GoodRX Stock vs Amazon Pharmacy Teaches Genuine Lesson
GoodRX IPO’ed on September 23, 2020, and GoodRX
GDRX
stock had a good performance for an IPO for about 2 months. It was a solid $51.50 per share stock.
Then news broke on November 17th about Amazon Pharmacy. I believe investors didn’t really understand what the Amazon Pharmacy news was actually telling us. More on that in a minute.
GoodRX gapped down over November 17th and 18th losing over a third of its value. Then over the next 10 trading days, as the news started to settled and investors started to understand what Amazon Pharmacy was actually doing, GoodRX stock started to consolidate.
Who is Pill Pack?
In June of 2018, Amazon bought a little-known company called Pill Pack for $750 million. Pill Pack is like an online pharmacy. You or your doctor sends them your prescription and they will send you your medicine right to your doorstep.
That’s what Amazon Pharmacy is all about. Checking their website states just that. The GoodRx co-CEO Doug Hirsch recently said it best that investors’ fear was misguided: The two companies (GoodRX and Amazon) are “complementary,” not competitors.
And we can see that investors are starting to understand that. GoodRX over the past few trading days is up 18% (although they have given back about 3.9% of those gains in the last couple of trading days). And I believe that GoodRX stock is headed back to being a solid $50 stock or greater in the near-term.
GoodRX Stock Lesson Learned?
So what lesson can we learn as investors that want to become better investors?
Well the simplest lesson, is an old one. Take the emotion out of investing. We all do it. We see a stock that we’re holding suddenly gap down and lose value as something that fills us with fear and tells us that we need to cut this stock loose. Just dump it, get rid of it! I don’t want that fear!
But with the GoodRX and Amazon Pharmacy story we can see that once we truly understand what this new data point or information is actually telling us, we can make better decisions as investors.
That’s why it’s important to know the companies you’re investing in. Do your own research, your own due diligence. If the company passes your test, then, by all means, start a position and use charts to find good entry points.
Let’s take a look at Q3 for GoodRX. They posted total revenue of $140.5 million, up 38%. Those numbers beat analyst expectations. GoodRX projects Q4 revenue of about $148 million and fiscal year, or total year, revenue of about $545 million for year-over-year growth of 40%. That also beats the Streets views by $10 million. Not too bad for a companies earnings report debut.
And think about this. If you bought GoodRX when it IPO’ed (GoodRX Stock IPO’ed for $33 per share), not because of any IPO hype, but because you had done your research into the company, your own due diligence, and though, yea, this is a solid company with a bright future and held on to it through its losses, you’d be right back where you started and up a few bucks per share. Not much gained, but nothing lost. However, that fear, that nasty feeling of fear, would have never gotten you down.
GoodRX Q3 Earnings Report Upbeat
Let’s take a look at Q3 for GoodRX. They posted total revenue of $140.5 million, up 38%. Those numbers beat analyst expectations. GoodRX projects Q4 revenue of about $148 million and fiscal year, or total year, revenue of about $545 million for year-over-year growth of 40%. That also beats the Streets views by $10 million. Not too bad for a companies earnings report debut.
And think about this. If you bought GoodRX when it IPO’ed (GoodRX Stock IPO’ed for $33 per share), not because of any IPO hype, but because you had done your research into the company, your own due diligence, and though, yea, this is a solid company with a bright future and held on to it through its losses and the little bounceback, you’d be right back where you started (up a few bucks per share thought). Not much gained, but nothing lost. However, that fear, that nasty feeling of fear, would have never gotten you down.
GoodRX Stock Going Forward
Looking at GoodRX going forward we can see the value this company has, now and in the future. Let me know in the comments: Do you believe in the GoodRX story? Do you think GoodRX is a solid company? And would $40 to $45 make good entry points? I think the answer is a solid yes!
GDRX
stock had a good performance for an IPO for about 2 months. It was a solid $51.50 per share stock. Then news broke on November 17th about Amazon Pharmacy. I believe investors didn’t really understand what the Amazon Pharmacy news was actually telling us. More on that in a minute.
GoodRX gapped down over November 17th and 18th losing over a third of its value. Then over the next 10 trading days, as the news started to settled and investors started to understand what Amazon Pharmacy was actually doing, GoodRX stock started to consolidate.
Who is Pill Pack?
In June of 2018, Amazon bought a little-known company called Pill Pack for $750 million. Pill Pack is like an online pharmacy. You or your doctor sends them your prescription and they will send you your medicine right to your doorstep.
That’s what Amazon Pharmacy is all about. Checking their website states just that. The GoodRx co-CEO Doug Hirsch recently said it best that investors’ fear was misguided: The two companies (GoodRX and Amazon) are “complementary,” not competitors.
And we can see that investors are starting to understand that. GoodRX over the past few trading days is up 18% (although they have given back about 3.9% of those gains in the last couple of trading days). And I believe that GoodRX stock is headed back to being a solid $50 stock or greater in the near-term.
GoodRX Stock Lesson Learned?
So what lesson can we learn as investors that want to become better investors?
Well the simplest lesson, is an old one. Take the emotion out of investing. We all do it. We see a stock that we’re holding suddenly gap down and lose value as something that fills us with fear and tells us that we need to cut this stock loose. Just dump it, get rid of it! I don’t want that fear!
But with the GoodRX and Amazon Pharmacy story we can see that once we truly understand what this new data point or information is actually telling us, we can make better decisions as investors.
That’s why it’s important to know the companies you’re investing in. Do your own research, your own due diligence. If the company passes your test, then, by all means, start a position and use charts to find good entry points.
Let’s take a look at Q3 for GoodRX. They posted total revenue of $140.5 million, up 38%. Those numbers beat analyst expectations. GoodRX projects Q4 revenue of about $148 million and fiscal year, or total year, revenue of about $545 million for year-over-year growth of 40%. That also beats the Streets views by $10 million. Not too bad for a companies earnings report debut.
And think about this. If you bought GoodRX when it IPO’ed (GoodRX Stock IPO’ed for $33 per share), not because of any IPO hype, but because you had done your research into the company, your own due diligence, and though, yea, this is a solid company with a bright future and held on to it through its losses, you’d be right back where you started and up a few bucks per share. Not much gained, but nothing lost. However, that fear, that nasty feeling of fear, would have never gotten you down.
GoodRX Q3 Earnings Report Upbeat
Let’s take a look at Q3 for GoodRX. They posted total revenue of $140.5 million, up 38%. Those numbers beat analyst expectations. GoodRX projects Q4 revenue of about $148 million and fiscal year, or total year, revenue of about $545 million for year-over-year growth of 40%. That also beats the Streets views by $10 million. Not too bad for a companies earnings report debut.
And think about this. If you bought GoodRX when it IPO’ed (GoodRX Stock IPO’ed for $33 per share), not because of any IPO hype, but because you had done your research into the company, your own due diligence, and though, yea, this is a solid company with a bright future and held on to it through its losses and the little bounceback, you’d be right back where you started (up a few bucks per share thought). Not much gained, but nothing lost. However, that fear, that nasty feeling of fear, would have never gotten you down.
GoodRX Stock Going Forward
Looking at GoodRX going forward we can see the value this company has, now and in the future. Let me know in the comments: Do you believe in the GoodRX story? Do you think GoodRX is a solid company? And would $40 to $45 make good entry points? I think the answer is a solid yes!