Those that think it's only about revenue may not k
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Posted On: 07/27/2022 5:01:28 AM
Those that think it's only about revenue may not know a lot about growth tech stocks. Sounds like investment advice from one of the fired brokers on the other channel. I can rattle off a bunch of examples. It's just the opposite at this stage.
Facebook was famous for not even having a clue how they would make money early on, but that didn't stop high valuation.
Discord also had no idea how to make money, but their focus was on growing as fast as they can. Finally figured out that they could offer a premium bundle to stuff they were giving away to the masses for free for years.
https://www.businessofapps.com/data/discord-statistics/
In 2017 after the 'pivot' they were valued at $725M. This is a company that had $5M of revenue with no certainty how they could even double that. In 2021, Discord was valued at $15 billion, doubling its value in under a year
https://techcrunch.com/2017/06/07/discord/
So if it's not just revenue. What is it?
1. Does your product work?
2. Is your product solving a need?
3. Is your product in demand?
4. How does your product stack up to other products in the market place?
5. How easily can your product be copied?
6. How easily can someone copy the success?
7. Is there a ceiling on your product potential growth?
8. Is your product too niche?
9. How fast are you adding customers that can be potential paying customers later
10. What's your customer feedback?
11. How can growth be accelerated?
12. How much additional capital do you need to double growth
13. What's the path to profitability
The last one few tech companies worry about early on. How long did it take Salesforce to be profitable? 15 to 20 years?
There are other factors as well and I could list dozens more, but for those that get hung up on, it's only revenue, maybe tech stocks not your bag.
Oh and for the questions above, I can answer each of them which is why I like to invest in tech stocks.
The question some of you may want to ask...
Can WhatNot answer those questions despite being valued at $3.7B. If I was an analyst following both, I'd do a side by side comparison and the light bulb will go off. Maybe I'll help them see the light.
Do your own DD. You may be much happier that way.
Facebook was famous for not even having a clue how they would make money early on, but that didn't stop high valuation.
Discord also had no idea how to make money, but their focus was on growing as fast as they can. Finally figured out that they could offer a premium bundle to stuff they were giving away to the masses for free for years.
https://www.businessofapps.com/data/discord-statistics/
In 2017 after the 'pivot' they were valued at $725M. This is a company that had $5M of revenue with no certainty how they could even double that. In 2021, Discord was valued at $15 billion, doubling its value in under a year
https://techcrunch.com/2017/06/07/discord/
So if it's not just revenue. What is it?
1. Does your product work?
2. Is your product solving a need?
3. Is your product in demand?
4. How does your product stack up to other products in the market place?
5. How easily can your product be copied?
6. How easily can someone copy the success?
7. Is there a ceiling on your product potential growth?
8. Is your product too niche?
9. How fast are you adding customers that can be potential paying customers later
10. What's your customer feedback?
11. How can growth be accelerated?
12. How much additional capital do you need to double growth
13. What's the path to profitability
The last one few tech companies worry about early on. How long did it take Salesforce to be profitable? 15 to 20 years?
There are other factors as well and I could list dozens more, but for those that get hung up on, it's only revenue, maybe tech stocks not your bag.
Oh and for the questions above, I can answer each of them which is why I like to invest in tech stocks.
The question some of you may want to ask...
Can WhatNot answer those questions despite being valued at $3.7B. If I was an analyst following both, I'd do a side by side comparison and the light bulb will go off. Maybe I'll help them see the light.
Do your own DD. You may be much happier that way.
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