M&M Lion Fund
Small-Fund Portfolio Manager Since 2023, IE Business School & Javeriana Background
Veeva is one of the most investible SaaS names thanks to the industry it serves and its GAAP margins. Its legal battle with IQVIA appears to be over, and the two now partner in many areas, with IQVIA joining Veeva's CRO clinical data partner program. @JaredSleeper notes Veeva's 29% GAAP operating margin and $3.3B of ARR growing 16% a year. x.com
Veeva Systems looks very interesting because its market-maturity and competition risks look more than priced in. The debate over those risks is unsettled, and Salesforce is going the wrong way, to Veeva's benefit. It is unclear AI is really a risk in a high-regulatory-barrier industry like Veeva's. It trades at 14.7x free cash flow burdened by $1.2B of stock-based compensation. "Risk more than priced in" is not a thesis that works in the short term. x.com x.com
Veeva Systems remains a beaten-down healthcare SaaS leader that the market is pricing as if the business were broken, a view strongly disputed here. It ranks among the best risk/reward setups found in a search of beaten-down SaaS names. x.com
Veeva Systems will probably be one of the first companies to deliver real AI benefits to its clients and customers. Its latest report was excellent, with growth hitting solid double digits in everything that matters, and the stock rose 6-7% after hours. The weekly chart shows possible resistance around $263. x.com
Veeva Systems looks attractive based on a deep-dive analysis by @hollertotide, described as fascinating and as alpha. x.com
Software's relative strength and sound finances make institutional rotation from semis plausible. It could lead while semis consolidate, despite slow growth at some firms; the market rewards cash flow, healthy balance sheets and manageable debt. Salesforce, ServiceNow, Palantir, Shopify and Workday hold up; SAP's cloud and AI shift, Instacart's massive 10-month base, Veeva's massive five-year base and Atlassian's Stage 2 strength add to the case. Semis may still rally; the view can change. x.com … Show more
AI has erased engineering complexity as a SaaS moat, so software survives only with compliance or data lock-in. Tyler Technologies, Veeva and Guidewire are anchored in government, pharma and insurance rules, where leaving means a compliance audit; Veeva's revenue rose 16% while its stock fell 25%. Palantir's ontology locks in customer data. Salesforce, Workday, Adobe and ServiceNow are seat-based with neither moat, and BlackLine and nCino, though regulated, never went AI-native. x.com
CrowdStrike, Cloudflare and Shopify are priced too far ahead of reality, so incredible businesses with incredible managers can still be poor investments. If CrowdStrike reaches $7–8B of revenue and $2–3B of profit, paying $220B leaves little room for error or extraordinary returns. At stretched valuations the stock usually either falls hard or goes nowhere for years while fundamentals catch up, as happened with Veeva, Amazon, Tesla, MSCI, FICO and S&P Global. x.com
