Chapter
Pair Trade Strategy for Long Microsoft and Long Google
13:04 - 18:30 (05:26)
A pair trade strategy for long Microsoft and long Google is a pretty obvious monopolistic trade. However, choosing two random companies like Airbnb and United Airlines for a pair trade is too random as they are in completely different businesses with different motivations, capital pools and stockholders.
Clips
Microsoft has set their sights on Notion after their acquisition of Slack which led to Slack's need for a protective sale to Salesforce.
13:04 - 15:46 (02:42)
Summary
Microsoft has set their sights on Notion after their acquisition of Slack which led to Slack's need for a protective sale to Salesforce. Notion will face massive headwinds due to their SMB classification and will need to move to the mid-market, making them a prime target for Microsoft's distribution advantage.
ChapterPair Trade Strategy for Long Microsoft and Long Google
EpisodeE54: Spread trading big tech, capital allocation, Zillow's misfire, Progressives suffer losses
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Comparing two random companies from unrelated industries in trading is not logical as they have different motivations, capital pools, and stock owners.
15:46 - 18:30 (02:43)
Summary
Comparing two random companies from unrelated industries in trading is not logical as they have different motivations, capital pools, and stock owners. It is like a movie set and not like the trading places movie.