The Moviepass or VC Economy?
Ian Bezek rips the ubiquitous Moviepass (HMNY) economy and Sillycon Valley VC business model...
Poster child? Yesterday, Twitter joined the SP500 as the social media messaging platform replaced Bayer's new acquisition, Monsanto. So what's the big deal?
Companies are supposed to have four straight quarters of positive profits before joining the SP500 index. In April, Twitter reported only its 2nd consecutive profitable quarter after 16 straight quarters of losses. I guess they will let anyone in these daze.
But it gets better... between 2007-2011 Twitter VC funding totaled 755M; 2010-2017 net income totaled negative (2.6B). In late 2016, Twitter laid off 10% of it's staff. Meanwhile, the stock is $37.92 with a current market cap of $29.6B. PE ratio a paltry 1894 to 1; (SP500 avg 20.5). Guess I'm just too Old School?
...unfortunately, investing in real economic endeavor has seemingly become a thing of the past.
The arresting of transaction velocity and economic growth resulting from the diversion and perversion of capital to non PCE or non GDP activities (transfer payments, money shuffling, financialism, asset speculation) is bad enough.
When augmented by the (uber, airbnb) gig and VC economy, this new age crapitalism is the antithesis of Houseman's rejoinder viz. making money the old fashioned way... earning it.
For crying out loud, what's next? Can one get a happy ending without finishing outside in this gig and VC economy? Only if one subscribes for $200 a month to Penis Envy?
Penis Envy growth equity provided by Wee Willie Winky Sausages; Series A, B and C term sheets provided by renowned Sillycon Valley VC firm - Hee, Pulzit and Getzoff.
"Hint: an unlimited use pass to a buffet restaurant would also be a terrible business model."The Nattering One muses... No kidding. Unlimited movies for $10 a month? Personally I prefer Hooch's version of this business model. After one movie your probably done for the evening. After one drink, your probably going to have another, perhaps even at another bar. Just sayin.
"The fall of MoviePass alone would hardly be a big story. But it serves as an allegory for the much broader VC-funded economy that we're currently seeing. Symptoms of that, as Roose alludes to, are ever-increasing numbers of IPOs that lose money, and venture capital firms throwing money at increasingly bizarre ventures that hope to "scale" while losing increasing sums of money."HMNY is just an allegory for the new "economy"? So true. How anyone could think these ventures are based on sound business models OR are sound investment vehicles OR the stock is a value at any price, is beyond me. There must be too much foolish money chasing yield?
Poster child? Yesterday, Twitter joined the SP500 as the social media messaging platform replaced Bayer's new acquisition, Monsanto. So what's the big deal?
Companies are supposed to have four straight quarters of positive profits before joining the SP500 index. In April, Twitter reported only its 2nd consecutive profitable quarter after 16 straight quarters of losses. I guess they will let anyone in these daze.
But it gets better... between 2007-2011 Twitter VC funding totaled 755M; 2010-2017 net income totaled negative (2.6B). In late 2016, Twitter laid off 10% of it's staff. Meanwhile, the stock is $37.92 with a current market cap of $29.6B. PE ratio a paltry 1894 to 1; (SP500 avg 20.5). Guess I'm just too Old School?
"Each [VC funded unicorn] wants to "disrupt" something - and they are in fact doing that, if only briefly. But it has real consequences for the economy. For one, traditional businesses that focused on stuff like making profits and taking care of their employees are being squeezed by here today, gone tomorrow companies setting their VC-backers' money on fire."Cogent. This emasculated two legged dog of a service based twittering economy is anything but robust or durable. Speaking of Old School, as very few (including investors) want to do this anymore...
...unfortunately, investing in real economic endeavor has seemingly become a thing of the past.
The arresting of transaction velocity and economic growth resulting from the diversion and perversion of capital to non PCE or non GDP activities (transfer payments, money shuffling, financialism, asset speculation) is bad enough.
When augmented by the (uber, airbnb) gig and VC economy, this new age crapitalism is the antithesis of Houseman's rejoinder viz. making money the old fashioned way... earning it.
"Nowadays, a smart consumer can rent a below-market apartment room, get a meal kit shipped there well below cost, and after eating, take a VC-subsidized Uber or scooter to the bar to get an artificially cheap drink - and, until MoviePass runs out of money - finish off the night with a bargain cinema ticket. What a time to be alive!"Thanking Mr. Bezek for my ROFPIMPLMAO of the week. How do you follow that up? After the movie, hit a Massage Envy where $60 gets you unlimited massages at $40 per hour?
For crying out loud, what's next? Can one get a happy ending without finishing outside in this gig and VC economy? Only if one subscribes for $200 a month to Penis Envy?
Penis Envy growth equity provided by Wee Willie Winky Sausages; Series A, B and C term sheets provided by renowned Sillycon Valley VC firm - Hee, Pulzit and Getzoff.
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