Tech stock Facedrive and its monster rally
Facedrive differentiates itself on several fronts compared to peer browsing platforms. While Uber, the global carpooling giant, experienced exorbitant growth in its infancy, it was also accused of being one of the worst polluters.
Enter Facedrive. Facedrive has a fleet of electric, hybrid and traditional petrol vehicles. It offers riders the possibility to choose from these vehicles. In addition, cyclists can check the environmental impact after their ride. A percentage of the price of the endorsement is invested in green initiatives such as planting trees. Last year, Facedrive planted approximately 3,500 trees.
In particular, this carbon neutral call could prove to be a significant competitive advantage for Facedrive.
From a financial point of view, Facedrive is currently a loss-making company. It reported revenues of $ 599,104 in 2019 compared to revenues of $ 13,579 in 2018. It currently has approximately 60,000 registered users and 13,000 drivers.
The company also spends a lot on research and development. Its expenses under this heading more than doubled in 2019 compared to the previous year. In addition, there has been a dramatic increase in key areas such as pilot and pilot registrations and rides completed last year. Driven by solid numbers, Facedrive shares have more than doubled since the publication of its 2019 results on April 24.
If we had invested $ 10,000 in Facedrive shares in June 2018, they would have accumulated $ 110,000 today.
A promising and socially responsible economic model
In addition to carpooling, Facedrive is also developing in the food delivery segment. On May 14, she announced that she would purchase certain assets from Foodora – an online food ordering company. If completed soon, it can take advantage of increased demand during the lockout period.
Facedrive is also looking to develop its carpooling services for businesses. In addition, the climate-friendly crane driver plans to settle in Europe before expanding his presence worldwide. A steady increase in market share will notably increase the turnover of Facedrive in the coming quarters.
After the epic Facedrive rally in the past two months, the stock looks considerably overvalued. Thus, conservative investors could expect a decline. Investors with an appetite for excessive volatility can expect a high-risk, high-paying scenario.
Established players in this field have already demonstrated the growth potential of this industry. Interestingly, there is an inherent attraction to the Facedrive carpool platform. Even if he is a newcomer to the industry, Facedrive may not have to fight for market share. This is because social and ecological concerns largely motivate the decision-making of millennials these days, and Facedrive rightly responds to them.
However, it would not be too difficult for established players to increase their fleet with environmentally friendly cars. This could be a big threat to Facedrive in the future.
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The crazy contributor Vineet Kulkarni has no position on any of the titles mentioned. Tom Gardner owns Shopify shares. The Motley Fool owns shares of and recommends Shopify and Shopify. Motley Fool recommends Uber Technologies.