For most tech companies the value is in the number of users rather than profits. High numbers of repeat users, coupled with growth in the number of users, sugge

For most tech companies the value is in the number of users rather than profits. High numbers of repeat users, coupled with growth in the number of users, suggests that the company is on to something. There is demand for these stocks in part due to the possibility of future profits through the monetization of these users. As well as the possibility of the company being acquired by a larger company (whereby exiting shareholders can sell their shares at high values or acquire shares in the purchasing company via share swaps). Nowadays there is also a lot of pure speculation going on without any fundamental value considerations. This is akin to gambling, and in a bubble market it can look like the casino keeps paying out as everyone keeps converting their winnings into chips and bets it all again. But the market isn't a casino, and bubble stock values are held up by the demand to keep playing. This is great for everyone until everyone tries to sell at the same time.