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I’m wondering why these companies are so hyped and valued at these astronomical levels. Honestly, nothing really impresses me enough to think, “Wow, this compan
by equasar 9mo ago
I’m wondering why these companies are so hyped and valued at these astronomical levels. Honestly, nothing really impresses me enough to think, “Wow, this company actually deserves that kind of valuation”.
These valuations are to the point point that this looks too close to money laundering, just like buying art.
- mlsu 9mo agoBecause our markets are no longer efficient at allocating capital. These companies are too large, they don't compete. They can buy a company for half a billion and write it off a few months later, at the whim of someone deranged by hype. How many businesses in competitive markets can afford to do that?
- pishpash 9mo agoAnd the reason is all of you dumping cash into the market no matter what because John Bogle said so half a century ago.
- Synthetic7346 9mo agoI disagree - yes, some companies are overvalued, but it isn't because of index investors.
- mandeepj 9mo ago> I’m wondering why these companies are so hyped and valued at these astronomical levels. That’s all VCs do! They hype it to recover their money and some more :-)
- kshri24 9mo ago> this looks too close to money laundering, just like buying art Yep. Concur with this conclusion. It is getting really ridiculous now. No way most of these companies are at the valuation they are in. Or the investors are just plain stupid.
- throw-12-16 9mo agoThe crypto bros switched over to AI.
- filloooo 9mo agoBecause we are at a historic moment where governments are propping up fiat money using whatever they could. All these crazy valuations is just a manifestation.
- xgulfie 9mo agoIt's all very speculative and line keeps going up forever
- cgio 9mo agoI hear you, and mostly share the point of view, but that’s what people were saying about the instagram valuation too.
- nativeit 9mo agoWhat's the dollar-per-user figure between these two examples?
- disgruntledphd2 9mo agoInstagram only had approx 10mn users when acquired. That was a long time ago though, and Facebook was at a very different stage in its lifecycle.
- afavour 9mo agoSurvivorship bias, I think. Our go to is the big, high profile success. But look at the amount of money Zuck has wasted on the Metaverse. He’s most definitely fallible.