Always this talk about valuations. Never about revenues and profits. Reminds me of the dotcom days when people used every other metric when they couldn't talk about profitability. Like eyeballs, clicks, etc. There will be a few winners but a vast many will do down in smokes or get acquired for pennies on the dollar.
Business vs startup
When Twitter went public in 2013, it was valued at $24B — 12 times higher than Times market cap. Twitter was losing money while Times earned $133M the same year. Why do startups have such big valuations?
The answer is: cash flow. It is different between high-growth startups and low-growth businesses. Startups would usually be profitable in the future. Startup’s main metric is growth. [1]
