
Venture capitalists (VC) and private equity firms have been working hard to keep exciting companies private as long as they can… But 99% of retail investors are “locked out.” So where have all the good investments gone? Where is the chance to invest in the next Amazon? It’s become nearly impossible to find opportunities with the same potential as Amazon 20 years ago.įor example, Uber competitor Lyft is still down 59% from its IPO at the time of writing… and The We Company, of WeWork infamy, ended up indefinitely delaying its IPO (and dropped down over 90% from its peak valuation)… But this wasn’t the explosive winner that they were promised…Īnd we’ve seen a similar pattern in many of the “hot” IPOs that have emerged in recent years. Investors at the IPO got their faces ripped off by Wall Street, which had told them this stock would be the next big thing. It sits on $8.4 billion in debt and isn’t forecast to turn a profit until 2024.
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Not only that, but the company will lose almost $4 billion in negative free cash flow this year, $1.3 billion next year, and $600 million in 2022. It trades around $34 and change, still down over 23% since its IPO. It was valued at over $75 billion already. It went public last year on May 9 at $45 a share.īut what many retail investors didn’t realize was that Uber was nearly nine years old when it went public. Including the name and ticker of the best-performing stock of 2020.
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Here’s how to prepare for the biggest stock market event of the decade. Anyone who had a brokerage account could have enjoyed those gains.īut, sadly, the opportunity to invest early has almost disappeared. The best part… Every retail investor had an opportunity to get in on those investment returns. Investors who got in early made a fortune. That was more than a 180,000% return on investment. On a split-adjusted stock basis, Amazon rose from $1.54 per share to more than $3,500 recently. It generated $147.8 million in revenue that year and just $2.7 million in free cash flow in 1998. Its enterprise valuation was a mere $438 million. At the time, it was still a relatively small company. How do I know? One simple illustration will show what I mean…Īmazon went public on May 15, 1997, just under three years after its founding. Investing in recent years has been a rigged game. Jeff Brown: I Spent Five Years Researching This Tech Sector… 1 Jeff Brown: I Spent Five Years Researching This Tech Sector….
