> if you have healthy positive cash flow you have much better mechanisms available to fund capital investment other than selling shares. Eg issue a bond against that healthy cash flow.
Is that actually true in 2025? Presumably you have to make coupon payments on a bond(?), but shares are free. Companies like Meta have shown you can issue shares that don't come with voting rights and people will buy them, and meme stocks like GME have demonstrated the effectiveness of churning out as many shares as the market will bear.
Agree it’s not the fashionable thing. There’s a line from The Big Short of “This is Wall Street Dr Bury, if you offer us free money we’re going to take it.”
These companies are behaving the same way. Folks are willing to throw endless money into the present pit so on the one hand I can’t blame them for taking it.
Reality is though that when the hype wears off it’s only throwing more gasoline on the fire and building a bigger pool of investors that’s will become increasingly desperate to salvage returns. History says time and time again that story doesn’t end well and that’s why the voices mumbling “bubble” under their breath are getting louder every day.