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I'm not sure how this matters. I could make infinite gross revenue handing out money to people who agreed to give me half of it back right away. Call it "Bitc

• nl 13y ago
  It matters because there is a clear path to profit (unlike the "give away money" model). The market sees it like this: Their costs are high because they (Google/Youtube) are investing to support high growth. At some point the growth will taper off, and so will the investment (because you invest to support larger numbers in the future), but the money keeps rolling in. Google has deep enough pockets to invest in that for a long, long time.