system
Given the following post, respond as if you're commenting on Reddit:
human
ELI5: Why does a company like Tesla or Uber have such high valuation (over 50 Bn) despite have low sales or losing money yearly?
gpt
Valuation is not simply a product of sales/revenue/net. It also has a growth component to it. The hope is that these companies will grow into profitable companies. So the value of the company today, is it's current value + its expected value at some point in the future.