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  "docSlug": "34401c2968d1",
  "documentTitle": "Dexcom, Inc. (DXCM)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-03-21 00:00:00",
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  "notes": "Uses a dual-axis line chart to show stock price vs valuation multiple over time, highlighting a divergence.",
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      "kind": "callout",
      "text": "Late FY18 / Early FY19: Stock range-bound despite continued revenue beats – suggests investor wariness of recent growth trends and concerns over Libre share gains since July '18",
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      "text": "Early FY18: DXCM stock price appreciation driven largely by multiple expansion",
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      "kind": "callout",
      "text": "Accordingly, we believe that DXCM shares would be more properly valued at 5-6x sales – about where they traded prior to the 2018 run-up.",
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      "kind": "paragraph",
      "text": "Interestingly, since the middle of the year, the stock has generally been range-bound despite continued revenue beats, and the multiple has contracted to some extent on recent sales growth...",
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      "text": "The dramatic run-up in DXCM share prices since the beginning of FY18 was driven almost entirely by multiple expansion due to investor enthusiasm over the Company's near-term growth prospects...",
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      "kind": "source-note",
      "text": "Source: Bloomberg",
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      "kind": "title",
      "text": "Multiple Expansion-Driven Share Price Appreciation Is Losing Steam",
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