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Monday, November 9, 2026

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Roblox: Capture This Moment

Roblox’s Q3 FY26 DAUs fell year over year for the first time, while bookings declined 12% to $1.7 billion.

RBLX $35B
TSOH Investment Research

From X

@aleabitoreddit

Serenity on X

Yes, I like $SIVE. It's a fun company to cover, since there's a lot of supply chain alpha here. But the company completely Tall Poppy Syndromed itself last earnings. And it's clearly shown in the drawdown. Bit of a longer consolidated thought and some scattered bits of supply chain info: - Sivers has 100M CW DFB laser capacity coming online Q4 2027 during an industry shortage. And very large allocations from foundries online (they were doing these quals with Win Semi + 2 others back in 2023/2024), so they can actively monetize the bottleneck today. The other interesting reason why bottlenecks are important (aside from ASP hikes), is because qualifications convert much faster + more likely given incentives around supply scarcity. -> As one example, module makers have expanded the amount of suppliers, eg. (lightcounting cited companies expanding to 5-7+ suppliers from 2-3). Innolight, for example last month responded to a question addressing tight 1.6T DFB laser supply in 2026–2027: - Innolight was actively introducing new suppliers last month and are planning to sign 2-3 year-long contracts to lock upstream capacity -> This is while your biggest merchant laser companies making up the world's 600m+ EML/CW laser capacity like $COHR have redirected lasers to their own programs. $LITE sold out into 2029, Landmark also locked a lot of their capacity into 2027-2029. $AAOI was an expected player, but ended up redirecting lasers into their own transceiver programs too. And this coincides with times $SIVE has tremendous capacity available now + actively engaged with Chinese pluggables players (not saying it's Innolight, but just shows Chinese makers like Cambridge/Eoptolink are actively trying to secure laser capacity). - Fun to note, before $JBL was announced, Sivers had and has ongoing direct engagements with hyperscalers as well. We saw that hyperscalers approached $MTSI and $AAOI for laser capacity from their earnings transcripts (and hilariously got turned away from AAOI due to shortages). So the odds pluggable makers or hyperscalers end up converting to capacity agreements with $SIVE seems a materially higher. Just a little rant: for all the sellside/retail trying to model revenue, you can't just slap on a stupid 25-35% CAGR on NRE revenue since it's close to 0 revenue now. Especially when they scale up to maybe 300M laser capacity (extrapolated from 2:1 external/internal capacity). It's also not the same as $POET having OE packaging capacity at scale, since lasers are in a genuine shortage. So capacity is more likely to convert like how $AAOI is sold out, $LITE is sold out into 2029 We've already seen what revenue that laser capacity brings in since $LITE cited $5B in laser capacity from just one 2028 fab alone in Greensboro (on higher end ranges). And whatever lasers Sivers sell, they're targeting ~50-60+ blended gross margins long term on maybe $3-6 for lower range lasers to $6-$12 for high end custom deployments. But no disclosures around capacity -> revenue conversion yet from Sivers. Now here's the thing people don't really understand, "why no revenue?" for current opportunities? $SIVE pre 2024 focused on custom development for future architectural shifts like CPO. For custom deployments: - We finally got conversion from 1 of their 4 or so lidar customers this week with ~ $AEVA. - ~ $APPL was confirmed ongoing earlier this year with an explanation that "It takes tremendous amount of trials and algorithms way beyond just what we supply to them". - All their customers from 2023-2024 like Ayar and 3 others, probably achieve volume in 2028 as CPO takes off. Custom high end lasers programs are extremely sticky but take many years and are mainly NRE. And as seen with CPO scale up, faced delays with commercialization over the years. So $SIVE from the CEO shift in 2024 realized "okay" let's ramp revenue with mass commercialization products today like 70mW/100mW/200mW lasers for 800g/1.6T pluggables. And that's where they found $JBL and all your other large pluggable players today during the shortage. Now... the work Sivers did in 2023-2024 earlier: Such as $AAPL, Ayar, $AEVA, other lidar/CPO players. And their new mass commercialization opportunities like $JBL, $GFS, and many pluggables/NPO suppliers in engagement now. Have all their inflection points converges 2027 onward, which is why I find the company compelling. Where I think management went completely wrong was messaging and near-term execution: - Deciding to focus on current tiny contracts like Seminex, AllSpace, Tachyon orders felt like the entire focus recently in earnings, shareholder letters, and media commentary -> Brutal honesty to $SIVE management, majority of Western audiences literally don't care and it's immaterial to the valuation. $SIVE moved 0% on all of the Seminex/AllSpace/Tachyon order announcements, and even dropped in price. But rallied like 50% on $GFS and something similar on $JBL announcement. The reason why most took long positions in the first place was CPO. So if $SIVE wants to go answer questions to Swedish media about "Why are you bleeding out" and defending that with cellular orders explaining pipeline conversion. That's not going to help people stay long during drawdowns. -> Second part was not committing to NASDAQ listing in a certain timeframe and actually executing. - If there's delays, sure, just say it, but non-committal lawyer-like language is infuriating to hear, especially from the CFO. I think they'll have that opportunity next month earnings to correct everything. So wrapping up: - There's nothing I see remotely close to $SIVE, in terms of % of global CW laser capacity they're coming online with relative to MC. - They have a ton commercialization paths, from O-Net, $POET, $JBL, Ayar, $GFS, $AAPL, $AEVA, and many potential hyperscaler/pluggable engagements. Even if one or two fall through, the breadth of ongoing quals is so deep + current laser bottleneck is severe, that it's more likely than not many will convert to production. It's clear $SIVE wants to focus on dominating the laser chokepoint first, and ended up using their 700m SEK fundraise for capacity expansion. But they should focus on communicating the billions in potential economic scale from that laser capacity conversion. And execute on it.
@DeepSailCapital

Deep Sail Capital on X

$CRDO - Others have tried this already. $MRVL and $BDCM have offered merchant AEC DSPs for years. A cheaper merchant DSP hasn’t broken the integrated model so far. Credo’s moat is the system not just the DSP. Credo owns qualification, SerDes, AEC patents, ETC which allow it to keep the full cable end to end. It has deep relationships with five hyperscalers and growing engagement with neoclouds. Anyone that knows the market knows $MXL might try to get a piece of the market but unlikely to get a material piece.

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Axon 3Q26 Business Update

Axon cut full-year guidance after delayed federal Dedrone contracts slowed 3Q revenue growth to 28%, while software and services grew 43%.

AXON $31B
Speedwell Memos 4 clicks

Trading Post November 5, 2026

MercadoLibre’s logistics expansion cut margins by 60 basis points, while Mercado Pago grew credit 62% with 7% NPLs.

MELI $77B
Cassandra Unchained 2 clicks

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