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"Reliable business" is a double edged sword in this case because reliable also means predictable. A lot of blue chip companies get their high valuation because
by volaski 11y ago
"Reliable business" is a double edged sword in this case because reliable also means predictable. A lot of blue chip companies get their high valuation because the public can see the potential but not completely so. Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money (at least for the next couple of years assuming that nothing surprising will happen)
- 7Figures2Commas 11y ago> Whereas companies like Splunk or Hortonworks it's pretty much predictable how they will keep making money... Huh? Neither Splunk nor Hortonworks are profitable.
- volaski 11y agoI guess i should have been clear. I meant "making money" as in having a business model. Being profitable and having a business model are two different things. We can ask Amazon
- adventured 11y agoOk, so let's ask Amazon: they are both profitable and have a business model (further, for years running now, they've been able to demonstrate profitability whenever they feel like it to satisfy Wall Street worries). Their retail business has always had low margins, no different than Walmart by comparison.