tech-bubble

The Profitless Prosperity Sector Will Collapse…

Ever since Amazon came to dominate internet retailing; there has been a mantra that profits are irrelevant (in the short to medium term) if you can rapidly gain market share. In certain sectors with massive addressable markets, this may be true, but how many billion-dollar dog-walking apps does the world need? How many supposedly ‘disruptive’ industries are simply taking a current industry, adding a bit of marketing flair, maybe an app to the front end and then massively subsidizing users to gain market share, generating explosive revenue growth along the way. If you give a product away for dramatically less than your cost, of course people will migrate to your product.

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