Parmi Olson

It does feel like this is a gradual shift and we're seeing it continue to happen.

And there's definitely going to be some kind of questioning in the market about whether they deserve these premium valuations when they are spending quite so much.

really intrigues me about this is this kind of almost an identity shift for these companies.

Because if you think about why they're so valuable in the first place, it's that they're asset light, right?

Like they have a lot of staff and they maybe have some data centers, but then they build this incredibly valuable software and they have incredible margins.

Now they're becoming these kind of capital intensive infrastructure operators.

They're almost like telecoms now.

What really intrigues me about this is this kind of almost an identity shift for these companies.

Because if you think about why they're so valuable in the first place, it's that they're asset light, right?

Like they have a lot of staff and they maybe have some data centers, but then they build this incredibly valuable software and they have incredible margins.

Now they're becoming these kind of capital intensive infrastructure operators.

They're almost like telecoms now with all this CapEx spending.

So it does feel like this is a gradual shift and we're seeing it continue to happen.

And there's definitely going to be some kind of questioning in the market about whether they deserve these premium valuations when they are spending quite so much.