196×55(share price)= a $10.7 billion valuation, with a very strong chance of further dilution.
Not rocket science ….
But they are growing, right?
Yes, they are, but ask yourself this question: if the outrageous valuation is justified because of this rapid growth — numbers that are obviously very rare — how much longer can this growth sustain itself? What if it subsides? The price is already hard enough to justify as it is, but when you consider the fact that, on top the massive dilution risk, there exists a whole host of other risks — competition, missed projections, etc. — is it really worth it at this point?
Just my opinion, that’s all. Stay safe everyone and always remember: “risk aversion/capital preservation over gains”.
DISCLAIMER: This is all my opinion, and I am not a financial adviser. You should consult a financial adviser before making any decision with regard to publicly traded securities, or any security for that matter. I make no assurances as to the accuracy of the information contained herein. This company carries an extremely high degree of risk and you should not use this article as the basis of an investment decision. You should consider this information as similar to personal insight from a peer/friend/acquaintance, and thus it should obviously not be the primary source material you use for basing an investment decision because similar to any opinion from a peer/friend/acquaintance, it could be completely and utterly incorrect!