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This gets tricky. Yes, some loss-making businesses never turn profitable. But others do (i.e. Amazon). And when it comes to real-estate companies, the rather go
by GCA10 7y ago
This gets tricky. Yes, some loss-making businesses never turn profitable. But others do (i.e. Amazon). And when it comes to real-estate companies, the rather goofy U.S. tax rules mean that even quite robust companies will engineer huge depreciation losses when they actually are doing fine.
WeWork might still be way overvalued in the private markets. But it could also be a lot healthier than its reported losses.
- tshanmu 7y agoAFAIK, we work does not own the offices, they rent from another company owned by the CEO probably
- BubRoss 7y agoAmazon reinvested in itself to grow, it was losing money while building into a company worth more.
- ahartmetz 7y agoAND it was relatively easy to see that that was what was really happening, i.e. that they had the the choice to be profitable much earlier.