Compounders' Cup Quarterfinals Preview
The Recap
This past week our field narrowed from 16 to 8 stocks. There were no major upsets, but it sets up for some tough decisions this week.
Closest Matchup
The closest matchup this week was the 8 vs. 9 poll. 9 Roku just snuck by 8 Pinterest by collecting 51.5% of the vote.
Both of these companies have been somewhat under the radar compared to many of the favorites on FinTwit despite amazing years.
YTD Returns:
Pinterest - 274%
Roku - 149%
This time the voters went with Roku and the growing connected TV industry. Next week Roku will go head-to-head with #1 seed, Sea Limited.
Biggest Surprise
Although it is not a complete surprise, I find it noteworthy that voters expect Shopify to outperform Fastly next year. As I am sure you remember, Fastly was the MultiBagger Madness champion, but in The Compounders’ Cup, it has been eliminated in the Round of 16.
Fastly has been on a nice run recently, but it has not fully recovered from its 50% October drop.
Biggest Blowout
The biggest blowout this week once again featured Sea Limited. This time it was up against Southwest Airlines in a matchup that just about anyone could have predicted. Despite its potential as a recovery stock, voters heavily preferred Sea Limited and its trio of gaming, payments, and e-commerce. It is the #1 seed and the favorite to win the tournament.
Quarterfinals Preview
Matchup to Watch
This week, I am very excited to see which direction the Square vs. Crowdstrike poll goes. Square has made news in recent months with its investment in Bitcoin and the Megan Thee Stallion Bitcoin giveaway. Often times, a little good news can carry a stock through this tournament. However, it takes on one of the top performers of the year in cyber-security firm, Crowdstrike. Crowdstrike is up 312% YTD.
Schedule
There will be one matchup a day Monday - Thursday
Monday: 1 Sea Limited vs. 9 Roku
Tuesday: 4 Palantir vs. 5 Nano-X
Wednesday: 2 Square vs. 7 Crowdstrike
Thursday: 3 Teladoc vs. 6 Shopify
Follow Along
Thanks for following along! It makes it much more fun when you all are engaged like you have been. Fill out your brackets, keep a lookout for the polls on Twitter, subscribe on Youtube to get video updates, and keeping staying interested in the stock market!