Frankly this stock caught my attention because of its valuation. And I am trying to understand the business to make sense of it. I am looking for an honest opinion from those who have a bit of first hand or second hand exposure to this market.
I know there are different functions for different platforms, but there are a several dozens of companies out there saying “everyone is moving to our platform”. I watched an interview with $NOW's CEO and he was talking about companies using their platform to handle ESG objectives. I mean, to me that doesn't sound like the next microsoft. And ESG is a bubble in many ways.
Here are some fun facts about the company (in which I have no positions).
Price to Sales= 15X
P/E=436
Forward P/E = 60
Revenues growing at ~ 30%, which is a far cry from $SNOW for example.
Gross margin been stable at around 77%. But Operating margin at 4%.
They have been diluting every year with $150M worth of issuance/year.
You see where I am going with this….
How come this stock did not correct as much as the others did? Not a lot of p/e>100 walking around today.
For a company that is 100% growth (no meaninful cash flow yet) it is only down 24%! Outperforming the darlings and the solid tech…
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