posted by mark
on Sun, 06/16/2019 - 19:07
Chewy shot out of the gate like a rocket. It was offered at $22 and started trading at $36.
Here are some interesting points about this IPO that I see
- Revenues in 2018 were 3.5B which was 67% up from the prior year. But, the growth in 2018 was slower than the 134% growth they reported in 2017. That is a significant drop in ONE year.
- Chewy has never turned a profit.
- In 2018, they lost 267.9M. So they lost 7.65% on every dollar of sales. In 2017, they lost $338.1M.
- Chewy was bought as a wholly owned subsidiary of Petsmart only two years ago in 2017. Not much of a track record for such a premium valuation.
- The shares sold were for the wholly owned subsidiary of Petsmart. After the sale, Petsmart retains 77% of voting power. Buy a house. Don’t live in it yourself. Let them live in it and agree to not have much say in how they take care of it. WTF
Sounds to me like another dump on the public market - Petsmart still overwhelmingly controls Chewy, the model is losing lots of money and there is very little history to their track record.
Huh?!! The crazy world of IPO casinos. Good luck gamblers!
