Musings on Markets

FEBRUARY 8, 2024

Operating Performance/Profitability Narrative : While it is easy to attribute rising stock prices entirely to mood and momentum, the truth is that momentum has its roots in truth. I agree, but I remain a believer that intrinsic valuation is the only tool that you have for assessing whether g.

Marketing 141

Marketing Valuation Profit and Loss Advertising 141

Musings on Markets

SEPTEMBER 19, 2023

The Instacart Business Model The Instacart business model extends online shopping, already common in other areas of retailing, into the grocery store space. In the second, I will examine the forces that are pushing consumers to online grocery shopping, and the ceiling for that growth is much lower than it is than in other areas of retailing.

Profit and Loss 131

Profit and Loss Valuation Advertising Investments 131

PYMNTS

APRIL 16, 2020

As retailers look for a way out of an unprecedented cash flow crunch, many are slashing prices online and offering free shipping. The move is good for consumers, but for the retailers involved discounting is a double-edged sword. It’s the age-old argument for retail. retailers is down 64 percent over 2019. In the U.K.,

Retail 58

Retail Profit and Loss Valuation Sales 58

PYMNTS

MAY 24, 2017

With its parent company Rocket Sciences falling victim to financial losses and poor valuations with its startups, concerns of Delivery Hero’s success have risen and the pressure to do well is on. With size comes profitability and our focus is on building size and service levels.” billion (4 billion euros).

Valuation 53

Valuation Profit and Loss Startups Finance 53

Musings on Markets

OCTOBER 6, 2023

The resulting debate among accountants about how to bring intangibles on to the books has spilled over into valuation practice, and many appraisers and analysts are wrongly, in my view, letting the accounting debate affect how they value companies.

Valuation 126

Valuation Profit and Loss Accounting Investments 126

CFO News Room

FEBRUARY 4, 2022

suffered the largest-ever loss. companies as they reassess their valuations in anticipation of higher interest rates. Amazon relieved investors with a near doubling in profit in the holiday period and said it is raising the price of its Prime membership in the U.S. AMZN 13.54%. company—just a day after Facebook parent.

Marketing 130

Marketing Profit and Loss Advertising Valuation 130

CFO News Room

FEBRUARY 6, 2022

Some have become victims of rising interest rates , changing consumer tastes and stretched valuations. One of the biggest ruptures came after Meta’s disappointing earnings report when investors shaved more than $230 billion off the social-media giant’s market value, the biggest-ever loss for a U.S. AAPL -0.17%.

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Profit and Loss Marketing Valuation Technology 130

PYMNTS

DECEMBER 4, 2020

The pet retail chain is also moving towards profitability after net losses the past two years. It has also narrowed its losses by 77 percent to $20.3 The pet retail chain filed last month for an IPO pending an SEC review. It could be looking for a $6 billion valuation. . billion in the 10 months ended Oct.

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Profit and Loss Valuation Sales Retail 66

Musings on Markets

OCTOBER 4, 2021

In this post, I will look at the levers that drive Paytm's value, and you can make your judgments on where you think this offering will lead in terms of valuation and pricing. In 2014, it introduced Paytm Wallet , a digital wallet that was accepted as a payment option by leading service providers and retailers.

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Valuation Profit and Loss Investments Numbers 97

PYMNTS

DECEMBER 24, 2020

Here are a few of the more noteworthy ones, listed in order of valuation at the time of going public: 1. The company also reported a $23 million profit for the second quarter — its first black ink in history. billion — not bad, but far below what other major online retailers are seeing. Airbnb ($47 billion). million from $24.1

Profit and Loss 92

Profit and Loss Valuation eCommerce Planning 92

PYMNTS

MAY 12, 2016

However, when a retailer whose performance was once seen as a bellwether for an entire vertical starts to post poor results quarter after quarter, those investments are going to be in serious danger of drying up. Unfortunately, for Macy’s and several other retailers downstream, that seems to be happening.

Retail 40

Retail Profit and Loss Valuation Investments 40

Musings on Markets

JANUARY 5, 2024

In January 1993, I was valuing a retail company, and I found myself wondering what a reasonable margin was for a firm operating in the retail business. Valuation Pricing Growth & Reinvestment Profitability Risk Multiple s 1. Profit Margins 1. Historical Growth in Revenues & Earnings 1.

Valuation 105

Valuation Financial Analysis Analyzing Data Profit and Loss 105

PYMNTS

JULY 7, 2020

Public (retail) investors have been, generally speaking, bidding up shares, seemingly shrugging off the lingering impacts of economic headwinds and the pandemic. And the series of “down rounds” seem to imply there is a growing disconnect between public and private market valuations. billion valuation.

