FUTR has performed stupendously over the last 3-5 years, up about 40x from 2016 which is I believe about 10x better than the next best stock over that period (I forget where I saw this but assuming it’s true it’s really quite incredible). This could partly be attributed to trading at a booked out valuation before the current CEO, Zillah Byng-Thorne, took control and developed a successful new strategy.
Even after this phenomenal growth the stock still only trades at c.28x forward earnings which is remarkable when you think about it. What would the right valuation been to pay for this business 5 years ago I wonder?
Anyway, whats interesting today is whether ZBT can continue for another 5 years in the same vein. Her strategy seems to be acquiring online expert content websites (think product reviews) which can then be used to sell very effective and targeted advertising to related companies in that space. Knowing how to do this effectively and having the scale to develop expertise in this area seems to be key. At the same time there are loads of online content websites that don’t know how to monetize the eyeballs on their sites that are willing to sell out for what seem to be low multiple compared to the cashflow that FUTR can extract from them… So is it still cheap?
I saw it was a big position in a few successful funds and decided to bite the bullet and add a half position earlier in the year back in Feb since when it’s doubled so I clearly should have made it a full sized position at the time!
Now I’m wondering if I should make it a top 10 position… Is it a mini “future” Google/Alphabet hiding on the UK stock market, note GOOG is £1,300b Vs FUTR at £4b? (Please forgive the pun
Thoughts/comments/wisdom from the crowd are all welcome. Steve
P.S. the share price chart looks pretty scary, which perhaps explains my half sizing back in Feb.