Just rehashing the points from last week
- Expected revenue for 2021- $3.25 billion.
- Cash on balance sheet- approx. $2 billion.
- Revenue increased 75% compared to last year.
- WISH is also most downloaded e-commerce app in the world for last 3 years.
- In 2015, Amazon had offered $10 billion in cash but WISH walked away.
- Current Enterprise Value = $6 billion (Market cap.) – Cash (2 billion) = $4 billion
- Currently trading at 1.9 times expected 2021 revenues. With industry average of 4.5 times revenue, WISH is trading far below with industry average.
Wish is one of the largest and fastest growing global ecommerce platforms and even assuming 4.5 times industry average of 4.5 times revenue it should be trading at $24.
In addition, with economies reopening it will be easy to facilitate shipping and will favourably impact WISH. In addition, low income group which were adversely impacted will be back.
Moreover company is diversifying out of China and partnering with local stores to drive product sales. The company already has more than 50,000 local stores in 50 countries (like Brazil and Mexico and other Latin America and Europe) and company is planning to expand in Africa. This will continue growth in new markets to drive more revenues.
As you can see there are lot of tail winds for this stock and it can easily muti-bagger at this dirt cheap price.
You don’t make money without patience. Just buy and hold and let compounding do it’s magic.
WISH went through several rounds of raising capital through equity financing with company valuation way north of $10 billion. As a result, early investors are not going to sell at this level.
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