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I'm not sure that's the case. The markets aren't very keen on missing profit goals, but are very understanding of intentionally not being profitable while you
by monocasa 5y ago
I'm not sure that's the case. The markets aren't very keen on missing profit goals, but are very understanding of intentionally not being profitable while you use revenue to invest hard in the business. For instance Amazon has famously not had a focus on yearly profits and regularly has negative profit. The markets are more than accepting of this because they continue to grow and it's information that the market had ahead of time rather than being an excuse for missed goals.
The markets more want you to be honest in your 10-k and S-1 than strictly require short term profits.