Market valuations for tech companies have been irrational for years. At least in view, there are enough examples in the last couple decades of companies being consistently valued at such high multiples of profit and revenue that it can't really be waved off as short term market corrections.
Market valuations for tech companies have been irrational for years
No they weren't, unless by "years" you men 2-3. Google, Facebook etc were expected to grow and they did grow to match those valuations, they weren't overvalued. When you know a market will grow then you price that in.
Some companies don't grow as expected, but most do, the market is usually pretty good at estimating.
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Market valuations for tech companies have been irrational for years. At least in view, there are enough examples in the last couple decades of companies being consistently valued at such high multiples of profit and revenue that it can't really be waved off as short term market corrections.
No they weren't, unless by "years" you men 2-3. Google, Facebook etc were expected to grow and they did grow to match those valuations, they weren't overvalued. When you know a market will grow then you price that in.
Some companies don't grow as expected, but most do, the market is usually pretty good at estimating.