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Enjoy: The Uber Of Retail

May 02, 2021 10:39 AM ETLegacy EJY, Inc. (ENJYQ)AAPL, T38 Comments


  • Enjoy has a novel experiential retail offering with no direct competition.
  • The market is potentially very large, although Enjoy has only proven its business model in the mobile phone market at present.
  • There are clear first mover advantages that would enable significant growth if Enjoy succeeds in creating this new market.

Apple Store interior reflected with customers waiting in line outside
Photo by AdrianHancu/iStock Editorial via Getty Images


On 4/28/2021, Enjoy Technology announced that it would be going public via SPAC merger with Marquee Raine Acquisition Corp (MRAC). The combined company has an enterprise value of $1.2B and

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I am a PhD with a quantitative engineering background. For many years I have leveraged Seeking Alpha to improve my personal trading activity and starting 2019 I have decided to contribute my own insights. My goal is to help continue growing this great community and collaboratively develop new ideas!

Analyst’s Disclosure: I am/we are long MRAC. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (38)

Ron Johnson hasn't had the best record since his days at Apple. I suspect his interests are now elsewhere since the company hasn't recovered from pandemic. I guess nobody had any bright ideas how to adapt or make changes to thrive in the new normal. GLTA
well this didn't age well
crazylikebudfox profile picture
Not often you see a stock recommendation this bad, but here it is. Might need to frame this one.
Bodipb profile picture
@crazylikebudfox I have been following, absolutely no buyers to be found, just sellers.
This might win the award for "most heinous SPAC." That's saying something given 2021's SPAC combination record.
@BetOnRed Why do you judge so harshly?
They had this in the works prepandemic. Brutal for all businesses at that stage of development. Amazingly well managed to have survived. I have no skin in game...yet...

It is not amaziningly well managed. The only reason they are not bankrupt is because the SPAC just threw a lot of money at it to take care of the near term maturities. The company will still hemorrhage money.
@BetOnRed You have absolutely no idea what you're talking about. Couldn't be more wrong if you tried. Clueless.
ron49er profile picture
How much extra must I pay to prevent a salesperson from coming to my home to upsell me? That's the next idea from this. I loved buying my phone online and not going to a phone store. Didnt realize so many boomers were paying for "white glove" service for geek squad to open the box and press power on.
Gains on Gains profile picture
@ron49er The social media sentiment for enjoy is as bad as you will ever see on anything because none of the people active on twitter/here/substack whatever will ever use it. But their net promoter score is off the charts if you put any faith in that. QVC is still pretty big business and now that crowd gets to basically 'rent a grandchild' who helps them set up their phone.
Bodipb profile picture
@ron49er less tech savy generation, data transfer, set up, new features. Not just power on.
@Gains on Gains Part of what skews their promoter score is they are measuring it since inception. Look at all the services and products they helped with between 2016-2019 and compare it to now. They were hemorrhaging money with whiteglove services and upselling mid-range "techy" products, and now transitioned to only selling phones for telecoms.

Ask yourself, why would a company expand internationally while its domestic operations are still a mess and "underpenetrated" if its reputation was so good? It makes no strategic sense.
bazooooka profile picture
Yup; trading at only four times fwd 2023 revenues of if all goes well. Otherwise its more like double that multiple if topline growth falls to around thirty percent cagr over next few years.

>>""If one believes the growth projections provided by Enjoy, then the current valuation is quite attractive.""
So basically they are pitching a door to door sales service?
Bodipb profile picture
Gene Munster has a solid track record.
Kinda get the idea this is a new take on the Fuller Brush man door to door sales.
if only they were doing a direct listing instead of a SPAC ...
Lounging in the dry heat... profile picture
Thanks for the article! Could you explain the difference in MRAC and MRACU?
Gains on Gains profile picture
@Lounging in the dry heat... mrac is a common share. mracu is a common share plus one fourth of a warrant. seeking alpha lists the warrants as mracw.
@Gains on Gains Just curious, and realizing every investor has to do their own due diligence, would you buy any of these listings or wait for the change to Enjoy?
Gains on Gains profile picture
@Epicontact2 100% wait if you're doing common shares. They are going to get redeemed to death and even though sometimes that means a squeeze it will almost always lead to a dump. check out the MKTW chart for a comparison assuming I'm right on the redemptions. The wishy washy reopening is hurting these guys per the recent quarter. They're still only getting 'through the door' on like 50% of trips vs 90ish prior. I dumped my warrants at a loss although down here they're not a terrible gamble.
Kinda interesting, but what's to stop Apple and everyone else from implementing a similar in-home delivery service in the future? Apple could do this very easily.
Gains on Gains profile picture
@NotAnInfluencer I wonder if each individual company doesn't have enough demand on their own to be able to justify full time employment of quality people. Sort of like restaurants using delivery services instead of having their own drivers. I'm interest in the warrants here under $1.
@Gains on Gains I would think Apple could justify the demand. Their stores are always packed. Always. Trillion dollar company that doesn't offer in home delivery service by a trained employee is actually sort of amazing. I'm looking at the warrants myself, very strong indicator is the fact that Ron Johnson is the founder. That's very interesting. I hadn't heard of Enjoy prior to this article.
Bodipb profile picture
@NotAnInfluencer Enjoy probably has a 3 yr early mover advantage. A lot of cross over between Ex Apple and Enjoy employees.
Owen213 profile picture
Thanks for doing the homework on this. If the spac commons drop after ticker change, might be a nice buying opp.
@Owen213 Great point! Just circling back to see if how business is progressing. Planning to start a position.
Owen213 profile picture
@Epicontact2 staying away for now
@Epicontact2 I recently upgraded my Samsung phone through AT&T.. They didn't have it in stock, but they made me an appointment to have a specialist deliver my phone to my home the next day... ON A SUNDAY. The delivery guy gave me his card and he works for Enjoy. Told me how they were going public opening the NASDAQ the next day. He delivered it, activated it, and was off. I've been watching ever since but think this $10-$11 range may be worth a small initial position.
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