robust identity management, CrowdStrike enables businesses to adopt AI with confidence and ensure resilience in the cloud.
CrowdStrike Named a Leader in 2024 Frost Radar for Cloud-Native Application Protection Platforms
CrowdStrike has been recognized as a Leader in the 2024 Frost Radar for Cloud-Native Application Protection Platforms (CNAPP) for the third consecutive year. The company was celebrated for its innovation and growth, driven by the ability to simplify and scale cloud security through a single, unified platform. CrowdStrike Falcon Cloud Security delivers unified code-to-cloud protection, stopping breaches across infrastructure, applications, data, identities, AI models, and SaaS environments.
CrowdStrike Secures C5 Certification to Expand in Germany
CrowdStrike has achieved C5 certification from Germany's Federal Office for Information Security (BSI), enabling it to meet stringent security requirements for public sector organizations. This certification strengthens CrowdStrike's position in Germany’s cybersecurity market and demonstrates its adherence to advanced data protection and compliance standards.
CrowdStrike Recognized as an MDR Leader
CrowdStrike has been recognized as a Customers’ Choice in Gartner Peer Insights 2024 ‘Voice of the Customer’, achieving a 96% Willingness to Recommend score. Customers highlighted Falcon Complete’s seamless integration, real-time detection, and expert-led services as transformative for their security operations.
Global and Industry Leadership Awards: Frost & Sullivan named CrowdStrike the 2024 Global Company of the Year for MDR, citing its visionary innovation and market-leading performance. Similarly, KuppingerCole’s 2024 Leadership Compass identified CrowdStrike as an Overall Leader, emphasizing its product innovation and ability to protect across the attack surface.
CrowdStrike Named Leader in Ransomware Prevention by GigaOm
CrowdStrike has been recognized as a Leader and Outperformer in the 2024 GigaOm Radar Report for Ransomware Prevention, achieving 10 perfect scores in key categories, including Predictive Analytics, Response Automation, and Ease of Management.
The AI-powered Falcon platform delivers comprehensive ransomware prevention by leveraging AI-driven threat detection, behavior-based analytics, and proactive threat hunting, stopping attacks across every stage.
CrowdStrike’s modular platform approach, extensive ecosystem integrations, and AI leadership, with innovations like Charlotte AI, enhance automated responses and decision-making. The recognition highlights CrowdStrike’s ability to stop ransomware attacks and set the benchmark for modern cybersecurity.
CrowdStrike Named Leader in Container Security
CrowdStrike has been recognized as a leader in the 2024 GigaOm Radar Report for Container Security, earning seven perfect scores in categories like Flexibility, Lifecycle Security Management, and Threat Intelligence.
Code-to-Cloud Security: Falcon Cloud Security delivers comprehensive protection across the entire software lifecycle, including development, runtime, and posture management. Its capabilities span dynamic container analysis, runtime protection powered by machine learning, and continuous image scanning.
Cloud Innovation: The report highlights CrowdStrike's ability to address enterprise cloud risks with advanced features, such as Data Security Posture Management (DSPM), ensuring full-spectrum protection.
Seamless Integration: CrowdStrike integrates effectively with CI/CD pipelines and DevOps tools, enabling continuous monitoring, vulnerability management, runtime protection, and automated compliance across cloud environments.
CrowdStrike empowers organizations to scale securely by providing complete visibility and protection for containers, Kubernetes, and cloud applications.
Zscaler ZS
The company reported its third quarter of 2024 results.
Thoughts on Zscaler ER $ZS:
🟢 Pros:
Revenue rose by +26.4% YoY, a decline from +30.3% last quarter. If the company exceeds its forecast in a similar fashion, revenue growth will stabilize at +25.3%, which indicates consistent performance.
DBNR (Dollar-Based Net Retention Rate) is at 114%, a strong metric, though slightly down from 115% last quarter.
The company is improving margins and profitability, with a record Free Cash Flow (FCF) margin and strong Operating Margin.
Q3 revenue guidance was beaten by +3.6%, and full-year guidance has been raised by +1%.
R&D expenses as a percentage of revenue have increased, while SG&A expenses have decreased, showing that the company is investing in product improvements.
RPO growth is at +26.4%, slightly higher than last quarter and aligned with revenue growth. Deferred revenue growth at +27.5% also exceeds revenue growth.
