Comment by skippyfish

With respect, the way you talk about corrections makes me suspect you weren't working in tech in the US at the turn of the century.

A "correction" in this model isn't a reasoned and gradual re-evaluation of the market cap of every company. It's a broad pullback where people panic and no one wants to be left holding the bag. Money shifts into other assets for years and tech employment, incomes, and the availability of funding takes a big hit.

As to your comment about profitability... every unprofitable company is on a path to be profitable. Some even get there.

Plus, look at it this way: Kellogg's is a profitable company and a part of almost every person's life. Does this make them worth trillions of dollars? No, they just provide boring, commodity products, their valuation is basically a low multiple of the assets they hold and the revenues they bring. There's a future where OpenAI or Anthropic are more powerful than all the world's governments combined, but also a future where they're Kellog's.