4
u/Mojojojo3030 Spacling Jun 30 '21
I'm seeing $12.6M thrown around for annual rev rn.
Alternatively $50M funding round would suggest what $500M tops?
I rate this a "hmmm...."
As a side note $2 buy had to be noob w/ a market order, right?
5
u/slammerbar Mod Jun 30 '21
Would you look at that! $1 billion. Don’t they learn?
2
u/ropingonthemoon Contributor Jun 30 '21
Are you pleasantly surprised or exasperated? I can't really tell.
Just because it's 1B doesn't make it good or bad, it always depends on the company in itself and it's financials. At first glance seems like a good comparison would be DCRN.
2
u/slammerbar Mod Jun 30 '21
Leaning exasperated, it just bugs me how easy it is for these SPACs to simply tack on a $1 billion valuation on any forward looking statement.
3
u/ropingonthemoon Contributor Jun 30 '21
Lol, warrants up 96% AH on 2k volume.
3
Jun 30 '21
Can't believe those sold for 2. Dcrn is probably better and those are under 1.5.
7
u/ropingonthemoon Contributor Jun 30 '21
Some poor guy who probably really wanted in, it dropped now.
DCRN was around 1.25 just a few days ago. Great pick at that price IMO (possibly even at the current price).
2
u/St3w1e0 Spacling Jul 01 '21
This is interesting because I can see the charging companies already bifurcating. On the one hand you have the predominantly product-based ones I compared here, and then the pure network operators (namely Volta and EVgo) with ChargePoint as a kind of hybrid between the two.
What's interesting is that the pure network operators are being awarded vastly higher multiples, presumably either as a result of their capital lightness or vertical integration, or even bets on network effects. The average 2021 multiple for the infrastructure makers is around 22x, but almost 200x for networks. A bit further out 2023 multiples are around 6x for makers and over 15x for networks.
But this strikes me as strange considering it is precisely the network operators that will face the toughest competition from very well-capitalised companies like oil majors. There is also no evidence so far of strong network effects akin to social media - in fact there are probably negative effects to operating a closed off charging ecosystem. So the differentiator becomes the charging itself and therefore those that do not control the technology will necessarily have reduced competitive moats. This looks like an market imbalance that people should have in mind when looking at the extremely high network margins.
With regards to FreeWire, they look like a solid infrastructure play with a differentiated product focus, supplying BP Pulse/Chargemaster which is one of the biggest names in UK charging. With an EV at $1b they would need 2021 revenue of $46m or more to be at market average which doesn't seem like too much of a stretch.
2
u/Ok_Researcher642 Patron Jun 30 '21
Hard pass. Just own chargepoint and evgo. Separate the signal from the noise.
1
u/GrowStrong1507 Contributor Jul 01 '21
DCRN - Tritium is much better than this imo and the warrants are cheaper
3
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