I had a long term position on FIGS that I closed. My thesis is that it was $3.5 when revenue was about 500 million, and it’s now 12.5 with roughly the s as ne revenue, PE IS 124, net profit margin 3%. It has been trading on a range since IPO but on a steady rise for the past few months. Even the last couple of days with the market down, it keeps shooting up. Any thoughts on how this can be sustainable and what the driver is, other than the whole market having a great 2025?
I believe it’s grossly overvalued and has no growth, so my view is to open a position selling calls 12.5/15 or 15/17.5.
Posted by educational2400
3 Comments
You closed your position so you’re gonna sell naked calls?
My wife told me her and everybody at her hospital have thrown away their other scrubs and exclusively wear Figs because it’s solidified itself as the “cool” scrubs.
They had a bunch of bad inventory that they had to load off which killed their margins which has since been corrected in recent quarterly reports. Sales growth is still strong, especially as non scrubwear sales continue to increase as does their sales outside of the US.