[dpcheng2003]

I'm confused by this comment. Doesn't Box sell an actual product that actual customers pay for? That's revenue.

Now if you're referring to profit, then there's enough precedence of (technology) companies choosing to invest in operations over generating a profit for growth. Amazon is barely profitable; Twitter still isn't. There's even financial engineering reasons to run a deficit. Why pay taxes when you can re-invest in your company's growth and use the carried losses as a future tax shield? Unless you assume Box and comparable companies are running a Ponzi-like scheme, which I don't think you are.

I think we can agree that investors at large firms who invest in IPOs like Fidelity and T.Rowe Price are not idiots. They use the information that is available to them and make a determination on valuation. If they make an investment in the IPO, their investment thesis is that this stock will go up (some companies do flip at IPO but it's a small minority. Source: I used to price IPOs for a living).

The market isn't a homogenous mass. It's filled with thousands of opinion-makers like you. Your opinion is entirely valid but it's weighed against the opinions of thousands of others who can shape Box's valuation. And that weighted opinion says Box was worth X six weeks ago, and now worth Y.