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Another important distinction is that a company like Airbnb could be profitable overnight if it wanted to. It is choosing not to.
by TedShiller 6y ago
Another important distinction is that a company like Airbnb could be profitable overnight if it wanted to. It is choosing not to.
- raesene9 6y agoI've heard this statement made many times about start-ups. The problem is often that, in changing their economics to generate a profit, they could allow competitors to take all their market share. In the case of AirBnB with their $93b market cap to get a P/E of say 35, they would need to generate $2.6b in profit, so could they do that and not crater their market?
- TedShiller 6y agoYou have a good point. Still, many other hyped internet companies couldn’t be profitable even if they wanted to.