QYOU

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QYOU media: What is your take on this stock? Is it on the right track? Should I hold for long?

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Asked on January 3, 2022 8:09 pm
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Thank you Mat for your insight, it pulled back significantly just like many other small/micro caps. There has been several positive news but the stock does not move up.

Looking forward to see your US stock recommendations.

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Posted by Kannan Krishnaswamy
Answered on January 5, 2022 2:42 pm
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Hey there,

So QYOU got caught up in the small cap bull run last year and like many has pulled back significantly. That being said, the comapny does appear to be delivering. Trailing twelve month revenue has doubled and it is gaining a significant presence in India.

It is however, a small cap and is not yet profitable. It also operates in a highly competitive environment so while it is growing rapidly, there is no real sustainable competitive advantage - especially since it is so small.

Decent entry point here as its trading at around 9 times sales. No analysts cover it and there is no guidance as to what to expect, so can't judge it on a forward looking bases. For example, is growth this year an aberration beacause of COVID - can we expect the same level of growth next year? Or will it slow considerably. Consider the fact that peak revenue was 2018 and it has yet to return to 2019 levels, I'm a little skeptical it can post this level of growth. Since management doesn't provide guidance, difficult to tell. There also hasn't been an update to its investor deck since April 2021.

It seems decent but approach with caution and be prepared for significant volatility.

Mat

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Posted by Mathieu Litalien
Answered on January 5, 2022 9:41 am