Reply to post: Re: billion-dollar business that comprises of nothing but others' confidence...

A $4bn biz without a live product just broke the record for the amount paid for a domain name. WTF is going on?

jmch Silver badge

Re: billion-dollar business that comprises of nothing but others' confidence...

Billion-dollar companies are billion-dollar companies because they have billion or high-multimillion-dollar revenue streams, which in turn are based on physical or legal assets whose value is quantifiable. Since they are on the stock exchange, they have to disclose their P&L and balance sheets, as well as any pertinent information such as potential risks, litigation, executive vision of market status etc etc.

Investors can use that information to decide what they think a company is worth, and in that sense it does comprise "nothing but others' confidence that it is worth something". But the belief is (mostly) based on facts not buzzwords.

POST COMMENT House rules

Not a member of The Register? Create a new account here.

  • Enter your comment

  • Add an icon

Anonymous cowards cannot choose their icon

SUBSCRIBE TO OUR WEEKLY TECH NEWSLETTER

Biting the hand that feeds IT © 1998–2019