There's a couple of issues with that analysis.
First of all bad debts in Australia are being managed well from what I can tell. They don't let customers buy more if they miss a payment so the risk with new customers being bad is there but once a customer is a regular user not paying is also a cost to the them as they get cut off. Yes it's a risk though.
PE of 70 is kind of irrelevant. Peter Lynch coined the PEG ratio - Price / Earnings = Growth -
https://www.investopedia.com/terms/p/pegratio.asp
According to that a PE of 70 is 'fair' if growth rate of 70% is maintained, that would make the ratio = 1 (PE 70/70% growth = 1). If a growth stock is trading below PEG = 1 then perhaps it is under valued, over PEG = 1 then perhaps over valued.
Also worth thinking about what the PE ratio will be if they get 100% growth this financial year and the share price stays static.
Yes there will be / are competitors, but they're moving pretty darn fast and I'd say have first mover advantage.
I'm not a buyer yet, I was asleep on this one. Wishing I didn't have to pay up at $11 but I just may!
Either way the NAB newsletter gives some decent thoughts but it's pretty weak, doesn't map out why they're worried about bad debts, who the competitors may be and does not offer logic as to why a 70 PE requires 100% growth rate.
