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Not an economist. AFAIK this used to be true in the olden days. For the last few decades, many tech companies have turned little to no profit and yet trade at
by ornornor 4y ago
Not an economist.
AFAIK this used to be true in the olden days. For the last few decades, many tech companies have turned little to no profit and yet trade at insanely high premiums given the fundamentals because most people have FOMO and pay for the expectation that maybe one day $money_loser will make money and be worth what they paid.
Outside of tech, I don’t think this is the case though. It’s valuing stocks by that axiom. But in tech, all bets are off.
- PedroBatista 4y agoIt always been like that for every company in every field. The only new factor is the amount of “free” money on the market. In the past it was minimal ( more or less ), now it’s maximal after a decade of zero interest rates and trillions of paper printed. This exacerbated some aspects of the market but the fundamentals remain the same.