How can investors justify these high valuations

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Reference no: EM13810250

Airbnb recently sold securities at a price that indicated a company value of over $25 Billion Dollars.Other recent startups such as Uber and Alibaba have had similar sky-high valuations. Given that these companies don’t pay any dividends and may not be hugely profitable, how can investors justify these high valuations? Do you think these valuations are justified in most cases?

Reference no: EM13810250

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