Hmmm, a zero-profit company…
In fact, a loss making company…
Do you get the logic?
People are probably seeing an Amazon.com in the making.
Amazon exists in a highly infrastructure-laden country with systems.
Can we say the same about us?
As of now – no.
Are we on the trajectory?
Sometimes yes, sometimes no. It’s been five steps forward and then three back till now.
What’s all the hype about?
Institutions want to make money during the ride.
Whether the ride culminates into an Amazon.com is irrelevant for institutions.
Public opinion acknowledges the ride.
That’s enough for institutions.
They’ll ride to a height and exit, irrespective of any MAT or what have you.
While exiting, they’ll hive off the hot potato to pig-investors in the secondary market, post IPO.
Hopefully, a valuation is calculable by then. Even the PE ratio needs earnings to spit out a valuation. No earnings means no divisor, and anything divided by zero is not defined.
Keep your wits about you. Follow performance. Follow earnings. Follow bearable debt. If you see all three, a sound management will already be in place. Then, look for value. Lastly, seek a technical entry.
Don’t follow hype blindly.