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…
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