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I like his point that it's the young entrepreneurs and their employees who will be most affected. Massive revenue generating companies such as Facebook, Zynga,
by spencerfry 16y ago
I like his point that it's the young entrepreneurs and their employees who will be most affected. Massive revenue generating companies such as Facebook, Zynga, Groupon etc., will weather the storm but that won't be the case for smaller companies that are doing little to no revenue generating.
- jdp23 16y agoIt's more that the risks are different for the massive revenue-generating companies. In a situation were everybody agrees it's a bubble, Facebook, Zynga, Groupon etc. will be under huge pressure to generate more revenues to justify their valuations. If they fall short, their value could plunge; conversely, they might also overreact and make tradeoffs favoring short-term revenue that come back to bite them. So yes, they're in a waaaaaay better position than Webvan and CarsDirect were in ten years ago; but the risks are still significant.