applied know how
I’m interested when reality and perception split. It appears to have divided in the auto industry.
Here’s some information about TESLA and the other car manufacturers in the world. Investors demand for Tesla shares has made it the most valuable car manufacturer in the world.
Here’s Teslas stock performance
Tesla sells very few cars
and the industry is not faring well after COVID
Not only that
Tesla earned the worst score among the 32 major vehicle brands in J.D.… Read more
Casper is in the business of marketing, advertising, and selling mattresses, duvets, sheets, and the like, and this is a low-margin business with no barriers to entry, open to the entire world, requiring huge marketing expenses to achieve any kind of growth.
Yet despite this it attracted a unicorn valuation of $1.1BIL in March 2019
Closing price after its first days of trading Casper’s market valuation of $312 million has collapsed by 72% from that unicorn “valuation” of $1.1 billion.… Read more
Uber has effectively sold itself to its investors as a tech company that simulates countless one-on-one negotiations between drivers and riders that, on an infinite timescale and with infinite patience is very much a technological product.
Except Uber isn’t quite doing this– its employing drivers who use their own cars to replace taxis (and delivery vans). Its clearly limited to the physical world, and isn’t infinitely scaleable at no cost.… Read more
I love the Hubert Horan series on Uber/Lyft and with other Unicorns -inhabiting their own enchanted gardens- venturing out into the real world can be a danger to their health. Here is his latest take down of Uber/Lyft source
Given Lyft’s terrible performance- down 45% on their IPO price- Uber abandoned its original $120 billion valuation objective. As it began its roadshow, it announced a $90 billion target ($55 per share) designed to raise over $10 billion in new investment.… Read more
If you are looking for an exceptional case study in reviewing a company strategy from its balance sheet and P&L, then look no further than here.
http://ben-evans.com/benedictevans/2014/9/4/why-amazon-has-no-profits-and-why-it-works
Benedict Evans has a great series of charts to enable you to understand why Amazon works.
Amazon hasn’t declared a meaningful profit, ever.
The company goes against all business tenets about returning profit to shareholders.… Read more