Leaving the Enchanted Forest Is Scary

Here are two stereotypes:

Of course these stereotypes are exaggerated. But if you think that they are even approximately true, what should you think about the wave of initial public offerings coming from big famous money-losing technology companies? As long as they are in the Enchanted Forest of the Unicorns, big private tech companies can raise limitless amounts of money from venture capitalists who are happy to subsidize their losses as long as they keep growing. Once they go public, they have to start meeting quarterly earnings targets and plowing money into stock buybacks. Seems like a big change!