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>It's not working. Anyone can spend $1 to make $0.50. That's not what they're doing. Their numbers for 2018 are spending $1 to earn $1.05. Of course, they al
by treis 8y ago
>It's not working. Anyone can spend $1 to make $0.50.
That's not what they're doing. Their numbers for 2018 are spending $1 to earn $1.05. Of course, they also spent $0.80 to tell people about it and another $0.30 in R&D to develop new businesses which puts them firmly in the red. But there's at least a business there that is generating positive cash flow. It's an open question if they can cut R&D/Advertising and/or expand their revenue enough to become profitable.
- chipotle_coyote 8y ago> Their numbers for 2018 are spending $1 to earn $1.05. Of course, they also spent $0.80 to tell people about it and another $0.30 in R&D to develop new businesses which puts them firmly in the red. So their numbers for 2018 aren't spending $1 to make $0.50, they're spending $1 + $0.30 + $.80 = $2.10 to make $1.05, which is, I believe: $1.00 to make $0.50.
- treis 8y agoIf you treat their R&D and advertising as having zero residual value, sure. But that's obviously nonsense.