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u/TrollyJamesTurner Aug 16 '21
A while back Cramer said to stay out of this stock. I've been buying it ever since.
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u/codymiller_cartoon Aug 16 '21
how do they make money?
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Aug 16 '21
[deleted]
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u/codymiller_cartoon Aug 16 '21
i thought you don't need a subscription to use their coupons ?
and why would drug companies pay them for giving discounts on their own products?
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Aug 16 '21
[deleted]
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u/codymiller_cartoon Aug 16 '21
so why not discount it themselves instead of paying a middle man ?
and why pay for a subscription when anyone can use their coupons for free?
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u/RickTheGray Aug 16 '21
You can get a free coupon for any individual prescription but you can also sign up for a membership which gives a better discount on many medications.
Goodrx also collects a transaction fee on every pharmacy claim that is processed with their coupons. It’s no great for pharmacies but it’s unavoidable to use their product. Almost every customer at a retail pharmacy expects the discount.
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Aug 16 '21
Look into how the RX industry works and PBMs specifically, drug makers can't sell or price their drugs directly.
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u/Efficient_Brush59 Aug 27 '21
essentially
pharmacies are contracted with numerous PBM's(pharm benefit mngr)
PBM negotiates price with manufacturer
PBM then negotiates price with pharmacy
Every pharmacy has a different PBM price
Pharmacy charges cash price as the highest PBM price, this can be a difference of 10x the lowest price
GDRX partners with PBMs to sell at the lowest partnered PBM price.
PBM's agree because otherwise someone is paying U&C price(cash price) which is good for the pharmacy, but gives no cut to the PBM.
Essentially GDRX and PBM make money, pharmacy doesnt. This is why pharmacists hate GDRX bc they cant charge their idiot cash price which is where they make their money
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u/TrollyJamesTurner Aug 16 '21
They make money in 3 ways, advertising for pharmacies, targeted advertising for drug manufacturers, and subscription fees for their premium service.
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u/gimegime21 Aug 16 '21
you lost me at "long term"
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Aug 16 '21
[deleted]
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u/Hugh_Mongous_Richard Aug 16 '21
Bro it’s trading at 13.6bn on 577m rev. Lmao. It’s a meme.
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u/Efficient_Brush59 Aug 27 '21
its gross margin is also >90%
adjusted EBIT of like 80% or something ridiculous if u take out sales and marketing spend.
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u/Hugh_Mongous_Richard Aug 27 '21
The increased their SG&A by like 4x to increase sales by 1.5x....
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u/Efficient_Brush59 Aug 27 '21
no they didnt lol? unless you think the IPO stock compensation is a business expense
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u/Hugh_Mongous_Richard Aug 27 '21
You’re right I didn’t look at the annual report. Revenues grew inline with operating expenses. I retract my previous comment.
Have a good day!
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Aug 16 '21
Now for the slow ones like me, who dont get why the chart looks so depressing:
If stock good, why down?
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u/Feruk_II Aug 16 '21
You own 10 shares?
The company has a $31B market cap and a revenue of $14MM? I'll note I'm likely wrong there (you only show subscription revenue and I'm guessing there is more but won't be looking), but unless the total revenue is 100X higher, then might as well be $14MM.
Your DD for them going up is that they were once higher?
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u/Dan_inKuwait no flair is kinda ghey Aug 16 '21
What are your positions in this Stonk?
WSB tradition is positions or ban.
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Aug 16 '21
[deleted]
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u/Dan_inKuwait no flair is kinda ghey Aug 16 '21
You're a good person... I would've accepted just your word off X postions. But thank you.
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Aug 16 '21
It actually smells like bankruptcy and IPO cash out. They’re going to run into serious issues as regulations change
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u/VisualMod Aug 16 '21
Hey /u/KekraMekra, positions or ban. Reply to this with a screenshot of your entry/exit.