Sniper Fund
Long/short equity

2U Inc.: Fails On All Fundamental Measures

2U Inc.: Fails on all Fundamental measures

New IPO 2U Inc. (NASDAQ:TWOU) hit the market in March 2014 and has been riding the wave of Cloud Computing Fever. The share price has risen steadily and currently trades at $14.77, near its post-ipo high. This article looks at the investment thesis and why this is a screaming short.

Head in the clouds?

The market has been saturated with cloud computing companies, with numerous IPO's hitting the market in the last 12 months. Not all cloud computing companies are created equally, and key to making smart investment decisions in this market is to understand if the company is a good company and if the price is a good price.

Is...

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