Hi Stephanie,
This is one that I have looked in to but am not overly excited about. First off, the company seems to have no direction. It is a ride-hailing company, but also has
- COVID-19 tracing app
- a quiz game app
- an online store that sells Facedrive and Bel-Air Athletics-branded clothing. Yes the Will Smith Bel-Air.
It just doesn't seem to know what type of company it wants to be and those other pieces just seem like distractions. Secondly, I can't get past company valuations. This is a company that has only generated $364K in revenue over the last twelve months to go along with a ~$5.5M dollar loss. Yet, it trades at a valuation of $1.36 billion. It has a price to dales ratio above 1,000%
That is completely unjustified and although many companies are trading at all-time high valuations - I can't think of a single one that comes close to FaceDrive's incredible valuations. Also worth noting, LTM revenue is down from the 600K it generated in 2019., yet the company's share price is up 559% over the past year. Negative top line growth, and no insight as to what next year will bring makes me conclude that this is purely a momentum stock. It certainly is not trading on fundamentals.
Since I can't make sense of this, it is not one that I would personally invest in.
Mat