Monday, January 26, 2015

Box Shares Are Soaring, And My Head Feels Like It Is Going To Explode (ValleyWag)

Dan Lyons on the Box IPO; check the full post for a "video of frenzied mom-and-pop investors racing to buy shares"

"The stock was priced at $14, opened at $20, and traded above $24, giving Box a market value of nearly $3 billion.

Bear in mind: From 2011 forward, Box has lost $466.1 — nearly half a billion dollars! — while generating $361.1 million in revenue.

But maybe profitability is just around the corner? Er, no.

In fact the Box prospectus says, right there in big boldface print: "We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future."

Translation: This is a big huge black pit filled with hellfire; won't you please throw many of your moneys into it?"
Box Shares Are Soaring, And My Head Feels Like It Is Going To Explode
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