Why I am long Smile Direct Club

Updated: May 6, 2020

Not profitable, but having year over year revenue growth of over 50%, Smile Direct Club is sure to spark a new wave of growth in a post COVID world. Its technology is useful in product development for masks, and its technology will enable dentists in a post-Covid world to meet with their patients in a non dangerous way virtually. Apart from these reasons, they also recently won a business critical patent, which will allow them to not have to compete with copiers such as Bite for years to come. This differentiation was huge before the world was struck by COVID, but after, it gives them even more of a unique differentiation in the market. 

Right before COVID hit, they missed the expectations on earnings growth, and pathway to profitability. After COVID - How else will people get braces and fix the alignment of their teeth if they aren't allowed to see an Orthodontist?



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