Traveltube: Analyst Opinion
Smarty Smartman, a digital media analyst for Frontrunner Securities points to TravclTube’s lack of profit, negavite cash flow. “The company tries to shift attention away from profits, making up metrics like eyeballs, trying to spin the social media story, which is a very convenient fiction for Wall Street. The financial statement do not contain anything that provides us with indications that helps us determine whether the company is successful or not.
But, the truth is, that TravelTube is not expected to make a profit in the near future. Just because people are uploading their videos on their platform, doesn’t mean that they will earn some money.” According to Smarty, the company is spending lots of money acquiring customers, but they have no idea whether it will actually get the money back.
When you compare TravelTube’s valuation against other companies valued at that amount and contrast their revenues streams and profitability, you have to ask some serious questions.
The analyst pointed to the company’s price to earnings ratio, which is now over 8 times higher than that of traditional media companies, such as the Legacy Times. “People bet on the promise, nothing more.”
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