Monday, May 13, 2019

DotCom 2.0

The Dot-com bubble peaked on March 10, 2000 before crashing.
The Dot-com 2.0 bubble peaked on May 3, 2019 before crashing.  Some of the biggest losers are the following.

Company Symbol Date Stock Price 5/13 Price % Decline
Facebook FB 05/03/19 195.47 181.54 -7.13%
Apple AAPL 05/03/19 211.75 185.72 -12.29%
Sprint S 05/10/19 6.16 6.02 -2.27%
Dell DELL 05/03/19 68.70 64.04 -6.78%
Tesla TSLA 04/16/19 273.36 227.01 -16.96%
Uber UBER 05/10/19 41.62 37.10 -10.86%
Lyft LYFT 05/03/19 62.51 48.15 -22.97%
Twitter TWTR 05/03/19 40.80 36.59 -10.32%
Snapchat SNAP 05/03/19 11.80 10.11 -14.32%
Netflix NFLX 05/03/19 385.03 343.98 -10.66%
Yahoo AABA 05/03/19 79.15 68.68 -13.23%

I expect all of these, except Facebook and Apple, to go bankrupt within 3 years or to be swallowed up for pennies on the dollar.

Upcoming IPOs from money-losing companies, which will probably be cancelled:
Airbnb. Supposedly worth $31 billion.
Slack. Supposedly worth $10 billion.
Pinterest. Supposedly worth $12 billion.
WeWork. Supposedly worth $42 billion.

Update:
WeWork had revenues of $1.8 billion and losses of $1.9 billion in 2018.  So its operating costs were $3.7 billion.
Dropbox had revenue of $1.39 billion in 2018 and and losses of $484 million.
Spotify had revenue of $5.26 billion in 2018 and losses of $78 million. It expects to be profitable in 2019.
Tesla had revenue of $21.46 billion in 2018, an 82% increase over 2017.  Its losses for 2018 were $976 million.
Airbnb had revenue of $2.6 billion in 2018 and profits of $93 million.  Finally, a company that shows a profit.

Update 2:
Sprint is being swallowed up by T-Mobile. The new company will be called T-Mobile, and current T-Mobile CEO Legere will serve as the CEO of the new company.
Altaba (AABA), the remnant of Yahoo, has announced a plan of dissolution, which could take several years.
Dell had revenue of $90.6 billion in 2018 and losses of $191 million. For the first quarter of 2019, it had revenue of $21.4 billion and losses of $153 million.

Update 3:
Wayfair (W) had revenue of $6.7 billion in 2018 but lost $504.1 million.
Carvana (CVNA) had revenue of $1.9 billion in 2018 but lost $254.7 million.

Update 4 (6/14/19):
Chewy (CHWY) just went public today, opening at 22.00 and quickly jumped to over 40.00 before dropping a little.  It had revenue of $3.5 billion in 2018 and losses of $267 million.

Update 5 (6/18/19):
Slack is about to go public under the symbol WORK and expects to be valued at about $16 billion.  It had revenue of $400.6 million in the fiscal year ending January 31, 2019 and losses of $140.7 million, up from losses $140.1 million the previous year.

Update 6 (7/3/19):
Zillow (ZG) has a market cap of $9.5 billion and lost $151 million in 2018.

Update 7 (7/9/19):
Virgin Galactic is preparing to go public by the end of the year.  I can't find anything about revenue, profits or losses.

Update 8 (7/26/19):
Beyond Meat has a $14 billion market cap, as big as ConAgra.

Update 9 (7/29/19):
Boeing (BA) which is a huge established blue-chip company with a history of profitability and dividendes, is now acting like a DotCom.  Then there is Boeing [BA]. It just reported the largest quarterly loss in its history of $2.9 billion due to a nearly $5-billion charge related to its newest bestselling all-important 737 Max, two of which crashed, killing 346 people, due to the way the plane is designed. And what does Boeing’s share price do? It dipped 3% today and is up 2% from a year ago, before all this happened. In essence, two crashes and the grounding of its bestselling plane, and the potential suspension of production of this plane, and its uncertain future … and the stock has ticked up over a 12-month period.
https://wolfstreet.com/2019/07/24/i-got-it-nothing-matters-tesla-boeing-stocks-like-the-whole-market-has-gone-nuts/

Update 10 (8/29/29):
Peloton (PTON) is preparing to go public.  It had revenue of $915 million for the fiscal year ending June 30, 2019, and losses of $195.6 million during that period.

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