Cazoo floating for more than $7bn

[spreadsheet monkey]

I'm a fan of Cazoo and bought a car from them last October, but this valuation is surely mental and is going to end up with some investors taking a big loss further down the road.

https://www.standard.co.uk/business/pendragon-onli...

Net assets as at 31 Dec 2020 were £63m.

https://www.am-online.com/news/dealer-news/2020/10...

How long before the music stops?

[bitchstewie]

That kind of thing is one of the reasons I've pulled back on some of the super growth US stuff.

It's taken a hammering lately and whilst long term I still want to own some of it I see stuff like that and just think WTF.

[Leftfootwonder]

Agreed. A bit like I expect of Deliveroo when they go live, the value will just fall off a cliff in pretty quick order.

[bitchstewie]

Deliveroo apparently dumped 30% on their first day.

Ouch

[maffski]

From Deliveroo's point of view that's what you want.

The point is to pay back your original investors and to get new money to invest, if you can drum up demand so that the stock trades overprice at launch you get more of both. If the stock climbs immediately then you undersold it.

[poo at Paul's]

Cazoo just seems like an utter nonsense to me. I can see them being flavour of the month for a bit, then replaced by the next "big thing" that does 25th of nothing with a crap name.

7bn, my arse!