[twoodfin]

Thanks, that makes your theory much clearer.

Whatever the actual net margins, I’m guessing any “80%” kind of figure is calculated as of full utilization of the hardware / capital, which of course they’ll rarely if ever even approach.

Even if margins are “only” 20% though, the magic beans are still real: If you could build (or rent) a box, fill it with magic beans, and get 20% margins against demand stretching out to the horizon, Wall Street would rob their grandmothers to give you cash to build or rent more boxes.