What companies are most likely Theranos of 2020?
I have recently watched documentaries on Theranos and Fyre Festival. It was quite interesting to know that people knew that it was a fraud much earlier than it came to light.
What do you think are other possible "Theranos" out there?
There needs to be a documentary on Juicero. They didn't lie and cheat like Theranos and Fyre Festival, Juicero just a really silly business model... Which is somehow just as scary
From my perspective I think one is WeWork - shady practices, shady CEO, custom metrics to valuate the company.
Another interesting fraud I read about is OneCoin, they raised about 4$ billion [1] until 2019 and the creator of oneCoin disappeared. They were positioning themselves as a cryptocurrency which ended up being simple a ponzi scheme. `Cryptoqueen` podcast sheds more light on the story.
[1] https://en.wikipedia.org/wiki/OneCoin
Magic Leap? Haven't heard anything from them yet.
From an investment valuation point of view, any company whose shares are being traded at more than say 12 to 15 x dividend payments has people owning shares who are hoping that they will find an even bigger fool to pay for their shares than they did.
Just have a look at the SEC filings for whichever companies you are interested in and see for yourself. You won't have to look for long.
Quibi - they raised a billion (according to the media) before launching anything,and a video I can rotate doesn't sound like a revolutionary new form of media or art.
Whichever startup the well know adage "if it sounds too good to be true, it probably is [too good to be]" applies to.