AO.com; am I missing something here?

[DaGaffer]

Can anyone explain to me why a not-that-interesting e-commerce site flogging washing machines and fridges has floated and now has a market cap of £1.7bn (150 times earnings)? I know there are some amazing valuations out there like Whatsapp, but I can kind of see the logic inasmuch as they could be disruptive (WhatsApp is potentially very bad news for mobile phone companies), but a site selling fridges? I'm really not getting it.

 

[Chilly]

My stock analyst mate has no fucking idea. "bubble town" was his response.

 

[Raven]

Smash and grab from the soon to be previous owners.

 

[Poag]

The washing machines are packed with drugs?

No?

All i got :/

 

[fettoken]

Money laundry? Drugs ^ Yeah. It's a trap.

 

[Edmond]

They are very good at what they do, service from them is 1st class, don't know if that has anything to do with it

I have used them quite a lot recently and I can't fault them at all

 

[Embattle]

Can anyone explain to me why a not-that-interesting e-commerce site flogging washing machines and fridges has floated and now has a market cap of £1.7bn (150 times earnings)? I know there are some amazing valuations out there like Whatsapp, but I can kind of see the logic inasmuch as they could be disruptive (WhatsApp is potentially very bad news for mobile phone companies), but a site selling fridges? I'm really not getting it.

Simple really, it like a lot of stocks get hyped to help some people making a killing by selling those shares before the bubble explodes once people properly take in to account basic financials.

 

[MYstIC G]

They are very good at what they do, service from them is 1st class, don't know if that has anything to do with it

I have used them quite a lot recently and I can't fault them at all

I can, they're shit imho and their customer service is shit as well. No better than any other retailer these days, you either have a good experience or an absolute fucking nightmare. There's no middle ground anymore imho.

 

[Edmond]

I can, they're shit imho and their customer service is shit as well. No better than any other retailer these days, you either have a good experience or an absolute fucking nightmare. There's no middle ground anymore imho.

Well I can only say what a good experience I have had from them, but hey ho

 

[DaGaffer]

Simple really, it like a lot of stocks get hyped to help some people making a killing by selling those shares before the bubble explodes once people properly take in to account basic financials.

Yes but there are no particular fundamentals there to justify the market cap. E-commerce is a "mature"(-ish) industry now, and there's nothing in AO.com that screams game-changer (in fact like almost every e-commerce business they have an Amazon-shaped problem), so why are people buying when this hasn't happened for E-com businesses that make more money, have more margin and are less threatened by Amazon (e.g. ASOS or Fab)? It makes no sense.

 

[Hawkwind]

Stupid over evaluation based on every net vendor becoming another Amazon. Anything more than 7-8 times earnings is not a share you want to get into. Why net companies seem to be evaluated differently brings along with it huge risk.