8/29/2023 0 Comments Download project gg![]() ![]() In the presentation, management presented promising growth in the subscription business. What’s really behind their services? An honest look into their websites and subscription segment Market could be right about pricing this company this low. The real question here is: are their products adding value? And thus, will they ever be able to monetize their users at decent margins? The answers are worse than expected and Mr. The neutral thesis is not meant to criticize the low margins or very negative FCF, because these are common even in other great businesses that are focusing on scaling up. ![]() They are currently between Phase 1 and 2, since they are still scaling and trying to improve CPMs, but have already started the subscriptions services (Phase 3). This is their medium and long-term plan for successfully driving this market and, in theory, delivering incredible earnings in the future. ![]() From the subscription services to the “Project GG”, about social media, things could be much less easy both to scale but especially to monetize at decent margins. ![]() This is because of hyped data presented on the company’s reports that if deeply analyzed will show many big weak points in their plans and business model. While everything seems amazing and the stock looks extremely cheap (especially after looking at growth), the reality is that the market could be right this time, and the company is more likely to be fairly priced than undervalued. They aim to develop a big community of gamers, mainly composed of people between 18 and 24, and then monetize it through ads, subscriptions, and even a social media platform that will be gamers-oriented. In the years they have developed a conglomerate-like business model which owns gaming-related websites, YouTube and Twitch channels run by influencers, and some subscription businesses on their websites. PonyWang/E+ via Getty Images Understanding the business model and its implicationsĮnthusiast Gaming ( NASDAQ: EGLX) claims to be the “largest media platform for video game and esports fans to connect and engage worldwide”. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |