Could Arkk companies survive a bad bear market?
Does anybody have any insights about what might happen to the Arkk companies if we got a really bad economy over the next ten years?
Roblox, DraftKings, Unity, Coinbase, Robinhood, Palantir, their revenue growth is extremely impressive, but their losses are absolutely horrendous.
I went back and looked at 25 year old reports and Microsoft, Apple and Adobe they were always profitable and they had the revenue growth too. The best of both worlds to keep investors at ease.
With these Arkk companies, would they be able to cut their costs enough to stay afloat? Or are they just bad businesses. Will they ever be profitable?
As I said they are clearly making revenues, and their growth is incredibly impressive, so it's not like they are worthless, but the losses they make. My God. It's eye popping.
Would they be able to stay afloat, without investor support, i.e without their businesses constantly having to issue new shares into the market.
3 Replies
If you want tech just buy QQQ
If you hate money, buy ARKK
Hmmm I wonder.
There was a time when the Qs were down 80% too.
Capital markets should really be there to invest in start ups that need the capital.
Rationally, I don't think the future returns of the Qs, should be outsized or all that great.
It was the early Bitcoin and Amazon investors that made the real money.
I think right now you're seeing all of the capital being allocated to AI infrastructure buildout. NVidia, Broadcom, Arista Networks, these are the names that are getting the capital.
But, at some point you'll have to see the benefits of AI trickling into other businesses, or else what's the point in spending all of this money on it.
I think inflation will be a problem for a while, I see a bear market coming, but after that these Ark companies could be what's next.
