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Those companies are not immune from cutting cash burn to protect their stock price.
by unicornmama 4y ago
Those companies are not immune from cutting cash burn to protect their stock price.
- riku_iki 4y agoThey are all have very positive cash flow, so it is unlikely they will be cutting significant amount of fat.
- unicornmama 4y agoThey are not valued on a binary positive or negative cashfows. They are valued at NPV of future cashflows. You can justify a high burn rate with the expectation of earnings in the distant future. But as inflation/rfr goes up then then investors value money today more and more and money in the future less and less.