Don't Believe the Hype: Really good Ideas not justification for sky high valuations

(Then again, it's not like I am a successful investor.  But yes, I would sell all these stocks short, were I in the position to do so.)

WRT the latest failure of an IPO for WeWork, a brief comment:

1.  WeWork's great idea was the recognition that there are many individual and small group entrepreneurs that need office space, but aren't able to meet the traditional lease terms of typical office building owners and managers, who lease space in 5-year increments and have all kinds of other requirements.  Plus they need less space than the typical tenant.

BWeWork added placemaking elements to increase patronage, make the places cool, improve retention and get lots of hype.

But basically, they are an office space owner/manager.  And there are other companies, like Regus, that do the same thing, but without the hype or coolness factor.

But the WeWork model is risky because while they have to commit to owning/leasing space for many years--=the financial obligations the firm has are greater than $40 billion !!!!!!!--their tenants are more short term, and it's not clear that they will stay.

2.  The brilliant thing about Uber (and Lyft) is the app, which simplifies ordering a "taxi" and paying for the trip. And it's not market specific, it works "anywhere," making use even more attractive to customers.

From a financial standpoint, Uber added another "innovation," offloading the expense of the vehicle and driving it to people who for one reason or another needed itinerant work (cf. "the precariat).  While some people can make an acceptable living providing transportation this way, most can't.

Even so, Uber built market share by subsidizing the cost of the ride and continually reducing the amount of money paid to drivers.  And by "duping" regulators into believing that somehow an app-based taxi service shouldn't be regulated as a taxi service.

From a valuation standpoint, it's not like there's unlimited demand for taxi rides.

3.  Same with micromobility services like Bird or Ofo/Mobike.  E-scooters (and briefly, dockless bike share) are a great addition to the sustainable mobility platform.  Whether or not they are a viable business for a for profit firm is an entirely different question.

4.  Tesla is an automaker.  Their great idea was making sexy electric-powered sportcars.  But, they aren't going to have "software-like" margins, but the low margins of a manufacturer.  Even though they do smart things to save money and provide better service, like corporate stores instead of dealers, regular "OS" updates through software, and have created high-speed charging systems.

They may be able to make money as a specialty automaker making expensive sports cars, but not as a "mass manufacturer."

Besides the fact that as long as gasoline is relatively cheap, and the infrastructure supporting electric vehicles is developing, electric vehicles are more expensive than gasoline powered cars.  They get a tax credit as a way to help develop the industry.

But the current administration doesn't want to shift automobiles to electric charging because their policy is to promote oil consumption.