On Friday (3/12/2021) GDRX fell sharply, at one point close to 14%. It ended up closing down just over 10%, on news of a 4th quarter loss. Not a good line to start a pitch, but when you look at one of the large contributing factors to the loss you see that maybe concerns are overblown. The CEO received $285 million in stock based compensation for the companies IPO. GDRX also donated $41 million to charity. And over the next two years there is still $160 million to award the CEO. That's a lot of money to be sure, but it's not a sign of something that is wrong with the fundamentals.
This is a company that was profitable in 2019 ($66 million in income) and is in space that will only grow.
GRDX helps consumers save money on prescription drugs. They partner with pharmacies, get their data from the pharmacies, and in turn help consumers save. With healthcare being such a large part of the US economy and so many people aging and needing more medication, helping people save money is a good thing. And more people will be turning to GDRX to save money as we have more people age.
A threat to them is if Amazon or Walmart tries to enter their space. But do you trust Amazon or Walmart not to use your data? I don't. I would bet most people don't. GDRX doesn't. They partner with pharmacies and don't get any data from their consumers.
With the recent drop in price, this is a value play. GRDX is a long-term play. I see this company going up 5 - 10x or more in 8 - 15 years. I know that time horizon isn't popular but that's the reality.
Submitted March 14, 2021 at 10:25AM by pandatears420 https://ift.tt/38Fe7VB