ZPA (Zscaler Private Access) accounted for 40% of new and upsell business, highlighting its importance in the product portfolio.
🔴 Cons:
Customer growth with $100k+ ARR added was +65, the lowest growth recorded.
Billings growth slowed significantly to +13%, which is below revenue growth.
🟡 Neutral:
Gross margin slightly decreased compared to the previous quarter.
Net New ARR added was weak at +140, representing a -16% YoY decline.
Weak growth in customers with $1M+ ARR, with +18 added, roughly the same as last year’s +19.
SBC/Revenue (Stock-Based Compensation as a percentage of revenue) remains high at 26%, with basic shares up +3.3% YoY.
Market Reaction to Earnings Release: The stock price declined by -8% following the earnings release.
Nokia Partners with Zscaler to Advance Security and Cloud Transformation
Nokia is implementing Zscaler’s Zero Trust Exchange platform to modernize its security infrastructure and align with its cloud-first strategy. By moving away from traditional firewalls, Nokia aims to strengthen cybersecurity, reduce latency, and boost operational efficiency.
Shopify SHOP
Shopify Merchants Set Record Sales During Black Friday-Cyber Monday
Shopify-powered merchants achieved a record $11.5 billion in sales over the Black Friday-Cyber Monday weekend, marking a 24% increase from 2023. The event saw participation from over 76 million customers worldwide, with sales peaking at $4.6 million per minute on Black Friday.
Shopify supported 16,500 entrepreneurs making their first sale and enabled more than 67,000 merchants to achieve their highest-selling day ever. Popular product categories included clothing, cosmetics, fitness and nutrition, and activewear, with the average cart price at $108.56.
Cross-border orders represented 16% of all global sales, while sales via Shop Pay grew by an impressive 58% year-over-year. Leading markets included the US, UK, and Australia, with cities like Los Angeles, New York, and London topping the sales charts.
Shopify processed 57.3 PB of data over the weekend, handling 1.19 trillion edge requests and 10.5 trillion database queries, demonstrating the platform's ability to manage immense demand with unmatched reliability and technical performance.
Gitlab GTLB
AWS and GitLab Announce AI Integration for Streamlined Software Development
AWS and GitLab have introduced an integrated offering combining GitLab Duo with Amazon Q to enhance developer productivity and accelerate secure software delivery. The collaboration, announced at AWS re:Invent, integrates Amazon Q’s autonomous AI agents with GitLab’s DevSecOps platform, creating a seamless AI-powered development experience.
The solution addresses fragmentation in software development by enabling developers to complete complex tasks directly within the GitLab platform. GitLab Duo with Amazon Q simplifies workflows and improves efficiency, helping organizations deliver secure software faster. It processes feedback in real time, generates unit tests, and modernizes codebases, such as upgrading Java applications to Java 17 to enhance performance and security.
The integration builds on GitLab’s Ultimate tier, allowing customers to leverage AI for optimizing code quality, automating security reviews, and enhancing compliance. It uses Amazon Q’s advanced capabilities to assist in managing routine DevSecOps tasks, enabling developers to focus on innovation. GitLab Duo’s comprehensive platform enhances productivity by consolidating tools, a critical feature as over 54% of developers use up to 14 tools for software development.
Volkswagen Digital Solutions and Mercedes-Benz’s MBition highlighted the integration's ability to reduce friction in daily tasks, improve feedback cycles, and boost code quality at scale. According to GitLab and AWS, this partnership empowers organizations to innovate faster while maintaining robust security and compliance standards.
GitLab Names Bill Staples as CEO
GitLab, announced Bill Staples as its new CEO and board member, effective immediately. Staples succeeds co-founder Sid Sijbrandij, who steps down to focus on his health. Sijbrandij transitions to executive chair of GitLab’s board. His cancer treatments are progressing well, with a goal of full recovery.
Godfrey Sullivan, GitLab’s lead independent director, emphasized Staples’ strong track record in scaling enterprise software organizations and driving innovation, positioning him as the ideal leader for GitLab’s next phase of growth.
Staples, former CEO of New Relic, significantly increased the company’s enterprise value by accelerating revenue and profitability. With nearly 30 years of experience, including leadership roles at Microsoft and Adobe, Staples has built and scaled multi-billion-dollar developer platforms. He expressed enthusiasm for leading GitLab and helping customers accelerate innovation and drive business value.
