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by abirch
16 days ago
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I feel like this is dot com 2.0. The dot com's valuations eventually were proven to be true, only way too early. With investing Timing is everything, if you invest in Pets.com you lost, if you invested in chewy.com you won. If you invested in Broadcast.com you lost, if you invested in YouTube.com you won. AI is going to transform things but these current prices are crazy. |
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During bubbles valuations are driven by growth at any cost.
During crashes businesses are kept alive by their ability to function profitably.
So if trying to separate winners from losers, then central question is "Do I believe this company has an ability to pivot from growth to profitability without torpedoing itself?"
Which ultimately gets to unit economics and cost vs profit scaling trends.