Hi All,
Welcome to our brief overview of portfolio news from the past few days.
a. Amazon Expands Pharmacy Services with In-Office Kiosks
Amazon is pushing further into the $500 billion prescription drug industry with the launch of Amazon Pharmacy Kiosks. This new service places automated kiosks directly inside select One Medical offices, allowing patients to pick up their medications within minutes of their appointment.
The value proposition is clear: it aims to solve the “last mile” problem in healthcare, where nearly one-third of prescriptions in the US are never filled because of the inconvenience of a separate trip to the pharmacy. The process is simple: after an appointment, a doctor sends the prescription to Amazon Pharmacy, the patient selects “kiosk pickup” in the Amazon app, pays, and receives a QR code to scan at the kiosk. For support, patients can connect with a licensed pharmacist via video or phone.
b. PayPal
Launches Ads Manager for Small Businesses
PayPal is making a move into the lucrative digital advertising space with the launch of PayPal Ads Manager. The new platform allows the tens of millions of small and medium-sized businesses (SMBs) on its network to monetize their store traffic by selling ad space on their own websites, effectively turning each one into a mini retail media network.
PayPal is leveraging its core strengths: a massive global merchant base, 25 years of payment experience, and a proprietary “transaction graph” that allows advertisers to target shoppers based on actual buying behavior, not just browsing history. For SMBs, the process is streamlined: they can opt in and integrate the service in minutes, set their preferences (e.g., block competitor ads), and start earning passive revenue from ads that PayPal serves automatically.
The benefit is twofold: it allows PayPal to capture a share of the advertising market by offering advertisers valuable new inventory, while also creating stickiness with merchants by giving them another monetization tool. As more merchants join, this creates a flywheel effect that strengthens the entire network.
Push with BNPL Rewards
PayPal announced that US customers will earn 5% cash back on all Buy Now, Pay Later (BNPL) purchases until the end of the year. This move is timely, as reports indicate 60% of shoppers are feeling increased financial stress heading into the holidays. The offer provides flexibility for customers while driving better conversion for merchants during this critical period.
This is a shrewd customer acquisition strategy: the 5% cashback offsets PayPal’s BNPL fee, effectively turning potential revenue into a marketing expense. It attracts first-time users, encourages repeat usage, and may reduce holiday ad spend.
c. Fortinet Report: AI is a Double-Edged Sword in Cybersecurity
Fortinet’s 2025 Global Cybersecurity Skills Gap Report highlights the growing crisis in the industry and AI’s complex role. In 2024, 86% of organizations faced at least one breach, with over half blaming a lack of skilled personnel.
Key insights:
Widespread Adoption: 97% of organizations use or plan to use AI security tools.
Critical Skills Gap: 48% of IT leaders cite insufficient AI expertise; notably, 76% of heavily attacked organizations already had AI tools.
Boardroom Blind Spot: Only 49% of boards fully understand AI-related risks.
The takeaway: cybersecurity’s future depends not just on AI tools, but on investing in talent to manage them effectively.
d. Evolution Wins Battle to Unmask Secret Client
Evolution has secured a final victory in its multi-year legal battle to unmask the mysterious client who commissioned the damaging Black Cube report in 2021. This is a reputational win for Evolution, which has always denied operating in sanctioned markets. CEO Martin Carlesund reiterated the company’s stance: “We block those countries and don’t want any traffic from there — we do everything that we should do.”
This legal victory should help restore investor confidence in Evolution’s compliance safeguards, which have long been an overhang.
e. Portfolio Update: Trimming Our AMD Position
This week, we made the tactical decision to reduce our AMD position to 5% of the portfolio. To be clear, our long-term investment thesis on AMD has not changed. However, the stock’s performance has been exceptional, delivering a 110% return in just 7 months. This represents roughly five years’ worth of our expected gains pulled forward into a very short period. Given this rapid appreciation, we believe it is prudent to realize some of these profits.
Currently, the AI narrative is running hot, and we feel that the market has priced in major near-term catalysts, including the landmark OpenAI partnership. While the stock could certainly continue to climb, we are choosing to de-risk by trimming our position.
That's a wrap. See you soon.