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This reads like another iteration of a bubble alarm, which has been going off since 2007 at least (https://news.ycombinator.com/item?id=9860603 https://news.yco
by thaumaturgy 11y ago
This reads like another iteration of a bubble alarm, which has been going off since 2007 at least (https://news.ycombinator.com/item?id=9860603 https://news.ycombinator.com/item?id=9860603). I like the sound of what Fred's saying, it gives my sensibilities about business a soothing caress, but the reality is that people have been expecting these businesses to start failing en masse for almost 10 years now and so far most of them are still around.
As long as there's no better vehicles for investment, these companies will probably be able to keep doing what they're doing.
- the_watcher 11y agoThere are plenty of businesses with net gross margins that have failed. The difference this time is that there are more companies with net gross margins reaching "unicorn" status.
- aidenn0 11y agoMost of the businesses with negative gross margins from 2007 aren't around, a few managed to become profitable, some failed, and many were acqui-hired. I think we are just starting to hit the point in the last year or so in which you can really say "bubble" but it could pop tomorrow or in 5 years... there's a famous quote about trying to invest by betting against a bubble that is roughly "The market can stay irrational longer than you can stay solvent"