Seems reminiscent of the first Internet Bubble circa 1999 — a lot of companies didn’t have products, but they had ideas. Billions of dollars flowed in but eventually a lot of it came crashing down.
Lesson from that bubble: You need to actually have a product.
Lesson from the current bubble: You need to actually have profits.
Lesson from the current bubble: You need to actually have profits.
This made me think of Uber, which I’ve heard has never made a profit.
And for Uber stockholders, whoever bought at the IPO price of $45 per share, is well underwater. It’s trading about $32 per share now.
I’m no stock analyst, but the price of any stock reflects the collective judgement of investors, as to the future outlook for that business.