Are you an entrepreneur? If so, you’re familiar with the notion of an “elevator pitch.” Be able to explain your business venture to someone in the time it takes for an elevator to move 10 floors. Investors should be able to do the same. We’re holding Confluent (CFLT) stock because the growth of AI doesn’t just demand lots of good clean big data, it also requires that data be processed at the speed of business. Confluent’s data streaming platform for enterprises makes this happen.
When we inevitably arrive at a world where everything has a digital twin, then all that data exhaust needs to be processed as it’s being generated. The sooner you can turn data into information and make it actionable, the more efficient everything will become. Today, we’re checking in with a company that provides some exposure to “the metaverse,” a future where everything is replicated in a digital world.
The Year-End Earnings Call
One thing we like about Snowflake (SNOW) is their consumption-based pricing model. If, as they say, big data will grow exponentially, then we’d prefer to have direct exposure to that growth via usage as opposed to linear growth tied to subscription revenues. Confluent’s latest earnings call highlighted three talking points, starting with their “transition to a fully consumption oriented business,” and then moving on to how they’re now “unifying data streaming with Kafka with stream processing via Flink.” In other words, they’re broadening the appeal of their platform by targeting a platform with a million downloads (Flink
