Nov. 14 at 3:46 PM
$TERN
Terns Pharmaceuticals (TERN) is sitting at roughly a
$1.9 billion market cap at around
$22/share. Meanwhile, JetBlue — a company that actually exists in the real economy — also trades around a
$1.9 billion valuation. The difference? JetBlue generated about
$11.6 billion in revenue last year and posted
$734 million in operating income while flying millions of passengers and managing a massive business with real assets, employees, and operations.
Terns? No commercial products. No recurring revenue. A net loss of around –
$94 million. The entire valuation is based on projected success, not actual performance.
Same market cap — one runs an airline, the other runs on optimism.
