Profits Just Grew 642% And The Stock Still Looks Cheap
Guidance hike.
Good morning,
Today we are covering a small Japanese platform business showing signs of a major earnings inflection.
Paying users are up 54%, gross merchandise value is up 50% and operating profit has surged 642%.
Management has responded by more than doubling full-year profit guidance.
Yet despite improving fundamentals, the business is still valued at under 10x this year’s operating profit.
The question is whether this is a temporary spike or the start of something more durable.
Let’s take a closer look…
