While Powell has opened the door for a FED pivot, he was overall more hawkish than I expected or think would be adequate for the economy. I believe the FED’s policy is about to significantly harm the economy. Even if / when the FED stops raising rates at some point in 2023 or even reduces them, it will take quite some time for the economy to recover from the harm done. Possibly too much time for some less well financed companies. I have thus decided to sell my position in Carvana and to slightly reduce Opendoor.
I have also sold Kahoot after the company reported disappointing numbers today. Management has reduced the full year guidance from $190m to $175-180 “…due to Macro.” But for now management still sticks to the unrealistic 2025 ambition to achieve $500m in revenues. Looking at the core business, there is even negative growth in some Kahoot segments. At this point, I have lost trust in the management and thus decided to move on.
I used the funds to buy a 6% position in Google and a 6% position in Amazon, which I consider financially stable enough to weather any macro harm by the FED policy, while google may even significantly buy back shares. Moreover, I believe both companies are now highly attractive after being down more than 40% year to date.