In this company focused interview, we talk with Abdullah Al-Rezwan, known on Twitter as Mostly Borrowed Ideas. We focus on just two companies: Spotify and Lululemon. In our Spotify segment we cover what an investor would have thought in 2021 about Spotify without the ex post facto analysis and walk through developments in the audio company up to current day. Our Lululemon discussion is centered around the recent shift in market sentiment on the business and how valid the adverse risks are. 

You can find more about MBI and become a member to his research service here. 

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Show Notes

(0:00) — Intro

Spotify Case Study

(3:29) — Spotify Background and Original Investment Thesis

(14:38) — Comparisons to Netflix 

(21:41) — Spotify Advantages and Industry Dynamics

(30:42) — Summarizing the Spotify Thesis

(46:12) — What an investor could have seen in 2021

(53:32) — Pricing Discrimination and Pricing Power

(57:45) — Clarifying the Bull Case

(1:01:03) — Spotify Progress in 2023

(1:11:32) — Tech Risk Exposure

 

Studying the Lululemon Drawdown and Sentiment Shift

(1:19:24) — Shifting to Lululemon

(1:22:54) — Bear critiques are cliche

(1:26:33) — Why is the Business so Successful? 

(1:34:00) — Lululemon Bear Case and Rebuttal

(1:45:17) — Alo and Lulu Consumer Preferences

(1:47:14) — Risk and Making a Decision on Lulu

(1:56:45) — Conclusion

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Disclaimer

Nothing in this podcast is investment advice nor should be construed as such. Contributors to the podcast may own securities discussed. Furthermore, accounts contributors advise on may also have positions in companies discussed. Please see our full disclaimers here:  https://speedwellresearch.com/disclaimer/