Investing in Fallen Market Darlings
Audinate, a leader in audio networking technology, has seen its stock collapse by 70% and sentiment evaporate, resulting in $1.4bn in capital destroyed.
Despite this, the company's balance sheet is ready to fuel growth, and its product ecosystem is more entrenched than ever, with its flagship platform, Dante, enabling multiple high-quality audio and video channels to travel via standard Ethernet cables with ultra-low latency.
Nothing lasts forever—not euphoria, not despair.
Audinate's technology replaces traditional analogue cabling with digital transmission over standard computer networks, making it an attractive investment opportunity at its cheapest multiple since IPO.
Author's summary: Investing in fallen market darlings requires flexible thinking.