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So, this time it's different? Like 21 years ago when Exxon Mobil and similar companies were overvalued and imploded in the dot com bust? Oh, wait...
by ivanche 5y ago
So, this time it's different? Like 21 years ago when Exxon Mobil and similar companies were overvalued and imploded in the dot com bust? Oh, wait...
- lotsofpulp 5y agoEcon mobile profit margin is 10%, and they are selling a very fungible product that lots of competitors are also selling (they have little pricing power). Tech company profit margins are 20%+, and they are selling products which have much higher moats, and benefit from network effects. And less liability.
- bloodyplonker22 5y agoGood point, and 20+% is a huge understatement. SAAS companies that are public are mostly in the 70-90% range. Also, add how easy distribution of software is compared to physical products.