Huge IPO rounds aren't the main problem. The real issue is runway and valuation. Slack, Anaplan, Tesla and Beyond all have incredibly high price/sales ratios with negative free cash flows. They...
Huge IPO rounds aren't the main problem.
The real issue is runway and valuation.
Slack, Anaplan, Tesla and Beyond all have incredibly high price/sales ratios with negative free cash flows.
They are burning cash to grow. It will take them a long time to grow into their current valuations. But they only have a limited amount of cash.
Now it only takes one ten bagger to make up for a multitude of stocks going to zero, but I don't see how any of this is sustainable in the next recession, as everything is overpriced.
Huge IPO rounds aren't the main problem.
The real issue is runway and valuation.
Slack, Anaplan, Tesla and Beyond all have incredibly high price/sales ratios with negative free cash flows.
They are burning cash to grow. It will take them a long time to grow into their current valuations. But they only have a limited amount of cash.
Now it only takes one ten bagger to make up for a multitude of stocks going to zero, but I don't see how any of this is sustainable in the next recession, as everything is overpriced.