Profit and Loss 52

Profit and Loss Valuation Startups Marketing 52

PYMNTS

JANUARY 14, 2020

As it encounters pressure from SoftBank, its largest investor, to cut back on operating losses, budget hospitality company OYO is quickly scaling back. That funding has allowed many young companies to grow, but many times without much thought for profit per the report. The retreat of OYO has been fast and broad.

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Profit and Loss Valuation Startups Budgeting 52

PYMNTS

DECEMBER 26, 2018

“That said, longer term, Chinese companies have benefited from US listings, with the validation of more institutional shareholders and higher valuations.” . The high number of listings did not necessarily translate into strong performance, as investors saw losses of about 16 percent on those stocks.

Profit and Loss 53

Profit and Loss Entertainment Valuation Marketing 53

Musings on Markets

OCTOBER 19, 2021

It extends into materiality, by reframing that concept in terms of value, rather than profits, and connecting it to disclosure, with disclosure requirements increasing proportionately with the value effect. At the time, the view that disclosure requirements should be general, and apply to all companies, was rooted in the idea of fairness.

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Profit and Loss Accounting Numbers Valuation 96

PYMNTS

JANUARY 4, 2019

But the company recorded a loss of 800 million yuan ($116.34 There’s no point talking about profit,” he said, explaining that subsidies to attract more customers are still an important part of the company’s strategy for the next few years. million) in 2018, which Fei said was expected. and China International Capital Corp Ltd.,

Startups 55

Startups Planning Profit and Loss Valuation 55

PYMNTS

NOVEMBER 16, 2018

According to Fortune , the retailer reported that comparable sales fell 5.4 The company also reported a loss of $151 million. The results sent shares down 12 percent to an all-time low, giving the company a valuation of $384 million. The retailer trimmed 360 jobs, including 130 positions in its headquarters.

Profit and Loss 40

Profit and Loss Valuation Sales Retail 40

PYMNTS

MAY 7, 2020

Denver-headquartered Frontier Airlines is retracting its $39 “More Room” fee that guarantees passengers would sit between empty seats after receiving criticism from lawmakers for “profiting from safety.” Shuttered gyms are seeing memberships and on-site retail sales plummet, prompting many to shift their services online.

Profit and Loss 52

Profit and Loss Valuation Startups Sales 52

PYMNTS

MAY 6, 2019

million American depository shares (ADS) that will be priced between $15 and $17 per ADS in the IPO , which would give the company a valuation of between $3.48 Luckin was founded in 2017 and does not operate under a profit; the company warned it will continue to lose money for a while. The company said it will offer 34.5

Profit and Loss 43

Profit and Loss Valuation Startups Investments 43

CFO News Room

NOVEMBER 5, 2022

In the next post, I will use Facebook’s most recent earnings surprise to talk about inconsistencies in how accountants categorize corporate spending, and why these inconsistencies can skew investors perceptions of corporate profitability and financial health. billion in the third quarter of 2022. .

Marketing 130

Marketing Advertising Profit and Loss Investments 130

Barry Ritholtz

AUGUST 16, 2022

And so, you know, it was relatively, I wouldn’t say straightforward because I don’t think generating consistent profits has ever been something that’s so straightforward or so easy. And it’s always going to expect to lose some of those profits when the trend reverses, but still end up capturing the meat of the trend.

Profit and Loss 122

Profit and Loss Foreign Exchange Valuation Investments 122

PYMNTS

MAY 10, 2018

. “India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” Walmart CEO Doug McMillon said in a statement. What the Deal Will Mean. is known for. “As

Profit and Loss 43

Profit and Loss eCommerce Leverage Valuation 43

PYMNTS

OCTOBER 18, 2016

Grocery is the biggest category in consumer spending, and it is the next retail segment for the powerhouse to dominate following books, electronics and clothes. But the category of perishables marks new territory for Amazon, which The Motley Fool thinks could present a challenge and put a deep dent in short-term profits. In the U.S.,

Profit and Loss 57

Profit and Loss Valuation B2B Transportation 57

Musings on Markets

NOVEMBER 4, 2022

In the next post, I will use Facebook's most recent earnings surprise to talk about inconsistencies in how accountants categorize corporate spending, and why these inconsistencies can skew investors perceptions of corporate profitability and financial health. billion in the third quarter of 2022.

