Over all, 76 percent of the companies that went public last year were unprofitable on a per-share basis in the year leading up to their initial offerings...That was the largest number since the peak of the dot-com boom in 2000, when 81 percent of newly public companies were unprofitable. Of the 15 technology companies that have gone public so far in 2018, only three had positive earnings per share in the preceding year...
It used to be that in order to survive, businesses had to sell goods or services above cost. But that model is so 20th century. The new way to make it in business is to spend big, grow fast and use Kilimanjaro-size piles of investor cash to subsidize your losses, with a plan to become profitable somewhere down the road.
Submitted May 17, 2018 at 06:44AM by andthenisawtheblood https://ift.tt/2k34UwE
