Online companies, like brick and mortar companies, rise and fall. And even if Facebook's best days are behind it, I'm not sure we can call a business that grew for nearly 15 years and is now used by billions of people a "fad." Regardless, it generated unfathomable wealth for its founders, and made thousands of employees financially set for life.
If TikTok could capture that, it doesn't matter if it lasts five years or ten years, the people at the top will become very, very rich.
So I think both commenters above are correct: it has huge potential upside that investors are willing to gamble on, and it probably won't become the next Facebook so it might be worth it for the current owners to cash out now.
Online companies, like brick and mortar companies, rise and fall. And even if Facebook's best days are behind it, I'm not sure we can call a business that grew for nearly 15 years and is now used by billions of people a "fad." Regardless, it generated unfathomable wealth for its founders, and made thousands of employees financially set for life.
If TikTok could capture that, it doesn't matter if it lasts five years or ten years, the people at the top will become very, very rich.
So I think both commenters above are correct: it has huge potential upside that investors are willing to gamble on, and it probably won't become the next Facebook so it might be worth it for the current owners to cash out now.