The latest news and articles from Financial Poise, plus a new free webinar every week.
Is Warby Parker worth $6 billion? The answer is yes. At least that’s what investors decided by the end of the trading day yesterday, which was the direct-to-consumer eyewear company’s first day of trading as a public company.
Warby Parker will be of continuing interest to investors (even those who have no intention of investing in it) for at least two reasons. First, it did not become a publicly traded company through an IPO. Instead, it did so through “direct listing.” Second, it is a rare example of a DTC company going public.
A “direct listing” happens when a company simply lists shares that already exist on the New York Stock Exchange. One consequence is that the company usually doesn’t receive cash in exchange for new shares (because there is no issuance of new shares). Speaking for The Motley Fool, Matthew Frankel presented a terrific PowerPoint back in March, which you can see here. As Matt explains, Roblox, Slack, and Spotify are examples of other companies that have completed direct listings.
A DTC company sells direct to consumers. Well-known examples include Allbirds, Blue Apron, Bonobos, Casper, and Dollar Shave Club. Technically, the term doesn’t have to describe a type of company. Instead, it is a type of sales channel. However, some companies are entirely (or at least predominantly DTC), and those are what we refer to when we say “DTC company.” Caroline Jansen’s article, The rise of DTC holding companies in RetailDive explains the evolution of DTC holding companies.
Free Webinar of the Week for Business Owners, Executives & Investors: What's it Worth? Valuing a Business for Sale, from the series Valuation 2018. This one-hour webinar is complimentary for Financial Poise Weekly Subscribers.
The Answer is Yes. The question was posed by Financial Poise author Sophie Friedland, in her article, Can You Get Wealthy Buying Farmland as an Investment> The answer was provided most recently by Cary Estes, in her article, Farmland Values On A Rocket Ship. Published just yesterday by Successful Farming, Estes wrote that “[the demand for productive agricultural land nationwide has accelerated at a pace not seen in years. Her article provides an excellent exposition of the National Agricultural Statistical Survey (NASS) Land Values 2021 Summary.