Over the last few weeks, we've made some changes to the Spaceship Universe Portfolio.
We bought Etsy, DocuSign, and Schrodinger. We sold Sina, Twitter, Medical Developments, and Slack.
And now we’ve bought four more stocks.
Ahead, we discuss why we’ve invested in Roku, Ping An Good Doctor, Snap Inc., and Jumbo Interactive.
Roku
Roku is an operating system for smart TVs. What Android (Google) and iOS (Apple) are for smartphones, Roku is for TVs. Users can connect to the television ecosystem and stream more than 500,000 movies and shows through one device.
The company earns money when subscribers sign up to streaming platforms such as Netflix, as well as through its advertising business.
This means Roku is benefiting from the increased competition in the streaming world.
We like Roku partly because of its network effect; nearly one in three smart TVs sold in the United States runs Roku. We also believe the company benefits from being independent to the bigger tech players such as Amazon, Google, and Apple.
Roku has actually just announced that its Roku Channel will be available on Amazon Fire TV, giving it broader distribution and revenue that is no longer tethered to active accounts.
We believe Roku will continue to benefit from the trend towards streaming.
Having said that, one risk is customer concentration; the majority of streaming is done on a few services, including Netflix, Disney+, Hulu, and Amazon Prime.
But we feel this will reduce over time as more streaming services are launched.
Ping An Good Doctor
Ping An Good Doctor is the largest telehealth provider in China.
The company is partly owned by Ping An Insurance, which has 18% of the insurance market in China (as at 2018). Telehealth is likely to be a hybrid online/offline system, so it will need insurance relationships and access to hospitals, among other things, at times.
We like Ping An Good Doctor for a few reasons, not least of which is its opportunity.
Ping An Good Doctor has approximately 830,000 consultations/queries every day, which gives it a useful database to train AI for recommendations.
Also, online health appointments in China currently make up about 8% of total health appointments, and this is estimated to grow to 33% by 2026. There is competition in the market, with Tencent’s WeDoctor a competitor, but we believe that Ping An has an advantage due to its insurance connections and hospital relationships.
Snap Inc.
Snap Inc. is a social media company best known for creating the Snapchat app.
Since launching in 2011 — and turning down a US$3 billion offer from Facebook — it has become a leader in augmented reality, with 238 million daily active users.
We like Snapchat because its brand and network effect are increasing.
The company has the largest share of younger users compared to other social networks, reaching more 13 to 34 year olds than Facebook or Instagram. Moreover, its advertising is weighted towards direct response, meaning it converts at a high rate.
The company also has an opportunity with its Snap Minis, which are third-party apps that live within Snap’s Chat section, turning Snap into a “super-app” not unlike Tencent’s WeChat.
Of course, there is competition in TikTok, but we felt the opportunity outweighed the risk and decided to go ahead and buy Snap regardless.
Jumbo Interactive
Jumbo Interactive is a digital retailer of lottery games in Australia. Since 2005, they have been running the OzLotteries website, which sells Powerball and OzLotto tickets, among others.
We like Jumbo because it’s expanding into operating as a software platform partner to other lotteries, not just within Australia, but around the world. Instead of being a ticket reseller, it has become a software provider.
There’s opportunity here, as around 28% of lotteries in Australia are online, compared to 7% globally.
In addition, its new “Powered by Jumbo” division allows it to sell its software, as a service, to charitable lotteries, for instance, so they can be run online. The license is typically multi-year, and it receives a fee based on a percentage of sales.
As such, we decided to buy Jumbo.
Spaceship Origin Portfolio
For customers in the Spaceship Origin Portfolio, things are a little different.
The Spaceship Origin Portfolio portfolio is made up of around 100 of some of the largest ASX listed companies by market capitalisation, and around 100 of some of the largest global companies by market capitalisation.
If a company moves in or out of the Spaceship Origin Portfolio, it will be because its market capitalisation has changed, not because we have made the decision to buy or sell it.
The Spaceship Universe Portfolio invests in Roku, Ping An Good Doctor, Snap Inc., Jumbo Interactive, and Tencent at the time of writing.
The Spaceship Origin Portfolio invests in Ping An Insurance and Tencent at the time of writing.
Important! We’re sharing with you our thoughts on the companies in which Spaceship Voyager invests for your informational purposes only. We think it’s important (and interesting!) to let you know what’s happening with Spaceship Voyager’s investments. However, we are not making recommendations to buy or sell holdings in a specific company. Past performance isn’t a reliable indicator or guarantee of future performance.
