Is Latch the Growth Stock for You?
Real estate tech company Latch has garnered lots of attention as it prepares to go public through the special-purpose acquisition company (SPAC) TS Innovation Acquisitions (NASDAQ: TSIA). Former Facebook exec turned venture capitalist Chamath Palihapitiya called the start-up the "best SaaS [software as a service] company I've ever seen/invested in." Latch is picking up lots of new business, it's raising $450 million in fresh cash from going public, and it could get an extra boost if the Biden administration's more than $2 trillion infrastructure bill gets passed (in its current form, hundreds of billions are being earmarked for building new or modernizing more than 2 million homes and commercial buildings).
Nevertheless, this is a story stock with a lot riding on Latch's ability to execute on its growth plan. With little in the way of current revenue, shares got caught up in the tech sell-off in March. If you're OK with a high level of volatility and have at least a few years to wait patiently, this could be the growth stock for you.
What exactly does Latch do? The company has created an end-to-end operating system for apartment buildings (which it intends to adapt for duplexes, single-family homes, and commercial buildings). According to co-founder and CEO Luke Schoenfelder, Latch has partnered with the likes of Google Nest and UPS to create access hardware (locks and such) and sensors (thermostats, light switches, intercoms, and connectivity devices). All of these integrate with Latch's app for residents, property managers, and delivery services.
Source Fool.com