Advertising 105

Advertising Profit and Loss Investments Marketing 105

PYMNTS

MAY 25, 2016

billion valuation and shares trading at $14-16 a share. At its post-IPO valuation and share price, Etsy was roughly 52 times its adjusted earnings. A pretty impressive feat, considering at the time of its IPO Etsy wasn’t actually profitable yet. A little over a year ago, Etsy IPOed, mostly to a round of applause.

Profit and Loss 40

Profit and Loss Problem Solving Valuation Sales 40

PYMNTS

AUGUST 22, 2018

“We knew we wanted to build a nationally-known mass retailer,” Shah told The Boston Globe , noting that over the next ten years, Wayfair grew from a bootstrapped spare-bedroom operation to a business boasting up to a half a billion in annual sales. But its second problem attracts more attention — it is not, nor has it ever been, profitable.

Profit and Loss 40

Profit and Loss Retail Sales Construction 40

PYMNTS

JUNE 30, 2017

Turns out that investors get nervous when profits prove elusive. Thus, a possible tech stock market fizzle, should this indeed be a harbinger, where the $2 billion valuation is the same as implied by a Blue Apron funding round two years ago. The ascendant tech IPO that, well, snapped when it reported results?

Profit and Loss 40

Profit and Loss B2B B2C eCommerce 40

PYMNTS

JUNE 17, 2016

It surprised even us that after nine months of looking at the 650 sites that represent 70 percent of eCommerce volume and the review of 10K data points that big retailers did no better than small ones at optimizing their online sites for checkout. But now that we know why, hopefully, big retail can get to work on fixing the problem.

Profit and Loss 40

Profit and Loss Retail eCommerce Startups 40

PYMNTS

JUNE 24, 2016

But Facebook got the jump on the news cycle this week with the big news that it was opening up Facebook Canvas for retailers and other marketers on the site, as opposed to just advertis e rs. So, providing retailers with a new storefront in an ecosystem of 1.5 billion people a month who visit it.

Currencies 40

Currencies Profit and Loss Communication Retail 40

PYMNTS

APRIL 14, 2017

The firm got $600 million in the latest funding round, giving it an implied valuation of $7.5 Gymboree may be proved to be another retail fail, as the company is rumored to be prepping for bankruptcy amid a debt repayment scenario. After the withdrawal of the S7 from the market — and the resulting loss of $5.4

Profit and Loss 40

Profit and Loss Construction Valuation Sales 40

Musings on Markets

FEBRUARY 10, 2021

That may make sense if you are a retailer, and every investment you make is another mall store, but it clearly does not, if you are a company in multiple businesses (or geographies) and some investments are much riskier than others. The third is currency, with hurdle rates, for any given project, varying across currencies.

Hurdle Rate 52

Hurdle Rate Currencies Investments Valuation 52

Barry Ritholtz

DECEMBER 5, 2023

It was America’s largest retailer. And I sort of feel like, all right, some of you youngsters may not know this was literally the biggest retailer of its day. How, how are the higher rates affecting valuations amongst private companies? 00:37:43 [Speaker Changed] So there’s two issues that are affecting valuations.

Mergers and Acquisitions (M&A) 69

Mergers and Acquisitions (M&A) Investments Valuation Numbers 69

Musings on Markets

JUNE 23, 2023

From 2001 to 2020, revenue growth at semiconductor businesses has dropped to single digits, as higher demand for chips in new uses has been offset by loss of pricing power, and declining chip prices. Sustained Profitability, with Cycles! While revenue growth has picked up again in the last three years, the business has matured.

Valuation 103

Valuation Profit and Loss Investments Marketing 103

Musings on Markets

DECEMBER 10, 2023

Of course, and with small businesses, especially those built around personal services (a doctor or plumber’s practice), it is part of the valuation process, where the key person is valued or at least priced and incorporated into valuation. Who is a key person?

Valuation 128

Valuation Profit and Loss Entertainment Investments 128

Musings on Markets

JANUARY 29, 2021

This is a “short” sale, and if you are right and the stock price drops, you can buy the shares at the now "discounted" price, return them to the original owner and keep the difference as your profit. In a short squeeze, this cycle speeds up to the point that short sellers have no choice but to exit the position.

Profit and Loss 52

Profit and Loss Investments Valuation Sales 52

CFO News Room

NOVEMBER 5, 2022

While private valuations have soared in recent years, public markets continue to be less kind to RIAs. Outside of work, he serves as a volunteer financial planner and class instructor for non-profits in the Northern Virginia area. Enjoy the ‘light’ reading! Author: Adam Van Deusen. Team Kitces. He can be reached at [email protected].

Mergers and Acquisitions (M&A) 130

Mergers and Acquisitions (M&A) Profit and Loss Investments Securities 130