Like most dangerous situations, they begin with a nugget of truth. In this case, GAAP has many limitations / shortcomings, and has been patched up piecemeal ove

Like most dangerous situations, they begin with a nugget of truth. In this case, GAAP has many limitations / shortcomings, and has been patched up piecemeal over the decades, leading to some oddities. Tech companies in particular are annoyed by accounting methods developed for completely different types of businesses and are often frustrated that net earnings, for example, doesn't accurately reflect their situation. However, combine that nugget with investor's willingness to be swooned by the latest growth company, and said company's desire to hit wall street growth targets and you get a dangerous combination.