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> The WeWork IPO-failure, as well as Peloton IPO drop, has shown that "tech" companies are not as valuable as VCs thought they were. Would you suppose that the

> The WeWork IPO-failure, as well as Peloton IPO drop, has shown that "tech" companies are not as valuable as VCs thought they were. Would you suppose that the failure of their IPOs points more at the lack of a bubble? I mean to suggest that in a bubble / "irrational exuberance", these IPOs would be more likely to succeed, and after, the value of their public stock would go up dramatically because investors were being overly optimistic and speculative about these companies. Instead investors determined they were overvalued prior to even entering the public market. To me, the failures indicate the lack of a bubble. Although I wonder about the bubble-iness of the gig economy. I've had increasingly bad experiences with it (more on the side of a customer), and I assume workers have worse experiences. I 'feel' like something's got to give at some point, where you'll see over some short period of time, a ton of people just begin to opt out from the "gig" economy on both sides (as customers and workers), aside from the fact that many workers depend on it.

dragontamer 7y ago
> I mean to suggest that in a bubble / "irrational exuberance" Earlier this year, Uber IPO'd and raised $8.1 Billion in public money. It then _immediately_ lost $5.236 Billion in Q2. https://investor.uber.com/news-events/news/press-release-details2019/Uber-Reports-Second-Quarter-2019-Results/default.aspx https://investor.uber.com/news-events/news/press-release-det... Public investors are weary about giving more money to Silicon Valley startups because the public has already lost so much money this year on other bets. Yes, "irrational exuberance" is going away today. But there are many, many companies that the public has bought into this year and last year, at HUGE valuations. But this only confirms what I believe to be the deflating of the new-tech bubble. Uber is laying off staff and cutting costs. Future investors and future IPOs are "poisoned" due to how poorly Uber has done. Anyone else planning on IPOing in this environment is going is going to have more trouble. The public is going to increase their scrutiny of future tech IPOs. If Uber did that poorly, who else may be a trap?
- toomuchtodo 7y ago
  > If Uber did that poorly, who else may be a trap? Who isn’t profitable or has razor thin margins? Who is heavily levered up with debt? That’s how you find who will be naked when the ocean goes out.
943_924 7y ago
Honestly nobody should be reading too deeply into the Wework thing. When you take away the name recognition, it' a shared office space that charges 3x it's competitors and is out of coffee creamer 2-3 days a week. Turns out it doesn't have rock solid business value after all. Whoop-dee-doo.

dragontamer 7y ago

> I mean to suggest that in a bubble / "irrational exuberance" Earlier this year, Uber IPO'd and raised $8.1 Billion in public money. It then _immediately_ lost $5.236 Billion in Q2. https://investor.uber.com/news-events/news/press-release-details2019/Uber-Reports-Second-Quarter-2019-Results/default.aspx https://investor.uber.com/news-events/news/press-release-det... Public investors are weary about giving more money to Silicon Valley startups because the public has already lost so much money this year on other bets. Yes, "irrational exuberance" is going away today. But there are many, many companies that the public has bought into this year and last year, at HUGE valuations. But this only confirms what I believe to be the deflating of the new-tech bubble. Uber is laying off staff and cutting costs. Future investors and future IPOs are "poisoned" due to how poorly Uber has done. Anyone else planning on IPOing in this environment is going is going to have more trouble. The public is going to increase their scrutiny of future tech IPOs. If Uber did that poorly, who else may be a trap?

toomuchtodo 7y ago
> If Uber did that poorly, who else may be a trap? Who isn’t profitable or has razor thin margins? Who is heavily levered up with debt? That’s how you find who will be naked when the ocean goes out.

943_924 7y ago

Honestly nobody should be reading too deeply into the Wework thing. When you take away the name recognition, it' a shared office space that charges 3x it's competitors and is out of coffee creamer 2-3 days a week. Turns out it doesn't have rock solid business value after all. Whoop-dee-doo.