Why the GetSwift Ltd share price is going gangbusters today

The GetSwift Ltd (ASX:GSW) share price has been a star performer in 2017.

a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The GetSwift Ltd (ASX: GSW) share price is up 10% to a record high of $1.73 this afternoon and up 470% over the past 5 years despite the software-as-a-service delivery logistics business releasing no news to the market.

The GetSwift business model is synchronised to the growth of the digital economy as its software lets online delivery companies assign drivers and routes in the most timely and cost effective manner possible. For example, GetSwift boasts it has a contract with UK food delivery giant Just Eat (owner of Menulog) to provide its software to Just Eat's UK online food delivery business.

The company also boasts that it has signed up major clients such as the Commonwealth Bank of Australia (ASX: CBA), Pizza Hut and tobacco maker Phillip Morris.

All this might sound impressive, but GetSwift delivered revenues of just $184,000 for the six-month period ending June 30, 2017. In total it delivered an operating cash loss for the six-month period of $496,000, with $15.7 million in cash on hand.

At $1.73 the market is ascribing it a valuation of around $125 million, although it has flagged that investors should expect "cash outflows to increase over the next few quarters". This looks a stock to watch from the sidelines given its lack of cash flows and ritzy valuation.

Motley Fool contributor Tom Richardson owns shares in Just Eat PLC You can find Tom on Twitter @tommyr345 The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »