Overview
When we look at technology companies, we think of growth. These companies will optimize revenue growth typically at the expense of profitability. They would typically require a lot of cash to fuel its growth. However, the way they raise the cash matter to us since it affects the capital structure of the company.
In our thesis, we feel that Domo's (DOMO) insistence to raise cash through debt instead of equity financing will instead adversely impact both its growth and profitability. This likely makes Domo a short potential at the moment. In the long term,