Stripe valuation soars to $95B after latest fundraising

Post by modified001 » Mon, Mar 15, 2021, 1:11 AM UTC

ianhawes wrote: post #46

0xy wrote: post #39

Earlier quoted context omitted.

This is totally wrong, considering Stripe has enormous negotiating leverage. My employer never bothers switching to any competitor because Stripe match any deal that their competitors present to us. Could you, a single person and $500m of seed funding match Stripe's prices? Not without hemorrhaging cash. One of Amazon's moats is low pricing as well, which can only be achieved with eye-watering scale (their margins ar…

Fun fact: I presented Stripe an opportunity to meet or beat a proposal by Braintree. They countered with a microscopic fee decrease and wanted to lock us into a 2 year deal. Not only was the offer from Braintree way better, they gave us a better deal on PayPal fees as well. Stripe’s focus on their supplementary offerings, like Billing (which used to be effectively free) and Checkout show that they’re trying to eat mo…

Post by missedthecue » Mon, Mar 15, 2021, 1:27 AM UTC

nl wrote: post #87

missedthecue wrote: post #19

Is Stripe unprofitable? What kind of scale are they going to reach that will push them over the edge into the black that they haven't been able to reach at the vast scale they already have? If they are profitable, why go the expensive equity route rather than using retained earnings? Or bonds? American Airlines recently sold $10 billion of them at 5.5%. Surely Stripe could do just as well or better.

From the article: Keeping away from the public markets has allowed Stripe to keep a tight lid on financial details; it has not disclosed revenues or profitability. However, a person close to the San Francisco-based company said it handles a larger volume of payments than its European rival Adyen, which has a market capitalisation of €60bn and processed €303.6bn in 2020.

Post by dmlittle » Mon, Mar 15, 2021, 1:38 AM UTC

jgalt212 wrote: post #78

masom wrote: post #47

Earlier quoted context omitted.

> This certainly makes Stripe the most valuable private startup in the world. Stripe has not been a startup for a while, they've been in public operations for about 10 years now and probably power a large portion of online purchases.

true. any word on their market share %?

Post by danielmarkbruce » Mon, Mar 15, 2021, 1:47 AM UTC

lsh123 wrote: post #71

ffggvv wrote: post #55

am i the only one that thinks fintech is massively overvalued? especially square etc, or anything adjacent. sure they have great growth and revenue but i don’t see any path where profit can justify the value

The main value for Stripe is not in the payments processing itself (I would estimate they take about 0.2% from TPV as fees). The main value is the add on services, and in particular short term loans to SMBs secured by incoming payments. Overall, Stripe is a strong and successful business with room to grow. Is >100x P/E justified? Probably not from pure financial perspective. However if you take into account “hype” th…

Post by atlasunshrugged » Mon, Mar 15, 2021, 2:14 AM UTC

ergocoder wrote: post #94

edoceo wrote: post #86

Earlier quoted context omitted.

Well, (my) darts aren't accurate, so, maybe? I couldn't hit Belgium from 3m away but I probably couldn't hit USA either. I'm thinking water still wins. And it depends on the map projection too. Maybe the dart is to focus on that specific circular area, like 10km radius or something? Or maybe every group gets an equal slice on the dart board? Just something to help distribution rather than some money-motivated/short-t…

Ah, my snarky comment turns into a legit technical question. Well, throwing a dart wouldn't be too bad though....