Concept Company

A concept company is a firm that is considered the new “It” company.

The firm likely doesn’t have free cash flow or pay a dividend. It also likely lacks any form of real earnings, cash, or GAAP. The value of the company will then be based on the level of coolness that the new technology will instill in its constituent market.

Elon Musk’s “The Boring Company” was a concept company in 2018. The firm’s goal was to dig tunnels under big cities, putting down tubes in which people travel, immune to traffic above. No revenues today; just a dream.