Today’s Stock: Procore Technologies, Inc. (PCOR)Today’s Stock: Procore Technologies, Inc. (PCOR)

Procore Technologies, Inc., together with its subsidiaries, provides a cloud-based construction management platform and related products and services in the United States and internationally. Its platform enables owners, general and specialty contractors, architects, and engineers to collaborate on construction projects

My Thoughts 💭My Thoughts 💭

I first heard about Procore many years ago as I work in the construction industry. I never used the software myself but I heard other A/E firms having success with this platform. It is quite possible I could use this software in the future but as of right now I am unsure.

I used to own two shares of this company back in 2024. At the time I sold I had a modest gain but since I sold the stock is up about 50% but still below its IPO price of $84. In almost 5 years of being on the stock market investors are not impressed with this growth strategy thus it’s trouble to rise above its IPO price.

At 84.9k sats per share (@ $87,734), and no dividend. The company has to grow at a rate that is equal or higher to the expected growth rate of Bitcoin. Some put Bitcoin growing 20% to 30% the next 10 years thus PRCOR has to grow at this rate for it to make sense to dump sats and buy this company. The company is cheap a PE of 9 which makes the investment a bit more attractive.

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The fundamentals of this company appear solid. It has a PE ratio of 9, an estimated growth rate of 100%, a flawless balance sheet, and operates in the construction industry, where margins are extremely tight. Any productivity gains are highly valued, yet the stock is struggling to surpass its IPO price. What could be the reason behind this?

My guess is that artificial intelligence and software play a significant role. The software industry is highly competitive, with major players like Microsoft and smaller companies like Kahua offering alternative project management solutions. Additionally, the operating expenses are quite high, which may raise concerns among investors about the potential for growing margins.

I once owned this stock because it seemed like a straightforward investment opportunity in a software company that was rapidly gaining traction in the construction management sector. However, it appears that they still have some execution risks that they haven’t fully addressed. In light of these factors, I believe that Bitcoin is a better investment at the moment. I’m not interested in investing in a software company to help them grow, and I’m indifferent to whether Procore survives or not.