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>Every company at this stage loses money The company is ten years old. I would have to imagine almost zero companies lose money ten years in because they liter
by selectodude 5y ago
>Every company at this stage loses money
The company is ten years old. I would have to imagine almost zero companies lose money ten years in because they literally do not exist anymore.
- paxys 5y agoAverage time to IPO for tech companies is 7-8 years, so ten years without a profit for a VC-backed company is not at all unusual. Palantir is coming up on 20.
- selectodude 5y ago>Palantir is coming up on 20. Palantir is a dumb shitty company that will file for bankruptcy. Unfortunately the VCs have already dumped it on to the dopes on Wall Street bets.
- captn3m0 5y agohttps://www.macroaxis.com/invest/ratio/PLTR/Probability-Of-Bankruptcy https://www.macroaxis.com/invest/ratio/PLTR/Probability-Of-B... says Current Palantir Technologies Probability Of Bankruptcy = 24%
- jpgvm 5y agoThat analysis seems to be full of shit. When plugging in companies with much better financials than PLTR I end up with higher % of bankruptcy.
- onemiketwelve 5y agoThen short it for free money
- nIHOPp6MQw0f5ut 5y ago"Markets can remain irrational for longer than you can remain solvent"
- selectodude 5y agoShorted it down from $40 to $30. Bought a watch with my proceeds.
- mrweasel 5y agoThere’s a ton of companies which exists solely to burn other peoples cash. I think VC funding makes IPOs a bit more confusing. It makes sense to IPO, if you need to money to boost your business. Duolingo needs money to update their app, so they can use the IPO to fund it. The problem is that if you’re VC funded it now looks like the VCs have lost faith in the company. They paid for the bill for ten years and now they won’t help push the company into profitability? That makes an IPO look like an exist strategy.
- shapefrog 5y ago> That makes an IPO look like an exit strategy. Every IPO is an exit strategy or a refusal to run a balanced budget. If you have cash flow you can invest for free and compound the growth internally. If you have responsible financial management you can tap the bond markets for basically free. VC's want a 10 bagger - they have had it and more - is Duolingo going to be valued at $65B in a couple of years? I doubt it.
- patentatt 5y agoI think it was a typo, but I agree that the IPO is their “exist” strategy as in the purpose of the companies existence is to IPO, lol.
- missedthecue 5y agoThe IRS tells small business owners that it's a hobby if they aren't profitable by year three.
- fma 5y agoI'd guess...this is just a way for the VCs to exit and pass the bag to someone else.