AVLR - Avalara: Let This Bloated Stock Come Down To Earth

• Shares of Avalara have bucked the broader trend in the tech sector, rallying since September while most of its peers have corrected.
• The main driver is spillover enthusiasm from Avalara's second-quarter earnings release, when the company posted 45% y/y revenue growth - its highest growth quarter on record.
• Even more impressively, billings kept a 52% y/y pace, indicating that near-term deceleration is unlikely.
• At the same time, Avalara's huge valuation at nearly 20x next year's revenue makes further upside quite unlikely.

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