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A Cheap Data Management Play? Unicorns DO Exist
Trading Below 5x Revenue and Reaching a Profitability Inflection
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Hi, GRIT VIPS! π Welcome to another GRIT Stock Deep Dive. In this edition, youβll read an in-depth analysis of a great stock weβve been watching: π
Stock Deep Dive: AvePoint (AVPT-US, $1.5B MCAP)
What if I told you that software stocks that trade under 5x EV/Revenue actually exist? Welcome, my friend, to the world of cheap software.
Now - I know the word cheap may sometimes imply something of lesser value, but this is surely not the case here. Sometimes stocks are cheap for a reason, also known as value traps.
However, inexpensive (cheap) stocks can become attractive buying opportunities whenever there is a narrative change. Something on the horizon will have an inflection point in the stock price, usually due to 1) Fundamentals or 2) The Multiple (sentiment/narrative).
The stock pick this week has flavors of both.
Itβs a sub-$2B Mcap name to match. Every large cap starts as small, but this one might be acquired before then.
Without further ado, letβs jump right in!
Overview π What Does AvePoint Do?
Solution Suite π Centered on Confidence Platform
How Do They Make Money? π Revenue Model
Key Relationships π Microsoft Partnership
How Do They Win? π Value Proposition
By The Numbers π Key Metrics
Risks π Potential Pitfalls
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