Eli5: I saw that Uber is still not making money, how is that possible, they have a lot of people working for them, worldwide known and also if they dont make any money how are they still alive?
In: Economics
stock market and valuations are like a MLM scheme. you invest and hype up enough for other mopes to start investing. then you either cash out or hold in till a lot of other mopes join and drive the price high.
Investors see uber as an essential service (similar to google, amazon or facebook, synonymous with search and social media) that will dominate the world for decades to come. So even if Uber is not making any money now, it is still cheaper to invest now than when it will start making profit and the stock price really shoots up.
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