Angies List IPO

[minsco]

So another very speculative internet based company has made an IPO. This company is actually the most profitable internet company to recently release an IPO (Pandora, Groupon) with a "$27.2 million net loss on sales of $59 million." I can't believe people are actually buying these stocks... I think I'm going to take a short position on some of these in the near future.

What are your thoughts, would any of you consider buying these?



"Angie's List gains 33% in IPO"

Angie's List shares jump in IPO - Nov. 17, 2011

 

[Falian]

It'd be interesting to evaluate other successful internet-based companies and see if they IPO'd before or after they turned a profit.

I'd also compare the "exit rate" of early investors, and see if a lot of these IPO's are dump schemes.

 

[minsco]

It'd be interesting to evaluate other successful internet-based companies and see if they IPO'd before or after they turned a profit.

I'd also compare the "exit rate" of early investors, and see if a lot of these IPO's are dump schemes.

Good points. I'd imagine that the easiest way for investors in these companies to profit would be to sell shares.

 

[BlokBlok]

Jesus, we are in such a VC bubble, all these companies are just looking to cash out their investors.

 

[dchuk]

Jesus, we are in such a VC bubble, all these companies are just looking to cash out their investors.

this ^^^

Angels and seed funders are killing it right now. profit doesn't matter anymore. look at twitter, they've lost a shit ton of money but their initial investors cashed out like crazy

 

[EricVonDoobie]

this ^^^

Angels and seed funders are killing it right now. profit doesn't matter anymore. look at twitter, they've lost a shit ton of money but their initial investors cashed out like crazy

So the idea is to get in early while the company is over-valued and get out before people come to their senses? Just wondering, I actually don't know.

 

[Scott_James]

Angies list is shit. It's a just paid for subscription version of Yelp and Google Places. They have gotten in trouble for using automation to generate reviews. It is a shitty site and will definitely fail soon (unless people are complete morons and will continue pay for a service that is free everywhere else).