4 ms·

> Their valuation is backed by actual commerce. Is it?

• atleastoptimal 6mo ago
  I think their annualized revenue is 25 billion with 3.4x yearly growth, with 1 billion weekly active users
  • akerl_ 6mo ago
    You were talking about actual commerce, though. Is that revenue actually tied to something in the market, or is it just all of these companies and investors blowing air into the bubble?
  • benoau 6mo ago
    Hasn't it cost them $100s of billions to earn that money? Don't they need $100s of billions more to keep the ball rolling?
  • deleted 6mo ago
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  • Rury 6mo ago
    Now do costs. You're also ignoring the fact that these companies have been shifting things around to make their books look better than they actually are. Here's a good example explaining how META has been keeping debt and lease obligations off its books to fuel growth (and who's at risk if META doesn't pay up): https://www.reddit.com/r/economy/comments/1soent7/if_the_ai_bubble_pops_dont_worry_the_banks_are/ https://www.reddit.com/r/economy/comments/1soent7/if_the_ai_...
    • atleastoptimal 6mo ago
      Many tech companies operate at a loss initially, that is the point of venture markets in firms that invest heavily in R&D, the initial investment will pay off once the technology matures. As for Meta’s shady accounting, I also inside most tech companies leverage whatever they can to remain competitive in a high growth market. They certainly have the money to get away with it though for now.
      • Rury 6mo ago
        > the initial investment will pay off once the technology matures That's not guaranteed. Just look at the Metaverse. It did not pay off.
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