Despite DoubleDown Interactive's share price surge, its high P/S ratio and weak revenue forecasts are concerning. Investors may face disappointment if the P/S falls to match the growth outlook. The predicted revenues may not sustain the current positive sentiment, risking shareholders' investments and potential investors paying an excessive premium.
DoubleDown Interactive's ROCE growth indicates improved efficiencies. The promising fundamentals warrant further due diligence. Investors are noticing these changes, as seen in the solid return to shareholders over the past year.
The current P/S ratio might lack justification unless future revenues bolster a more positive sentiment. Expected lower revenues for DoubleDown Interactive could pressure its stock prices, despite not severely affecting its P/S as anticipated.
$DoubleDown Interactive (DDI.US)$ ① According to the 2020 report of Mobile Marketer, the mobile game market will grow at an annual rate of 2.9% by 2024. This rate shows that the industry is not a fast-growing industry. ②The company had planned to go public for 1.2 billion U.S. dollars in June 2020, but it failed. After a year, 900 million U.S. dollars came back to reissue the IPO. Obviously, this is not a good thing. Obviously worthless. ③The company is an American company, but it was acquired by South Korea in 2017 at a purchase price of US$825 million. Now 4 years later in the blink of an eye, it still has a market value of US$900 million. After so long, the valuation is still not It shows that the market is not optimistic, and this does not seem like a good thing. ④ The company's valuation in 2012 was 500 million US dollars. Now that 10 years have passed, the valuation has only doubled, which seems to be of little value. ⑤ After the IPO, 20% of the original shareholders of the issuance part can be sold directly, which is another bad factor.
COVID-19 has accelerated that timeline by creating massive budget shortfalls. Thus, investors must be aware that the online gambling industry$DoubleDown Interactive (DDI.US)$is not for the faint hearted as these stocks are some of the most volatile on the market. Make sure you do your homework, have the stomach for 20%-30% swings. Plus, have the emotional endurance to hold for the longer term.
Nothing feels better than sitting at home gambling! For me it’s like a great experience to become a coach potato and winning some real money!$DoubleDown Interactive (DDI.US)$
$DoubleDown Interactive (DDI.US)$is quite interesting. If you look at their fundamentals, their financial status is strong. I am going to be long on this.
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