I have been highly critical of the Profitless Prosperity Sector (a.k.a the Ponzi Sector). The sector consists of companies that are effectively Ponzi Schemes; in that they have accelerating losses but show blistering growth rates in order to attract new capital. This all worked fine when companies kept their free floats small enough to be manipulated like Tesla (TSLA – USA) or stayed private and used artificial transactions to mark-up equity values to loot various Middle Eastern princelings and other pockets of dumb money, like Softbank (9984 – Japan).
The LYFT IPO showed the first cracks in this scheme. Now with the UBER IPO, the Ponzi Sector may finally be peaking.
http://adventuresincapitalism.com/2019/05/13/gonna-need-bag-holders/
