From time to time someone here reminds us the fate of all the high flying stocks of the dot com bubble. Pets.com, etoys.com, kozmo.com, etc
2020-21 bubble saw similar money burning companies rising to astronomical (based on the fundamentals) levels and crashing hard.
But now those cash burning machines do not have access to free capital. Cannot issue new shares, cannot get loans, cannot attract new long term investors.
PTON. No one buys their bikes anymore so how to achieve profitability?
SPCE. Cannot deliver their promise to fly people to space so how to gerenate renevue?
RIDE. They scale down operations so I guess it will take some time to see a Lordstown EV in the roads
WISH. I guess nobody uses them so how they could achieve success in the future?
There are so many other companies, with terrible balance sheets, negative EBITDA, no access to free money, so inevitably they should bunkrupt or bought by others.
So my question is when will start seeing those Covid darlings, fail?
Maybe this will be a sign that we are closer to the bottom, since no more (scarce) society recourses are wasted on them, we completely forget them and let liquidators do their job.
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