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There are numerous examples on both sides for sure. I would add that performance also does well for companies operating in a bull market. In the case of cloud
by boringg 5y ago
There are numerous examples on both sides for sure. I would add that performance also does well for companies operating in a bull market.
In the case of cloudflare (And many tech stocks) they had a black swan event of a large portion of the global economy going online during the pandemic which has juiced their returns.
Not saying it doesn't happen but rather that it isn't how people typically price their IPOs to generate value to the retail investor.
- franl 5y agoYep, makes sense. A little nitpick: I wouldn’t call it a Black Swan because multiple people called out the potential for such a global event to happen (Gates, Taleb, etc.), but to your point it certainly further accelerated the move to online commerce, mainstream remote work, etc. Cloudflare and Stripe are/were both well positioned for that type of world.