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Why would anybody claim it's a tech company? What kind of tech do they leverage to differentiate?

by avocado4 7y ago

todd3834 7y ago
I think it’s based on their customers being mostly tech companies or individuals
- deleted 7y ago
  [deleted]
baybal2 7y ago
> Why would anybody claim it's a tech company? Because a company calling itself "tech" and "sophisticated" automatically gets higher stock market valuation by unscrupulous investment analysts. Thus, a company is priced higher the more techy and sophisticated is its image. Have you heard of Chinese companies' price jumping just from them adding word "blockchain" or "o2o" to their name? This is what it is. https://www.independent.co.uk/news/business/analysis-and-features/is-the-chinese-stock-market-bubble-about-to-burst-10346773.html https://www.independent.co.uk/news/business/analysis-and-fea... Though everybody runs to point fingers on "oriental mindset" of some fund managers, few notice that this happens in the West in a form that is even more extreme. A perfect example of that is a company called Netflix. They sell videos over the internet, but they are priced a whole ∞ more than companies selling videos on physical tapes
- deleted 7y ago
  [deleted]
buboard 7y ago
I think there is an expectation that with the money they will make from IPO, they will build a tech company about, well, “something”, like how AWS sprung from amazons core business. This is really a “fake it till u make it” Tech company
rtkwe 7y ago
Tech companies get way higher and much more generous valuations than boring old real estate companies so it's advantageous to brand yourself as a tech company. No one really knows how to properly value a technology so it becomes more about the hype a company can produce about just how much of the world they say can eat. Real estate though should be easier to evaluate, there's a market rate for office space in an area and you can know exactly how much space the company owns.
TrackerFF 7y ago
With tech companies, there's this assumption of quick and cheap scaling, compared to traditional companies. That is true - a company selling software can acquire new customers, and spend MUCH less doing so, compared to traditional companies like McDonald's. The problem arises when a "tech" company is actually much closer to McD, than actual tech companies. The assumption of exponential rise and cheap scaling falls away, and analysts start coming up with much more conservative valuations.
- perl4ever 7y ago
  Isn't franchising the essence of cheap scaling? I don't see the distinction you're making.

Why would anybody claim it's a tech company? What kind of tech do they leverage to differentiate?

todd3834 7y ago

I think it’s based on their customers being mostly tech companies or individuals

deleted 7y ago
[deleted]

baybal2 7y ago

> Why would anybody claim it's a tech company? Because a company calling itself "tech" and "sophisticated" automatically gets higher stock market valuation by unscrupulous investment analysts. Thus, a company is priced higher the more techy and sophisticated is its image. Have you heard of Chinese companies' price jumping just from them adding word "blockchain" or "o2o" to their name? This is what it is. https://www.independent.co.uk/news/business/analysis-and-features/is-the-chinese-stock-market-bubble-about-to-burst-10346773.html https://www.independent.co.uk/news/business/analysis-and-fea... Though everybody runs to point fingers on "oriental mindset" of some fund managers, few notice that this happens in the West in a form that is even more extreme. A perfect example of that is a company called Netflix. They sell videos over the internet, but they are priced a whole ∞ more than companies selling videos on physical tapes

deleted 7y ago
[deleted]

buboard 7y ago

I think there is an expectation that with the money they will make from IPO, they will build a tech company about, well, “something”, like how AWS sprung from amazons core business. This is really a “fake it till u make it” Tech company

rtkwe 7y ago

Tech companies get way higher and much more generous valuations than boring old real estate companies so it's advantageous to brand yourself as a tech company. No one really knows how to properly value a technology so it becomes more about the hype a company can produce about just how much of the world they say can eat. Real estate though should be easier to evaluate, there's a market rate for office space in an area and you can know exactly how much space the company owns.

TrackerFF 7y ago

With tech companies, there's this assumption of quick and cheap scaling, compared to traditional companies. That is true - a company selling software can acquire new customers, and spend MUCH less doing so, compared to traditional companies like McDonald's. The problem arises when a "tech" company is actually much closer to McD, than actual tech companies. The assumption of exponential rise and cheap scaling falls away, and analysts start coming up with much more conservative valuations.

perl4ever 7y ago
Isn't franchising the essence of cheap scaling? I don't see the distinction you're making.