stock market crash

[AtW]

Lyft got more sense than cryptotulips

[greenlake]

Lyft got more sense than cryptotulips

Introducing CryptoTulips: Collectible, tradable tulips on the Ethereum blockchain.

[scooterscot]

Lyft got more sense than cryptotulips

Even not for profit organisations make more profit than Lyft.

[TheGreenBastard]

Amazon’s epic 20-year run as a public company, explained in five charts - Recode

[scooterscot]

None of those charts show you the losses Amazon made in the early years. Loss after loss undercutting small and local business. It was a deliberate tactic that paid off handsomely. Once the business was won prices were moved up.

Many other businesses have / are trying to copy this model. Uber, Tesla, you'd be surprised the number of businesses on the S&P 500 / Nasdaq that are loss making. Year after year they make no profit. You might argue, well they'll turn around some day. Electric cars are coming etc. That may well be the case but where is the money coming from?

Unlike Apple, these loss making business are about to crash the market in a way we've not seen before. You can't value a business in the 10's of billions yet fail to make $1 in profit. That's insane. The investors backing these businesses will have a lightbulb moment soon enough.

[scooterscot]

Lyft losses grow ahead of $25bn flotation

Utter madness. Compare this IPO when facebook launched, generating $400m in profit, what am I taking about... you can't compare them.

exactly - The Uber IPO is nothing more than a glorified exit scam for earlier investors.

Magical Thinking About Unicorn IPOs

"When all these supersmart backers of the best startups want to sell out, do you want to be on the other side of the trade?"

[DimPrawn]

exactly

Magical Thinking About Unicorn IPOs

"When all these supersmart backers of the best startups want to sell out, do you want to be on the other side of the trade?"

Wot no squggly lines?

[scooterscot]

joining the dots is more my thing

[stonehenge]

This sort of madness often heightens towards the end of the business cycle. Same thing happened in the late 80s with crazy M&A, LBOs, junk bonds. Ditto in the late 90s with dotcom.

Usually ends in tears with the suckers left holding the worthless paper.

[scooterscot]

2 year bonds are now paying out more than 10 year bonds

This consequence is referred to as the yield curve inversion, which has been a continuous successful indicator of a coming recession. In previous recessions central banks lowered interest rates to compensate. But what if rates are already at zero?! Buckle the feck up people - you've been warned!