Banks? Are you kidding? The only ones getting fleeced are those with foreskin, not a single bankster amongst them of course. No, this time it hit Masayoshi
I don’t think it’s zirp. There are publicly traded comps that traded at a fraction of these companies. For example Away luggage traded at 10x sales while tumi traded at like 2.
Why should a razor blade company be comped against a hi tech PE company? The original story was, “they don’t have stores so they are more efficient” but now they all do.
i think i might get why the companies had such lofty valuations. You have an industry not really growing with a bunch of incumbents that have 20% market share each and a total market cap of say 10Billion. Some overconfident millenial says, "I can start a company that attracts millienials and i can get 20% of this market (at the expense of the incumbents). The VC's immediately give credit to this douchebag and value his/her company at 1Bn even though it only has 2% share of the market at that time. The VC's must be doing it as a demographics play.
Or e-commerce p/e, aka amazon I use safety razor at home, albeit a very fancy one from Muhler and Japanese feather blades. Otherwise a march 3 when travel. Have you looked at how much Gillette 5 blade razor cost lately? Anything cheaper will have the market. But I don’t know if you want to buy some cheap Chinese razors on eBay.
Why use this Facebook thing when MySpace works just fine!! That's what I say... CAR Avis/Budget earning came out...It has a P/E under 4. Go figure...
Well... it's now official. WeWork files for bankruptcy https://thehill.com/business/4296814-wework-files-for-bankruptcy/