CRCT

Cricut, Inc.

TMT, Consumer


Presented:05/07/2021
Price:$22.91
Cap:$0.35B
Current Price:$6.61
Cap:$1.43B

Presented

Date05/07/2021
Price$22.91
Market Cap$0.35B
Ent Value$5.28B
P/E RatioN/A
Book Value$70.69
Div Yield0%
Shares O/S15.31M
Ave Daily Vol837,097
Short Int2.08%

Current

Price$6.61
Market Cap$1.43B
Cricut, Inc. distributes scrap book, craft, and home decor items. Its products include Cricut Explore, design space, and cuttlebug. The firm offers Cricut Explore Air, One, and Expression, online digital exclusives, images for weddings, birthdays, baby showers, cartridge bundles, back to school and classic and re-released cartridges. It also supplies printable materials, window cling, craft foam, tools, pens, stamps, vinyl, paper trimmer and supply bundles. The company operates through the following segments: Connected Machines, Subscriptions and Accessories and Materials. The Connected Machines segment sells connected machine hardware and related essential software. The Subscriptions segment provides software and access to the Company's cloud-based services. The Accessories and Materials segment primarily consists of craft, DIY and home décor products. The company was founded by Robert Workman in 1963 and is headquartered in South Jordan, UT.

Publicly traded companies mentioned herein: Cricut Inc (CRCT), Etsy Inc (ETSY)

Highlights

The presenter is short shares of Cricut Inc (CRCT), a cutting plotter company that IPO’d on March 25th and currently trades at ~$24 per share (~$5.25B market cap, ~$5.15B EV). This technology has been around for decades and experienced a major increase in demand due to COVID-19, but the presenter sees material downside to the stock as CRCT misses on earnings expectations in coming quarters from numbers normalizing. 

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Idea Discussion

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