Mongodb MDB
MongoDB Expands AI Applications Program with New Partners and Capabilities
MongoDB announced the expansion of its AI Applications Program (MAAP) at AWS re:Invent, welcoming Capgemini, Confluent, IBM, QuantumBlack, AI by McKinsey, and Unstructured to its ecosystem. Since its launch earlier in 2024, MAAP has helped over 150 organizations innovate with AI, offering advanced integrations and solutions. Notable successes include CentralReach, which optimized its data aggregation for better clinical outcomes, and IndiaDataHub, which accelerated AI-driven sentiment analysis using MongoDB Atlas and Meta's AI models.
The partnership with Meta to support developers using Llama AI models further enhances MongoDB's offerings. MongoDB plans to implement seamless mapping to LlamaStack APIs, enabling developers to build AI applications faster. Recent advances, such as vector quantization in MongoDB Atlas Vector Search, reduce costs while preserving performance, empowering developers to scale AI applications efficiently.
The MAAP program provides organizations with access to reference architectures, unified support, and integrations with over 40 leading AI companies, including Astronomer, Arize AI, and CloudZero. This ensures customers have the flexibility and tools needed to build cutting-edge AI solutions tailored to their needs.
Samsara IOT
Samsara Expands AI Capabilities with Samsara Intelligence
Samsara introduced Samsara Intelligence, an advanced AI suite designed to enhance operational safety and efficiency. Powered by the largest connected operations dataset globally, with over 70 billion miles driven, 265 million digitized workflows, and 10 trillion data points processed annually, it combines AI-driven insights with practical applications tailored for operational teams.
Samsara Assistant Delivers Critical Information
Samsara Assistant, a generative AI tool, provides immediate answers to operational challenges. It identifies vehicles with severe fault codes, tracks disruptions like unexpected stops, and highlights top-performing drivers. Leading companies like Performance Food Group are leveraging Assistant to improve management productivity by delivering fast and precise insights.
Intelligent Experiences Transform Decision-Making
Intelligent Experiences integrates AI-powered insights into the Samsara platform, enabling users to optimize processes. Its capabilities include visual intelligence, which identifies hazards or measures capacity from images, and positive recognition, which engages and rewards safe drivers. The AI Course Builder creates training modules from policy documents to streamline compliance and safety initiatives.
Fraikin Group Expands Collaboration with Samsara to Drive Fleet Digitalisation and Decarbonisation
Fraikin Group, Europe’s largest full-service operation lease company, is extending its partnership with Samsara to integrate advanced AI technologies into its 60,000-vehicle European fleet. Following successful deployment across 5,000 vehicles in the UK, Fraikin is scaling its use of Samsara’s real-time data and telematics to optimise fleet operations, enhance maintenance, and improve fuel efficiency.
By integrating Samsara’s technologies into its flagship platform, NeXa, Fraikin delivers enhanced fleet management capabilities. Real-time tracking of vehicle health and actionable insights reduce downtime and streamline operations. This integration empowers fleet managers with precise data to improve operational efficiency while lowering costs.
Samsara Recognized as a Great Place to Work in Mexico
Samsara has earned the Great Place to Work Certification in Mexico, with 90% of employees affirming it as an excellent workplace. This milestone reflects the company’s commitment to fostering a supportive and engaging work environment.
Samsara Enhances Safety and Efficiency for Trayecto
Trayecto, Mexico's largest freight transport company, achieved a 90% increase in asset recovery and an 83% reduction in vehicle recovery time by leveraging Samsara's Connected Operations Cloud. Samsara provided real-time data, AI dash cameras, immobilizers, and customized alerts to standardize operations, improve safety, and boost ROI.
The partnership enabled Trayecto to gain full visibility over assets and driver behavior while addressing theft challenges. Recognized for its safety initiatives, Trayecto earned the Excellence in Physical Security award in the 2024 Samsara Connected Operations Awards.
Thank you for reading!
Follow me on X/Twitter for frequent updates on key news: @Sergey_Opl
For portfolio changes, follow me on SavvyTrader, where you'll find: current portfolio holdings, portfolio performance, trade alerts, and trade history.
Past recaps:
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
Disclaimer: This portfolio summary is for informational purposes only and not investment advice. Opinions are my own; please conduct your own due diligence.
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