Topic: How To Invest

Q: I really enjoy your Inner Circle emails. Can I get your opinion of Warby Parker? Thanks.

Article Excerpt

A: Warby Parker Inc., $12.34, symbol WRBY on New York (Shares outstanding: 97.4 million; Market cap: $1.4 billion;, is a prescription eyewear seller founded in 2010 by four friends attending business school. They wanted to disrupt the traditional eyewear industry. A key aspect of that plan was to make the company an online-only operation. Today, this retailer has expanded to include 217 physical stores in the U.S. and Canada. Its product lines also now include sunglasses and children’s frames. With the support of its venture capital investors—General Catalyst, Tiger Global Management, Forerunner Ventures, Spark Capital and Menlo Ventures—Warby Parker went public in September 2021 through a direct listing on the New York Stock Exchange. Its stock opened for trading at $54.05, well above the $40 reference price set by the exchange. With a direct listing, the company issues no new shares and raises no funds through the IPO. Warby shares have since dropped to today’s price. Warby Parker continues to sell…