- This stock has held up fairly well considering it is only down about 11% while posting consistent losses.
- Eventually, investors will have to focus on the actual economics of the business and associated cash the company is burning rather than just sales growth figures.
- Gaia operates in a niche where we think the growth opportunity is much smaller than the company portrays in its presentations.
Read the Full SeekingAlpha Article HERE
GAIA's subscriber metrics are misleading bordering on fraudulent. They include gross subs to calculate their subscriber acquisition costs rather than net subs which understates subscriber acquisition costs. Moreover, the exclude a substantial amount of selling costs form the customer acquisition costs which is dubious at best since the company is primarily a marketing organization dedicated to acquiring subs for their videos. They also overstate their customer LTV because they do not include customer churn in their calculation. Finally, net flix or Amazon is not going to pay $166mm plus a control premium for a bunch of videos they could shoot themselves for probably $5mm.
ReplyDelete