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IPO Duds
#21
(11-21-2020, 11:59 AM)vbin Wrote:
(11-21-2020, 03:46 AM)crimsonghost747 Wrote: I never really liked the idea of investing in IPOs. It's risky since you don't really have all the necessary information yet.
And like most of us here, I'm in this for decades so I tend to favor the more stable companies since a proper DGI portfolio WILL get me where I want to be eventually. Sure, it would be faster if I could find some IPOs that pop 1000% in a week.

But I have invested in HYLN and U.
HYLN because I believe they have a good concept and a CEO who can make it into reality. Competition is going to be fierce but I think they have a shot. I have quite a large position, some (or all) of which I will sell on the way up. (if that is the direction it goes to)

U because it's essentially a duopoly when it comes to gaming. Plus all the other potential uses for U. This I plan to keep for a long time.
What's the other company with U in duopoly? I have heard that before. I am not into gaming. But I can see the way world is going, gaming is going to get bigger and better. Stadia( Google's cloud gaming platform just sent me a $100 worth controllers for free t promote their platform. Tried it, good business model they have).

U makes gaming engine the way I understand, why valuation is so high? Just hype or they have an advantage?

Indeed, the main product of U is the unity game engine.
While there are many game engines around, it's pretty much a choice between Unity and Unreal Engine (by Epic games) for everyone who is not a big independent studio with millions of dollars of funding. These two have all the features you need and attractive pricing models which allow you to basically start your project without paying anything for the engine. (the developer starts paying when they start earning revenue)

The moat here is massive. Developing a game engine is an extremely time and resource consuming effort. We are talking several years of work by a full sized development team... at a minimum. Most (or all?) of the other fancy game engines apart from Unity and Unreal are ones that the big studios have developed for themselves and are keeping for their own use. 

That is for the game engine part. Of course there are other uses for Unity too but I don't really understand the advantages/competition on that side. I'm in this since I view Unity & UE having essentially a duopoly in game engines and as such they will both benefit significantly from the money that is flowing into the gaming sector as a whole.

There is most likely quite a bit of hype in the price but that seems to be the default for any tech stock in this market. I'm horrible when it comes to estimating any sort of value for companies like this, they are high growth and currently not profitable. So I really can't say if the valuation is crazy or not, I just like their business plan.
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#22
(11-22-2020, 12:37 AM)crimsonghost747 Wrote:
(11-21-2020, 11:59 AM)vbin Wrote:
(11-21-2020, 03:46 AM)crimsonghost747 Wrote: I never really liked the idea of investing in IPOs. It's risky since you don't really have all the necessary information yet.
And like most of us here, I'm in this for decades so I tend to favor the more stable companies since a proper DGI portfolio WILL get me where I want to be eventually. Sure, it would be faster if I could find some IPOs that pop 1000% in a week.

But I have invested in HYLN and U.
HYLN because I believe they have a good concept and a CEO who can make it into reality. Competition is going to be fierce but I think they have a shot. I have quite a large position, some (or all) of which I will sell on the way up. (if that is the direction it goes to)

U because it's essentially a duopoly when it comes to gaming. Plus all the other potential uses for U. This I plan to keep for a long time.
What's the other company with U in duopoly? I have heard that before. I am not into gaming. But I can see the way world is going, gaming is going to get bigger and better. Stadia( Google's cloud gaming platform just sent me a $100 worth controllers for free t promote their platform. Tried it, good business model they have).

U makes gaming engine the way I understand, why valuation is so high? Just hype or they have an advantage?

Indeed, the main product of U is the unity game engine.
While there are many game engines around, it's pretty much a choice between Unity and Unreal Engine (by Epic games) for everyone who is not a big independent studio with millions of dollars of funding. These two have all the features you need and attractive pricing models which allow you to basically start your project without paying anything for the engine. (the developer starts paying when they start earning revenue)

The moat here is massive. Developing a game engine is an extremely time and resource consuming effort. We are talking several years of work by a full sized development team... at a minimum. Most (or all?) of the other fancy game engines apart from Unity and Unreal are ones that the big studios have developed for themselves and are keeping for their own use. 

That is for the game engine part. Of course there are other uses for Unity too but I don't really understand the advantages/competition on that side. I'm in this since I view Unity & UE having essentially a duopoly in game engines and as such they will both benefit significantly from the money that is flowing into the gaming sector as a whole.

There is most likely quite a bit of hype in the price but that seems to be the default for any tech stock in this market. I'm horrible when it comes to estimating any sort of value for companies like this, they are high growth and currently not profitable. So I really can't say if the valuation is crazy or not, I just like their business plan.

great analogy. What other sector U is trying to get into(movies? Anime?). The way I understand gaming is that with gaming is you need a lot of capex to create new games(graphics, coding, algos, marketing) and yet a new game can go either way. Its always a big shot. Almost like creating a new movie at high budget. How does U solves these problems?
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#23
You don't necessarily need a lot of CAPEX. The big studios use a lot of money, but it's not necessary. There are a gazillion great games that have been made by a small group of people using their own free time. Or small studios only employing a few people. And almost all of these kind of projects are on Unity or Unreal, since they offer a great game engine in exchange for a cut in revenue.

I won't go into the game development details here as it's a pretty huge and complicated thing. Let's just say that for your regular dudes who wish to make a game without spending huge amount of money, you need to use a game engine instead of making one yourself. The large majority pick either Unity or Unreal since they are considered the best. They are free to start with, they have very good features and they are very flexible so they work well whether you want to create a fancy 3d first-person shooter for PC and/or the newest consoles or a simple building game for mobile devices.
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