[keule]

Now you bringing up a keyword: expectation.

I am starting to get sick of every argument that tries to defend these rediculous investment decisions these days. Currently everyone doing that is citing network effects, potential growth, the next big thing.. And for sure, if someone wants to invest his or her money, I will not judge that decision or the person itself.

But looking at the situation as a whole, so many decisions are made based on highly flawed expectations. A nice designed marketing page and multiple years without revenue? Here take some $m because <insert overestimation in here>.

Consider Airbnb.. I use it myself, but I am by no means locked in as a customer. Maybe it will crumble due to new/old regulation. Maybe too many weird people will start offering their spare-rooms, and it won't feel cool and hip anymore. Maybe hotel-chains react by offering better prices... There are so many maybes in that company alone.. simply believing in the network effect should not be the basis of a meaningful valuation.

I am highly sceptical about the current behavior of this part of the investment market. My concern lies not in the companies or the investors themself. They probably did hedge their risks. I just feel that the next bursting bubble will stretch far beyond the whatsapps and airbnbs out there.