5 ms·

I'm skeptical Box can course-correct. They are in a hyper-competitive space with margin pressure and also seem to have pretty poor SaaS fundamentals (high Cust

by asanwal 12y ago

I'm skeptical Box can course-correct. They are in a hyper-competitive space with margin pressure and also seem to have pretty poor SaaS fundamentals (high Customer acquisition costs and illusory LTV) Fred felt they could slash their cash burn to put the company on better footing but that kills the growth story that they were pitching to public market investors. The good news in all of this is that it counters to some degree the notion of a bubble as companies with crappy fundamentals are not able to IPO.

richardwhiuk 12y ago
It's possible you could argue that the pre IPO markets are or were in a bubble phase and the postponement of the IPO is being caused by the broader market rejecting the hyped valuation as the broader economy isn't in a bubble (unlike dotcom bubble where companies were IPOing at hyper valuation). I'm not convinced I buy that, but it is one way of reading the numbers.
- carlosrt 12y ago
  TL;DR In the broader economy: "Almost every asset is overvalued," For those of you that followed the hashtag #2014GC last week you saw this: "The quantitative easing and the excess money and the low interest rates have driven pricing up of almost all financial assets to beyond what their intrinsic value might be," Joshua Harris, co-founder and chief investment officer of $161 billion private equity firm Apollo Global Management, said Monday at the Milken Institute's Global Conference in Los Angeles. "So even though we can all chat about the benevolent growth environment that exists in the U.S. and to a lesser extent globally, the ability to make money and invest wisely on that is very, very challenging right now because you're starting at a point in the valuation cycle that is very, very aggressive." Harris added that it's a "time to be cautious" and that Apollo is still looking for investments in sectors that are still relatively depressed. "Almost every asset is overvalued," he said. Source: http://www.cnbc.com/id/101620735 http://www.cnbc.com/id/101620735 Tweet: https://twitter.com/ldelevingne/statuses/460800459972681728 https://twitter.com/ldelevingne/statuses/460800459972681728

by asanwal 12y ago

richardwhiuk 12y ago

It's possible you could argue that the pre IPO markets are or were in a bubble phase and the postponement of the IPO is being caused by the broader market rejecting the hyped valuation as the broader economy isn't in a bubble (unlike dotcom bubble where companies were IPOing at hyper valuation). I'm not convinced I buy that, but it is one way of reading the numbers.

carlosrt 12y ago
TL;DR In the broader economy: "Almost every asset is overvalued," For those of you that followed the hashtag #2014GC last week you saw this: "The quantitative easing and the excess money and the low interest rates have driven pricing up of almost all financial assets to beyond what their intrinsic value might be," Joshua Harris, co-founder and chief investment officer of $161 billion private equity firm Apollo Global Management, said Monday at the Milken Institute's Global Conference in Los Angeles. "So even though we can all chat about the benevolent growth environment that exists in the U.S. and to a lesser extent globally, the ability to make money and invest wisely on that is very, very challenging right now because you're starting at a point in the valuation cycle that is very, very aggressive." Harris added that it's a "time to be cautious" and that Apollo is still looking for investments in sectors that are still relatively depressed. "Almost every asset is overvalued," he said. Source: http://www.cnbc.com/id/101620735 http://www.cnbc.com/id/101620735 Tweet: https://twitter.com/ldelevingne/statuses/460800459972681728 https://twitter.com/ldelevingne/statuses/460800459972681728