They say the stock market is frothy, that tech stock prices are not justified by earnings. While that may be true, the revenue sources of the tech industries are even more frothy!
Growthfroth, n.: Unsustainable revenue increases generated by forcing poorly understood products and services into a credulous market
“Are our members actually getting what they came here for? That question stopped being asked for too long. We were chasing growth. When you chase growth, you get it, but then you lose it.” Whitney Wolfe Herd, founder of both Tinder and Bumble dating apps
The tech industries are forcing sessions, clicks, anything that will let them gather information about users’ habits, beliefs, relationships and vulnerabilities. We call the whole thing “Silibandia” – a global nation consisting of Silicon Valley plus the broadband and media industries plus their feeders in the dark web, botnet building, data brokerage, private equity, venture capital and cybersecurity industries.
Both consumer and business markets are starting to catch on to the fact that they’ve been seen by the tech industries as chumps. Marks. Suckers.
But things are changing.
Consumers are starting to buy Linux laptops and using reliable, free software that doesn’t spy on them.
Businesses have historically been targets of FUD marketing – Fear, Uncertainty and Doubt, playing on their anxiety about unfamiliarity with computers. But that has changed. Now the only remaining market that’s vulnerable to FUD marketing is cybersecurity – because of the inherent fear around that subject.
Cybersecurity is LBI: a Lip Balm industry. Makers of lip balm have been sued for selling a product that deliberately worsens chapped lips, in order to build dependency.
Their addictive lip balm is CTBG – security “solutions” (non solutions) based on Catch-The-Bad-Guys assumptions. Experienced managers know that security in a physical office building isn’t achieved by asking the lobby receptionist to identify the bad guys – right? Instead, they ask the receptionist to get some ID from visitors, and making sure everyone going past the lobby has an employee or visitor badge. That’s the ABE set of assumptions – Accountability Based Environments.
Both consumers and business decision makers are getting smarter about technology. Going forward, platforms will be build on much less costly accountability methods, which, by the way, also answer the concerns of those who fear that artificial general intelligence will go out of control.
Don’t get caught with your hard earned investment capital tied up in Growthfroth tech companies. Get out before this next bubble pops and leaves a frothy mess all over your portfolio.
Frothy tech is about to yield to Authenticity Enabled tech, where real value is provided to customers and where sustainable profits replace visions of trillion dollar IPOs.
Learn more…