I want to kick off my posts with GoodRx thoughts.
GoodRx is a coupon company. Ok not that simple. They are actually great company that saves money for the consumers by going to their app and searching specific drug they need to buy it.
On September this year went public and look at the chart:
But what happened is that in November Amazon said they announced they are rolling the online pharmacy. How is that surprise is beyond me. They bough PillPack about 2y ago and everyone should've known that.
At that point every company in the space got taken to the woodshed. While i thought of investing in GDRX before i finally bought on Friday at about 42.75 per share.
Here is how i think. This is not high conviction name. However i think this goes back to mid 50's. We are in a major bubble that i don't think is popping soon (i could be very wrong). GDRX is one of those companies that could even double. Yes double. Here is few reasons:
They are first mover advantage (I may be wrong)
Thei technology is great and they have great relationships with the PBM's
It will go higher because we are in bubble (the FED is printing trillions)
They just came public and probably they have at least short term visibility of the numbers.
Great management team.
As i said i have bought some stock. I don't bet the house. The probability that this goes to mid 50's is high and i would say 50% chance see double in 1-2 years.
If you want to know if i still have position just ask me.
I am not obligated to update when sell.
This is not investment advice. Your money your call.