Net profit can't be used as a measure of both "funding" and "value generation" while saying that a company is "overfunded" because it doesn't provide enough "value". Come back to your senses.
Net profit can't be used as a measure of both "funding" and "value generation" while saying that a company is "overfunded" because it doesn't provide enough "value". Come back to your senses.
I'm genuinely not sure if you're not understanding, or deliberately ignoring my point.
I'll assume the former and try again. Maybe you didn't realize I'm not the person you originally replied to?
If a company is profitable, they have funds. The funds generated by the profits, can be used to fund additional internal projects. If the bucket of funds from profits gets ridiculously large, then it may begin to be used for vanity projects, like gutting an AI company, or building a gold statue of the founder. It seems reasonable to call companies spending on mostly-useless excesses "overfunded".
I'm not misunderstanding anything. It's just that the idea of a massively profitable company being labeled "over-funded" when excess profit is used in a way that you find disagreeable is stupid. It doesn't matter how well they allocate their revenue.
Stop looking at the entire world through the eyes of VC, because it doesn't work.
You're not funding google by paying for youtube, you're buying a service.
You didn't "overfund" your pizza shop that hired a stripper for friday night vibes, and neither did 99.99% of customers that paid google for their service offerings.
You just bought a pizza. Put down the VC podcasts
Gotcha, you're just being mean. You've got a bone to pick with VCs, I guess, so you've declared I listen to VC podcasts, see the world like one, and am using a stupid idiom.
That's fine. I'm going to continue referring to corporations that blow lots of money on random intra-industry dick measuring matches because they can as "overfunded", and you can continue expressing your opinion to anyone who will listen that this one person on the internet used an idiom that you think is dumb because it implies something other than "that person profited, therefore they did something right and therefore whatever they do with that money is correct and intelligent and never ever wasteful or dumb."