I had a long term position on FIGS that I closed. My thesis is that it was $3.5 when revenue was about 500 million, and it’s now 12.5 with roughly the s as ne revenue, PE IS 124, net profit margin 3%. It has been trading on a range since IPO but on a steady rise for the past few months. Even the last couple of days with the market down, it keeps shooting up. Any thoughts on how this can be sustainable and what the driver is, other than the whole market having a great 2025?
I believe it’s grossly overvalued and has no growth, so my view is to open a position selling calls 12.5/15 or 15/17.5.