Easy for investors to see the rising stock of a crummy company as validation that the company isn't crummy. Even if it is, until the stock figures out, out, which often happens when reality clashes with hype, hope and hubris.
Gee, I kinda like Top Golf .. I'm a non-golfer, I think they call us hackers. It's a great place for work cartharsis - whacking those little white orbs to relieve the job stress. It is fun.
I get it. A lot of people liked Dave & Buster's, too. This is the data. It's not always 100%, but simply good to know if you're investor what might go against you.
Yeah, I'm not an investor here. Entertainment stocks are subject to discretionary spending, and the environment right now doesn't lend well to discretionary spending.
MODG is scaling their Top Golf business with leverage. I mean, if that's a red flag to you then you can see it that way. But it's part of the known strategy since they acquired Top Golf, which is growing EBITDA 36% y/y while the stock trades without any growth premium. And as you mentioned , they will be cash flow positive and leverage will top off. Company has three separate segments so I wonder if this professor's metrics would make more sense if it was applied to each segment separately
The "voting machine" can render the "weighing machine" for extended periods of time....but eventually, the weighing machine takes its measure!
Wonderful piece!
Easy for investors to see the rising stock of a crummy company as validation that the company isn't crummy. Even if it is, until the stock figures out, out, which often happens when reality clashes with hype, hope and hubris.
Gee, I kinda like Top Golf .. I'm a non-golfer, I think they call us hackers. It's a great place for work cartharsis - whacking those little white orbs to relieve the job stress. It is fun.
I get it. A lot of people liked Dave & Buster's, too. This is the data. It's not always 100%, but simply good to know if you're investor what might go against you.
And you should continue to love Top Golf!
But the stock? Maybe that requires a deep dive into the financials before loving on that too :)
NOT FINANCIAL ADVICE!
Yeah, I'm not an investor here. Entertainment stocks are subject to discretionary spending, and the environment right now doesn't lend well to discretionary spending.
MODG is scaling their Top Golf business with leverage. I mean, if that's a red flag to you then you can see it that way. But it's part of the known strategy since they acquired Top Golf, which is growing EBITDA 36% y/y while the stock trades without any growth premium. And as you mentioned , they will be cash flow positive and leverage will top off. Company has three separate segments so I wonder if this professor's metrics would make more sense if it was applied to each segment separately
The data is the data, but the interpretation of that is is also what makes markets. Thanks for the comment.