Investors compare earnings quality across all sectors. Very very few companies trade at 8x revenue. Tech companies typically get a premium because they usually are quasi monopolies (See MSFT at 4x EV&#x2F;Rev) and have solid growth rates. If you&#x27;re not adding users, it means your growth is in question; how do you then justify an 8x multiple?<p>For reference most run of the mill companies trade somewhere around 1x revenue.<p>Why would their costs go down rapidly; stock based comp? Typically stock based comp has a strike price lower than the current share price. So they save but maybe not as much as the stock price collapse might suggest. Also, they&#x27;d still be unprofitable. A lot of professional investors feel they should cut costs, focus on periscope, and start making money off the new organisations that make money off of having access to information now. Things like charging the times and the journal for a live feed from ground action in Syria.