Acquirers don't pay bubble prices
$AMZN is acquiring $IRBT for a bit more than 1x sales and roughly -55% of its all-time high price. Meaning, if you are holding a speculative tech growth stock that you bought during the bubble times last year, the danger is very real that if the company gets acquired, it will be for a far lower price than the ATH price.

Important to keep in mind, these bubble prices will not come back for a long time, if ever.


Brett Schafer's avatar
How do you think this fits into Amazon's electronics strategy? Are there any synergies here?
Michael Szumielewski's avatar
@ccm_brett My guess is that Amazon bought them for the tech and engineering talent. Roombas basically look like warehouse robots and have similar functions, including mapping environments etc. I'm sure there are some synergies there to improve them even more.
Maybe there might be an Alexa angle, too. Imagine mobile Alexas.
Eric Messenger's avatar
Yup. I can’t believe the prices people pay for some of those hype companies at their upper prices.
Michael Szumielewski's avatar
@wall_street_deebo It's mind-boggling. One of my favorites is $PTON, such a crazy valuation at the top.

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