Well, yeah. That's what the current bubble is based upon, private equity speculation. It should be pointed out, though, that you can't really analyse many of t

Well, yeah. That's what the current bubble is based upon, private equity speculation. It should be pointed out, though, that you can't really analyse many of these startups by looking at their income statements in this fashion, because even their future monetisation strategies are being speculated about. That is, they aren't expected to have healthy bottom lines yet. They're doing this on purpose. Ultimately, private and public investors will analyse the bottom lines of these companies, but when that happens, there'll be bigger problems to face than a few orgs with unhealthy gross profits struggling, i.e. the bubble will burst. Incidentally, I'm not sure why the article is specifically talking about gross margin. Especially since most of these company's costs relate to human resources and servicing debt and so on, and not inventory and production. It seems like operating profit or net profit would be a better single figure to focus on.