That may seem like a huge premium to pay, but not when you consider that Zulily shares traded for over $40 per share less than a year ago… that’s double the price that Liberty Interactive is paying.
Not a bad deal at all—and justified. Zulily is profitable and those profits are growing at a rapid clip.
In a destructive market, things other than profits are what matters. To savvy buyers, however, it should be all about those numbers.
Considering Wall Street expects Zulily to grow profits by nearly 50% in 2016, Liberty got a steal. Cue vulture feast.
Zulily isn’t the only bargain to be had in the online or mobile space. A number of companies have been hit hard by the selling on Wall Street. Some are quite interesting, and are making money—with a reasonable expectation for large future growth.
The blood in the street today is nothing like the dot.com crash. Those online companies were dead from the start, never having a chance to make money. Today is different, but today’s selling has been blind to those differences.
Add it all up and we have an irrational market… again. That’s when the vultures are at their best.
Here are three other online or mobile companies shrouded as opportunities on which investors can feast.