3 ms·
But it then bears the question that if the so called "network effect" companies has any real value (that is to generate profit in the future) or are manifestati
by mazeway 10y ago
But it then bears the question that if the so called "network effect" companies has any real value (that is to generate profit in the future) or are manifestations of a bubble?
- chatmasta 10y agoIt's pretty clear that they have value, or the entire VC industry would not exist. At least, enough of them have value to pay for the ones that don't. This is basic economics.
- icebraining 10y agoThat means they have value for the VCs (usually in the form of "exits", ie, selling to other investors), but the question was whether they'll produce profits (and consequent dividends).
- Natanael_L 10y agoYou're mixing up long term probabilities with short term variance and uncertainty. People can make very big bad choices and not see the consequences for years, because not everything unfolds rapidly. "The market can stay irrational longer than you can stay solvent".
- kartickv 10y agoI think any network with tons of users has some value. Whether that value is what founders or investors hoped it would be is a different question.