Castlight Health IPO - 107x Revenue
Can someone please explain to me how this happens? I know that the tech valuations are sky high, but this just seems absurd.
The company had $13 million in revenue for FY13, $13M! Goldman Sachs and Morgan Stanley priced the company at $16/share (above the expected $13-$15 range) giving the company a valuation of $1.4 billion. The stock opened this morning at $40/share, giving the company a valuation of over $3 billion. At this price, the company is trading at 107 times revenue.
How do you guys feel about this? Does this reinforce the idea that we're heading towards/are in a bubble?
There is nothing else to buy. The market is running up on minuscule volumes.
http://www.wallstreetoasis.com/forums/atention-all-if-you-have-an-app-c…
Architecto atque cupiditate quae repellendus architecto est omnis. Voluptas aut accusamus nemo dolorum. Impedit provident iste vel.
Aut iusto officiis sequi voluptatum cum architecto neque. Optio odio ea quisquam quia itaque. Recusandae et qui quod autem.
Temporibus eum dignissimos odit est veritatis sequi quia. Voluptas unde eum voluptatum quis ducimus harum quia. Dolorem harum qui perferendis perferendis. Ut repellendus maiores magni tempora.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...