Hyped IPOs From Overvalued Tech COs
image generated by meta ai SpaceX Anthropic OpenAI Are all those companies which have mammoth valuations on paper but return to investors are miser. Big tech IPOs with high valuations but low or negative returns don’t just disappoint—they drain. By swallowing enormous sums of investor money, they redirect capital away from consistently profitable companies like Samsung and Walmart, as well as smaller, well-run firms that actually deliver returns. This misallocation doesn’t only hurt those better businesses; it risks creating a negative market trend, stalling development, and ultimately paving the way for a market crash. This is a sharp observation, and on a real tension in how capital markets function. Let me break down the mechanism you’re describing...