What is the barrier to entry? HUGE! They already have in place over 10,000 dealers in the TrueCar network. These dealers pay fees just to be in the network. They are the only "Brand" of buying cars via internet direct access which you can assemble your own car and get a better deal than 95% of the public that walks into a dealer.
Biggest barrier to entry to really compete with TrueCar- They are building integrations with banks, AAA, USAA, and corporations for car purchases. You can build these integrations overnight and costs multi-millions to implement.
Lastly - We are just in the 1st inning. People are just starting to know the brand. As these people get hit with commercials it will slowly lead to more market share which is growing every single year. I will never sit in a dealership for 5 hours again. I will build my car exactly how I want it and not overpay. Simple as that. The dealership wins because they legit customers, reduced required inventory, and eventually cost overhead costs with reduced sales staff. Sorry sales guys though.
So you get over $24 million in total compensation this year vs $19 million last year. How is that with fast declining revenue, earnings, and dividend about to be hit? How about you give $23 million of the $24 million back?
Declining revenue overall, Macau is dropping like a rock, Elaine is on a personal mission to stir stuff with Wynn in her power fight. Oh and likely the dividend is in trouble. I'd love to pick up Wynn shares if they drop more, but I don't see anything in the short term that makes me want to buy. At $100 bucks it might be worth the risk.
I think you're right in the short run. I think people are underestimating how bad it is in Macau. The whole point of Wynn stock price jumping to $200 was based on Macau growth that is gone and sliding fast the other way. In the long run the Wynn is a premium brand with Casinos and will be fine. Short term with Elaine fighting, dividend cut likely, and Macau problems it is unlikley to sustain these levels today.
I don't get how anyone could be claiming a profit off of call options. Hovering around $126 now. Unless you got lucky and bought them when the stock was at $122 a few weeks ago. In one trading session it could be back at those levels next week.
That would be awesome if we can get $35 a share which to be honest would still be below some key valuations for Charles/Ameritrade. Someone recently wrote that ETFC could be bought out for $45 and still be accretive to earnings for those 2 competitors. Plus you have all the synergies from that merger with combing some technology, back office, HR, accounting, etc.
I'm not so worried about high paying jobs if they are getting elite talent. I did see their offices and it does seem over the top. High marketing is a price we need to deal with to generate the big revenue growth that we currently have. The profits for the next few years will be on the lower end, but I could see TRUE in 5 years pulling margins of 20% once they scale. The valuation would seem very cheap once we start hitting those levels and maybe gain another 2-4% market share.
Not even close to being accurate. They will likely get investment grade (measure by the ratings agencies) by the end of this year.
This is the future of car buying. You buy the exact car you want at a responsible price. You don't have a dirty car salesman trying to #$%$. The dealers don't have the hassle of wasting time with useless buyers. Clearly TrueCar is doing fine. Over 10K dealers now and revenue growth at 35%. The gloom and doom is pretty funny in this thread.
It would be idiotic to short AMBA. The company is still less than $3 billion and they have exploding growth and huge profits.
They have no choice. Get with the times or be out of business. Times of dealing with shady car salesmen are over. Now you build the exact car you want and get a fair deal.
Pending lawsuits for what exactly? 10,000 dealers on board now. A few might be butt hurt because they can't scam customers into overpriced offers.