Seeking Alpha

Mobileye blasts off following IPO

  • Mobileye (NYSE:MBLY) opened for trading at $36 and is now at $37.75, up 51% from an elevated $25 IPO price.
  • The driver-assistance system developer is valued at $8.01B, or an eye-popping 99x 2013 sales. Given Mobileye's rapid growth (Q1 sales rose 204% Y/Y), forward sales multiples will be relatively modest once analyst estimates arrive.
  • Prospectus, IPO preview, analysis
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Comments (20)
  • BBBerry
    , contributor
    Comments (25) | Send Message
     
    Would of been nice to get in at the actual 25$ dollar price.
    1 Aug, 11:31 AM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Agreed, but you'll probably still make money at this price. Hoping to see 45 sometime next week.
    1 Aug, 11:48 AM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    1 minute video showcasing Mobileye's banner technology:

     

    http://bit.ly/1lki40g

     

    Bought in 200 shares.
    1 Aug, 04:26 PM Reply Like
  • Qcom
    , contributor
    Comments (103) | Send Message
     
    But is this product in the market yet? I don't think so.
    2 Aug, 09:08 AM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Yes, the technology is already in the market.

     

    http://bit.ly/1zHbM3j
    2 Aug, 09:25 AM Reply Like
  • Tales From The Future
    , contributor
    Comments (5031) | Send Message
     
    One year ago the company was valued at about $1.5bn only...

     

    http://bit.ly/1rXS8id

     

    Certainly a lofty rise in valuations just 12 months later.

     

    I admit I didn't follow MBLY or its competitors closely enough since then.

     

    Any fundamental reason or explanation for the rise to $8bn?

     

    It looks to me like most of the deals with car makers were already in place 12 months ago.

     

    Or is it a "rising tide lifts all boats" outcome thanks to GOOG x Nest and similar lofty tech deals and stock valuations lately?
    2 Aug, 12:20 AM Reply Like
  • buyandhold???
    , contributor
    Comments (907) | Send Message
     
    bubble
    2 Aug, 10:02 AM Reply Like
  • James Sands
    , contributor
    Comments (2113) | Send Message
     
    This is not the long-term technology of the future.....
    2 Aug, 12:50 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11158) | Send Message
     
    Yet another trumped up IPO to enrich the banks and insiders at the cost of those dumb enough to bid the price up. Whatever you do, don't get caught up in IPO hype right now. Just over extending yourself into the stock market now is dangerous.

     

    That said, the technology and bent of the market is there, however there will be a dearth of players in this market including Google when it develops. It is not a sure bet even if the market materializes.
    2 Aug, 01:54 PM Reply Like
  • James Sands
    , contributor
    Comments (2113) | Send Message
     
    Despite consumer preferences, full autonomous vehicles are what federal policies are looking to push. Safety is a big concern and removing the driver from the equation is the only way to eliminate accidents. This technology is not relevant when/if this occurs.
    2 Aug, 02:25 PM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Please. Are you suggesting only full autonomous vehicles will be allowed five years from now?

     

    Zero manual control allowed for a driver. Highly, highly unlikely.
    2 Aug, 04:22 PM Reply Like
  • James Sands
    , contributor
    Comments (2113) | Send Message
     
    Did I say five years or that it is a certainty....classic example of reactive rebuttal without digesting the comment. I simply stated the basic premise driving federal level policy, and suggested that in the event it would come to fruition, this would make the above discussed company's product obsolete.

     

    CARB is bent on zero freight emissions in the entire state of California. Is this a realistic goal? Just ask your freight carriers, big and small. BNSF has a huge government affairs division as do many large freight companies of which, the majority of their resources go to California. But the state will continue push regardless.

     

    There are lawsuits over green house gas emissions being disputed in courts today regarding modeling of these circumstances out to the year 2050. We complain about how an analyst can't predict the next year of a company, yet courts are bent on spending tax payers dollars on 40-year modeling due to state laws related to GHG.

     

    Similarly, federal Committees have already hinted towards aggressive autonomous policies. Maybe it is cellphone technology-based, maybe it is a completely separate system within the car....

     

    Regardless if investors are considering a company like the one above, they should keep apprised of these events.
    2 Aug, 06:44 PM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Semantics. I should have said, "Do you _think_ only full autonomous vehicles will be allowed, with no driver input?" Saying the technology will suddenly become irrelevant once everyone is in self driving cars (which would need to be a number of years into the future) is silly.

     

    In fact, the technology's demand and relevance will only increase over the next decade as more and more automakers are including collision avoidance technologies.
    3 Aug, 02:28 AM Reply Like
  • James Sands
    , contributor
    Comments (2113) | Send Message
     
    Clayton,

     

    It is important to really understand a particular industry before getting too excited. You are talking about a company generating $80 million in revenue, which is losing more money to grow its revenues. Your statement assuming that this technology will grow with the car industry from its current scale is just as silly.

     

    Any comment thinking about the next decade is silly, let alone the next year. Proven companies have a history of success, this company does not.
    But go for it! There is always a joker in the midst of our deck of investment cards, no matter how hard we try to avoid it. Unfortunately we don't get to get rid of it in a timely manner most often.

     

    Best of luck!
    3 Aug, 01:02 PM Reply Like
  • oj88
    , contributor
    Comments (100) | Send Message
     
    See my bearish view on MBLY IPO: http://seekingalpha.co...
    2 Aug, 03:10 PM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Bears out in force. I'll put money on this being over 40 next week.
    2 Aug, 04:23 PM Reply Like
  • oj88
    , contributor
    Comments (100) | Send Message
     
    Warren Buffett recommends avoiding IPOs, for the following reason: http://bit.ly/UTbuXg

     

    "It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)."

     

    Please provide your bullish rationales to buy such an expensive stock.
    2 Aug, 05:26 PM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Growth potential, contracts with over 10 major automobile manufacturers in place, existing commercial products already impressive (see http://bit.ly/1zHbM3j), and the rapidly increasing trend and demand for driver assistance and backup technologies.
    2 Aug, 08:02 PM Reply Like
  • Ethics-
    , contributor
    Comments (78) | Send Message
     
    Tough to value, probably hit max for a while.
    3 Aug, 02:52 PM Reply Like
  • Clayton Carmine
    , contributor
    Comments (40) | Send Message
     
    Mobileye says its technology will be in 160 car models, from 18 makers, by year's end and in 237 car models, from 20 manufacturers, in 2016. I want to be holding shares when some of these contracts are officially announced.
    3 Aug, 04:53 PM Reply Like
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