The 21st Century Tech Ecosystem
There is a similar problem in today’s equity markets that companies from old industries don’t have access to free money as their stock prices don’t soar, and they can’t perpetuate fantasies: they are stuck in the real world. This is a significant difference between tech companies and older industrial companies. For tech companies, only sales growth matters. Profits or losses don’t matter, until someday — like in a panic — they do. In the real-world part of the ecosystem, both revenues and profits matter.