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How long can companies like Google and Facebook run at 50% revenue? A lot longer than any media outlet.
by iateanapple 6y ago
How long can companies like Google and Facebook run at 50% revenue?
A lot longer than any media outlet.
- xoxoy 6y agoOk sure but these companies are trading near all time highs. I imagine digital ad spend is somewhat correlated with changes in consumer demand. If demand drops significantly, how does Google and FB stay at a valuation identical to a pre-Covid Economy?
- iateanapple 6y agoBecause the market thinks this is temporary. The market probably also thinks that a good chunk of the additional consumer use can be captured by google and fb post-covid. If you think the same for click bait media companies they would be a great buy. Actual reader demand is through the roof - they just aren’t readers who are willing to buy anything.