I agree that COUP is overvalued, but I do not like this superficial stock analysis. A lot more goes into evaluating growth stocks. One has to consider the trajectory the company is going on, how likely it is it will continue on this trajectory, when things will plateau, etc. You can't just say "its not making money therefore it is a sell." Well you can, but you won't be a very good growth investor. You might be one of the many people that refused to buy google at $100 because their P/E was insanely high.
Looking at COUP's S1 I can say a couple of nice things about them. They are showing good topline growth. Their gross margins are expanding. Their net margins (while negative) are improving very fast. From 2012 to 2013 they grew their revenues by almost 50% while they actually reduced their operating expenses. But most importantly, their revenue growth is accelerating.
If they continue posting higher and higher revenue growth and expanding growth margins, they may start gushing money in a couple of years.
As I said they are not for me. I am not sure they can continue high revenue growth for long because they do not seem to have a good lasting competitive advantage. But I can see how someone may be convinced to buy them.
Looking at COUP's S1 I can say a couple of nice things about them. They are showing good topline growth. Their gross margins are expanding. Their net margins (while negative) are improving very fast. From 2012 to 2013 they grew their revenues by almost 50% while they actually reduced their operating expenses. But most importantly, their revenue growth is accelerating.
If they continue posting higher and higher revenue growth and expanding growth margins, they may start gushing money in a couple of years.
As I said they are not for me. I am not sure they can continue high revenue growth for long because they do not seem to have a good lasting competitive advantage. But I can see how someone may be convinced to buy them.