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And how much of tech valuations are based off of the bs revenues this genetates? Id venture a lot since a lot of tech valuations are levered up based on other t
by anm89 4y ago
And how much of tech valuations are based off of the bs revenues this genetates? Id venture a lot since a lot of tech valuations are levered up based on other tech valuations in a daisy chain
- demarq 4y agoThis. I believe this is what really has google and meta in a panic. Network effects for these companies have been built upon funding from advertisers. They have failed to build consumer business models (B2C) on top of these networks. There are clocks ticking as advertisers seek direct routes to customers. People just like free stuff at the end of the day, and if you are zuck or Sundar this is absolutely terrifying. You have to either give something to advertisers or convince people to pay for “free stuff”. In all honesty, the one bet google had right was gaming, consumers aren’t shy about opening their wallets. People may debate paying a couple of dollars for twitter blue, or sharing a Netflix password BUT will happily fork over 100s of dollars for games. Google however expected overnight success and now they going to try squeeze ads and all their freemeum toys for all the juice they can get. Same goes for meta, which at one point was poised to be the king of online gaming.
- ryan93 4y agoI think a insane fraction of google revenue comes from lawyers, insurance and car sales. But maybe you are talking about smaller companies that buy ads being overvalued.