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Do those events change the fundamentals though? Canva's bottom line is still excellent. The previous valuation was just PE froth. Canva just raised money at
by urthor 4y ago
Do those events change the fundamentals though? Canva's bottom line is still excellent.
The previous valuation was just PE froth. Canva just raised money at the top of the market at an absurd valuation, but it's the cash flow that matters.
- thundergolfer 4y agoI really don't know what the person is on about. > Canva are also one of the worse companies with shareholder liquidity, which I know in at least a few cases lead to fire-sale dispositions. "dispositions"? Makes no sense in the context. I worked at Canva and got to sell 20% in 2020 and 2021, the latter at the $40B valuation. So as a shareholder I'm relatively happy with the amount of liquidity in the stock.
- JumpCrisscross 4y ago> "dispositions"? Makes no sense in the context You’re describing tenders. They’re fine for small-scale planned liquidity. If a fund hits a risk limit, on the other hand, and must sell before the end of the year for compliance reasons, and the company is known to block transfers, the solution is a financially-engineered mechanism that throws off buyers and reduces the price. This liquidity discount gives management more control at the expense of shareholders. It’s also commonly priced into valuation expectations, at least by investors who aren’t all froth.
- urthor 4y agoYou're describing a theoretical situation. While that can definitely occur, I strongly doubt that's what has happened to Canva.
- JumpCrisscross 4y ago> describing a theoretical situation Nope.
- deleted 4y ago[deleted]