I don't understand how DocuSign was $50B while Dropbox was $10B; the barrier of entry is even lower for DocuSign and Dropbox even has a competing product
I don’t think it’s these companies fault that they have lofty market caps. Even Elon said the market cap for Tesla doesn’t make sense.
The problem is the investor class stopped believing in older, established companies as growth drivers. They don’t believe a GE, or a Ford, or what have you, are innovative.
So, they pool all their money into tech. Is Docusign going to say no to the money? They are a decent company and they are seeing large inflows and outflows because no one wants to dump their money into anything else.
Dropbox has a competing product that literally nobody uses. Supposedly HelloSign is a distant 4th place in a market with 4 participants, having a market share 100 times smaller than DocuSign. That seems to be the difference! If DocuSign was worth $50b then HelloSign is worth at most $500m.
The problem is the investor class stopped believing in older, established companies as growth drivers. They don’t believe a GE, or a Ford, or what have you, are innovative.
So, they pool all their money into tech. Is Docusign going to say no to the money? They are a decent company and they are seeing large inflows and outflows because no one wants to dump their money into anything else.