First, the businesses targeting the big market will be collectively overvalued. Second, the marketplace will become more crowded and competitive over time, especially with new entrants being drawn in because of the overvaluations. Thus, while revenue growth in the aggregate may very well match expectations of the market being big, the revenue growth at individual firms will fall below expectations and operating margins will be lower than expected. Third, the aggregate valuation of the sector will eventually decline and some of the entrants will fold, but there will be a few winners, and those
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