First, investment pours into companies with users and revenue.
The next stage it's companies with users but no revenue.
The final stage is companies with no revenue and no users.
It's the Minsky-moment updated for the internet age. (first people take out loans they can afford to pay back; then loans where they can only afford to pay the interest; then finally people start taking out loans where they can afford neither the interest nor the principal payments)
Its worth pointing out that due to Sarbanes-Oxley, some of this will not happen on the stock market this time. So if you are just looking at P/E of publicly traded stocks you are going to miss the signs.
The next stage it's companies with users but no revenue.
The final stage is companies with no revenue and no users.
It's the Minsky-moment updated for the internet age. (first people take out loans they can afford to pay back; then loans where they can only afford to pay the interest; then finally people start taking out loans where they can afford neither the interest nor the principal payments)