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The problem is that revenue is not profit. If expenses are greater than revenue and the trends don't show that changing soon (i.e. "default dead") then it is ex
by pilom 10y ago
The problem is that revenue is not profit. If expenses are greater than revenue and the trends don't show that changing soon (i.e. "default dead") then it is extremely hard to justify such a high valuation. There are the employees, the physical infrastructure, the code they've written, the brand name, and maybe the marketing value of the users, but granting a valuation based on consistently negative profit is somewhat silly.
- Xyik 10y agoThat's debatable since many companies like Amazon are able to turn a profit by sacrificing growth. Good point though and this information is also available in quarterly earnings reports. The main argument I was making really is that people should take a look at some numbers before having such strong opinions. I believe last I checked LinkedIn was profitable.
- golfer 10y agoLinkedIn is not profitable. They lose money every quarter. Revenue is around $800-900MM a quarter though.