Howie Man
Long/short equity

Castlight: Overstated TAM And Existential Concerns

Castlight (NYSE:CSLT) takes the low-quality, irrationally overpriced recent JOBS Act IPOs to a new level. The company went public on March 14 and presently has an EV of over $2B on $13M in LTM revenue and a -$62M loss. This is not a typo, CSLT is actually trading at over 150x revenue. The company claims a $5B TAM but after closer inspection the actual TAM drops to $750M. CSLT has a flawed business model and is facing significant competition for this market. Once people do even a scant amount of research this stock should re-price under $10 or 70% below where the stock is presently trading. If CSLT were to lose access to pricing data it buys from...

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