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Michael Kao, CIO at Akadia Capital, reflects on Medallia's acquisition and financial trajectory. Kao observes that the business had a low competitive moat and was bought and leveraged at its valuation peak in 2021, implying it was struggling before the recent AI-driven changes in the sector.
He references a recent interview, stating similar views about Medallia’s situation.
Kao’s recent commentary follows his previous focus on equity market strategies. Earlier, he highlighted taking a bearish stance on SPY by noting purchases of put spreads amid what he considered an overbought market. Kao has also discussed developments in equity analysis tools, referencing UrbanKaoberg’s introduction of custom formula tickers for equities.