Ann: Norwood Moves into Next Phase of World Phone Growth, page-108

The Zip comparison is simply.

1. Build an app in a crowded market, unique point of difference. No one else does it.
2. Lots of excitement, huge potential. Lots of interest. Huge share price rally.
3. App released, everyone excited. Downloads commence, price goes up.
4. Downloads keep coming, company keeps announcing each milestone revenue comes in.
5. More downloads but revenue not growing any faster.
6. Questions about customer acquisition cost. Marketing spend vs revenue.
7. Company changes reporting period and metrics. Keeps announcing large download milestones.
8. A quarterly is released. Reality hits.
9. Share price drops significantly.
10. Company is still on track, continues on. Nothings changed.
11. Keep announcing positive things, more downloads, more features, future plans.
12. Share price just doesn't budge.
13. Go back to 11.

This is the story of ZIP, its a tad ahead of nor in terms of when it started but there are a few similarities.