Facebook has had a very hard time truly monetizing its user base. It’s one Next Big Thing away from not existing. I know a lot of people who are only on Facebook because everyone else is. On top of that, the kids aren’t really into Facebook. Too many grown ups. I actually had no idea they were profitable though! But yeah, FB went public once Zuck knew there was little exponential growth opportunity left; he sold out at the peak.
Amazon has to deal with tiny margins because ultimately they compete with Walmart and Home Depot and other stores where you can buy the same products.
IBM of course blew their opportunity in the 80s to be a true juggernaut.
Of course there is certainly some froth in that BABA price right now. It’s priced too high for long term investors, so that’s traders playing with each other and dumb money hype buyers who will be left holding the bag.
