Sorry, bad choice of words on my part -- I shouldn't have said "any rational investor". What I meant is "any profit-focused, long-term investor" (as opposed to a moonshot-focused VC investor). I don't mean any of those things as negatives, just descriptives.
Your first point is right (and I addressed 1 later in my comment) -- if 9% isn't sustainable long-term, then the whole picture is quite different and a different metric should be used. And your second point, put differently, is "asking prices are too high", which is a fair point.
So I'd recast the original problem in a different light: "Company X is growing at 9% now, expectations are that it's unsustainable and won't be profitable for a while, and at the same time, they're asking a very high price relative to that growth & profitability rate", which explains why they're having trouble a bit more clearly.
My fundamental point is that the meme "anything less than 5% growth per week is bad" in a vacuum feels crazy by itself. With more context, it makes more sense.
I fully agree with that (and didn't read it negatively at all). The 5% meme/week is definitely surreal -- that's >10x/year growth! I'm always really impressed when I see companies with that kind of growth, especially after they've reached non-trivial revenues (e.g. $50k-$100k/mo)
My latest startup's user engagement is growing at >8x YoY, and while the revenue history is not deep enough for a good YoY, it's... let's say, within your scope of interest. Want to talk?
Your first point is right (and I addressed 1 later in my comment) -- if 9% isn't sustainable long-term, then the whole picture is quite different and a different metric should be used. And your second point, put differently, is "asking prices are too high", which is a fair point.
So I'd recast the original problem in a different light: "Company X is growing at 9% now, expectations are that it's unsustainable and won't be profitable for a while, and at the same time, they're asking a very high price relative to that growth & profitability rate", which explains why they're having trouble a bit more clearly.
My fundamental point is that the meme "anything less than 5% growth per week is bad" in a vacuum feels crazy by itself. With more context, it makes more sense.