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No. of Recommendations: 1
Stock A is growth stock.


Stock A rev growth rate amazingly stable at 50% y/y, for arguments sake.

Jan 2020
P/S 20
Price $100

March covid low
P/S 15
Price $65

2020 final/peak price
P/S 45
Price $250

Current 2021
P/S 39
Price $195


Firat: maybe it was overpriced in Jan 2020.

Second: % off ATH doesnt necessarily explain where stock should trade in future.

Third: probably significant share dilution along the way.

Fourth: competition...thesis changed at all?

No one seems to remember that multiples exploded in 2018 and 2019, before we ever got to the 2020 overvalued craziness.

My 2 cents.

Doom
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