3 ms·
The thing is, they don't have to live up to your expectations of what a valuable company should be because they are a valuable company. It's also the case with
by standardUser 4y ago
The thing is, they don't have to live up to your expectations of what a valuable company should be because they are a valuable company. It's also the case with many "successful" startups that if they decided to stop expanding and make profitability their sole prerogative, it may be in reach. We don't know because they never tried, and they have no incentive to try. Their incentives are all geared towards continued massive growth.
- actionablefiber 4y agoI don't dispute that they have a market cap above zero and therefore are a 'valuable' company. But ultimately that "value" comes from a bunch of people making guesses about future cash flows. Suppose that the unit economics for Uber do not work out, especially in a recession with high borrowing costs. It would not take long for that "value" to become zero.