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These seem like reasonable arguments, but currently UBER is worth $75 Billion. Wall St. can read earnings reports as well as Doctorow, and can ignore adjusted E
by erehweb 5y ago
These seem like reasonable arguments, but currently UBER is worth $75 Billion. Wall St. can read earnings reports as well as Doctorow, and can ignore adjusted EBITDA in favor of GAAP if they want. So what's Doctorow's theory for why UBER is still worth a lot of money? Is it just that they're especially skilled at bamboozling?
- dragontamer 5y agoSame reason why WeWork, AMC, Lyft, even Tesla continue to raise money. 2% interest rates on a 30-year, and terrible valuation on all other stocks. Most S&P500 stocks are well over 20 PE ratio now and pushing 30 PE. When all other investments look like crap, it is only natural to invest into other crap in hopes of winning big. There's also a contingent of investors who are willing to throw $Billions into GME in the hopes that GME turns itself into a dominant online marketplace. Others are throwing money into NFTs and initial-coin offerings. The amount of people throwing away good money at risky offerings is at an all time high. Under these conditions, Uber, Lyft, Tesla seem capable of eternally raising money from the markets. ----------- I don't know when or how this behavior stops. I assume people will run out of money eventually, but I've been waiting since 2015 or so. It will happen when it happens, no point trying to predict the exact moment.