3 ms·

I think this point would be helped with some examples.

• creato 4y ago
  Amazon
• WJW 4y ago
  - Any form of R&D spending. Biotech companies are an extreme case of this, many making no money at all for years until they get FDA approval or go bankrupt. A lot of companies will invest in new development of new machines in order to gain an edge in the long run. - Any form of expansion into new markets. Will take a lot of cash to get started and may take years before it becomes successful. - Most marketing for brands that you already know, to keep them "top of mind". Nobody needs ads to know that Coca Cola exists, but they still spend a ton on marketing to maintain their brand image and make sure that people hear about them regularly.
  • kritiko 4y ago
    I said this in another comment, but the gp is talking about stock price, not profits. Your examples seem to refer to P&L.
    • sokoloff 4y ago
      I think that stock price and profits have a relationship with a positive coefficient over a long time horizon.