Business
Google Near $23 Billion Deal for Cybersecurity Startup Wiz. Wiz reached $350 million in annual recurring revenue in 2023, which is not necessarily the same as having a full-year revenue of the same amount. It was valued earlier this year at $12 billion. What rationale could justify the $23 billion price tag? Aren’t there any other cybersecurity startups worth pursuing at lower prices? The problem with high price-tag acquisitions is that expectations for integration are also high and historical precedents show that it’s not uncommon for the acquirer to write off investments. Nonetheless, is this the sign that cybersecurity is a new arms race?
Orange Is the New Black. An interesting writeup on Alico, an orange producer from Florida.
Wedgewood Partners Second Quarter 2024 Client Letter. Wedgewood Partners had some nice things to say about Apple. The firm has been holding the stock for like 20 years and seemed to be early in realizing what Apple was doing even before iPhone. However, many investors were very bearish on Apple based on their illusion that Apple is “behind in AI” (whatever that means). Now, the narrative shifted and the stock is higher than ever, even after quarters of sluggish growth.
If you want to learn about the world of luxury watches and especially how Rolex is sold, read this writeup on Watches of Switzerland.
Wendover Productions released an excellent video on the struggle of budget airlines in the US. Once very profitable and successfule, budget airlines in the US have been fighting for survival since Covid. For multiple reasons. Passengers, after Covid, are more willing to pay more for better flying experience; which low-cost airlines are not necessarily equipped to take advantage of. Fuel was expensive for a few months in 2022. National airlines introduced their own version of no-frill fares to take on low-cost rivals and leveraged their advantages. Some low-cost carriers had to adapt and make drastic changes to operations when their inefficiencies and cracks in business model were exposed.
Brasada Capital published a nice summary of why they invested in CCC Intelligence Solutions (CCCG). CCCG is a B2B SaaS company that connects auto repair shops with insurance companies and helps smooth out the claim settlement process. Its software is used by the majority of insurance companies, giving CCCG the market leading position.
The Unbranding of Abercrombie The problematic mall brand pulled off the most exciting makeover in American retail. How? An interesting case study in which vagueness in branding is the key to Abercrombie’s comeback story.
Other Stuff I Find Interesting
($) The Deadly Mining Complex Powering the EV Revolution. Indonesia, like many other poor countries, needs to rely on its natural resources for economic growth. Nickel is an important element in batteries. In electric vehicles, nickel enables a longer travel distance over a single charge. However, a lot of that economic expansion comes at the expense of negative impact on the environment and human lives.
More than 40% of Japanese companies have no plan to make use of AI. I bet that not only Japanese companies, but also many firms from other countries don’t plan to use AI. The technology is expensive and it requires real investments to find a business use case and introduce AI to the existing work flow. Not everyone can afford such investments or have real business use cases for AI. It’s interesting that you probably won’t find a lot of companies that honestly admit that truth. Noone wants to appear as laggards. Noone wants to be seen left behind in the AI arms race. The companies in this survey responded on the condition of anonymity.
Meta is training its AI with public Instagram posts. Artists in Latin America can’t opt out. You can criticize the EU for its excessive red tape and hostile regulations, and you likely won’t have a lot of pushback. They deserve it. On the other hand, this serves as an example, among many, that the lack of regulatory oversight will lead to corporations abusing their power. In that case, consumers and users will suffer. And that shouldn’t happen.
Morgan Housel compiled a few quotes that got him thinking.
Are fermented foods like kombucha actually good for you?
Stats
The US now has 183,000 electric charging ports
“Tiffany’s US customers now spend $2,000 on average”
One thirds of Americans have no confidence in higher education. The figure is 50% among Republicans
17.8 million people visited Japan in the first half of 2024
USPS’ Informed Delivery service has 62.4 million active users as of March 2024
Minh Quang Duong 
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