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You said $319.5 million revenue, and the other poster said $6.8 million profit. Which is right? Edit: Ok I get it. Revenue vs Profit. Of course. Speaking as a
by sqldba 11y ago
You said $319.5 million revenue, and the other poster said $6.8 million profit. Which is right?
Edit: Ok I get it. Revenue vs Profit. Of course.
Speaking as a non-stockmarkety person: comparing the valuation with profit it looks like a much worse deal and who would run a company for 2% profit let alone buy a part in one?
- hbhakhra 11y agoAccording to the article, $319.5 million was revenue and $6 million was profit.
- ghshephard 11y agoIt's deceptive to try and calculate the valuation of a company, particularly a growing company, based on it's profit. People who manage those companies have two options - stop investing in growth, and customer acquisition, and collect profits off a smaller base of revenue, or, ramp up the growth, increase revenue, and then later collects profits off a much bigger base of revenue. As long as the company is well managed, and the growth opportunities will (eventually) become profitable - the better long term strategy is to invest in growth, and future revenues/profit, and not cut costs and try and collect profit on todays revenue.
- Bjartr 11y ago>who would run a company for 2% profit let alone buy a part in one? People who think putting that revenue back into the business today will result in even more revenue tomorrow. Money they take in and spend on making the company better isn't counted as profit, just like how paying the costs of accruing that revenue lowers the profit.
- pbreit 11y agoIf you know how to turn $1 in to $2, you should keep investing those $1s.
- stock_toaster 11y ago> who would run a company for 2% profit let alone buy a part in one? Amazon is an example of a company with large revenues and generally comparatively small (or zero) profits.