The world is completely rethinking the assumptions that have been underpinning high-growth companies, and this is having severe implications for their market valuations.
The best measure of this change in market sentiment is the performance this month of Tesla and Afterpay.
Tesla is the high-growth proxy in the United States, while Afterpay fills a similar role in Australia.
But this month Tesla has plunged in value by a quarter and lost $US22 billion ($28 billion) in market capitalisation. Afterpay has also fallen in value by about a quarter and lost $10 billion in market value.
This is being driven by investors revisiting various assumptions, including total addressable markets, likely growth in market shares, …
Read the full article at: https://www.afr.com/chanticleer/local-fundies-dodge-greensill-insolvency-20210304-p577vx