This morning, I read a news article on Bloomberg about ride-hailing and delivery platform Grab. The stock price plunged 37% after the company reported wider losses in its fourth quarter [news].
I can never understand why folks will invest in unicorns that burn cash by the millions (this applies to Sea too). Companies are meant to be profitable entities. A free capitalist market ought to channel money to those that can generate positive returns.
Perhaps that is why I can never be a technologist. Haha. I don't foresee how Grab or Sea can turn the situation around, when the barrier of entry is low and competitors are aplenty. Every startup seems to believe they can become the dominant player in the market.
The massive share price plunge indicates speculators are controlling the company shares, not investors. And when you don't have a steady investor base, the stock is bound to be wrapped up in volatility.
I can never understand why folks will invest in unicorns that burn cash by the millions (this applies to Sea too). Companies are meant to be profitable entities. A free capitalist market ought to channel money to those that can generate positive returns.
Perhaps that is why I can never be a technologist. Haha. I don't foresee how Grab or Sea can turn the situation around, when the barrier of entry is low and competitors are aplenty. Every startup seems to believe they can become the dominant player in the market.
The massive share price plunge indicates speculators are controlling the company shares, not investors. And when you don't have a steady investor base, the stock is bound to be wrapped up in volatility.
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