Three Things (May 13th)

Commentary5 months ago
“Enthusiasm is common. Endurance is rare.” - Angela Duckworth
1) Scooter-sharing start-up Bird is going public via a multibillion dollar SPAC deal, but will its unit economics catch interest from investors?
Bird, whose on-demand shared scooters can be found in 200 cities around the world, has fetched a valuation of $2.3B as it merges with special purpose acquisition company Switchback II. As one of the first movers in the micromobility space, the company has seen impressive growth to date, with revenues growing over +150% year-over-year prior to the pandemic. But what concerns us currently is its unproven unit economics: the company appears to be losing money on every individual ride, even before factoring in vehicle depreciation (and of course, the hundreds of millions of dollars of other expenses associated with operating the company). We believe these unit economics and their potential for evolution will be a key focal point for investors as they size up the company’s public debut.
2) Social commerce platform Poshmark tumbles after posting strong Q1 results but falling short on Q2 estimates
In Q1, Poshmark reported an outstanding quarter with revenue, profits, GMV growth, and active buyer growth all topping analyst estimates and prior guidance. Despite that, the stock tumbled after hours as it reported Q2 sales estimates that fell 1% short of analyst estimates. What we were most focused on and impressed with in Q1 was the strides the company managed to take in pushing ahead its social features, with their newly-launched video listings feature already seeing strong initial traction and the capability to potentially drive the next generation of engagement-driven ecommerce.
3) Texas storms rear their head again in Lemonade’s Q1 results, but with luck won’t impact long-term outlook
In the first quarter of 2021, it was Lemonade to whom life gave lemons. On Wednesday morning, tech-powered insurer Lemonade fell nearly -20% after posting a slight quarterly earnings miss driven by a significant surge in catastrophe losses. The severe winter storms that hit Texas this past February reportedly drew roughly a year’s worth of catastrophe claims for Lemonade over the course of just a few days. Despite that, the company was able to maintain its fiscal year profitability outlook as a result of its extensive reinsurance programs, something we view as a positive indicator of the company’s durability against extreme left tail stress events.

Become a Titan investor today.

Titan Global Capital Management USA, Inc ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). By using this website, you accept our Terms of Use and Privacy Policy. Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities. Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance. Account holdings are for illustrative purposes only and are not investment recommendations. The content on this website is for informational purposes only and does not constitute a comprehensive description of Titan’s investment advisory services.
Refer to Titan's Program Brochure for more information. Certain investments are not suitable for all investors. Before investing, consider your investment objectives and Titan’s fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Brokerage services are provided to Titan Clients by Apex Clearing, an SEC registered broker-dealer and member FINRA/SIPC. For more information, see our disclosures. Contact: 110 Greene Street, Suite 910, New York, NY 10012. Information provided by Titan Support is for informational and general educational purposes only and is not investment or financial advice.
© Copyright 2021 Titan Global Capital Management USA, Inc. All Rights Reserved.