Regarding the first metric, TeamViewer discussed this in their recent earnings call stating that their ability to convert free subscribers to paid is weakening, so they’ll need to focus more on upselling existing clients.

Enterprise Customers (Subscribers with Annual Contract Value above €10k).Here’s a look at how three key metrics have changed since the last time we looked at TeamViewer. Similar to PTC, TeamViewer also combines IoT with an augmented reality offering that’s been formed through a number of acquisitions. In that piece, we talked about how remote connectivity would play a key part in the growth of IoT. We first wrote about TeamViewer nearly a year ago in a piece titled TeamViewer – A German Internet of Things Stock. Now, let’s restate our original thesis and look at how key metrics have changed over the past year. We’ve now accomplished our goal of establishing a position in the company and don’t see the need to overweight the position. That dollar value is almost exactly how much money we’ve invested in TeamViewer. Then, we multiply 3.03% times the total value of our portfolio. We determine a position size by first calculating “1 / X” where X is the number of constituents in our portfolio.

Right now, we’re down -36% on our TeamViewer holding with one position size worth of capital invested ( roughly 3.03%). Revisit original thesis and key metrics.Assess position damage and establish plan of action – keep buying or wait?.Whenever a stock starts hitting the skids, here’s what we like to do. We’ve asked ourselves “why is TeamViewer stock price falling?” a number of times, and so have our subscribers. People always ask Google “why is stock X falling,” but never “why is stock X rising.” That’s loss aversion on display, and we’re not immune to it. And that’s precisely what’s been happening with TeamViewer AG ( TMV.DE).

That’s not a bad thing, but it feels bad, especially if the stock keeps sliding slowly over time in a dramatic fashion. While we can’t explain why, as investors, we all know that this now “feels better.” When a stock keeps falling and falling, there’s a temptation to keep buying and buying. Put as much capital into the stock as your original purchase, and the loss decreases to -15%. If a stock you’re holding drops -30%, here’s how to make some of that pain go away. This is referred to as loss aversion, and it wreaks havoc when managing a portfolio. Studies show that the pain of losing is psychologically twice as powerful as the pleasure of gaining.

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