If you're a bride or groom to be, you've probably heard of The Knot. Though The Knot specializes in special days, it has an announcement of its own that can be considered pretty big. Major stock rating agencies have upgraded The Knot stock to a “buy”. So should you contain purchase of The Knot stock in your instant cash wedding plan? Maybe you should, but maybe not.
How The Knot works
The Knot is a publicly held media company. The Knot specifically targets engaged couples with a website and magazine. The Nest, a new-family magazine, is owned by The Knot. GiftRegistry360, a registration service, is also operated by The Knot. It is also working to produce The Knot TV, a TV station focused on engagement, weddings and new families.
The Knot financials
The Knot has a balance sheet that is quite large, much like many of the weddings it features. The advertising alone on The Knot brings in $ 14 million each quarter. Operating expenses for The Knot are around $ 21.8 million. The Knot is able to boast a gross profit margin of about 78.8 percent. Basically, The Knot has been doing fairly well. Despite the good financial balance sheet, The Knot had stock prices drop by about $ 2.50 a share in February. Currently, The Knot stock price is about $ 8 a share.
Has The Knot been put in knots?
Of course, one would think that since the Knot has tied itself up in weddings and new families, it has limited itself as a media company. The reality, though, is that weddings are big business. The average wedding in America runs about $ 25,000 to $ 30,000. Because this is such a large business, The Knot can pull in very large advertising dollars. At the very same time, The Knot is expanding both the type and focus of its media offerings. Because they are gaining popularity, The Knot has also been focusing more on low-budget, offbeat style weddings. The Knot appears to be doing very well, no matter if you love it or hate it.
No comments:
Post a Comment