One company that we have talked about a couple of times in our private group is bumble, so this is an austin texas, based company and they’re expected to raise 1 billion dollars with the stock. Offering bumble is a dating app that is designed that woman can make the first move puts power more in the hands of women. On these platforms, the company originally announced that they would be ipoing in january when they filed a registration statement with the sec, and they originally said that they’d be looking to raise that the ipo could raise about 100 million dollars. But now it’s looking like they might raise 10 times more than that with one billion dollars, they’re gon na be listed on the nasdaq, with the stock, ticker symbol, bmbl and they’re looking to be ipo’ing within the next week or so before, valentine’s day and they’re. Looking to ipo, with a price of between twenty eight dollars, a share and thirty dollars a share which will buy the company at around five billion dollars to six billion dollars, the company right now, isn’t profitable, they did lose money and with that being said, though, a Lot of analysts think that their ipo is gon na draw a lot of attention. Um, like airbnb, did like doordash, did and we’re gon na see the stock price skyrocket and they think, even though it’s planning on going between 28 and 30, a share it’s very likely that we could see it be in the 50 range.
So we’ll have to wait and see what happens here, but bumble had said during 2020 that it had lost some 84 million dollars for the first nine months of 2020, with about 375 million dollars in revenue. The way the company makes money is that it is like a freemium model where users don’t have to pay to use the platform, but they make money through advertisements with you know, companies paying for ads on the platform. They also make money for um users paying to upgrade their service or paying for add ons in the app. So i’ll have to wait and see what happens, but for me personally, looking at the company long term it’s a little hard to see the business model of them, making making a significant profit, because just right now, it’s not unlikely but i’d like to see more numbers. On the company, how they do over the next few months, a few years, because right now with bumble they the way they make money is through these add ons in the app and through advertisements. It is a freemium model, generating close to 400 million dollars and still losing 85 million. I just like to see where that money is being spent. How much are they spending on marketing right now? How much is going to developing – and you know the software? Where is the money being spent because 400 million dollars is a lot of money for just uh a platform it’s not like? They have to pay for products? Or you know, infrastructure like like buildings and and or like they’re, not like renting out spaces.
They don’t have to pay for all of that. They really have to maintain their software pay, employees and marketing. So i just like to see how that money is being spent right now. Um before i would personally invest in it, 5 billion to 6 billion valuation is pretty high for a company that is losing 84 million dollars a year and only generates 400 million dollars in revenue. You know so we’ll have to wait and see how that plays out. Let me know your thoughts on bumble: they are set to ipo under the stock ticker symbol bmbl before valentine’s day 2021 within the next week, or so so i’d like to hear your thoughts on bumble.