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Tag: #ROI

The Age of the Soonicorn

The Age of the Soonicorn

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Image by Susan Cipriano from Pixabay

In case you haven’t been following it, the stock market has been taking a huge hit, especially in the tech sector. Truth be told, tech stocks have long been overvalued, and although no one wants to mention the word, let’s go there: the bubble is finally bursting. It’s overdue. Waaay overdue.

 

Consider: Facebook revenue slows but user gains boost stock. Strange math, what, eh?  “The company shares had fallen by about 44 percent in addition to recording a $400 billion loss in market value,” TechStory reported. But the stock was up! But not for long. Of course, Zuckerberg has assured us that his metaverse will be hugely profitable by 2030, no matter that it lost $3B this past year. The hype machine, it seems, is alive and well. Read More...

Unicorn, Shmoonicorn. Is It a Fantasy?

Unicorn, Shmoonicorn. Is It a Fantasy?

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Image by Julieta Mascarella from Pixabay

If we noticed anything this week, it was that it may be time to rethink unicorns and hockey stick growth. We know what investors look for: TAM (Total Addressable Market) and it had better be big, as it’s all about ROI.

WeWork is planning their IPO, and after years of expansion and so-called hockey stick growth, the cracks are showing. Business Insider laid out The history of WeWork’s meteoric valuation rise — and fall, including “the coworking startup’s governance, real estate holdings, succession plan, employee retention, and questionable patent purchases have spooked potential investors. WeWork has amended its SEC filings twice already to address several of those concerns, but it might not be enough.

“According to a Reuters report, WeWork will target a $10 billion valuation for its IPO, drastically lower than the $47 billion valuation it last fetched in private markets. A $10 billion public valuation would be only slightly above the total amount of funding WeWork has taken in as a private company: about $8.39 billion since 2011, according to Pitchbook data.” Read More...