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Anyone else surprised that with record valuations these companies aren't selling equity instead?
by ekjhgkejhgk 3mo ago
Anyone else surprised that with record valuations these companies aren't selling equity instead?
- hn_user82179 3mo agoGoogle just did a follow on offering. I’m not sure of the numbers when comparing the 2 options but it seems like these companies are able to do either
- Schiendelman 3mo agoI think it could be because investors are worried their record valuations won't continue to grow - and are more interested in a guaranteed more conservative investment.
- ekjhgkejhgk 3mo agoSo what you're saying is "the reason companies don't sell equity at these huge valuations is because investors wouldn't buy" (or wouldn't buy in the necessary amounts)? I wouldn't be surprised if that's part of the calculation at these companies... And attempted and failed equity sale surely would have a bad impact on stock price.