Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: IPOs
Stocks: BUFF, FB, SNAP

The BarkBox IPO Guide for the $69 Billion Pet Industry Disruptor

By Jack Delaney, Sr. Cannabis Editor, Money Morning • January 19, 2018

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

The pet industry is currently a $69 billion market, according to CNBC, and investors looking for a way to profit may soon have their chance through the BarkBox IPO.

BarkBox sends a curated box of bones, toys, treats, and accessories to subscribers each month.

BarkBox IPO

The boxes have fun monthly themes like "Chewrassic Bark," with items that include treats named "Jurassic Pork," and a toy dinosaur.

And disrupting the pet industry with a subscription service is proving to be prolific...

The U.S. pet industry's value climbed from $60.29 billion in 2015 to $69 billion today, a 14.4% increase in just three years.

But that growth is increasingly concentrated in web sales. U.S. consumers are visiting subscription service websites more than ever before.

In 2014, subscription service websites received roughly 4.1 million searches per month.

As of April 2017, that number skyrocketed over 800%, to 37 million monthly visitors, according to Forbes.

Now investors are getting a chance to profit from this trend when BarkBox goes public.

Today, we wanted to offer Money Morning readers a detailed guide on BarkBox, which includes its history, valuation, and how to buy BarkBox stock.

Most importantly, we'll also answer the question of whether you should buy BarkBox stock when it goes public.

Let's start with how this innovative subscription service was formed...

BarkBox's History

BarkBox was founded in 2011 by CEO Matt Meeker, Henrik Werdelin, and COO Carly Strife.

Meeker is the co-founder of the online social networking service Meetup, and Werdelin is the founder of the New York City-based venture development firm Prehype.

Strife worked at Uber from January 2011 to December 2011, according to her LinkedIn profile.

And the inspiration for the dog subscription service came from Meeker's 150-pound Great Dane.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.
The CEO had a difficult time finding retailers in New York City that sold products tailored for dogs of all sizes.

He saw a problem and decided to fix it himself...

When signing up for BarkBox, customers have three box sizes to choose from to tailor the selections to their dogs: "Small & Cute" (0-20 pounds), "Just Right" (20-50 pounds), and "Big & Bold" (50+ pounds).

Video

What Is BarkBox?

A 12-month subscription costs $20 a month, or $240 per year. A six-month subscription costs $25 a month, or $150 for half a year, and a one-time order costs $29.

This innovative structure helped the company turn a profit as of Q1 2017. BarkBox expected revenue of $150 million for 2017 and for revenue to climb 66%, to $250 million, by the end of 2018.

But despite the revenue growth, BarkBox could become an acquisition target thanks to its modest valuation...

How Much Is BarkBox Worth?

Compiling data from comparable public companies, Forbes projects BarkBox is worth between $150 million and $200 million.

And that valuation means a lot of big-name players could be interested in acquiring the subscription service...

Meeker told CNBC that he sees Amazon.com Inc. (Nadsaq: AMZN) as a competitor, but he also sees them as a potential partner.

Because BarkBox's CEO will never beat the $619 billion e-commerce giant, he might prefer an acquisition by AMZN.

Bark is only reaching 500,000 subscribers right now, while being acquired by Amazon would give Meeker access to its 300 million users.

Amazon has $24.31 billion in total cash on its balance sheet, so it could buy the pet subscription service tomorrow if it wanted too.

Outside of Amazon, Target Corp. (NYSE: TGT) could be a potential buyer. The retailer partnered with BarkBox in August 2017 and currently sells its products in stores and on its website.

But with Target being a potential buyout candidate of its own, it may not be in the market for new acquisitions.

And if BarkBox isn't acquired by another company, it could IPO as early as June....

When Is the BarkBox IPO?

In a Dec. 5, 2017, CNBC report, Meeker said he wants an IPO in as soon as six months.

That would place the BarkBox IPO date as soon as June 2018.

Pot Stock Profits: $20.2 billion... that's the amount of money expected to pour into California's cannabis market following the state's recent legalization of recreational marijuana. For details on three tiny pot stocks that could hand you the biggest gains, click here now...

As more details emerge about when BarkBox plans to go public, we will keep our readers up to date with our free Profit Alerts service.

But if the company goes public, here's how to buy BarkBox stock...

How Do I Buy BarkBox Stock?

There will be two prices for the BarkBox IPO: the BarkBox IPO offering price and the price retail investors will have to pay.

The IPO offering price will only be offered to hedge funds, big banks, large institutions, and well-connected investors. It will also be cheaper than what retail investors will have to pay.

For example, wealthy insiders purchased shares of Snapchat for $17 per share before retail investors could purchase SNAP stock. When SNAP stock was made available to retail investors on March 2, it opened at $24 per share.

Unfortunately, retail investors can only purchase BarkBox stock through a brokerage firm on the day of the IPO and won't have access to the offering price.

Editor's Note:Ā For more information on finding the right brokerage for you,Ā click here.

This leads us to the most important question investors will ask themselves when the BarkBox IPO date is announced: "Should I buy BarkBox stock?"

AndĀ Money MorningĀ Director of Technology & Venture Capital Research Michael A. Robinson has a very clear answer for potential investors.

Robinson has been a giant in tech investing for more than 30 years.

His privileged access to technology-pioneering CEOs... prize-wining scientists... and high-profile industry insiders has allowed him to consistently give investors huge gains on remarkable breakthroughs.

Those who listened to his recommendations on rare earth metals, for example, would've seen cumulative gains of 990% in just 16 months.

Because of his winning track record, I had to share his advice on whether Money Morning readers should buy BarkBox stock...

Should I Buy BarkBox Stock?

Join the conversation. Click here to jump to comments…

Login
guest
guest
0 Comments
Inline Feedbacks
View all comments


Latest News

June 8, 2023 • By Garrett Baldwin

Postcards - Pay Close Attention if This Stock Starts To Fall

June 8, 2023 • By Alex Kagin

Pre-Pandemic VIX Levels, Small-Cap Strength and Campbell Soup

June 7, 2023 • By Garrett Baldwin

There's an Expensive Food "Fire" Starting in America's Heartland
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz