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Editor's Note: Below is a video excerpt from an institutional conference call hosted by Technology analyst Ami Joseph (on January 16, 2018) discussing his ADT short thesis. Also below is a brief update on ADT from a note Joseph published earlier this morning. To read Joseph's institutional research notes on ADT email sales@hedgeye.com. |
Shares of ADT (ADT) are down 10% today post earnings last night, falling for a lot of the reasons Technology analyst Ami Joseph highlighted on his short ADT call last week (i.e. beating on revenue but not raising top end of revenue guide, inefficient SAC spend while most growth from pricing, and hitting a wall with churn reduction).
Joseph has been bearish on ADT since the company's IPO in January. Shares are down -40% since then. During his pre-ADT IPO institutional call (video excerpt below), Joseph explained why investors “should be selling on this IPO,” saying “this thing is going to end very badly."
Here's a brief update from Joseph in an ADT note published to institutional subscribers earlier today:
"Ideally ADT would acquire its way into a new business model. But they are levered…and 86% of the equity has to get digested in the market in the next 24 months."
In other words, the outlook isn't looking up for ADT. Check out the video below from Joseph's institutional conference call held on January 16, 2018.