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$MWK took a deeper look yday at what they do and the company seems 
.
The opportunity is large. Third party seller business on platforms (Amazon, Walmart etc) is ripe for consolidation.
A lot of those sellers are 1 man show and the marketplace is getting sophisticated.
.The opportunity is large. Third party seller business on platforms (Amazon, Walmart etc) is ripe for consolidation.
A lot of those sellers are 1 man show and the marketplace is getting sophisticated.
These 1 man show sellers on Amazon mainly sell 1-2-3 products and don't have the scale to operate an efficient supply chain.
However, some of them turn around millions of dollars per year...because internet and they are early movers.
However, some of them turn around millions of dollars per year...because internet and they are early movers.
But many professional operators are invading the space selling hundreds of millions through Amazon and having the tooling and know how to support that.
They have professional Amazon SEOs, people looking at analytics all day and professional photographers and copy writers.
They have professional Amazon SEOs, people looking at analytics all day and professional photographers and copy writers.
They have the scale to provide for a super efficient supply chain, even to manufacture if they wish.
So it is easy to see how those operators buy out smaller operators and turn 1 million ARR to 2-3-4-5 million ARR. It is just ripe land for that.
So it is easy to see how those operators buy out smaller operators and turn 1 million ARR to 2-3-4-5 million ARR. It is just ripe land for that.
So what $MWK and Thracio (private bigger analogue) do is raise investor money, buy out Amazon sellers, increase ARR through scale and know how, get higher valuation, raise money, buy more sellers and there you go the magic flywheel.
What is good is that they operate mainly brand less products. So you have the optionality to get a real hit with one of the products and it turning to a billion dollar company by itself. Not 100% but opportunity is there.
$MWK will be ~ $400 million ARR this year and probably shoot for a billion within 1-2-3 years. This growth is amazing. And feels like the start. Consolidation in digital ecommerce is only in early stages. This is a hugely fragmented place.
I can easily see $MWK double from here (~ 2.5 bln company) in the year ahead. It had quite of a run but that is not overvalued, it is rather market coming to realise the leverage of the model.
Another interesting twist is that they are quite tech oriented (must be) and kind of lead in that effort. That's why they have ~ 150 employees on $150-200 million sales.
Don't want to speculate if they will leverage the tech as SaaS but even as in house solution, being tech first retailer is the way to go and I believe that gives competitive advantage.
I am just a trader but some trades are higher conviction than others. $MWK is definitely that one. I will be looking to increase my position to 3-4x of usual size. Upside just looks inevitable, with all the growth and valuation, they have to screw really hard to flip.
What is more, look at the chart. Market seems to agree with the above. Market is kind of choppy recently but not this one. It tells me, people rush to buy and like the business. Volume confirms that too. So when you have growth, valuation, chart on your side that's
