4 ms·

It's over 100% more than the 1.7 billion they were estimated to IPO at. That's a huge premium. And I might look at going long NEWR as their financials and pros

by nemo44x 10y ago

It's over 100% more than the 1.7 billion they were estimated to IPO at. That's a huge premium. And I might look at going long NEWR as their financials and prospects look the same and they're trading at 1.7b today.

inthewoods 10y ago
Heard a rumor that there was a bidding war with Microsoft and IBM in the hunt so somehow 16x revenue makes sense.
- nemo44x 10y ago
  Very interesting. Happy for them and if that rumor is true I'd expect New Relic to pop on that. Especially as their growth is as good, burn is less and have been well managed too.
  - sulam 10y ago
    At best this removes a potential suitor. If MSFT was trying to buy AppDynamics they may go after an alternative, but that's the only scenario where you revalue New Relic in light of this deal.
    - nemo44x 10y ago
      NEWR up 20% pre market.
      - sulam 10y ago
        Looks like the initial reception is positive, yep (more like 10-15%, it'll be interesting to see where it settles). If it goes up enough I'll short it, too -- horribly overpriced tool. :)
- Eridrus 10y ago
  Does AppDynamics have some appreciable lock in that would make Microsoft want to buy them, rather than compete?
  - fmela 10y ago
    For one, AppDynamics contracts are usually three years.