Investment Guru Sahm Adrangi Examines the Impact of Ad Fraud

Speaking at the recent Kase Learning conference on short selling that was held at the Omaha Hilton, market guru Sahm Adrangi talked of emerging targets for unscrupulous stock pricing tactics, which is known as ad exchange intermediaries. During his presentation, Sahm explained the role of ad exchange intermediaries, companies that play the role of matchmaker between advertisers and websites. The websites meet specific thresholds about clicks and number of page views.

How Ad Fraud Works

Most of the companies that purchase advertising space assume that there are actual, live humans behind the numbers of clicks and views. However, Sahm Adrangi says that many of these statistics are inaccurate because they may be due to visits by bots and other automated systems. If the click and view numbers presented for purposes of selling ad space are being generated automatically in this way, it is viewed as ad fraud because the company that is purchasing space does not receive the service.

How False Ad Data Affects Shareholder Value for Exchange Intermediaries

From Sahm’s point of view, ad exchange intermediaries who offer ad space to their clients by inaccurate engagement and readership data expose themselves to the possibility of adverse stock price movements. The exposure results from the sale of misleading advertising services. If an investigation is carried out into the practices carried out by ad exchanges and revelations emerge of revenue being generated from falsified data, the shareholder value of the companies involved may drop drastically.

Sahm Adrangi’s Short Selling Activism

Sahm Adrangi has become globally renowned as a short-selling activist, thanks to his work in exposing Chinese firms suspected of fraudulent trading practices, resulting in the companies’ market value dropping by about $10 billion. The success of Mr. Adrangi’s short-selling campaigns has helped to increase the capital managed by his firm, Kerrisdale Capital, from just $1 million to about $180 million today. Despite his success, he continues to be active as a short-selling activist, often releasing informative reports that explain why specific companies may be overvalued, or if he believes that a particular industry is operating under pretenses.

https://www.benzinga.com/topic/sahm-adrangi

Shervin Pishevar Rocks VC Twitter with a February Tweet Storm

During Winter 2018’s middle, Shervin Pishevar blew onto Twitter with a noteworthy tweet storm. Pishevar, a longtime venture investor, was prompted by a Dow Jones Industrial Average downtown. On February 5, the Dow experienced its largest-ever one-day point drop.

More Losses

His first tweet of 50 was ominous. “Some thoughts on financial storms I seeing brewing ahead,” he wrote. “I expect (sic) 6000 (sic) point drop in aggregate in (sic) months ahead. Here’s why.”

Wall Street’s Many Problems

Next, Shervin Pishevar criticized multiple aspects of America’s investment landscape. “Scurry and scrabble (sic) for safety that is no (sic) where to be found. Every asset class is (sic) has proven to be overvalued.”

The early investor in Uber, PillPack and Airbnb belittled managed-future funds, exchange-traded funds, volatility indices and risk-taking loopholes like those that preceded 2008’s recession.

Silicon Valley Transcends Geography

Additionally, Pishevar reiterated a position he has shared multiple times in the tech-related news media since 2009. “As I’ve said before,” wrote Pishevar, “Silicon Valley is it (sic) longer a physical place but an idea that’s gone viral. Entrepreneurship is a movement.”

Immigration and Infrastructure Woes

Born in Iran, Shervin Pishevar exemplifies the American Dream. Thus, he dislikes Trump-era immigration policy. “But while we build walls (sic) physical and culture (sic) to keep out immigrant talent,” he wrote, “that talent doesn’t need to come here anymore.”

Further, Pishevar shared a link to a news story that covered a construction feat in China. In one night, a team of 1,500 workers built a large train station. “Meanwhile,” noted Pishevar, “our infrastructure is in tatters, decrypt (sic) and decaying. Our government and companies are are (sic) trapped in short (sic) term thinking.”

Modern Ma Bells

The noted investor also criticized the massive power that Alphabet, Apple, Amazon, Microsoft and Facebook wield in America’s tech marketplace. “We’ll have 5 (sic) robber barons destroying one start (sic) up after another,” he forecast.

If America’s leaders heed commentary like that in Shervin Pishevar’s recent tweets, the United States could chart a calmer course through this century’s seas.

https://medium.com/@shervin