The "Corel" of Social Media CompaniesVery interesting trading patterns at the end of last week: $16 bid against $26 (!) asked, with tiny lot offers going both way. At Friday close, FORA is down 46.6% since the start of the year.
The downward pressure is not overly surprising, since the IPO price seemed overvalued by a truly jumbo amount. The quarterly report coming this week is bound to be be interesting.
My main impression is that this was a winning business model 15-20 years ago, consolidating chat rooms without regard for how to monitize. Basically, FORA is playing Corel to Reddit's Canva: the 20th century vs. what has happened since. It's a legacy play, with no prospects except unlikely acquisiition by a greater fool.
I was shocked to see that Fidelity put $50-60 million into this creaky old jalopy. Disappointing. I thought they were supposed to be smart.