The Tournament
Have you ever wondered what the consensus champion of FinTwit would be? Which company are people most convinced will return the greatest returns over the next 10 years?
That is why I have decided to run a NCAA March Madness style 64-stock tournament to determine FinTwit’s champion.
It is an interesting time right now in the market. The S&P 500 has recently surpassed its previous all-time high. The Dow is exchanging three components. There is still much uncertainty surrounding COVID-19, and we are likely headed for one of the most contentious political cycles in recent memory.
I am fascinated to see which company FinTwit will choose.
The Mechanics
In each round, stocks will be matched up, head-to-head, in a Twitter poll with the question “Which stock will generate the greatest returns over the next 10 years?” The stock that gets the most votes will move on to the next round.
Rounds will take place as follows:
Play-in games: August 27th
Round of 64: Week of August 31st
Round of 32: Week of September 7th
Sweet Sixteen: Week of September 14th
Elite Eight: Week of September 21st
Final Four: Week of September 28th
Championship Matchup: Week of October 5th
Each Friday, I will be sending a post recapping the week that was and previewing the great matchups in the coming week.
The Selection Process
Stocks were chosen and seeded using a composite of Market Cap, EV/Sales, Operating Margin, and YoY Revenue Growth rate.
They were placed into four “regions:” SaaS, Commerce, Fun, and Grab Bag.
As with any selection process, there were snubs, and I am sure that some of you will have a bone to pick with the committee. There is no perfect way to rank a wide variety of stocks, but this was a somewhat scientific method that eliminated my own personal bias.
If you do think that a stock has been unjustly snubbed, I may have a solution for you.
The Play-In Games
Tomorrow (August 27th), I will be holding play-in games for the 16th seed in each region. I have not yet finalized the four teams that will be going head-to-head-to-head-to-head in each of those four matchups.
If you are unhappy with the bracket, or think that a company deserves to be included, this is your chance. Comment on this post or comment on Twitter which stock(s) you think deserve to be in that play-in game and which region they belong in.
I’ll be taking input before making final decisions for tomorrow’s matchups.
The Bracket
Finally, the moment you have been waiting for. I present the Multibagger Madness 2020 bracket!
SaaS:
1 Smartsheet Inc. (SMAR) vs. 16 TBD
8 CrowdStrike Holdings (CRWD) vs. 9 BlackLine Inc. (BL)
5 Zoom Video Communications Inc. (ZM) vs. 12 Snowflake Inc. (SNOW)
4 PagerDuty Inc. (PD) vs. 13 Bill.com Holdings Inc. (BILL)
6 Datadog Inc. (DDOG) vs. 11 Alteryx Inc. (AYX)
3 Fastly Inc. (FSLY) vs. 14 Anaplan Inc. (PLAN)
7 Vertex Inc. (VERX) vs. 10 Salesforce.com Inc. (CRM)
2 Elastic N.V. (ESTC) vs. 15 MongoDB Inc. (MDB)
Fun:
1 Nintendo Co. Ltd. (NTDOY) vs. 16 TBD
8 Tencent Holdings Limited (TCEHY) vs. 9 Peloton Interactive Inc. (PTON)
5 Tattooed Chef Inc. (FMCI) vs. 12 Netflix Inc. (NFLX)
4 Zynga Inc. (ZNGA) vs. 13 Apple Inc. (AAPL)
6 Camping World Holdings Inc. (CWH) vs. 11 Roku Inc. (ROKU)
3 Celsius Holdings Inc. (CELH) vs. 14 Facebook Inc. (FB)
7 Activision Blizzard Inc. (ATVI) vs. 10 Nikola Corporation (NKLA)
2 Take-Two Interactive Software (TTWO) vs. 15 The Walt Disney Company (DIS)
Commerce:
1 Etsy Inc. (ETSY) vs. 16 TBD
8 eBay Inc. (EBAY) vs. 9 Chewy Inc. (CHWY)
5 Alibaba Group Holding Limited (BABA) vs. 12 Sea Limited (SE)
4 StoneCo Ltd. (STNE) vs. 13 MercadoLibre Inc. (MELI)
6 Pinduoduo Inc. (PDD) vs. 11 Shopify Inc. (SHOP)
3 JD.com Inc. (JD) vs. 14 The Home Depot Inc. (HD)
7 Square Inc. (SQ) vs. 10 PagSeguro Digital Inc. (PAGS)
2 Wayfair Inc. (W) vs. 15 Five Below Inc. (FIVE)
Grab Bag:
1 Digital Turbine Inc. (APPS) vs. 16 TBD
8 Progyny Inc. (PGNY) vs. 9 KB Home (KBH)
5 2U Inc. (TWOU) vs. 12 Lemonade Inc. (LMND)
4 Ontrak Inc. (OTRK) vs. 13 Zillow Group Inc. (Z)
6 GrowGeneration Corp. (GRWG) vs. 11 Redfin Corporation (RDFN)
3 Rocket Companies Inc. (RKT) vs. 14 Teladoc Health Inc. (TDOC)
7 Domino’s Pizza Inc. (DPZ) vs. 10 NVIDIA Corporation (NVDA)
2 Flugent Genetics Inc. (FLGT) vs. 15 Berkshire Hathaway Inc. (BRK-B)
Final Call
I love competition, and I love the stock market. I think this could be a really fun experience for the whole community, and I am excited to moderate it.
But at the end of the day, I am only the moderator. If this is going to be fun and informative, we will need a lot of engagement, both in the polls and in cheering on our favorite companies. This is up to you.
I hope that we can all enjoy a little competition and learn something about FinTwit along the way. If there are any questions I can answer for you, or if you have concerns, please let me know. I am always open to new ideas and feedback.
Who’s ready to crown a FinTwit’s Champion?