Ohmyhome (NASDAQ: OMH) was up over 300% yesterday and is already down 40% premarket this morning. There being very little to recommend this stock at these sorts of price levels unless we're willing to try and play off some Elizabeth Holmes and Theranos sort of vibe. Yes, this can indeed be taken as us being sexist, possibly patriarchal and certainly there's an element of bias to it. And yet we're talking about money here so it's necessary to cut through all of the fashionable talk and get to what's really happening here.
Ohmyhome is a recent enough IPO which essentially runs a real estate portal in Singapore and environs. Revenues run in the couple of $million a year sort of range. There's argument about what the growth is like (strip out related party transactions and it looks much less impressive). But clearly it's possible for a portal like this to make good profits in the right market. Zoopla is not exactly a small operation after all. We would probably say that it's a bit early to be saying that about Ohmyhome though. That IPO was only the 6 weeks back and it raised $11 million. Not all of which went to the company, a founding shareholder also sold into the market at the same time.
Ohmyhome stock price from NASDAQ
A couple of millions in revenue, just launched with an $11 million raise - and now it's valued at $500 million and more? No, we don't think so, really, we don't.
And now for that sexist and patriarchal stuff. As Elizabeth Holmes did show all too many men invest with their hormones at times. Well, as all good looking women have known since forever all too many men think with their hormones too much of the time. And as wise men know the secret to maturity is to stop doing so.
It is entirely true that the two sisters who run Ohmyhome are good looking. Not even in that Holmes sense, of good looking for business, or good looking for the tech world. But very good looking young women. Lucky for them, obviously, hitting the genetic jackpot. But that still doesn't make their couple of $million a year real estate portal worth half a billion.
It might be today, it might be next week, but expect the Ohmyhome stock price to settle back to a more reasonable valuation of the company as an actual busines soon enough.
