2024-07-05 12:17:09 ET
Summary
- Corsair is a busted IPO because investors initially overestimated Corsair's revenue growth and margins.
- Corsair operates in the high-performance computer peripherals and components markets. These markets are growing, but competition is fierce.
- Corsair's moat, based on brand name and product quality, shows signs of deterioration and is likely not defensible long-term.
- I believe Corsair's intrinsic value is $5.29-$8.93/share.
Brief Company History
Corsair ( CRSR ) was founded in 1994 and initially sold memory. Over the past twenty years, it expanded to computer components (power supply units, cooling solutions, computer cases, etc.) and peripherals (mice, keyboards, streaming equipment, etc.). Rather than competing on cost, Corsair leverages its brand name and reputation to sell products at premium prices.
Corsair has historically been a leader in the computer components market and parts of the peripherals market. Corsair started the trend of putting RGB lighting on everything, giving them a first-mover advantage and solidifying their position as a premium brand....
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For further details see:
Corsair Gaming: Weakening Moat And Expensive Valuation