
@DKThomp Amazon was not profitable when it went public in 1997.
Positive users praise the market for accurately pricing future fundamentals of trillion-dollar AI IPOs like Anthropic and OpenAI, while negative users criticize zero-earnings valuations as unsustainable and damaging to profitability.
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@DKThomp Amazon was not profitable when it went public in 1997.

correct! for a market cap of less than half a billion dollars

@DKThomp In hindsight, we can now say AMZN’s market cap should have been dramatically higher.

@rbcalvin @DKThomp Amazon IPOed at a $437M market cap. Juuust a bit different.

@DKThomp Four trillion in venture capital, three companies, zero earnings. if they list at that valuation, profitability dies. the venture model beat the public market model

@rbcalvin @DKThomp

@DKThomp Fundamentals today are based on the probability of future fundamentals. I believe the market has been amazing at sussing out the future fundamentals of businesses and pricing accordingly (Amzn, aapl, goog, tsla…etc)

@GarrittyOf @DKThomp I don't think we can say any company's market cap should have been higher or lower in retrospect. The market's expectation of future profits *must* incorporate uncertainty.