Should Internet Era companies with huge knowledge on Consumer data be valued differently ?
My expectation from Zomato's Initial Public Offering
1) Zomato will list at 140 - 150 Rupees per share
2) People who have missed out on IPO will have FOMO and start buying along with traders who want to make a quick buck pushing it to 200 Rupees per share
3) A sell off happens when it reaches sky high valuation
4) The stock will settle somewhere above 100 per share for a while
5) It will start running up once again after 6 months .
6) The stock will be highly volatile for another 2-3 years where every couple of months news articles will come up both supporting and being skeptical of the valuations.
7) Finally valuation start to look decent and a sustained rally takes off .
* Unless there’s some big macroeconomic factor / policy change / Or its main competitor Swiggy being bought by Amazon
Well this article could have been named " What's your expectation on the IPO from Zomato "
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