Summary
- Ubiquiti is a unique growing company: It manages to sell commoditized products with high margins.
- Its success and original ownership brings scrutiny.
- The market prices the company for success, without considering the risks.
Ubiquiti Networks (UBNT) sells basic network equipment. It generates higher margins than any competitors I am aware of, including Netgear (NTGR) and Cisco (CSCO).
Besides these exceptional margins, the company has been growing its sales at a fast pace.
Due to its success and unique ownership, the company has generated a lot of controversies. Yet, the market values the company for its growth with high margins.
