With tech companies, there's this assumption of quick and cheap scaling, compared to traditional companies. That is true - a company selling software can acqui

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.