| see above for a very good answer I'll give my answer Fed is printing a lot of 'money' with its printing press some of it is going to large tech because it is 'safe' and still 'growing' However, there is $3 trillion of money printed, and even more being printed So, where does this money get put? Where can it get A RETURN? Tesla is one answer. That's why Tesla is 1,000 P/E Another answer is technology companies Let's say there is Family X, friends of Fed and its printing press Fed has printed $50 billion for them Where can they put this $50 billion, so that it doesn't get killed? A) Big Tech B) tech that might become big Tech (like Tesla) C) new tech IPOs
So any tech company that can IPO, should IPO All this LIQUIDITY/Free Money/Printing Press Money is desperate to find ANY KIND OF RETURN Also, they have so much money and no where to put it, their thinking is 17 different SaaS companies - at least 1 or 2 will become trillion dollar companies in 15 years Invest in all 17 They literally 'printed' the money so it costs them nothing |