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Ask HN: Why is SodaStream (NASDAQ: SODA) so highly valued at $3.2B?
- thiago_fm 8y agoBecause the US has been printing money for over a decade with a deficitary budget and no prices make any more sense at all.
- shoo 8y agoseparately from any argument along the lines of fundamental value, there's at least one punter (pepsi co) willing to pay at least that much for it https://www.forbes.com/sites/petercohan/2018/08/20/4-reasons-to-love-pepsicos-3-2b-sodastream-buy/#778bffd82249 https://www.forbes.com/sites/petercohan/2018/08/20/4-reasons... edit: really naively, looking at stock metrics without any knowledge of what a sodastream business is and how a sodastream business might perform in the future, the stock looks very expensive now compared to historical earnings or current book value ( CAPE > 100 (?!), price / tangible book value > 5 ). Then again, it would have looked really expensive to me a couple of months ago before the stock price shot up -- i assume that was a reaction to news that pepsi co was going to acquire it, or at least seriously thinking about an acquisition.
- ZaZu 8y agoSurely this will eventually lead to a Soda Bubble
- natch 8y agoCaptive market of daily use, sugar-addicted owners of patented devices with high sunk cost which get their high margin (high profit) consumables from a single business entity?