AppFolio: Ripe For A Plunge

Summary

• AppFolio runs a cloud-based property management platform that enables property managers to get their work done remotely while keeping connected to teams and customers.
• In the most recent quarter, revenue was up 32% yoy. However, total costs and operating expenses were up 37%.
• The company is burning through cash and is still hovering around the profitability line. Not what you want to see in the current market environment.
• With a forward P/E of 265x, APPF stock looks ripe for a plunge.

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Property managers turn to AppFolio's (NASDAQ:APPF) cloud-based property management platform to get their work done remotely while also enabling them to keep in close contact with the rest of their team members and their customer's community. APPF sold its

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

I am an engineer, not a CFA. The information and data presented in this article were obtained from company documents and/or sources believed to be reliable, but have not been independently verified. Therefore, the author cannot guarantee their accuracy. Please do your own research and contact a qualified investment advisor. I am not responsible for the investment decisions you make.