1. ChatGPT slows to 12% month-over-month growth from 55% in March to 62% in February.
2. Cash App Inflows Accelerate to 27% y/y. Showing strength in fintech over traditional banks.
3. Amazon remains the app most used vs Walmart/Target/Etsy/Kohls. Peaking at around 31% power usage.
CHATGPT STILL HAS THE HYPE BUT MONTH-OVER-MONTH GROWTH SLOWED TO 12.6%
In November 2022, ChatGPT stormed the market with significant momentum, and demand for the platform has continued to increase due to the potential use cases enabled by the technology. Although there has been considerable hype around the platform, its utility is very clear, and investors are asking whether the companies they invest in are vulnerable to permanent disruption (all we really care about). To assess the long-term viability of ChatGPT, we think it is important to monitor usage trends, including web traffic and general interest levels.
Worldwide Google search trends for ChatGPT peaked in late March/early April, and web traffic growth has slowed to 12% month over month. While usage trends remain robust overall, this may indicate the first signs of a short-term peak in hype. However, it is worth noting that ChatGPT is a revolutionary technology with many potential applications far beyond what we are likely thinking about today.
CASH APP REMAINS SUPREME WITH ACCELERATING USAGE AND USERS.
The latest earnings report from Block (Square) highlighted that Cash App, the #1 finance app, and makes up over half of Square's gross profits, is experiencing incredible momentum.
SIDE NOTE: It's worth noting that Meta, Zillow, and Omnicell have also recently reported earnings and exceeded guidance, leading to favorable stock market responses. We will have more earnings summaries in the coming weeks.
Back to Cash App: Despite fears within the banking system, Cash App (and Block as a whole) is thriving, with 14 revenue streams generating sales of $100 million or more, up from 11 the previous year, and a user base of 53 million actively transacting on the platform. This success sets us up as investors well over the coming years and highlights the ability of new-generation wallets to execute well in the face of a traditional banking system showing cracks.
HOW IS AMAZON DOING IN THIS ENVIRONMENT?
Amazon reported earnings last week and its retail business performed well. We went ahead and looked into how they are performing vs peers in terms of power users. This power user terminology references app users that come to the app 15 or more days in a single month. Amazon is by far the leader here with 25-30% of users.
Disclaimer: Not a recommendation to purchase or sell any securities mentioned. This is for educational purposes only.
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