DigitalOcean and SEMrush IPO

NulledCode

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So who is getting in on these companies going public? I regretted not getting in on Shopify, Fiverr, and mongodb to name a few. Do folks here still use SEMrush and what are your thoughts about it as a product?
 

NulledCode

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I guess it depends on if you think there's room for growth, right? SEMrush claims to have 67,000 customers and that does not seem like a lot. I would think there's a lot of room for growth and this is the one I'm keeping an eye on over DO even though I use DO and not SEMrush.
 

MisterF

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SEMrush raised $40 million 3 years ago, through venture-capital firms Greycroft, e.ventures and Siguler Guff.

Their turnover for 2020 was reportedly around $101million.
 

GNews

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SEMRush = solid investment.. for most internet players. Surprising to me no free technologies have come out to compete yet but i guess they cant find a profitable angle

If they somehow get some features related to Cryptos hog-tied like this.. it's over

What is digital ocean?
 

NulledCode

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I went in with SEMRush. My reason being is the SEO industry has been growing each year with it being estimated at $80b and somebody on BHW posted that SEO jobs are going to be in too demand according to LinkedIn, that is telling me there’s going to be a boom. SEMRush’s market cap is not even $3b so I see big opportunities for them to capture the market. At the time of my original post this was trading at $10-12.
 

DunderMannen

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MongoDB, Shopify and Fiverr were 10x larger. An SaaS for such a niche audience like SEMRush will be harder
 

NulledCode

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I agree a 10x with SEM will be harder to achieve but I think it is doable. I think DO just under 6b market cap could easily hit 100b. I actually have more money allocated for DO but it was recently pumped and saw a big jump from $40 to $57 so I am waiting for the price to flatten out before going in.
 

NulledCode

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So I ended up getting in on DO back at the end of July at ~$55 and purchased some more at $86-95. This thing has been on a rocket upwards and analysts keep increasing their target price now over $100. Apparently the CEO also gets rewarded if he can get the share price to $280, see page 10 of this https://citronresearch.com/wp-conte...gitalOcean-The-Shopify-of-Cloud-Computing.pdf.

SEM has low volume but it has been on a gradual increase since it first started trading back in April. SEM is a longterm 5+ year bet I'm making.

Earnings are set for both companies first week of November.

Another company I like is Couchbase, sitting at 1.7b and only 43m shares outstanding. People compare Couch to mongodb (which now sits at 34b) because of their similar product but I think mongo is way too popular for Couch to catch it and Couch would be lucky to be half the company of mongo. Couch has such a low float that any positive news could easily send its share price soaring, on the flip side it could just as easily crash, but short term I think there's a good chance this could 2x.
 
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